Sen. Iris Y. Martinez

Filed: 3/31/2014

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 586

2    AMENDMENT NO. ______. Amend Senate Bill 586 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The State Finance Act is amended by adding
5Section 5.855 as follows:
 
6    (30 ILCS 105/5.855 new)
7    Sec. 5.855. The Charter School Facilities Fund.
 
8    Section 10. The School Code is amended by changing Sections
927A-3, 27A-5, 27A-6, 27A-7, 27A-7.5, 27A-7.10, 27A-8, 27A-9,
10and 27A-11 and by adding Section 27A-5.5 as follows:
 
11    (105 ILCS 5/27A-3)
12    Sec. 27A-3. Definitions. For purposes of this Article:
13    "At-risk pupil" means a pupil who, because of physical,
14emotional, socioeconomic, or cultural factors, is less likely

 

 

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1to succeed in a conventional educational environment.
2    "Authorizer" means an entity authorized under this Article
3to review applications, decide whether to approve or reject
4applications, enter into charter contracts with applicants,
5oversee charter schools, and decide whether to renew, not
6renew, or revoke a charter.
7    "Charter funding calculation" means a calculation that
8represents an equal proportion of funds spent on pupils in the
9kindergarten through grade 12 program for which there does not
10exist a separate formula or claim by charter schools. The
11charter funding calculation is determined by totaling all
12expenses of a school district in its educational, operations
13and maintenance, transportation, municipal retirement, and
14rent funds for the current school year, less expenditures not
15applicable to the regular kindergarten through grade 12 program
16(such as early childhood programming or funding required for
17specialty schools), less expenses on community services
18available to all students in the district (such as libraries
19and parks), less revenues collected from student fees from
20parents or rentals, less revenues from State and federal
21sources (such as federal Title I and categorical funds) set
22forth in subsection (b-5) of Section 27A-11 of this Code, less
23district expenses for special education set aside in a separate
24fund and to which charter school pupils can make an equitable
25claim, less district expenses for students with extraordinary
26needs, and less capital expenses.

 

 

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1    "Commission" means the State Charter School Commission
2established under Section 27A-7.5 of this Code.
3    "Local school board" means the duly elected or appointed
4school board or board of education of a public school district,
5including special charter districts and school districts
6located in cities having a population of more than 500,000,
7organized under the laws of this State.
8    "State Board" means the State Board of Education.
9    "Student-based budgeting" means a calculation that uses a
10funding allocation methodology that provides dollars to
11schools on a per-pupil basis based on identified student needs
12or characteristics. The student-based budgeting calculation is
13determined by a portion of the annual school district budget
14using a funding allocation methodology that provides money to
15schools on a per-pupil basis based on identified student needs
16or characteristics. The funding is based on pupil
17characteristics and needs in the school and not on the
18characteristic or type of school. Any funds not distributed
19based on pupil characteristics and needs must be made available
20to charter school pupils on an average cost per pupil. Any
21operating funds excluded must be identified by the school
22district, and an equitable distribution of State and federal
23sources, such as federal Title I and categorical funds, must be
24made as set forth in subsection (b-5) of Section 27A-11 of this
25Code.
26(Source: P.A. 97-152, eff. 7-20-11.)
 

 

 

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1    (105 ILCS 5/27A-5)
2    Sec. 27A-5. Charter school; legal entity; requirements.
3    (a) A charter school shall be a public, nonsectarian,
4nonreligious, non-home based, and non-profit school. A charter
5school shall be organized and operated as a nonprofit
6corporation or other discrete, legal, nonprofit entity
7authorized under the laws of the State of Illinois.
8    (b) A charter school may be established under this Article
9by creating a new school or by converting an existing public
10school or attendance center to charter school status. Beginning
11on the effective date of this amendatory Act of the 93rd
12General Assembly, in all new applications submitted to the
13State Board or a local school board to establish a charter
14school in a city having a population exceeding 500,000,
15operation of the charter school shall be limited to one campus.
16The changes made to this Section by this amendatory Act of the
1793rd General Assembly do not apply to charter schools existing
18or approved on or before the effective date of this amendatory
19Act.
20    (b-5) In this subsection (b-5), "virtual-schooling" means
21the teaching of courses through online methods with online
22instructors, rather than the instructor and student being at
23the same physical location. "Virtual-schooling" includes
24without limitation instruction provided by full-time, online
25virtual schools.

 

 

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1    From April 1, 2013 through April 1, 2014, there is a
2moratorium on the establishment of charter schools with
3virtual-schooling components in school districts other than a
4school district organized under Article 34 of this Code. This
5moratorium does not apply to a charter school with
6virtual-schooling components existing or approved prior to
7April 1, 2013 or to the renewal of the charter of a charter
8school with virtual-schooling components already approved
9prior to April 1, 2013.
10    On or before March 1, 2014, the Commission shall submit to
11the General Assembly a report on the effect of
12virtual-schooling, including without limitation the effect on
13student performance, the costs associated with
14virtual-schooling, and issues with oversight. The report shall
15include policy recommendations for virtual-schooling.
16    (c) A charter school shall be administered and governed by
17its board of directors or other governing body in the manner
18provided in its charter. The governing body of a charter school
19shall be subject to the Freedom of Information Act and the Open
20Meetings Act.
21    (d) A charter school shall comply with all applicable
22health and safety requirements applicable to public schools
23under the laws of the State of Illinois.
24    (e) Except as otherwise provided in the School Code, a
25charter school shall not charge tuition; provided that a
26charter school may charge reasonable fees for textbooks,

 

 

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1instructional materials, and student activities.
2    (f) A charter school shall be responsible for the
3management and operation of its fiscal affairs including, but
4not limited to, the preparation of its budget. An audit of each
5charter school's finances shall be conducted annually by an
6outside, independent contractor retained by the charter
7school. Annually, by December 1, every charter school must
8submit to the State Board a copy of its audit and a copy of the
9Form 990 the charter school filed that year with the federal
10Internal Revenue Service.
11    If applicable, a charter school shall submit to the State
12Board, as part of the charter school's annual reporting, an
13audited financial statement for any for-profit or non-profit
14educational management organization the charter school
15contracts with. If a charter school contracts with an
16educational service provider after the charter school is in
17operation, the authorizer may require that the charter school
18submit a term sheet, pursuant to item (B) of subdivision (16)
19of subsection (a) of Section 27A-7 of this Code, and include
20additional information about the relationship as part of the
21charter school's annual reporting requirements.
22    (g) A charter school shall comply with all provisions of
23this Article, the Illinois Educational Labor Relations Act, and
24its charter. A charter school is exempt from all other State
25laws and regulations in the School Code governing public
26schools and local school board policies, except the following:

 

 

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1        (1) Sections 10-21.9 and 34-18.5 of the School Code
2    regarding criminal history records checks and checks of the
3    Statewide Sex Offender Database and Statewide Murderer and
4    Violent Offender Against Youth Database of applicants for
5    employment;
6        (2) Sections 24-24 and 34-84A of the School Code
7    regarding discipline of students;
8        (3) The Local Governmental and Governmental Employees
9    Tort Immunity Act;
10        (4) Section 108.75 of the General Not For Profit
11    Corporation Act of 1986 regarding indemnification of
12    officers, directors, employees, and agents;
13        (5) The Abused and Neglected Child Reporting Act;
14        (6) The Illinois School Student Records Act;
15        (7) Section 10-17a of the School Code regarding school
16    report cards; and
17        (8) The P-20 Longitudinal Education Data System Act.
18    The change made by Public Act 96-104 to this subsection (g)
19is declaratory of existing law.
20    (h) A charter school may negotiate and contract with a
21school district, the governing body of a State college or
22university or public community college, or any other public or
23for-profit or nonprofit private entity for: (i) the use of a
24school building and grounds or any other real property or
25facilities that the charter school desires to use or convert
26for use as a charter school site, (ii) the operation and

 

 

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1maintenance thereof, and (iii) the provision of any service,
2activity, or undertaking that the charter school is required to
3perform in order to carry out the terms of its charter.
4However, a charter school that is established on or after the
5effective date of this amendatory Act of the 93rd General
6Assembly and that operates in a city having a population
7exceeding 500,000 may not contract with a for-profit entity to
8manage or operate the school during the period that commences
9on the effective date of this amendatory Act of the 93rd
10General Assembly and concludes at the end of the 2004-2005
11school year. Except as provided in subsection (i) of this
12Section, a school district may charge a charter school
13reasonable rent for the use of the district's buildings,
14grounds, and facilities. Any services for which a charter
15school contracts with a school district shall be provided by
16the district at cost. Any services for which a charter school
17contracts with a local school board or with the governing body
18of a State college or university or public community college
19shall be provided by the public entity at cost.
20    (h-5) This State and authorizers shall seek to provide
21equitable access to facilities for charter schools via access
22to unused school district or State facilities. Each school
23district or the State Board, by collecting information from
24each district, shall annually compile, maintain, and publish a
25database of all eligible, unused facilities and establish a
26district process for charter schools to apply for the available

 

 

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1facilities. Charter schools shall have an opportunity to access
2those facilities through lease or purchase. The process
3established shall include input from the relevant community
4before a final lease or sell decision is made.
5    (i) In no event shall a charter school that is established
6by converting an existing school or attendance center to
7charter school status be required to pay rent for space that is
8deemed available, as negotiated and provided in the charter
9agreement, in school district facilities. However, all other
10costs for the operation and maintenance of school district
11facilities that are used by the charter school shall be subject
12to negotiation between the charter school and the local school
13board and shall be set forth in the charter.
14    (j) A charter school may limit student enrollment by age or
15grade level.
16    (k) If the charter school is approved by the Commission,
17then the Commission charter school is its own local education
18agency.
19(Source: P.A. 97-152, eff. 7-20-11; 97-154, eff. 1-1-12;
2097-813, eff. 7-13-12; 98-16, eff. 5-24-13.)
 
21    (105 ILCS 5/27A-5.5 new)
22    Sec. 27A-5.5. Charter School Facilities Fund.
23    (a) The Charter School Facilities Fund is created as a
24special fund in the State treasury. All money in the Fund shall
25be used, subject to appropriation, by the State Board for

 

 

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1credit enhancement for charter schools.
2    (b) Using the amounts appropriated from the Charter School
3Facilities Fund, the State Board shall make and disburse grants
4to eligible nonprofit corporations to carry out the purposes
5set forth in subsection (c) of this Section.
6    (c) The recipient of a grant under subsection (b) of this
7Section shall use the money provided under the grant to carry
8out activities to assist charter schools in:
9        (1) obtaining financing to acquire interests in real
10    property (including by purchase, lease, or donation),
11    including financing to cover planning, development, and
12    other incidental costs;
13        (2) obtaining financing for construction of facilities
14    or the renovation, repair, or alteration of existing
15    property or facilities (including the purchase or
16    replacement of fixtures and equipment), including
17    financing to cover planning, development, and other
18    incidental costs;
19        (3) enhancing the availability of loans, including
20    mortgages, and bonds; and
21        (4) obtaining lease guarantees.
 
22    (105 ILCS 5/27A-6)
23    Sec. 27A-6. Contract contents; applicability of laws and
24regulations.
25    (a) A certified charter shall constitute a binding contract

 

 

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1and agreement between the charter school and a local school
2board under the terms of which the local school board
3authorizes the governing body of the charter school to operate
4the charter school on the terms specified in the contract.
5    (a-5) The charter school and the authorizer shall ensure
6that all charter contracts will be executed within 120 days
7after the charter's approval and at least 30 days before the
8start of school, whichever comes first.
9    (b) Notwithstanding any other provision of this Article,
10the certified charter may not waive or release the charter
11school from the State goals, standards, and assessments
12established pursuant to Section 2-3.64. Beginning with the
132003-2004 school year, the certified charter for a charter
14school operating in a city having a population exceeding
15500,000 shall require the charter school to administer any
16other nationally recognized standardized tests to its students
17that the chartering entity administers to other students, and
18the results on such tests shall be included in the chartering
19entity's assessment reports.
20    (c) Subject to the provisions of subsection (e), a material
21revision to a previously certified contract or a renewal shall
22be made with the approval of both the local school board and
23the governing body of the charter school.
24    (c-5) The proposed contract shall include a provision on
25how both parties will address minor violations of the contract.
26    (d) The proposed contract between the governing body of a

 

 

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1proposed charter school and the local school board as described
2in Section 27A-7 must be submitted to and certified by the
3State Board before it can take effect. If the State Board
4recommends that the proposed contract be modified for
5consistency with this Article before it can be certified, the
6modifications must be consented to by both the governing body
7of the charter school and the local school board, and
8resubmitted to the State Board for its certification. If the
9proposed contract is resubmitted in a form that is not
10consistent with this Article, the State Board may refuse to
11certify the charter.
12    The State Board shall assign a number to each submission or
13resubmission in chronological order of receipt, and shall
14determine whether the proposed contract is consistent with the
15provisions of this Article. If the proposed contract complies,
16the State Board shall so certify.
17    (e) No material revision to a previously certified contract
18or a renewal shall be effective unless and until the State
19Board certifies that the revision or renewal is consistent with
20the provisions of this Article.
21(Source: P.A. 93-3, eff. 4-16-03.)
 
22    (105 ILCS 5/27A-7)
23    Sec. 27A-7. Charter submission.
24    (a) A proposal to establish a charter school shall be
25submitted to the State Board and the local school board in the

 

 

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1form of a proposed contract entered into between the local
2school board and the governing body of a proposed charter
3school. The charter school proposal as submitted to the State
4Board shall include:
5        (1) The name of the proposed charter school, which must
6    include the words "Charter School".
7        (2) The age or grade range, areas of focus, minimum and
8    maximum numbers of pupils to be enrolled in the charter
9    school, and any other admission criteria that would be
10    legal if used by a school district.
11        (3) A description of and address for the physical plant
12    in which the charter school will be located; provided that
13    nothing in the Article shall be deemed to justify delaying
14    or withholding favorable action on or approval of a charter
15    school proposal because the building or buildings in which
16    the charter school is to be located have not been acquired
17    or rented at the time a charter school proposal is
18    submitted or approved or a charter school contract is
19    entered into or submitted for certification or certified,
20    so long as the proposal or submission identifies and names
21    at least 2 sites that are potentially available as a
22    charter school facility by the time the charter school is
23    to open.
24        (4) The mission statement of the charter school, which
25    must be consistent with the General Assembly's declared
26    purposes; provided that nothing in this Article shall be

 

 

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1    construed to require that, in order to receive favorable
2    consideration and approval, a charter school proposal
3    demonstrate unequivocally that the charter school will be
4    able to meet each of those declared purposes, it being the
5    intention of the Charter Schools Law that those purposes be
6    recognized as goals that charter schools must aspire to
7    attain.
8        (5) The goals, objectives, and pupil performance
9    standards to be achieved by the charter school.
10        (6) In the case of a proposal to establish a charter
11    school by converting an existing public school or
12    attendance center to charter school status, evidence that
13    the proposed formation of the charter school has received
14    the approval of certified teachers, parents and guardians,
15    and, if applicable, a local school council as provided in
16    subsection (b) of Section 27A-8.
17        (7) A description of the charter school's educational
18    program, pupil performance standards, curriculum, school
19    year, school days, and hours of operation.
20        (8) A description of the charter school's plan for
21    evaluating pupil performance, the types of assessments
22    that will be used to measure pupil progress towards
23    achievement of the school's pupil performance standards,
24    the timeline for achievement of those standards, and the
25    procedures for taking corrective action in the event that
26    pupil performance at the charter school falls below those

 

 

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1    standards.
2        (9) Evidence that the terms of the charter as proposed
3    are economically sound for both the charter school and the
4    school district, a proposed budget for the term of the
5    charter, a description of the manner in which an annual
6    audit of the financial and administrative operations of the
7    charter school, including any services provided by the
8    school district, are to be conducted, and a plan for the
9    displacement of pupils, teachers, and other employees who
10    will not attend or be employed in the charter school.
11        (10) A description of the governance and operation of
12    the charter school, including the nature and extent of
13    parental, professional educator, and community involvement
14    in the governance and operation of the charter school.
15        (11) An explanation of the relationship that will exist
16    between the charter school and its employees, including
17    evidence that the terms and conditions of employment have
18    been addressed with affected employees and their
19    recognized representative, if any. However, a bargaining
20    unit of charter school employees shall be separate and
21    distinct from any bargaining units formed from employees of
22    a school district in which the charter school is located.
23        (12) An agreement between the parties regarding their
24    respective legal liability and applicable insurance
25    coverage.
26        (13) A description of how the charter school plans to

 

 

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1    meet the transportation needs of its pupils, and a plan for
2    addressing the transportation needs of low-income and
3    at-risk pupils.
4        (14) The proposed effective date and term of the
5    charter; provided that the first day of the first academic
6    year and the first day of the fiscal year shall be no
7    earlier than August 15 and no later than September 15 of a
8    calendar year.
9        (15) Any other information reasonably required by the
10    State Board of Education.
11        (16) If applicable, a description of any contract
12    between the charter applicant and either a for-profit or
13    non-profit educational service provider for substantial
14    educational services, management services, or both types
15    of services, including all of the following:
16            (A) If applicable, evidence of the educational
17        service provider's success in serving student
18        populations similar to the targeted population,
19        including demonstrated academic achievement as well as
20        successful management of non-academic school
21        functions.
22            (B) A term sheet setting forth the proposed
23        duration of the service contract; the roles and
24        responsibilities of the governing body, the school
25        staff, and the service provider; the scope of services
26        and resources to be provided by the service provider;

 

 

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1        performance evaluation measures and timelines; the
2        compensation structure, including clear identification
3        of all fees to be paid to the service provider; the
4        methods of contract oversight and enforcement;
5        investment disclosure; and the conditions for renewal
6        and termination of the contract.
7            (C) Disclosure and explanation of any existing or
8        potential conflicts of interest between the charter
9        school's governing body and the proposed service
10        provider or any affiliated business entities.
11    (b) A proposal to establish a charter school may be
12initiated by individuals or organizations that will have
13majority representation on the board of directors or other
14governing body of the corporation or other discrete legal
15entity that is to be established to operate the proposed
16charter school, by a board of education or an intergovernmental
17agreement between or among boards of education, or by the board
18of directors or other governing body of a discrete legal entity
19already existing or established to operate the proposed charter
20school. The individuals or organizations referred to in this
21subsection may be school teachers, school administrators,
22local school councils, colleges or universities or their
23faculty members, public community colleges or their
24instructors or other representatives, corporations, or other
25entities or their representatives. The proposal shall be
26submitted to the local school board for consideration and, if

 

 

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1appropriate, for development of a proposed contract to be
2submitted to the State Board for certification under Section
327A-6.
4    (c) The local school board may not without the consent of
5the governing body of the charter school condition its approval
6of a charter school proposal on acceptance of an agreement to
7operate under State laws and regulations and local school board
8policies from which the charter school is otherwise exempted
9under this Article.
10(Source: P.A. 90-548, eff. 1-1-98; 91-405, eff. 8-3-99.)
 
11    (105 ILCS 5/27A-7.5)
12    Sec. 27A-7.5. State Charter School Commission.
13    (a) A State Charter School Commission is established as an
14independent commission with statewide chartering jurisdiction
15and authority. The Commission shall be under the State Board
16for administrative purposes only.
17    (a-5) The State Board shall provide administrative support
18to the Commission as needed.
19    (b) The Commission is responsible for authorizing
20high-quality charter schools throughout this State,
21particularly schools designed to expand opportunities for
22at-risk students, consistent with the purposes of this Article.
23    (c) The Commission shall consist of 9 members, appointed by
24the State Board. The State Board shall make these appointments
25from a slate of candidates proposed by the Governor, within 60

 

 

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1days after the effective date of this amendatory Act of the
297th General Assembly with respect to the initial Commission
3members. In making the appointments, the State Board shall
4ensure statewide geographic diversity among Commission
5members. The Governor shall propose a slate of candidates to
6the State Board within 60 days after the effective date of this
7amendatory Act of the 97th General Assembly and 60 days prior
8to the expiration of the term of a member thereafter. If the
9Governor fails to timely propose a slate of candidates
10according to the provisions of this subsection (c), then the
11State Board may appoint the member or members of the
12Commission.
13    (d) Members appointed to the Commission shall collectively
14possess strong experience and expertise in public and nonprofit
15governance, management and finance, public school leadership,
16higher education, assessments, curriculum and instruction, and
17public education law. All members of the Commission shall have
18demonstrated understanding of and a commitment to public
19education, including without limitation charter schooling. At
20least 3 members must have past experience with urban charter
21schools.
22    (e) To establish staggered terms of office, the initial
23term of office for 3 Commission members shall be 4 years and
24thereafter shall be 4 years; the initial term of office for
25another 3 members shall be 3 years and thereafter shall be 4
26years; and the initial term of office for the remaining 3

 

 

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1members shall be 2 years and thereafter shall be 4 years. The
2initial appointments must be made no later than October 1,
32011.
4    (f) Whenever a vacancy on the Commission exists, the State
5Board shall appoint a member for the remaining portion of the
6term.
7    (g) Subject to the State Officials and Employees Ethics
8Act, the Commission is authorized to receive and expend gifts,
9grants, and donations of any kind from any public or private
10entity to carry out the purposes of this Article, subject to
11the terms and conditions under which they are given, provided
12that all such terms and conditions are permissible under law.
13Funds received under this subsection (g) must be deposited into
14the State Charter School Commission Fund.
15    The State Charter School Commission Fund is created as a
16special fund in the State treasury. All money in the Fund shall
17be used, subject to appropriation, by the State Board, acting
18on behalf and with the consent of the Commission, for
19operational and administrative costs of the Commission.
20    Subject to appropriation, any funds appropriated for use by
21the State Board, acting on behalf and with the consent of the
22Commission, may be used for the following purposes, without
23limitation: personal services, contractual services, and other
24operational and administrative costs. The State Board is
25further authorized to make expenditures with respect to any
26other amounts deposited in accordance with law into the State

 

 

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1Charter School Commission Fund.
2    (g-5) Funds or spending authority for the operation and
3administrative costs of the Commission shall be appropriated to
4the State Board in a separate line item. The State
5Superintendent of Education may not reduce or modify the budget
6of the Commission or use funds appropriated to the Commission
7without the approval of the Commission.
8    (h) The Commission shall operate with dedicated resources
9and staff qualified to execute the day-to-day responsibilities
10of charter school authorizing in accordance with this Article.
11The Commission may employ and fix the compensation of such
12employees and technical assistants as it deems necessary to
13carry out its powers and duties under this Article, without
14regard to the requirements of any civil service or personnel
15statute; and may establish and administer standards of
16classification of all such persons with respect to their
17compensation, duties, performance, and tenure and enter into
18contracts of employment with such persons for such periods and
19on such terms as the Commission deems desirable.
20    (i) Every 2 years, the Commission shall provide to the
21State Board and local school boards a report on best practices
22in charter school authorizing, including without limitation
23evaluating applications, oversight of charters, and renewal of
24charter schools.
25    (i-5) In no event shall the funding for
26Commission-authorized charter schools be less than 97% or more

 

 

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1than 103% of the school district's per capita student tuition
2multiplied by the number of students residing in the district
3who are enrolled in the charter school.
4    (j) The Commission may charge a charter school that it
5authorizes a fee, not to exceed 3% of the revenue provided to
6the school, to cover the cost of undertaking the ongoing
7administrative responsibilities of the eligible chartering
8authority with respect to the school. This fee must be
9deposited into the State Charter School Commission Fund.
10    (k) Any charter school authorized by the State Board prior
11to this amendatory Act of the 97th General Assembly shall have
12its authorization transferred to the Commission upon a vote of
13the State Board, which shall then become the school's
14authorizer for all purposes under this Article. However, in no
15case shall such transfer take place later than July 1, 2012. At
16this time, all of the powers, duties, assets, liabilities,
17contracts, property, records, and pending business of the State
18Board as the school's authorizer must be transferred to the
19Commission. Any charter school authorized by a local school
20board or boards may seek transfer of authorization to the
21Commission during its current term only with the approval of
22the local school board or boards. At the end of its charter
23term, a charter school authorized by a local school board or
24boards must reapply to the board or boards before it may apply
25for authorization to the Commission under the terms of this
26amendatory Act of the 97th General Assembly.

 

 

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1    On the effective date of this amendatory Act of the 97th
2General Assembly, all rules of the State Board applicable to
3matters falling within the responsibility of the Commission
4shall be applicable to the actions of the Commission. The
5Commission shall thereafter have the authority to propose to
6the State Board modifications to all rules applicable to
7matters falling within the responsibility of the Commission.
8The State Board shall retain rulemaking authority for the
9Commission, but shall work jointly with the Commission on any
10proposed modifications. Upon recommendation of proposed rule
11modifications by the Commission and pursuant to the Illinois
12Administrative Procedure Act, the State Board shall consider
13such changes within the intent of this amendatory Act of the
1497th General Assembly and grant any and all changes consistent
15with that intent.
16    (l) The Commission shall have the responsibility to
17consider appeals under this Article immediately upon
18appointment of the initial members of the Commission under
19subsection (c) of this Section. Appeals pending at the time of
20initial appointment shall be determined by the Commission; the
21Commission may extend the time for review as necessary for
22thorough review, but in no case shall the extension exceed the
23time that would have been available had the appeal been
24submitted to the Commission on the date of appointment of its
25initial members. In any appeal filed with the Commission under
26this Article, both the applicant and the school district in

 

 

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1which the charter school plans to locate shall have the right
2to request a hearing before the Commission. If more than one
3entity requests a hearing, then the Commission may hold only
4one hearing, wherein the applicant and the school district
5shall have an equal opportunity to present their respective
6positions.
7(Source: P.A. 97-152, eff. 7-20-11; 97-641, eff. 12-19-11;
897-1156, eff. 1-25-13.)
 
9    (105 ILCS 5/27A-7.10)
10    Sec. 27A-7.10. Authorizer powers and duties; immunity;
11principles and standards.
12    (a) Authorizers are responsible for executing, in
13accordance with this Article, all of the following powers and
14duties:
15        (1) Soliciting and evaluating charter applications.
16        (2) Approving quality charter applications that meet
17    identified educational needs and promote a diversity of
18    educational choices.
19        (3) Declining to approve weak or inadequate charter
20    applications.
21        (4) Negotiating and executing sound charter contracts
22    with each approved charter school.
23        (5) Monitoring, in accordance with charter contract
24    terms, the performance and legal compliance of charter
25    schools.

 

 

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1        (6) Determining whether each charter contract merits
2    renewal, nonrenewal, or revocation.
3    (b) An authorizing entity may delegate its duties to
4officers, employees, and contractors.
5    (b-5) An authorizer may charge a charter school that it
6authorizes a fee, not to exceed 3% of the revenue provided to
7the charter school, to cover the cost of undertaking the
8ongoing administrative responsibilities of the authorizer with
9respect to the charter school.
10    (c) Regulation by authorizers is limited to the powers and
11duties set forth in subsection (a) of this Section and must be
12consistent with the spirit and intent of this Article.
13    (d) An authorizing entity, members of the local school
14board, or the Commission, in their official capacity, and
15employees of an authorizer are immune from civil and criminal
16liability with respect to all activities related to a charter
17school that they authorize, except for willful or wanton
18misconduct.
19    (e) The Commission and all local school boards that have a
20charter school operating are required to develop and maintain
21chartering policies and practices consistent with recognized
22principles and standards for quality charter authorizing in all
23major areas of authorizing responsibility, including all of the
24following:
25        (1) Organizational capacity and infrastructure.
26        (2) Soliciting and evaluating charter applications.

 

 

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1        (3) Performance contracting.
2        (4) Ongoing charter school oversight and evaluation.
3        (5) Charter renewal decision-making.
4    Authorizers shall carry out all their duties under this
5Article in a manner consistent with nationally recognized
6principles and standards and with the spirit and intent of this
7Article.
8(Source: P.A. 97-152, eff. 7-20-11.)
 
9    (105 ILCS 5/27A-8)
10    Sec. 27A-8. Evaluation of charter proposals.
11    (a) This Section does not apply to a charter school
12established by referendum under Section 27A-6.5. In evaluating
13any charter school proposal submitted to it, the local school
14board and the Commission shall give preference to proposals
15that:
16        (1) demonstrate a high level of local pupil, parental,
17    community, business, and school personnel support;
18        (2) set rigorous levels of expected pupil achievement
19    and demonstrate feasible plans for attaining those levels
20    of achievement; and
21        (3) are designed to enroll and serve a substantial
22    proportion of at-risk children; provided that nothing in
23    the Charter Schools Law shall be construed as intended to
24    limit the establishment of charter schools to those that
25    serve a substantial portion of at-risk children or to in

 

 

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1    any manner restrict, limit, or discourage the
2    establishment of charter schools that enroll and serve
3    other pupil populations under a nonexclusive,
4    nondiscriminatory admissions policy.
5    (b) In the case of a proposal to establish a charter school
6by converting an existing public school or attendance center to
7charter school status, evidence that the proposed formation of
8the charter school has received majority support from certified
9teachers and from parents and guardians in the school or
10attendance center affected by the proposed charter, and, if
11applicable, from a local school council, shall be demonstrated
12by a petition in support of the charter school signed by
13certified teachers and a petition in support of the charter
14school signed by parents and guardians and, if applicable, by a
15vote of the local school council held at a public meeting. In
16the case of all other proposals to establish a charter school,
17evidence of sufficient support to fill the number of pupil
18seats set forth in the proposal may be demonstrated by a
19petition in support of the charter school signed by parents and
20guardians of students eligible to attend the charter school. In
21all cases, the individuals, organizations, or entities who
22initiate the proposal to establish a charter school may elect,
23in lieu of including any petition referred to in this
24subsection as a part of the proposal submitted to the local
25school board, to demonstrate that the charter school has
26received the support referred to in this subsection by other

 

 

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1evidence and information presented at the public meeting that
2the local school board is required to convene under this
3Section.
4    (c) Within 45 days of receipt of a charter school proposal,
5the local school board shall convene a public meeting to obtain
6information to assist the board in its decision to grant or
7deny the charter school proposal. A local school board may
8develop its own process for receiving charter school proposals
9on an annual basis that follows the same timeframes as set
10forth in this Article. Only after the local school board
11process is followed may a charter school applicant appeal to
12the Commission.
13    (d) Notice of the public meeting required by this Section
14shall be published in a community newspaper published in the
15school district in which the proposed charter is located and,
16if there is no such newspaper, then in a newspaper published in
17the county and having circulation in the school district. The
18notices shall be published not more than 10 days nor less than
195 days before the meeting and shall state that information
20regarding a charter school proposal will be heard at the
21meeting. Copies of the notice shall also be posted at
22appropriate locations in the school or attendance center
23proposed to be established as a charter school, the public
24schools in the school district, and the local school board
25office. If 45 days pass without the local school board holding
26a public meeting, then the charter applicant may submit the

 

 

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1proposal to the Commission, where it must be addressed in
2accordance with the provisions set forth in subsection (g) of
3this Section.
4    (e) Within 30 days of the public meeting, the local school
5board shall vote, in a public meeting, to either grant or deny
6the charter school proposal. If the local school board has not
7voted in a public meeting within 30 days after the public
8meeting, then the charter applicant may submit the proposal to
9the Commission, where it must be addressed in accordance with
10the provisions set forth in subsection (g) of this Section.
11    (f) Within 7 days of the public meeting required under
12subsection (e) of this Section, the local school board shall
13file a report with the State Board granting or denying the
14proposal. If the local school board has approved the proposal,
15within 30 days of receipt of the local school board's report,
16the State Board shall determine whether the approved charter
17proposal is consistent with the provisions of this Article and,
18if the approved proposal complies, certify the proposal
19pursuant to Section 27A-6.
20    (g) If the local school board votes to deny the proposal,
21then the charter school applicant has 30 days from the date of
22that vote to submit an appeal to the Commission. If the local
23school board and the charter school applicant cannot agree on
24the terms of the charter contract, then the charter school
25applicant may appeal to the Commission. In such instances or in
26those instances referenced in subsections (d) and (e) of this

 

 

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1Section, the Commission shall follow the same process and be
2subject to the same timelines for review as the local school
3board.
4    (h) The Commission may reverse a local school board's
5decision to deny a charter school proposal if the Commission
6finds that the proposal (i) is in compliance with this Article
7and (ii) is in the best interests of the students the charter
8school is designed to serve. Final decisions of the Commission
9are subject to judicial review under the Administrative Review
10Law.
11    (i) In the case of a charter school proposed to be jointly
12authorized by 2 or more school districts, the local school
13boards may unanimously deny the charter school proposal with a
14statement that the local school boards are not opposed to the
15charter school, but that they yield to the Commission in light
16of the complexities of joint administration.
17(Source: P.A. 96-105, eff. 7-30-09; 96-734, eff. 8-25-09;
1896-1000, eff. 7-2-10; 97-152, eff. 7-20-11.)
 
19    (105 ILCS 5/27A-9)
20    Sec. 27A-9. Term of charter; renewal.
21    (a) A charter may be granted for a period not less than 5
22and not more than 10 school years. A charter may be renewed in
23incremental periods not to exceed 10 5 school years. A charter
24must meet standards for academic, organizational, and
25financial performance set forth by the authorizer in order to

 

 

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1be renewed for a full term of 10 years.
2    (b) A charter school renewal proposal submitted to the
3local school board or the Commission, as the chartering entity,
4shall contain:
5        (1) A report on the progress of the charter school in
6    achieving the goals, objectives, pupil performance
7    standards, content standards, and other terms of the
8    initial approved charter proposal; and
9        (2) A financial statement that discloses the costs of
10    administration, instruction, and other spending categories
11    for the charter school that is understandable to the
12    general public and that will allow comparison of those
13    costs to other schools or other comparable organizations,
14    in a format required by the State Board.
15    (c) A charter may be revoked or not renewed if the local
16school board or the Commission, as the chartering entity,
17clearly demonstrates that the charter school did any of the
18following, or otherwise failed to comply with the requirements
19of this law:
20        (1) Committed a material violation of any of the
21    conditions, standards, or procedures set forth in the
22    charter.
23        (2) Failed to meet or make reasonable progress toward
24    achievement of the content standards or pupil performance
25    standards identified in the charter.
26        (3) Failed to meet generally accepted standards of

 

 

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1    fiscal management.
2        (4) Violated any provision of law from which the
3    charter school was not exempted.
4    In the case of revocation, the local school board or the
5Commission, as the chartering entity, shall notify the charter
6school in writing of the reason why the charter is subject to
7revocation. The charter school shall submit a written plan to
8the local school board or the Commission, whichever is
9applicable, to rectify the problem. The plan shall include a
10timeline for implementation, which shall not exceed 2 years or
11the date of the charter's expiration, whichever is earlier. If
12the local school board or the Commission, as the chartering
13entity, finds that the charter school has failed to implement
14the plan of remediation and adhere to the timeline, then the
15chartering entity shall revoke the charter. Except in
16situations of an emergency where the health, safety, or
17education of the charter school's students is at risk, the
18revocation shall take place at the end of a school year.
19Nothing in this amendatory Act of the 96th General Assembly
20shall be construed to prohibit an implementation timetable that
21is less than 2 years in duration.
22    (d) (Blank).
23    (e) Notice of a local school board's decision to deny,
24revoke or not to renew a charter shall be provided to the
25Commission and the State Board. If the local school board and
26the renewal charter school applicant cannot agree on the terms

 

 

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1of the charter contract, then the charter school applicant may
2appeal to the Commission. The Commission may reverse a local
3board's decision if the Commission finds that the charter
4school or charter school proposal (i) is in compliance with
5this Article, and (ii) is in the best interests of the students
6it is designed to serve. The Commission State Board may
7condition the granting of an appeal on the acceptance by the
8charter school of funding in an amount less than that requested
9in the proposal submitted to the local school board. Final
10decisions of the Commission shall be subject to judicial review
11under the Administrative Review Law.
12    (f) Notwithstanding other provisions of this Article, if
13the Commission on appeal reverses a local board's decision or
14if a charter school is approved by referendum, the Commission
15shall act as the authorized chartering entity for the charter
16school. The Commission shall approve the charter and shall
17perform all functions under this Article otherwise performed by
18the local school board. The State Board shall determine whether
19the charter proposal approved by the Commission is consistent
20with the provisions of this Article and, if the approved
21proposal complies, certify the proposal pursuant to this
22Article. The State Board shall report the aggregate number of
23charter school pupils resident in a school district to that
24district and shall notify the district of the amount of funding
25to be paid by the Commission to the charter school enrolling
26such students. The Commission shall require the charter school

 

 

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1to maintain accurate records of daily attendance that shall be
2deemed sufficient to file claims under Section 18-8.05
3notwithstanding any other requirements of that Section
4regarding hours of instruction and teacher certification. The
5State Board shall withhold from funds otherwise due the
6district the funds authorized by this Article to be paid to the
7charter school and shall pay such amounts to the charter
8school.
9    (g) For charter schools authorized by the Commission, the
10Commission shall quarterly certify to the State Board the
11student enrollment for each of its charter schools.
12    (h) For charter schools authorized by the Commission, the
13State Board shall pay directly to a charter school any federal
14or State aid attributable to a student with a disability
15attending the school.
16(Source: P.A. 96-105, eff. 7-30-09; 97-152, eff. 7-20-11.)
 
17    (105 ILCS 5/27A-11)
18    Sec. 27A-11. Local financing.
19    (a) For purposes of the School Code, pupils enrolled in a
20charter school shall be included in the pupil enrollment of the
21school district within which the pupil resides. Each charter
22school (i) shall determine the school district in which each
23pupil who is enrolled in the charter school resides, (ii) shall
24report the aggregate number of pupils resident of a school
25district who are enrolled in the charter school to the school

 

 

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1district in which those pupils reside, and (iii) shall maintain
2accurate records of daily attendance that shall be deemed
3sufficient to file claims under Section 18-8 notwithstanding
4any other requirements of that Section regarding hours of
5instruction and teacher certification.
6    (b) Except for a charter school established by referendum
7under Section 27A-6.5, as part of a charter school contract,
8the charter school and the local school board shall agree on
9funding and any services to be provided by the school district
10to the charter school. Agreed funding that a charter school is
11to receive from the local school board for a school year shall
12be paid in equal quarterly installments with the payment of the
13installment for the first quarter being made not later than
14July 1, unless the charter establishes a different payment
15schedule.
16    All services centrally or otherwise provided by the school
17district including, but not limited to, rent, food services,
18custodial services, maintenance, curriculum, media services,
19libraries, transportation, and warehousing shall be subject to
20negotiation between a charter school and the local school board
21and paid for out of the revenues negotiated pursuant to this
22subsection (b); provided that the local school board shall not
23attempt, by negotiation or otherwise, to obligate a charter
24school to provide pupil transportation for pupils for whom a
25district is not required to provide transportation under the
26criteria set forth in subsection (a)(13) of Section 27A-7.

 

 

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1    In no event shall the funding be less than 75% or more than
2125% of the school district's per capita student tuition
3multiplied by the number of students residing in the district
4who are enrolled in the charter school.
5    (b-5) In no event shall the funding be less than 97% or
6more than 103% of the charter funding calculation.
7    The charter funding calculation must be determined by
8dividing the total funds by the average daily attendance for
9the year. The authorizer must distribute the money in a manner
10consistent with the chosen pupil-count methodology in the
11charter funding calculation.
12    A school district shall submit documentation to the State
13Board that provides a methodology for equitable access to and
14distribution of capital funding. The documentation must be
15determined by the following method:
16        (1) calculate the total debt service expenditures,
17    less debt service expenditures on principal;
18        (2) add total depreciation allowance; and
19        (3) divide by per pupil or by average daily attendance
20    for the year.
21    The State Board shall annually certify all charter funding
22calculation methodologies.
23    (b-10) A school district may elect to opt out of the
24charter funding calculation and may instead fund any charter
25schools on a per pupil basis using 100% of student-based
26budgeting.

 

 

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1    A school district must be certified by the State Board as a
2requirement to implement student-based budgeting.
3        (1) A district seeking initial certification as a
4    student-based budgeting district shall submit
5    documentation to the State Board no later than May 1 of the
6    year it intends to implement student-based budgeting.
7        (2) The documentation shall include the district's
8    calculation methodology and sufficient evidence that such
9    calculations constitute student-based budgeting.
10        (3) The State Board may provide for an amendment
11    process to receive additional information after the
12    deadline.
13        (4) If a district was certified as a student-based
14    budgeting district the previous school year, then the
15    district shall submit documentation to the State Board no
16    later than June 30.
17        (5) Any district seeking certification as a
18    student-based budgeting district shall also submit
19    documentation to the State Board that provides a
20    methodology for equitable access to and distribution of
21    capital funding. Such distribution must be made as follows:
22            (A) calculate total debt service expenditures,
23        less debt service expenditures on principal;
24            (B) add total depreciation allowance; and
25            (C) divide by the average daily attendance.
26        (6) All documentation submitted to the State Board must

 

 

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1    be publicly available and posted on the State Board's
2    Internet website and the district's Internet website;
3        (7) The State Board shall review submitted
4    documentation within 30 business days after submission and
5    shall notify and provide certification for all compliant
6    districts.
7        (8) The State Board shall notify all non-compliant
8    districts within 30 business day after submission.
9        (9) Upon notification from the State Board, all
10    non-compliant districts shall have 20 business days to
11    amend their submissions.
12        (10) The State Board shall notify the non-compliant
13    district within 15 business days if the amended submission
14    qualifies for certification.
15        (11) Upon certification from the State Board, a
16    district shall make any adjustments, if needed, to the
17    charter payments prior to the end of the current fiscal
18    year.
19        (12) A district that is unable to qualify for
20    certification from the State Board shall use the charter
21    funding calculation for charter school payments.
22    (b-15) All authorizers are required to include the funding
23percentage provided to the charter school in the charter
24contract. The annual funding percentage, if applicable, must be
25outlined for the entire term of the charter contract. In the
26case of a Commission-authorized charter school, the contract

 

 

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1shall specify a percentage of the relevant per capita tuition
2charge. If a district uses student-based budgeting or the
3charter funding calculation, the charter must set forth the
4guidelines to determine funding based on the chosen methodology
5(including, but not limited to, the categories of funding that
6comprise the funding calculation) and, in the case of the
7charter funding calculation, the percentage of funding to be
8used to determine payments to the charter school. If an
9authorizer does not include the required elements, including,
10but not limited to, the funding amounts that are in compliance
11with the charter school funding range, in the charter contracts
12between the authorizer and the charter school that are
13submitted to the State Board for certification, then the State
14Board shall impose sanctions, such as not certifying those
15contracts until such assurances of compliance are received, or
16shall take other action as authorized by law.
17    (b-20) The Governor shall appoint a task force to execute a
18study to ensure that the charter funding calculation and
19student-based budgeting charter school funding formulas are
20sound and have resulted in equitable funding for all students.
21Task force members shall serve without compensation but shall
22be reimbursed for their reasonable and necessary expenses from
23funds appropriated for that purpose. The State Board of
24Education shall provide administrative and other support to the
25task force. The task force shall meet at the call of the
26Governor and shall annually report its findings and

 

 

09800SB0586sam001- 40 -LRB098 04791 NHT 57840 a

1recommendations to the Governor and the General Assembly.
2    (b-25) It is the intent of the General Assembly that
3funding and service agreements under this Section subsection
4(b) shall be neither a financial incentive nor a financial
5disincentive to the establishment of a charter school.
6    The charter school may set and collect reasonable fees.
7Fees collected from students enrolled at a charter school shall
8be retained by the charter school.
9    (c) Notwithstanding any other provision subsection (b) of
10this Section, the proportionate share of State and federal
11resources generated by students with disabilities or staff
12serving them shall be directed to charter schools enrolling
13those students by their school districts or administrative
14units. The proportionate share of moneys generated under other
15federal or State categorical aid programs shall be directed to
16charter schools serving students eligible for that aid.
17    (d) The governing body of a charter school is authorized to
18accept gifts, donations, or grants of any kind made to the
19charter school and to expend or use gifts, donations, or grants
20in accordance with the conditions prescribed by the donor;
21however, a gift, donation, or grant may not be accepted by the
22governing body if it is subject to any condition contrary to
23applicable law or contrary to the terms of the contract between
24the charter school and the local school board. Charter schools
25shall be encouraged to solicit and utilize community volunteer
26speakers and other instructional resources when providing

 

 

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1instruction on the Holocaust and other historical events.
2    (e) (Blank).
3    (f) The State Board shall provide technical assistance to
4persons and groups preparing or revising charter applications.
5    (g) At the non-renewal or revocation of its charter, each
6charter school shall refund to the local board of education all
7unspent funds.
8    (h) A charter school is authorized to incur temporary,
9short term debt to pay operating expenses in anticipation of
10receipt of funds from the local school board.
11(Source: P.A. 90-548, eff. 1-1-98; 90-757, eff. 8-14-98;
1291-407, eff. 8-3-99.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.".