Sen. Jacqueline Y. Collins

Filed: 5/20/2014





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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 or its designee must be allowed to be present or
18view the lottery in real time. The charter school must maintain
19a videotaped record of the lottery, including a time/date
20stamp. The charter school shall transmit copies of the
21videotape and all records relating to the lottery to the
22authorizer on or before September 1 of each year.
23    Subject to the requirements for priority applicant groups
24set forth in paragraph (1) of this subsection (h), any lottery
25required under this subsection (h) must be administered in a
26way that provides each student an equal chance at admission. If



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



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1    charter school with a mission exclusive to educating
2    students from low-performing or overcrowded schools may
3    restrict admission to students who are from low-performing
4    or overcrowded schools; "priority admission" for charter
5    schools exclusively devoted to re-enrolled dropouts or
6    students at risk of dropping out means a minimum of 90% of
7    students enrolled shall be high school dropouts; and
8        (2) any charter school located in a school district
9    that contains all or part of a federal military base may
10    set aside up to 33% of its current charter enrollment to
11    students with parents assigned to the federal military
12    base, with the remaining 67% subject to the general
13    enrollment and lottery requirements of subsection (d) of
14    this Section and this subsection (h); if a student with a
15    parent assigned to the federal military base withdraws from
16    the charter school during the course of a school year for
17    reasons other than grade promotion, those students with
18    parents assigned to the federal military base shall have
19    preference in filling the vacancy.
20    (i) (Blank).
21    (j) Notwithstanding any other provision of law to the
22contrary, a school district in a city having a population
23exceeding 500,000 shall not have a duty to collectively bargain
24with an exclusive representative of its employees over
25decisions to grant or deny a charter school proposal under
26Section 27A-8 of this Code, decisions to renew or revoke a



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1charter under Section 27A-9 of this Code, and the impact of
2these decisions, provided that nothing in this Section shall
3have the effect of negating, abrogating, replacing, reducing,
4diminishing, or limiting in any way employee rights,
5guarantees, or privileges granted in Sections 2, 3, 7, 8, 10,
614, and 15 of the Illinois Educational Labor Relations Act.
7    (k) In this Section:
8    "Low-performing school" means a public school in a school
9district organized under Article 34 of this Code that enrolls
10students in any of grades kindergarten through 8 and that is
11ranked within the lowest 10% of schools in that district in
12terms of the percentage of students meeting or exceeding
13standards on the Illinois Standards Achievement Test.
14    "Overcrowded school" means a public school in a school
15district organized under Article 34 of this Code that (i)
16enrolls students in any of grades kindergarten through 8, (ii)
17has a percentage of low-income students of 70% or more, as
18identified in the most recently available School Report Card
19published by the State Board of Education, and (iii) is
20determined by the Chicago Board of Education to be in the most
21severely overcrowded 5% of schools in the district. On or
22before November 1 of each year, the Chicago Board of Education
23shall file a report with the State Board of Education on which
24schools in the district meet the definition of "overcrowded
25school". "Students at risk of dropping out" means students 16
26or 15 years old in a public school in a district organized



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1under Article 34 of this Code that enrolls students in any
2grades 9-12 who have been absent at least 90 school attendance
3days of the previous 180 school attendance days.
4    (l) For advertisements created after the effective date of
5this amendatory Act of the 98th General Assembly, any
6advertisement, including a radio, television, print, Internet,
7social media, or billboard advertisement, purchased by a school
8district or public school, including a charter school, with
9public funds must include a disclaimer stating that the
10advertisement was paid for using public funds.
11    This disclaimer requirement does not extend to materials
12created by the charter school, including, but not limited to, a
13school website, informational pamphlets or leaflets, or
14clothing with affixed school logos.
15(Source: P.A. 97-151, eff. 1-1-12; 97-624, eff. 11-28-11;
1697-813, eff. 7-13-12; 98-474, eff. 8-16-13.)
17    (105 ILCS 5/27A-5)
18    Sec. 27A-5. Charter school; legal entity; requirements.
19    (a) A charter school shall be a public, nonsectarian,
20nonreligious, non-home based, and non-profit school. A charter
21school shall be organized and operated as a nonprofit
22corporation or other discrete, legal, nonprofit entity
23authorized under the laws of the State of Illinois.
24    (b) A charter school may be established under this Article
25by creating a new school or by converting an existing public



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1school or attendance center to charter school status. Beginning
2on the effective date of this amendatory Act of the 93rd
3General Assembly, in all new applications submitted to the
4State Board or a local school board to establish a charter
5school in a city having a population exceeding 500,000,
6operation of the charter school shall be limited to one campus.
7The changes made to this Section by this amendatory Act of the
893rd General Assembly do not apply to charter schools existing
9or approved on or before the effective date of this amendatory
11    (b-5) In this subsection (b-5), "virtual-schooling" means
12the teaching of courses through online methods with online
13instructors, rather than the instructor and student being at
14the same physical location. "Virtual-schooling" includes
15without limitation instruction provided by full-time, online
16virtual schools.
17    From April 1, 2013 through April 1, 2014, there is a
18moratorium on the establishment of charter schools with
19virtual-schooling components in school districts other than a
20school district organized under Article 34 of this Code. This
21moratorium does not apply to a charter school with
22virtual-schooling components existing or approved prior to
23April 1, 2013 or to the renewal of the charter of a charter
24school with virtual-schooling components already approved
25prior to April 1, 2013.
26    On or before March 1, 2014, the Commission shall submit to



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1the General Assembly a report on the effect of
2virtual-schooling, including without limitation the effect on
3student performance, the costs associated with
4virtual-schooling, and issues with oversight. The report shall
5include policy recommendations for virtual-schooling.
6    (c) A charter school shall be administered and governed by
7its board of directors or other governing body in the manner
8provided in its charter. The governing body of a charter school
9shall be subject to the Freedom of Information Act and the Open
10Meetings Act.
11    (d) A charter school shall comply with all applicable
12health and safety requirements applicable to public schools
13under the laws of the State of Illinois.
14    (e) Except as otherwise provided in the School Code, a
15charter school shall not charge tuition; provided that a
16charter school may charge reasonable fees for textbooks,
17instructional materials, and student activities.
18    (f) A charter school shall be responsible for the
19management and operation of its fiscal affairs including, but
20not limited to, the preparation of its budget. An audit of each
21charter school's finances shall be conducted annually by an
22outside, independent contractor retained by the charter
23school. To ensure financial accountability for the use of
24public funds, on or before December 1 of every year of
25operation, each charter school shall submit to its authorizer
26and Annually, by December 1, every charter school must submit



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1to the State Board a copy of its audit and a copy of the Form
2990 the charter school filed that year with the federal
3Internal Revenue Service. In addition, if deemed necessary for
4proper financial oversight of the charter school, an authorizer
5may require quarterly financial statements from each charter
7    (g) A charter school shall comply with all provisions of
8this Article, the Illinois Educational Labor Relations Act, and
9its charter. A charter school is exempt from all other State
10laws and regulations in the School Code governing public
11schools and local school board policies, except the following:
12        (1) Sections 10-21.9 and 34-18.5 of the School Code
13    regarding criminal history records checks and checks of the
14    Statewide Sex Offender Database and Statewide Murderer and
15    Violent Offender Against Youth Database of applicants for
16    employment;
17        (2) Sections 24-24 and 34-84A of the School Code
18    regarding discipline of students;
19        (3) The Local Governmental and Governmental Employees
20    Tort Immunity Act;
21        (4) Section 108.75 of the General Not For Profit
22    Corporation Act of 1986 regarding indemnification of
23    officers, directors, employees, and agents;
24        (5) The Abused and Neglected Child Reporting Act;
25        (6) The Illinois School Student Records Act;
26        (7) Section 10-17a of the School Code regarding school



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1    report cards; and
2        (8) The P-20 Longitudinal Education Data System Act.
3    The change made by Public Act 96-104 to this subsection (g)
4is declaratory of existing law.
5    (h) A charter school may negotiate and contract with a
6school district, the governing body of a State college or
7university or public community college, or any other public or
8for-profit or nonprofit private entity for: (i) the use of a
9school building and grounds or any other real property or
10facilities that the charter school desires to use or convert
11for use as a charter school site, (ii) the operation and
12maintenance thereof, and (iii) the provision of any service,
13activity, or undertaking that the charter school is required to
14perform in order to carry out the terms of its charter.
15However, a charter school that is established on or after the
16effective date of this amendatory Act of the 93rd General
17Assembly and that operates in a city having a population
18exceeding 500,000 may not contract with a for-profit entity to
19manage or operate the school during the period that commences
20on the effective date of this amendatory Act of the 93rd
21General Assembly and concludes at the end of the 2004-2005
22school year. Except as provided in subsection (i) of this
23Section, a school district may charge a charter school
24reasonable rent for the use of the district's buildings,
25grounds, and facilities. Any services for which a charter
26school contracts with a school district shall be provided by



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1the district at cost. Any services for which a charter school
2contracts with a local school board or with the governing body
3of a State college or university or public community college
4shall be provided by the public entity at cost.
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
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-10.5 new)
22    Sec. 27A-10.5. Educational or charter management
24    (a) In this Section:
25    "CMO" means a charter management organization.



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1    "EMO" means an educational management organization.
2    (b) All authorizers shall ensure that any charter school
3established on or after the effective date of this amendatory
4Act of the 98th General Assembly has a governing body that is
5separate and distinct from the governing body of any CMO or
6EMO. In reviewing charter applications and charter renewal
7applications, authorizers shall review the governance model
8proposed by the applicant to ensure that there are no conflicts
9of interest.
10    (c) No charter school may employ a staff person who is
11simultaneously employed by an EMO or CMO.
12    (105 ILCS 5/27A-10.10 new)
13    Sec. 27A-10.10. Closure of charter school; unspent public
14funds; procedures for the disposition of property and assets.
15    (a) Upon the closing of a charter school authorized by one
16or more local school boards, the governing body of the charter
17school or its designee shall refund to the chartering entity or
18entities all unspent public funds. The charter school's other
19property and assets shall be disposed of under the provisions
20of the charter application and contract. If the application and
21contract are silent or ambiguous as to the disposition of any
22of the school's property or assets, any property or assets of
23the charter school purchased with public funds shall be
24returned to the school district or districts from which the
25charter school draws enrollment, at no cost to the receiving



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1district or districts, subject to each district's acceptance of
2the property or asset. Any unspent public funds or other
3property or assets received by the charter school directly from
4any State or federal agency shall be refunded to or revert back
5to that State or federal agency, respectively.
6    (b) Upon the closing of a charter school authorized by the
7Commission, the governing body of the charter school or its
8designee shall refund all unspent public funds to the State
9Board of Education. The charter school's other property and
10assets shall be disposed of under the provisions of the charter
11application and contract. If the application and contract are
12silent or ambiguous as to the disposition of any of the
13school's property or assets, any property or assets of the
14charter school purchased with public funds shall be returned to
15the school district or districts from which the charter school
16draws its enrollment, at no cost to the receiving district or
17districts, subject to each district's acceptance of the
18property or asset. Any unspent public funds or other property
19or assets provided by a State agency other than the State Board
20of Education or by a federal agency shall be refunded to or
21revert back to that State or federal agency, respectively.".