Sen. Jacqueline Y. Collins

Filed: 5/16/2014





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2    AMENDMENT NO. ______. Amend House Bill 3232 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The School Code is amended by changing Sections
527A-4 and 27A-5 and by adding Sections 27A-10.5 and 27A-10.10
6as follows:
7    (105 ILCS 5/27A-4)
8    Sec. 27A-4. General Provisions.
9    (a) The General Assembly does not intend to alter or amend
10the provisions of any court-ordered desegregation plan in
11effect for any school district. A charter school shall be
12subject to all federal and State laws and constitutional
13provisions prohibiting discrimination on the basis of
14disability, race, creed, color, gender, national origin,
15religion, ancestry, marital status, or need for special
16education services.



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1    (b) The total number of charter schools operating under
2this Article at any one time shall not exceed 120. Not more
3than 70 charter schools shall operate at any one time in any
4city having a population exceeding 500,000, with at least 5
5charter schools devoted exclusively to students from
6low-performing or overcrowded schools operating at any one time
7in that city; and not more than 45 charter schools shall
8operate at any one time in the remainder of the State, with not
9more than one charter school that has been initiated by a board
10of education, or by an intergovernmental agreement between or
11among boards of education, operating at any one time in the
12school district where the charter school is located. In
13addition to these charter schools, up to but no more than 5
14charter schools devoted exclusively to re-enrolled high school
15dropouts and/or students 16 or 15 years old at risk of dropping
16out may operate at any one time in any city having a population
17exceeding 500,000. Notwithstanding any provision to the
18contrary in subsection (b) of Section 27A-5 of this Code, each
19such dropout charter may operate up to 15 campuses within the
20city. Any of these dropout charters may have a maximum of 1,875
21enrollment seats, any one of the campuses of the dropout
22charter may have a maximum of 165 enrollment seats, and each
23campus of the dropout charter must be operated, through a
24contract or payroll, by the same legal entity as that for which
25the charter is approved and certified.
26    For purposes of implementing this Section, the State Board



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1shall assign a number to each charter submission it receives
2under Section 27A-6 for its review and certification, based on
3the chronological order in which the submission is received by
4it. The State Board shall promptly notify local school boards
5when the maximum numbers of certified charter schools
6authorized to operate have been reached.
7    (c) No charter shall be granted under this Article that
8would convert any existing private, parochial, or non-public
9school to a charter school.
10    (d) Enrollment in a charter school shall be open to any
11pupil who resides within the geographic boundaries of the area
12served by the local school board, provided that the board of
13education in a city having a population exceeding 500,000 may
14designate attendance boundaries for no more than one-third of
15the charter schools permitted in the city if the board of
16education determines that attendance boundaries are needed to
17relieve overcrowding or to better serve low-income and at-risk
18students. Students residing within an attendance boundary may
19be given priority for enrollment, but must not be required to
20attend the charter school.
21    (e) Nothing in this Article shall prevent 2 or more local
22school boards from jointly issuing a charter to a single shared
23charter school, provided that all of the provisions of this
24Article are met as to those local school boards.
25    (f) No local school board shall require any employee of the
26school district to be employed in a charter school.



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1    (g) No local school board shall require any pupil residing
2within the geographic boundary of its district to enroll in a
3charter school.
4    (h) If there are more eligible applicants for enrollment in
5a charter school than there are spaces available, successful
6applicants shall be selected by lottery. However, priority
7shall be given to siblings of pupils enrolled in the charter
8school and to pupils who were enrolled in the charter school
9the previous school year, unless expelled for cause, and
10priority may be given to pupils residing within the charter
11school's attendance boundary, if a boundary has been designated
12by the board of education in a city having a population
13exceeding 500,000.
14    Beginning with student enrollment for the 2015-2016 school
15year, any lottery required under this subsection (h) must be
16administered and videotaped by the charter school. The
17authorizer's representative must have an observer present
18during the lottery proceedings. The charter school must
19maintain a videotaped record of the lottery, including a
20time/date stamp. The charter school shall transmit copies of
21the videotape and all records relating to the lottery to the
22authorizer on or before September 1 of each year.
23    Any lottery required under this subsection (h) must be
24administered in a way that provides each student an equal
25chance at admission. If an authorizer makes a determination
26that a charter school's lottery is in violation of this



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1subsection (h), it may administer the lottery directly. After a
2lottery, each student randomly selected for admission to the
3charter school must be notified. Charter schools may not create
4an admissions process subsequent to a lottery that may operate
5as a barrier to registration or enrollment.
6    Charter schools may undertake additional intake
7activities, including without limitation student essays,
8school-parent compacts, or open houses, but in no event may a
9charter school require participation in these activities as a
10condition of enrollment. A charter school must submit an
11updated waitlist to the authorizer on a quarterly basis. A
12waitlist must be submitted to the authorizer at the same time
13as quarterly financial statements, if quarterly financial
14statements are required by the authorizer.
15    Dual enrollment at both a charter school and a public
16school or non-public school shall not be allowed. A pupil who
17is suspended or expelled from a charter school shall be deemed
18to be suspended or expelled from the public schools of the
19school district in which the pupil resides. Notwithstanding
20anything to the contrary in this subsection (h):
21        (1) any charter school with a mission exclusive to
22    educating high school dropouts may grant priority
23    admission to students who are high school dropouts and/or
24    students 16 or 15 years old at risk of dropping out and any
25    charter school with a mission exclusive to educating
26    students from low-performing or overcrowded schools may



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1    restrict admission to students who are from low-performing
2    or overcrowded schools; "priority admission" for charter
3    schools exclusively devoted to re-enrolled dropouts or
4    students at risk of dropping out means a minimum of 90% of
5    students enrolled shall be high school dropouts; and
6        (2) any charter school located in a school district
7    that contains all or part of a federal military base may
8    set aside up to 33% of its current charter enrollment to
9    students with parents assigned to the federal military
10    base, with the remaining 67% subject to the general
11    enrollment and lottery requirements of subsection (d) of
12    this Section and this subsection (h); if a student with a
13    parent assigned to the federal military base withdraws from
14    the charter school during the course of a school year for
15    reasons other than grade promotion, those students with
16    parents assigned to the federal military base shall have
17    preference in filling the vacancy.
18    (i) (Blank).
19    (j) Notwithstanding any other provision of law to the
20contrary, a school district in a city having a population
21exceeding 500,000 shall not have a duty to collectively bargain
22with an exclusive representative of its employees over
23decisions to grant or deny a charter school proposal under
24Section 27A-8 of this Code, decisions to renew or revoke a
25charter under Section 27A-9 of this Code, and the impact of
26these decisions, provided that nothing in this Section shall



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1have the effect of negating, abrogating, replacing, reducing,
2diminishing, or limiting in any way employee rights,
3guarantees, or privileges granted in Sections 2, 3, 7, 8, 10,
414, and 15 of the Illinois Educational Labor Relations Act.
5    (k) In this Section:
6    "Low-performing school" means a public school in a school
7district organized under Article 34 of this Code that enrolls
8students in any of grades kindergarten through 8 and that is
9ranked within the lowest 10% of schools in that district in
10terms of the percentage of students meeting or exceeding
11standards on the Illinois Standards Achievement Test.
12    "Overcrowded school" means a public school in a school
13district organized under Article 34 of this Code that (i)
14enrolls students in any of grades kindergarten through 8, (ii)
15has a percentage of low-income students of 70% or more, as
16identified in the most recently available School Report Card
17published by the State Board of Education, and (iii) is
18determined by the Chicago Board of Education to be in the most
19severely overcrowded 5% of schools in the district. On or
20before November 1 of each year, the Chicago Board of Education
21shall file a report with the State Board of Education on which
22schools in the district meet the definition of "overcrowded
23school". "Students at risk of dropping out" means students 16
24or 15 years old in a public school in a district organized
25under Article 34 of this Code that enrolls students in any
26grades 9-12 who have been absent at least 90 school attendance



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1days of the previous 180 school attendance days.
2    (l) For charter school advertisements created after the
3effective date of this amendatory Act of the 98th General
4Assembly, any advertisement, including a radio, television,
5print, Internet, social media, or billboard advertisement,
6purchased by a school district or public school, including a
7charter school, with public funds must include a disclaimer
8stating that the advertisement was paid for using public funds.
9(Source: P.A. 97-151, eff. 1-1-12; 97-624, eff. 11-28-11;
1097-813, eff. 7-13-12; 98-474, eff. 8-16-13.)
11    (105 ILCS 5/27A-5)
12    Sec. 27A-5. Charter school; legal entity; requirements.
13    (a) A charter school shall be a public, nonsectarian,
14nonreligious, non-home based, and non-profit school. A charter
15school shall be organized and operated as a nonprofit
16corporation or other discrete, legal, nonprofit entity
17authorized under the laws of the State of Illinois.
18    (b) A charter school may be established under this Article
19by creating a new school or by converting an existing public
20school or attendance center to charter school status. Beginning
21on the effective date of this amendatory Act of the 93rd
22General Assembly, in all new applications submitted to the
23State Board or a local school board to establish a charter
24school in a city having a population exceeding 500,000,
25operation of the charter school shall be limited to one campus.



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1The changes made to this Section by this amendatory Act of the
293rd General Assembly do not apply to charter schools existing
3or approved on or before the effective date of this amendatory
5    (b-5) In this subsection (b-5), "virtual-schooling" means
6the teaching of courses through online methods with online
7instructors, rather than the instructor and student being at
8the same physical location. "Virtual-schooling" includes
9without limitation instruction provided by full-time, online
10virtual schools.
11    From April 1, 2013 through April 1, 2014, there is a
12moratorium on the establishment of charter schools with
13virtual-schooling components in school districts other than a
14school district organized under Article 34 of this Code. This
15moratorium does not apply to a charter school with
16virtual-schooling components existing or approved prior to
17April 1, 2013 or to the renewal of the charter of a charter
18school with virtual-schooling components already approved
19prior to April 1, 2013.
20    On or before March 1, 2014, the Commission shall submit to
21the General Assembly a report on the effect of
22virtual-schooling, including without limitation the effect on
23student performance, the costs associated with
24virtual-schooling, and issues with oversight. The report shall
25include policy recommendations for virtual-schooling.
26    (c) A charter school shall be administered and governed by



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1its board of directors or other governing body in the manner
2provided in its charter. The governing body of a charter school
3shall be subject to the Freedom of Information Act and the Open
4Meetings Act.
5    (d) A charter school shall comply with all applicable
6health and safety requirements applicable to public schools
7under the laws of the State of Illinois.
8    (e) Except as otherwise provided in the School Code, a
9charter school shall not charge tuition; provided that a
10charter school may charge reasonable fees for textbooks,
11instructional materials, and student activities.
12    (f) A charter school shall be responsible for the
13management and operation of its fiscal affairs including, but
14not limited to, the preparation of its budget. An audit of each
15charter school's finances shall be conducted annually by an
16outside, independent contractor retained by the charter
17school. To ensure financial accountability for the use of
18public funds, on or before December 1 of every year of
19operation, each charter school shall submit to its authorizer
20and Annually, by December 1, every charter school must submit
21to the State Board a copy of its audit and a copy of the Form
22990 the charter school filed that year with the federal
23Internal Revenue Service. In addition, if deemed necessary for
24proper financial oversight of the charter school, an authorizer
25may require quarterly financial statements from each charter



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1    (g) A charter school shall comply with all provisions of
2this Article, the Illinois Educational Labor Relations Act, and
3its charter. A charter school is exempt from all other State
4laws and regulations in the School Code governing public
5schools and local school board policies, except the following:
6        (1) Sections 10-21.9 and 34-18.5 of the School Code
7    regarding criminal history records checks and checks of the
8    Statewide Sex Offender Database and Statewide Murderer and
9    Violent Offender Against Youth Database of applicants for
10    employment;
11        (2) Sections 24-24 and 34-84A of the School Code
12    regarding discipline of students;
13        (3) The Local Governmental and Governmental Employees
14    Tort Immunity Act;
15        (4) Section 108.75 of the General Not For Profit
16    Corporation Act of 1986 regarding indemnification of
17    officers, directors, employees, and agents;
18        (5) The Abused and Neglected Child Reporting Act;
19        (6) The Illinois School Student Records Act;
20        (7) Section 10-17a of the School Code regarding school
21    report cards; and
22        (8) The P-20 Longitudinal Education Data System Act.
23    The change made by Public Act 96-104 to this subsection (g)
24is declaratory of existing law.
25    (h) A charter school may negotiate and contract with a
26school district, the governing body of a State college or



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1university or public community college, or any other public or
2for-profit or nonprofit private entity for: (i) the use of a
3school building and grounds or any other real property or
4facilities that the charter school desires to use or convert
5for use as a charter school site, (ii) the operation and
6maintenance thereof, and (iii) the provision of any service,
7activity, or undertaking that the charter school is required to
8perform in order to carry out the terms of its charter.
9However, a charter school that is established on or after the
10effective date of this amendatory Act of the 93rd General
11Assembly and that operates in a city having a population
12exceeding 500,000 may not contract with a for-profit entity to
13manage or operate the school during the period that commences
14on the effective date of this amendatory Act of the 93rd
15General Assembly and concludes at the end of the 2004-2005
16school year. Except as provided in subsection (i) of this
17Section, a school district may charge a charter school
18reasonable rent for the use of the district's buildings,
19grounds, and facilities. Any services for which a charter
20school contracts with a school district shall be provided by
21the district at cost. Any services for which a charter school
22contracts with a local school board or with the governing body
23of a State college or university or public community college
24shall be provided by the public entity at cost.
25    (i) In no event shall a charter school that is established
26by converting an existing school or attendance center to



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1charter school status be required to pay rent for space that is
2deemed available, as negotiated and provided in the charter
3agreement, in school district facilities. However, all other
4costs for the operation and maintenance of school district
5facilities that are used by the charter school shall be subject
6to negotiation between the charter school and the local school
7board and shall be set forth in the charter.
8    (j) A charter school may limit student enrollment by age or
9grade level.
10    (k) If the charter school is approved by the Commission,
11then the Commission charter school is its own local education
13(Source: P.A. 97-152, eff. 7-20-11; 97-154, eff. 1-1-12;
1497-813, eff. 7-13-12; 98-16, eff. 5-24-13.)
15    (105 ILCS 5/27A-10.5 new)
16    Sec. 27A-10.5. Educational or charter management
18    (a) In this Section:
19    "CMO" means a charter management organization.
20    "EMO" means an educational management organization.
21    (b) All authorizers shall ensure that any charter school
22established on or after the effective date of this amendatory
23Act of the 98th General Assembly has a governing body that is
24separate and distinct from the governing body of any CMO or
25EMO. In reviewing charter applications and charter renewal



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1applications, authorizers shall review the governance model
2proposed by the applicant to ensure that there are no conflicts
3of interest.
4    (c) No charter school may employ a staff person who is
5simultaneously employed by an EMO or CMO.
6    (105 ILCS 5/27A-10.10 new)
7    Sec. 27A-10.10. Unspent public funds; disposition of
9    (a) When a charter school is authorized by one or more
10local boards of education, the governing body of the charter
11school or its designee shall refund to the chartering entity or
12entities all unspent public funds. The charter school's other
13assets shall be dissolved under the provisions of the charter
14application and contract. If the contract is silent or
15ambiguous as to the disposition of any of the school's assets,
16all assets of the charter school purchased with public funds
17shall be returned to the school district or districts from
18which the charter school draws enrollment, at no cost to the
19receiving district or districts, subject to each district's
20acceptance of the asset. Any unspent public funds or other
21assets received by the charter school directly from any State
22or federal agency shall be refunded to or revert back to that
23State or federal agency, respectively.
24    (b) When a charter school is authorized by the Commission,
25the governing body of the charter school or its designee shall



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1refund all unspent public funds to the State Board of
2Education. The charter school's other assets shall be dissolved
3under the provisions of the charter application and contract.
4If the contract is silent or ambiguous as to the disposition of
5any of the school's assets, all assets of the charter school
6purchased with public funds shall be returned to the school
7district or districts from which the charter school draws its
8enrollment, at no cost to the receiving district or districts,
9subject to each district's acceptance of the asset. Any unspent
10public funds or other assets provided by a State agency other
11than the State Board of Education or by a federal agency shall
12be refunded to or revert back to that State or federal agency,