State of Illinois
91st General Assembly
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Public Act 91-0407

SB648 Enrolled                                 LRB9105854NTsb

    AN ACT concerning charter schools, amending named Acts.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.  The  State  Finance Act is amended by adding
Section 5.490 as follows:

    (30 ILCS 105/5.490 new)
    Sec. 5.490.  The Charter Schools Revolving Loan Fund.

    Section 10.  The  School  Code  is  amended  by  changing
Sections  27A-4,  27A-5, 27A-6, 27A-8, 27A-9, 27A-11, 27A-12,
and 29-4 and adding Sections 27A-6.5 and 27A-11.5 as follows:

    (105 ILCS 5/27A-4)
    Sec. 27A-4.  General Provisions.
    (a)  The General Assembly does not  intend  to  alter  or
amend  the provisions of any court-ordered desegregation plan
in effect for any school district.  A charter school shall be
subject to all federal  and  State  laws  and  constitutional
provisions   prohibiting   discrimination  on  the  basis  of
disability, race,  creed,  color,  gender,  national  origin,
religion,  ancestry,  marital  status,  or  need  for special
education services.
    (b)  The total number of charter schools operating  under
this  Article  at  any one time shall not exceed 45. Not more
than that 15 charter schools shall operate at any one time in
any city having a population exceeding 500,000; not more than
15 charter schools shall operate  at  any  one  time  in  the
counties  of  DuPage,  Kane,  Lake,  McHenry,  Will, and that
portion of Cook County that is located outside a city  having
a  population exceeding 500,000; and not more than 15 charter
schools shall operate at any one time in the remainder of the
State.
    For purposes of  implementing  this  Section,  the  State
Board  shall  assign  a  number to each charter submission it
receives   under   Section   27A-6   for   its   review   and
certification, based on the chronological order in which  the
submission is received by it.  The State Board shall promptly
notify  local  school  boards  when  the  maximum  numbers of
certified charter schools authorized  to  operate  have  been
reached.
    (c)  No  charter shall be granted under this Article that
would convert any existing private, parochial, or  non-public
school to a charter school.
    (d)  Enrollment  in a charter school shall be open to any
pupil who resides within the  geographic  boundaries  of  the
area served by the local school board.  However, no more than
50%  of  the  number  of  resident pupils enrolled in any one
grade in a school district  with  only  a  single  attendance
center  covering  that  grade  may  be  enrolled in a charter
school at one time.
    (e)  Nothing in this Article  shall  prevent  2  or  more
local  school  boards  from  jointly  issuing  a charter to a
single shared  charter  school,  provided  that  all  of  the
provisions  of  this Article are met as to those local school
boards.
    (f)  No local school board shall require any employee  of
the school district to be employed in a charter school.
    (g)  No  local  school  board  shall  require  any  pupil
residing  within  the  geographic boundary of its district to
enroll in a charter school.
    (h)  If there are more eligible applicants for enrollment
in  a  charter  school  than  there  are  spaces   available,
successful applicants shall be selected by lottery.  However,
priority shall be given to siblings of pupils enrolled in the
charter school and to pupils who were enrolled in the charter
school  the  previous school year, unless expelled for cause.
Dual enrollment at both a charter school and a public  school
or  non-public  school  shall not be allowed.  A pupil who is
suspended or expelled from a charter school shall  be  deemed
to  be  suspended  or expelled from the public schools of the
school district in which the pupil resides.
    (i)  (Blank). No charter school  established  under  this
Article  may  be  authorized to open prior to the school year
beginning in the fall of 1996.
(Source: P.A. 89-450, eff. 4-10-96; revised 2-24-98.)

    (105 ILCS 5/27A-5)
    Sec. 27A-5.  Charter school; legal entity; requirements.
    (a)  A charter school shall be  a  public,  nonsectarian,
nonreligious,  non-home  based,  and  non-profit  school.   A
charter school shall be organized and operated as a nonprofit
corporation   or  other  discrete,  legal,  nonprofit  entity
authorized under the laws of the State of Illinois.
    (b)  A charter  school  may  be  established  under  this
Article by creating a new school or by converting an existing
public school or attendance center to charter school status.
    (c)  A  charter school shall be administered and governed
by its board of directors or  other  governing  body  in  the
manner  provided  in  its  charter.   The governing body of a
charter school shall be subject to the Freedom of Information
Act and the Open Meetings Act.
    (d)  A charter school shall comply  with  all  applicable
health  and  safety requirements applicable to public schools
under the laws of the State of Illinois.
    (e)  Except as otherwise provided in the School  Code,  a
charter  school  shall  not  charge  tuition; provided that a
charter school may  charge  reasonable  fees  for  textbooks,
instructional materials, and student activities.
    (f)  A  charter  school  shall  be  responsible  for  the
management and operation of its fiscal affairs including, but
not  limited  to, the preparation of its budget.  An audit of
each charter school's finances shall be conducted annually by
an outside, independent contractor retained  by  the  charter
school.
    (g)  A charter school shall comply with all provisions of
this  Article  and  its  charter.  A charter school is exempt
from all other State laws and regulations in the School  Code
governing  public  schools  and  local school board policies,
except the following:
         (1)  Sections 10-21.9 and 34-18.5 of the School Code
    regarding   criminal   background    investigations    of
    applicants for employment;
         (2)  Sections  24-24  and  34-84A of the School Code
    regarding discipline of students;
         (3)  The   Local   Governmental   and   Governmental
    Employees Tort Immunity Act;
         (4)  Section 108.75 of the General  Not  For  Profit
    Corporation  Act  of  1986  regarding  indemnification of
    officers, directors, employees, and agents;
         (5)  The Abused and Neglected Child  Reporting  Act;
    and
         (6)  The Illinois School Student Records Act; and.
         (7)  Section  10-17a  of  the  School Code regarding
    school report cards.
    (h)  A charter school may negotiate and contract  with  a
school  district,  the  governing  body of a State college or
university or public community college, or any  other  public
or for-profit or nonprofit private entity for: (i) the use of
a  school  building and grounds or any other real property or
facilities that the charter school desires to use or  convert
for  use  as  a  charter  school site, (ii) the operation and
maintenance thereof, and (iii) the provision of any  service,
activity,  or undertaking that the charter school is required
to perform in order to carry out the terms  of  its  charter.
Except  as  provided  in  subsection  (i)  of this Section, a
school district may charge a charter school  reasonable  rent
for  the  use  of  the  district's  buildings,  grounds,  and
facilities.    Any   services  for  which  a  charter  school
contracts with a school district shall  be  provided  by  the
district  at  cost.   Any services for which a charter school
contracts with a local school board  or  with  the  governing
body  of  a  State  college or university or public community
college shall be provided by the public entity at cost.
    (i)  In  no  event  shall  a  charter  school   that   is
established  by  converting  an existing school or attendance
center to charter school status be required to pay  rent  for
space that is deemed available, as negotiated and provided in
the   charter   agreement,  in  school  district  facilities.
However, all other costs for the operation and maintenance of
school district facilities  that  are  used  by  the  charter
school  shall  be  subject to negotiation between the charter
school and the local school board and shall be set  forth  in
the charter.
    (j)  A charter school may limit student enrollment by age
or grade level.
(Source: P.A. 89-450, eff. 4-10-96.)

    (105 ILCS 5/27A-6)
    Sec. 27A-6.  Contract contents; applicability of laws and
regulations.
    (a)  A  certified  charter  shall  constitute  a  binding
contract and agreement between the charter school and a local
school  board under the terms of which the local school board
authorizes the  governing  body  of  the  charter  school  to
operate  the  charter  school  on  the terms specified in the
contract.
    (b)  Notwithstanding any other provision of this Article,
the certified charter may not waive or  release  the  charter
school  from  the  State  goals,  standards,  and assessments
established pursuant to Section 2-3.64.
    (c)  Subject to  the  provisions  of  subsection  (e),  a
material  revision  to  a  previously certified contract or a
renewal shall be made with the approval  of  both  the  local
school board and the governing body of the charter school.
    (c-5)  The proposed contract shall include a provision on
how  both  parties  will  address  minor  violations  of  the
contract.
    (d)  The  proposed contract between the governing body of
a proposed charter school  and  the  local  school  board  as
described in Section 27A-7 must be submitted to and certified
by  the  State Board before it can take effect.  If the State
Board recommends that the proposed contract be  modified  for
consistency with this Article before it can be certified, the
modifications must be consented to by both the governing body
of  the  charter  school  and  the  local  school  board, and
resubmitted to the State Board for its certification.  If the
proposed contract is  resubmitted  in  a  form  that  is  not
consistent  with  this Article, the State Board may refuse to
certify the charter.
    The State Board shall assign a number to each  submission
or  resubmission in chronological order of receipt, and shall
determine whether the proposed contract  is  consistent  with
the  provisions  of  this  Article.  If the proposed contract
complies, the State Board shall so certify.
    (e)  No  material  revision  to  a  previously  certified
contract or a renewal shall be effective unless and until the
State  Board  certifies  that  the  revision  or  renewal  is
consistent with the provisions of this Article.
(Source: P.A. 89-450, eff. 4-10-96.)

    (105 ILCS 5/27A-6.5 new)
    Sec. 27A-6.5.  Charter school referendum.
    (a)  No charter shall be approved under this Section that
would convert any existing private, parochial, or  non-public
school  to  a  charter  school or whose proposal has not been
certified by the State Board.
    (b)  A local school board shall, whenever  petitioned  to
do  so  by  5%  or more of the voters of a school district or
districts identified in  a  charter  school  proposal,  order
submitted  to  the  voters  thereof  at a regularly scheduled
election the question of whether a new charter  school  shall
be  established,  which  proposal  has  been certified by the
State Board to be in compliance with the provisions  of  this
Article,  and  the secretary shall certify the proposition to
the proper election authorities for submission in  accordance
with  the  general election law.  The proposition shall be in
substantially the following form:
         "FOR the establishment of (name of proposed  charter
    school)  under  charter  school  proposal (charter school
    proposal number).
         AGAINST  the  establishment  of  (name  of  proposed
    charter school) under charter  school  proposal  (charter
    school proposal number)".
    (c)  Before circulating a petition to submit the question
of  whether to establish a charter school to the voters under
subsection (b) of this  Section,  the  governing  body  of  a
proposed  charter  school  that  desires  to  establish a new
charter school by referendum shall submit the charter  school
proposal  to  the  State  Board  in  the  form  of a proposed
contract to be entered into between the State Board  and  the
governing  body  of  the proposed charter school, as provided
under Section 27A-6, together  with  written  notice  of  the
intent   to   have   a  new  charter  school  established  by
referendum. The contract shall comply with the provisions  of
this Article.
    If  the  State  Board  finds  that  the proposed contract
complies with  the  provisions  of  this  Article,  it  shall
immediately  certify that the proposed contract complies with
the provisions of this Article and direct  the  local  school
board  to  notify  the  proper  election authorities that the
question of whether to establish a new charter  school  shall
be submitted for referendum.
    (d)  If  the State Board finds that the proposal fails to
comply with the provisions of this Article, it  shall  refuse
to  certify  the  proposal  and  provide written explanation,
detailing its reasons for refusal, to the local school  board
and  to  the  individuals  or  organizations  submitting  the
proposal.  The State Board shall also notify the local school
board  and  the  individuals  or organizations submitting the
proposal that the proposal may  be  amended  and  resubmitted
under   the   same   provisions   required  for  an  original
submission.
    (e)  If a majority of the votes cast upon the proposition
in each school district  designated  in  the  charter  school
proposal  is  in  favor of establishing a charter school, the
local school board  shall  notify  the  State  Board  of  the
passage of the proposition in favor of establishing a charter
school and the State Board shall approve the charter within 7
days  after the State Board of Elections has certified that a
majority of the votes cast upon the proposition is  in  favor
of  establishing  a charter school.  The State Board shall be
the chartering entity  for  charter  schools  established  by
referendum under this Section.

    (105 ILCS 5/27A-8)
    Sec. 27A-8.  Evaluation of charter proposals.
    (a)  This  Section  does  not  apply  to a charter school
established  by  referendum   under   Section   27A-6.5.   In
evaluating  any  charter school proposal submitted to it, the
local school board shall give preference to proposals that:
         (1)  demonstrate  a  high  level  of  local   pupil,
    parental,   community,  business,  and  school  personnel
    support;
         (2)  set   rigorous   levels   of   expected   pupil
    achievement and demonstrate feasible plans for  attaining
    those levels of achievement; and
         (3)  are  designed to enroll and serve a substantial
    proportion of at-risk children; provided that nothing  in
    the Charter Schools Law shall be construed as intended to
    limit  the establishment of charter schools to those that
    serve a substantial portion of at-risk children or to  in
    any   manner   restrict,   limit,   or   discourage   the
    establishment  of  charter  schools that enroll and serve
    other   pupil   populations   under    a    nonexclusive,
    nondiscriminatory admissions policy.
    (b)  In  the  case  of  a proposal to establish a charter
school by converting an existing public school or  attendance
center  to  charter school status, evidence that the proposed
formation of the charter school has received majority support
from certified teachers and from parents and guardians in the
school or attendance center affected by the proposed charter,
and, if applicable, from a local  school  council,  shall  be
demonstrated  by  a petition in support of the charter school
signed by certified teachers and a petition in support of the
charter school  signed  by  parents  and  guardians  and,  if
applicable,  by  a vote of the local school council held at a
public meeting.  In  the  case  of  all  other  proposals  to
establish a charter school, evidence of sufficient support to
fill  the number of pupil seats set forth in the proposal may
be demonstrated by a  petition  in  support  of  the  charter
school  signed  by parents and guardians of students eligible
to attend the charter school. In all cases, the  individuals,
organizations,  or  entities  who  initiate  the  proposal to
establish a charter school may elect, in  lieu  of  including
any  petition referred to in this subsection as a part of the
proposal submitted to the local school board, to  demonstrate
that  the charter school has received the support referred to
in  this  subsection  by  other  evidence   and   information
presented  at  the public meeting that the local school board
is required to convene under this Section.
    (c)  Within 45  days  of  receipt  of  a  charter  school
proposal,  the  local  school  board  shall  convene a public
meeting to obtain information to  assist  the  board  in  its
decision to grant or deny the charter school proposal.
    (d)  Notice  of  the  public  meeting  required  by  this
Section shall be published in a community newspaper published
in  the  school  district  in  which  the proposed charter is
located and, if  there  is  no  such  newspaper,  then  in  a
newspaper  published  in the county and having circulation in
the school district.  The notices shall be published not more
than 10 days nor less than 5  days  before  the  meeting  and
shall  state  that  information  regarding  a  charter school
proposal will be heard at the meeting.  Copies of the  notice
shall  also  be posted at appropriate locations in the school
or attendance center proposed to be established as a  charter
school,  the  public  schools in the school district, and the
local school board office.
    (e)  Within 30 days of  the  public  meeting,  the  local
school board shall vote, in a public meeting, to either grant
or deny the charter school proposal.
    (f)  Within  7  days of the public meeting required under
subsection (e), the local school board shall  file  a  report
with the State Board granting or denying the proposal. Within
14  days  of  receipt of the local school board's report, the
State Board shall  determine  whether  the  approved  charter
proposal  is  consistent  with the provisions of this Article
and, if the approved proposal complies, certify the  proposal
pursuant to Section 27A-6.
(Source: P.A. 89-450, eff. 4-10-96; 90-548, eff. 1-1-98.)

    (105 ILCS 5/27A-9)
    Sec. 27A-9. Term of charter; renewal.
    (a)  A  charter may be granted for a period not less than
5 3 and not more than 10 5 school years.  A  charter  may  be
renewed in incremental periods not to exceed 5 school years.
    (b)  A  charter  school renewal proposal submitted to the
local school board or State Board, as the chartering  entity,
shall contain:
         (1)  A  report on the progress of the charter school
    in achieving the  goals,  objectives,  pupil  performance
    standards,  content  standards,  and  other  terms of the
    initial approved charter proposal; and
         (2)  A financial statement that discloses the  costs
    of   administration,   instruction,  and  other  spending
    categories for the charter school that is  understandable
    to  the  general public and that will allow comparison of
    those  costs  to  other  schools  or   other   comparable
    organizations, in a format required by the State Board.
    (c)  A charter may be revoked or not renewed if the local
school  board  or  State  Board,  as  the  chartering entity,
clearly demonstrates that the charter school did any  of  the
following,   or   otherwise   failed   to   comply  with  the
requirements of this law:
         (1)  Committed a material violation of  any  of  the
    conditions,  standards,  or  procedures  set forth in the
    charter.
         (2)  Failed to  meet  or  make  reasonable  progress
    toward  achievement  of  the  content  standards or pupil
    performance standards identified in the charter.
         (3)  Failed to meet generally accepted standards  of
    fiscal management.
         (4)  Violated  any  provision  of law from which the
    charter school was not exempted.
    (d)  (Blank).
    (e)  Notice of a local school board's decision  to  deny,
revoke  or  not  to  renew a charter shall be provided to the
State Board. The State Board  may  reverse  a  local  board's
decision  if the State Board finds that the charter school or
charter school  proposal  (i)  is  in  compliance  with  this
Article, and (ii) is in the best interests of the students it
is  designed  to  serve.    The State Board may condition the
granting of an appeal on the acceptance by the charter school
of funding in an amount  less  than  that  requested  in  the
proposal submitted to the local school board. Final decisions
of  the State Board shall be subject to judicial review under
the Administrative Review Law.
    (f)  Notwithstanding other provisions of this Article, if
the State Board on appeal reverses a local  board's  decision
or  if  a charter school is approved by referendum, the State
Board shall act as the authorized chartering entity  for  the
charter  school.    The State Board shall approve and certify
the charter  and  shall  perform  all  functions  under  this
Article  otherwise  performed by the local school board.  The
State Board shall report  the  aggregate  number  of  charter
school  pupils resident in a school district to that district
and shall notify the district of the amount of funding to  be
paid  by the State Board to the charter school enrolling such
students.   The  State  Board  shall  withhold   from   funds
otherwise  due  the  district  the  funds  authorized by this
Article to be paid to the charter school and shall  pay  such
amounts to the charter school.
(Source: P.A. 89-450, eff. 4-10-96; 90-548, eff. 1-1-98.)

    (105 ILCS 5/27A-11)
    Sec. 27A-11.  Local financing.
    (a)  For  purposes of the School Code, pupils enrolled in
a charter school shall be included in the pupil enrollment of
the school district within which  the  pupil  resides.   Each
charter  school  (i)  shall  determine the school district in
which each pupil  who  is  enrolled  in  the  charter  school
resides,  (ii)  shall  report  the aggregate number of pupils
resident of a school district who are enrolled in the charter
school to the school district in which those  pupils  reside,
and (iii) shall maintain accurate records of daily attendance
that  shall be deemed sufficient to file claims under Section
18-8 notwithstanding any other requirements of  that  Section
regarding hours of instruction and teacher certification.
    (b)  Except   for   a   charter   school  established  by
referendum under Section 27A-6.5, as part of a charter school
contract, the charter school and the local school board shall
agree on funding and any  services  to  be  provided  by  the
school  district to the charter school. Agreed funding that a
charter school is to receive from the local school board  for
a  school  year shall be paid in equal quarterly installments
with the payment of the installment  for  the  first  quarter
being  made  not  later  than  July  1,  unless  the  charter
establishes a different payment schedule.
    All  services  centrally  or  otherwise  provided  by the
school district including, but not  limited  to,  rent,  food
services,  custodial services, maintenance, curriculum, media
services, libraries, transportation, and warehousing shall be
subject to negotiation between a charter school and the local
school board and paid for  out  of  the  revenues  negotiated
pursuant  to  this  subsection  (b);  provided that the local
school board shall not attempt, by negotiation or  otherwise,
to  obligate a charter school to provide pupil transportation
for pupils for whom a district is  not  required  to  provide
transportation  under  the  criteria  set forth in subsection
(a)(13) of Section 27A-7.
    In no event shall the funding be less than  75%  or  more
than 125% of the school district's per capita student tuition
multiplied by the number of students residing in the district
who are enrolled in the charter school.
    It is the intent of the General Assembly that funding and
service agreements under this subsection (b) shall be neither
a  financial  incentive  nor  a financial disincentive to the
establishment of a charter school.
    The charter school may set and collect  reasonable  fees.
Fees  collected  from  students  enrolled at a charter school
shall be retained by the charter school.
    (c)  Notwithstanding subsection (b) of this Section,  the
proportionate  share of State and federal resources generated
by students with disabilities or staff serving them shall  be
directed to charter schools enrolling those students by their
school  districts or administrative units.  The proportionate
share of  moneys  generated  under  other  federal  or  State
categorical aid programs shall be directed to charter schools
serving students eligible for that aid.
    (d)(1)  The   governing  body  of  a  charter  school  is
authorized to accept gifts, donations, or grants of any  kind
made  to  the  charter  school  and  to  expend or use gifts,
donations,  or  grants  in  accordance  with  the  conditions
prescribed by the donor; however, a gift, donation, or  grant
may not be accepted by the governing body if it is subject to
any  condition  contrary to applicable law or contrary to the
terms of the contract between  the  charter  school  and  the
local  school  board.  Charter schools shall be encouraged to
solicit and utilize community volunteer  speakers  and  other
instructional  resources  when  providing  instruction on the
Holocaust and other historical events.
    (2)  From amounts appropriated to  the  State  Board  for
purposes  of this subsection (d)(2), the State Board may make
loans to charter schools established under this Article to be
used by those  schools  to  defer  their  start-up  costs  of
acquiring   textbooks  and  laboratory  and  other  equipment
required for student instruction. Any such loan shall be made
to a charter school at the  inception  of  the  term  of  its
charter,  under  terms  established  by  the State Board, and
shall be repaid by the charter school over the  term  of  its
charter.   A  local  school  board is not responsible for the
repayment of the loan.
    (e)  (Blank). No later than January 1,  1997,  the  State
Board  shall  issue  a report to the General Assembly and the
Governor describing the charter schools certified under  this
Article,  their  geographic  locations, their areas of focus,
and the numbers of school children served by them.
    (f)  The State Board shall provide  technical  assistance
to   persons   and   groups  preparing  or  revising  charter
applications.
    (g)  At the non-renewal or  revocation  of  its  charter,
each  charter  school  shall  refund  to  the  local board of
education all unspent funds.
    (h)  A charter school is authorized to  incur  temporary,
short  term debt to pay operating expenses in anticipation of
receipt of funds from the local school board.
(Source: P.A. 89-450,  eff.  4-10-96;  90-548,  eff.  1-1-98;
90-757, eff. 8-14-98.)

    (105 ILCS 5/27A-11.5 new)
    Sec.  27A-11.5.  State  financing.   The  State  Board of
Education shall make the following funds available to  school
districts and charter schools:
         (1)  From a separate appropriation made to the State
    Board  for  purposes  of  this subdivision (1), the State
    Board shall  make  transition  impact  aid  available  to
    school  districts  that  approve  a new charter school or
    that have funds withheld by the State Board to fund a new

    charter school that is chartered by the State Board.  The
    amount of the aid shall  equal  90%  of  the  per  capita
    funding  paid to the charter school during the first year
    of its initial  charter  term,  65%  of  the  per  capita
    funding paid to the charter school during the second year
    of  its  initial  term, and 35% of the per capita funding
    paid to the charter school during the third year  of  its
    initial  term.   This transition impact aid shall be paid
    to  the   local   school   board   in   equal   quarterly
    installments, with the payment of the installment for the
    first  quarter  being  made  by  August  1st  immediately
    preceding  the  first,  second,  and  third  years of the
    initial term.  The district shall file an application for
    this aid with the State Board in a format  designated  by
    the State Board.  If the appropriation is insufficient in
    any year to pay all approved claims, the impact aid shall
    be  prorated.     Transition  impact  aid  shall  be paid
    beginning  in  the  1999-2000  school  year  for  charter
    schools that are in the first, second, or third  year  of
    their  initial  term.    If  House  Bill  230 of the 91st
    General Assembly becomes law, transition impact aid shall
    not be paid for any charter school that is  proposed  and
    created by one or more boards of education, as authorized
    under  the  provisions  of  House  Bill  230  of the 91st
    General Assembly.
         (2)  From a  separate  appropriation  made  for  the
    purpose  of  this  subdivision (2), the State Board shall
    make grants to charter  schools  to  pay  their  start-up
    costs  of  acquiring  educational materials and supplies,
    textbooks, furniture, and other equipment  needed  during
    their  initial  term.   The  State  Board  shall annually
    establish the time and manner of  application  for  these
    grants,  which shall not exceed $250 per student enrolled
    in the charter school.
         (3)  The Charter  Schools  Revolving  Loan  Fund  is
    created as a special fund in the State treasury.  Federal
    funds,  such  other  funds  as  may be made available for
    costs  associated  with  the  establishment  of   charter
    schools  in  Illinois,  and  amounts  repaid  by  charter
    schools  that  have  received  a  loan  from  the Charter
    Schools Revolving Loan Fund shall be deposited  into  the
    Charter  Schools  Revolving  Loan Fund, and the moneys in
    the  Charter  Schools  Revolving  Loan  Fund   shall   be
    appropriated  to  the  State  Board  and  used to provide
    interest-free loans  to  charter  schools.   These  funds
    shall   be  used  to  pay  start-up  costs  of  acquiring
    educational materials and supplies, textbooks, furniture,
    and other equipment needed in the  initial  term  of  the
    charter   school  and  for  acquiring  and  remodeling  a
    suitable physical plant, within the initial term  of  the
    charter  school.   Loans shall be limited to one loan per
    charter school and shall  not  exceed  $250  per  student
    enrolled  in  the charter school.  A loan shall be repaid
    by the end of the initial term  of  the  charter  school.
    The State Board may deduct amounts necessary to repay the
    loan  from funds due to the charter school or may require
    that the local school board that authorized  the  charter
    school  deduct  such  amounts  from funds due the charter
    school and  remit  these  amounts  to  the  State  Board,
    provided  that  the  local  school  board  shall  not  be
    responsible  for  repayment of the loan.  The State Board
    may use up to 3% of the appropriation to contract with  a
    non-profit entity to administer the loan program.
         (4)  A  charter  school  may  apply for and receive,
    subject to the same  restrictions  applicable  to  school
    districts, any grant administered by the State Board that
    is available for school districts.
    (105 ILCS 5/27A-12)
    Sec. 27A-12.  Evaluation; annual report.  The State Board
shall  compile annual evaluations of charter schools received
from local school boards and shall prepare an  annual  report
on  charter schools. The State Board shall review information
regarding the regulations and  policies  from  which  charter
schools  were released to determine if the exemption assisted
or impeded the charter schools in meeting their stated  goals
and  objectives.   Each annual report shall include suggested
changes in  State  law  necessary  to  strengthen  or  change
charter schools.
    On  or  before the second Wednesday of January, 1998, and
on  or  before  the  second  Wednesday  of  January  of  each
subsequent calendar year,  the  State  Board  shall  issue  a
report  to  the  General  Assembly  and  the  Governor on its
findings for the school year ending in the preceding calendar
year.
    In preparing the annual report required by this  Section,
the  State Board (i) shall compare the performance of charter
school  pupils  with  the  performance  of   ethnically   and
economically  comparable  groups  of  pupils  in other public
schools who are enrolled in academically comparable  courses,
(ii)  shall  review information regarding the regulations and
policies  from  which  charter  schools  were   released   to
determine  if  the exemptions assisted or impeded the charter
schools in meeting their stated  goals  and  objectives,  and
(iii)  shall include suggested changes in State law necessary
to strengthen charter schools.
    In addition, the State Board shall undertake  and  report
on  periodic  evaluations  of  charter  schools  that include
evaluations of student academic achievement,  the  extent  to
which  charter  schools  are accomplishing their missions and
goals, the sufficiency of funding for  charter  schools,  and
the  need  for  changes  in  the approval process for charter
schools.
(Source: P.A. 89-450, eff. 4-10-96.)

    (105 ILCS 5/29-4) (from Ch. 122, par. 29-4)
    Sec. 29-4. Pupils attending a charter school or nonpublic
other than a public school. The school board  of  any  school
district  that  provides  any  school  bus  or conveyance for
transporting pupils to and  from  the  public  schools  shall
afford  transportation, without cost, for children who attend
a charter school or any school other than  a  public  school,
who reside at least 1 1/2 miles from the school attended, and
who  reside  on or along the highway constituting the regular
route  of  such  public  school  bus  or   conveyance,   such
transportation to extend from some point on the regular route
nearest  or most easily accessible to their homes to and from
the school attended, or to or from a point  on  such  regular
route  which  is  nearest  or  most  easily accessible to the
school attended by such children.  Nothing  herein  shall  be
construed  to prevent high school districts from transporting
public or non-public elementary school pupils  on  a  regular
route  where  deemed appropriate.  The elementary district in
which such pupils  reside  shall  enter  into  a  contractual
agreement   with  the  high  school  district  providing  the
service, make payments accordingly, and make  claims  to  the
State  in the amount of such contractual payments. The person
in charge of any charter school or school other than a public
school shall certify on a form to be provided  by  the  State
Superintendent  of  Education,  the  names  and  addresses of
pupils transported and when such pupils were in attendance at
the school. If any such children reside within  1  1/2  miles
from  the school attended, the school board shall afford such
transportation to such children  on  the  same  basis  as  it
provides  transportation  for  its own pupils residing within
that distance from the school attended.
    Nothing herein shall be construed to  preclude  a  school
district  from operating separate regular bus routes, subject
to the limitations  of  this  Section,  for  the  benefit  of
children who attend a charter school or any school other than
a  public school where the operation of such routes is safer,
more economical  and  more  efficient  than  if  such  school
district  were  precluded from operating separate regular bus
routes.
    If a school district  is  required  by  this  Section  to
afford transportation without cost for any child who is not a
resident  of the district, the school district providing such
transportation is entitled to reimbursement from  the  school
district   in  which  the  child  resides  for  the  cost  of
furnishing  that  transportation,  including   a   reasonable
allowance  for  depreciation  on  each  vehicle  so used. The
school district where the child resides shall  reimburse  the
district  providing the transportation for such costs, by the
10th of each month or on such less frequent schedule  as  may
be agreed to by the 2 school districts.
(Source: P.A. 81-1050.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

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