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92_SB0636eng SB636 Engrossed LRB9207928NTsb 1 AN ACT regarding schools. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The School Code is amended by changing 5 Sections 27A-11, 27A-11.5, and 34-49 as follows: 6 (105 ILCS 5/27A-11) 7 Sec. 27A-11. Local financing. 8 (a) For purposes of the School Code, pupils enrolled in 9 a charter school shall be included in the pupil enrollment of 10 the school district within which the pupil resides. Each 11 charter school (i) shall determine the school district in 12 which each pupil who is enrolled in the charter school 13 resides, (ii) shall report the aggregate number of pupils 14 resident of a school district who are enrolled in the charter 15 school to the school district in which those pupils reside, 16 and (iii) shall maintain accurate records of daily attendance 17 that shall be deemed sufficient to file claims under Section 18 18-8 notwithstanding any other requirements of that Section 19 regarding hours of instruction and teacher certification. 20 (b) Except for a charter school established by 21 referendum under Section 27A-6.5, as part of a charter school 22 contract, the charter school and the local school board shall 23 agree on funding and any services to be provided by the 24 school district to the charter school. Agreed funding that a 25 charter school is to receive from the local school board for 26 a school year shall be paid in equal quarterly installments 27 with the payment of the installment for the first quarter 28 being made not later than July 1, unless the charter 29 establishes a different payment schedule. 30 All services centrally or otherwise provided by the 31 school district including, but not limited to, rent, food SB636 Engrossed -2- LRB9207928NTsb 1 services, custodial services, maintenance, curriculum, media 2 services, libraries, transportation, and warehousing shall be 3 subject to negotiation between a charter school and the local 4 school board and paid for out of the revenues negotiated 5 pursuant to this subsection (b); provided that the local 6 school board shall not attempt, by negotiation or otherwise, 7 to obligate a charter school to provide pupil transportation 8 for pupils for whom a district is not required to provide 9 transportation under the criteria set forth in subsection 10 (a)(13) of Section 27A-7. 11 In no event shall the funding be less than 75% or more 12 than 125% of the school district's per capita student tuition 13 multiplied by the number of students residing in the district 14 who are enrolled in the charter school. 15 It is the intent of the General Assembly that funding and 16 service agreements under this subsection (b) shall be neither 17 a financial incentive nor a financial disincentive to the 18 establishment of a charter school. 19 The charter school may set and collect reasonable fees. 20 Fees collected from students enrolled at a charter school 21 shall be retained by the charter school. 22 (c) Notwithstanding subsection (b) of this Section, the 23 proportionate share of State and federal resources generated 24 by students with disabilities or staff serving them shall be 25 directed to charter schools enrolling those students by their 26 school districts or administrative units. The proportionate 27 share of moneys generated under other federal or State 28 categorical aid programs shall be directed to charter schools 29 serving students eligible for that aid. 30 (d) The governing body of a charter school is authorized 31 to accept gifts, donations, or grants of any kind made to the 32 charter school and to expend or use gifts, donations, or 33 grants in accordance with the conditions prescribed by the 34 donor; however, a gift, donation, or grant may not be SB636 Engrossed -3- LRB9207928NTsb 1 accepted by the governing body if it is subject to any 2 condition contrary to applicable law or contrary to the terms 3 of the contract between the charter school and the local 4 school board. Charter schools shall be encouraged to solicit 5 and utilize community volunteer speakers and other 6 instructional resources when providing instruction on the 7 Holocaust and other historical events. 8 (e) (Blank). 9 (f) The State Board shall provide technical assistance, 10 including information that clearly details the process, 11 timelines, and criteria used to prepare and revise charter 12 applications, to persons and groups preparing or revising 13 charter applications. Other information, such as links to 14 external resource organizations, may also be provided. 15 (g) At the non-renewal or revocation of its charter, 16 each charter school shall refund to the local board of 17 education all unspent funds. 18 (h) A charter school is authorized to incur temporary, 19 short term debt to pay operating expenses in anticipation of 20 receipt of funds from the local school board. 21 (i) A charter school may (i) borrow money for the 22 acquisition, construction, renovation, redevelopment, and 23 equipping of school and educational facilities and for such 24 other needs as determined by the governing body of the 25 charter school, at such rates of interest as the governing 26 body may determine, without regard to any referendum 27 requirements, (ii) issue bonds, notes, and other obligations; 28 and (iii) secure any of its obligations, including any 29 obligation arising from the delivery of a guarantee described 30 in subsection (k) of this Section, by pledge, mortgage, or 31 deed on any or all of its property. 32 (j) The governing body of a charter school may pledge, 33 as security for the payment of its obligations, grants or 34 other revenues expected to be received from the local school SB636 Engrossed -4- LRB9207928NTsb 1 board, the State, or the federal government or gifts, 2 donations, or grants of any kind expected to be received by 3 the charter school from any source. 4 Any such pledge is valid and binding from the time the 5 pledge is made. The revenues, moneys, and other funds so 6 pledged and thereafter received by the charter school shall 7 immediately be subject to the lien of the pledge without any 8 physical delivery thereof or further act; and, subject only 9 to the provisions of prior agreements, the lien of the pledge 10 shall be valid and binding against all parties having claims 11 of any kind in tort, contract, or otherwise against the 12 charter school irrespective of whether these parties have 13 notice thereof. No ordinance, resolution, trust agreement, 14 or other instrument by which the pledge is created needs to 15 be filed or recorded except in the records of the charter 16 school. 17 The State Treasurer, the State Comptroller, the 18 Department of Revenue, the Department of Transportation, the 19 State Superintendent of Education, any regional 20 superintendent of schools, and the local school board shall 21 deposit or cause to be deposited any amount of grants or 22 other revenues expected to be received by a charter school 23 from that official, entity, or local school board that have 24 been pledged to the payment of obligations of the charter 25 school, in accordance with the authorization of the charter 26 school, directly into a designated escrow account established 27 by and at the direction of the charter school. The 28 resolution authorizing that deposit shall, within 10 days 29 after adoption by the governing body of the charter school, 30 be filed with the official, entity, or local school board 31 having custody of the pledged grants or other revenues. 32 (k) A local school board may guarantee the repayment or 33 otherwise enhance the credit of all or any portion of the 34 debt obligations of a charter school located in the school SB636 Engrossed -5- LRB9207928NTsb 1 district, without regard to any referendum requirements and 2 subject to the terms negotiated between the local school 3 board and the governing body of the charter school, provided 4 that the term of any such guarantee or credit enhancement 5 does not exceed 30 years. 6 (Source: P.A. 90-548, eff. 1-1-98; 90-757, eff. 8-14-98; 7 91-407, eff. 8-3-99.) 8 (105 ILCS 5/27A-11.5) 9 Sec. 27A-11.5. State financing. The State Board of 10 Education shall make the following funds available to school 11 districts and charter schools: 12 (1) From a separate appropriation made to the State 13 Board for purposes of this subdivision (1), the State 14 Board shall make transition impact aid available to 15 school districts that approve a new charter school or 16 that have funds withheld by the State Board to fund a new 17 charter school that is chartered by the State Board. The 18 amount of the aid shall equal 90% of the per capita 19 funding paid to the charter school during the first year 20 of its initial charter term, 65% of the per capita 21 funding paid to the charter school during the second year 22 of its initial term, and 35% of the per capita funding 23 paid to the charter school during the third year of its 24 initial term. This transition impact aid shall be paid 25 to the local school board in equal quarterly 26 installments, with the payment of the installment for the 27 first quarter being made by August 1st immediately 28 preceding the first, second, and third years of the 29 initial term. The district shall file an application for 30 this aid with the State Board in a format designated by 31 the State Board. If the appropriation is insufficient in 32 any year to pay all approved claims, the impact aid shall 33 be prorated. Transition impact aid shall be paid SB636 Engrossed -6- LRB9207928NTsb 1 beginning in the 1999-2000 school year for charter 2 schools that are in the first, second, or third year of 3 their initial term.If House Bill 230 of the 91st4General Assembly becomes law,Transition impact aid shall 5 not be paid for any charter school that is proposed and 6 created by one or more boards of education, as authorized 7 under the provisions of Public Act 91-405House Bill 2308of the 91st General Assembly. 9 (2) From a separate appropriation made to the State 10 Board for the purpose of this subdivision (2), the State 11 Board shall make grants to charter schools, which shall 12 not exceed $1,000 per student enrolled in the charter 13 school, to pay the charter school'stheir start-upcosts 14 of acquiring educational materials and supplies, 15 textbooks, furniture, and other equipment, of acquiring, 16 remodeling, and maintaining a suitable physical plant, 17 and of any other needs as determined by the charter 18 schoolneeded during their initial term. The State Board19shall annually establish the time and manner of20application for these grants, which shall not exceed $25021per student enrolled in the charter school. 22 (3) The Charter Schools Revolving Loan Fund is 23 created as a special fund in the State treasury. Federal 24 funds, such other funds as may be made available for 25 costs associated with the establishment of charter 26 schools in Illinois, and amounts repaid by charter 27 schools that have received a loan from the Charter 28 Schools Revolving Loan Fund shall be deposited into the 29 Charter Schools Revolving Loan Fund, and the moneys in 30 the Charter Schools Revolving Loan Fund shall be 31 appropriated to the State Board and used to provide 32 interest-free loans to charter schools. These funds 33 shall be used to pay start-up costs of acquiring 34 educational materials and supplies, textbooks, furniture, SB636 Engrossed -7- LRB9207928NTsb 1 and other equipment needed in the initial term of the 2 charter school and for acquiring and remodeling a 3 suitable physical plant, within the initial term of the 4 charter school. Loans shall be limited to one loan per 5 charter school and shall not exceed $500$250per student 6 enrolled in the charter school. A loan shall be repaid 7 by the end of the initial term of the charter school. 8 The State Board may deduct amounts necessary to repay the 9 loan from funds due to the charter school or may require 10 that the local school board that authorized the charter 11 school deduct such amounts from funds due the charter 12 school and remit these amounts to the State Board, 13 provided that the local school board shall not be 14 responsible for repayment of the loan. The State Board 15 may use up to 3% of the appropriation to contract with a 16 non-profit entity to administer the loan program. 17 (4) A charter school may apply for and shall 18 receive, subject to the same restrictions applicable to 19 school districts, any grant and programmatic funds 20 administered by the State Board that is available for 21 school districts. 22 (Source: P.A. 91-407, eff. 8-3-99; revised 8-4-99.) 23 (105 ILCS 5/34-49) (from Ch. 122, par. 34-49) 24 Sec. 34-49. Contracts, expense and liabilities without 25 appropriation. No contract shall be made or expense or 26 liability incurred by the board, or any member or committee 27 thereof, or by any person for or in its behalf, 28 notwithstanding the expenditure may have been ordered by the 29 board, unless an appropriation therefor has been previously 30 made. Neither the board, nor any member or committee, 31 officer, head of any department or bureau, or employee 32 thereof shall during a fiscal year expend or contract to be 33 expended any money, or incur any liability, or enter into any SB636 Engrossed -8- LRB9207928NTsb 1 contract which by its terms involves the expenditure of money 2 for any of the purposes for which provision is made in the 3 budget, in excess of the amounts appropriated in the budget. 4 Any contract, verbal or written, made in violation of this 5 Section is void as to the board, and no moneys belonging 6 thereto shall be paid thereon. Provided, however, that the 7 board may lease from any Public Building Commission created 8 pursuant to the provisions of the Public Building Commission 9 Act, approved July 5, 1955, as heretofore or hereafter 10 amended, or from any individuals, partnerships or 11 corporations, any real or personal property for the purpose 12 of securing space for its school purposes or office or other 13 space for its administrative functions for any period of time 14 not exceeding 40 years, and such lease may be made and the 15 obligation or expense thereunder incurred without making a 16 previous appropriation therefor, except as otherwise provided 17 in Section 34-21.1 of this Act. Provided that the board may 18 enter into agreements, including lease and lease purchase 19 agreements having a term not longer than 40 years from the 20 date on which such agreements are entered into, with 21 individuals, partnerships, or corporations for the 22 construction of school buildings, school administrative 23 offices, site development, and school support facilities. 24 The board shall maintain exclusive possession of all such 25 schools, school administrative offices, and school facilities 26 which it is occupying or acquiring pursuant to any such lease 27 or lease purchase agreement, and in addition shall have and 28 exercise complete control over the education program 29 conducted at such schools, offices and facilities. The 30 board's contribution under any such lease or lease purchase 31 agreement shall be limited to the use of the real estate and 32 existing improvements on a rental basis which shall be exempt 33 from any form of leasehold tax or assessment, but the 34 interests of the board may be subordinated to the interests SB636 Engrossed -9- LRB9207928NTsb 1 of a mortgage holder or holders acquired as security for 2 additional improvements made on the property; however, (1).3Provided thatthe board may enter into agreements, including 4 lease and lease purchase agreements, having a term not longer 5 than 40 years from the date on which such agreements are 6 entered into for the provision of school buildings and 7 related property and facilities for an agricultural science 8 school pursuant to subparagraphs (8) through (10) of Section 9 34-21.1,;and such agreements may be made and the obligations 10 thereunder incurred without making a previous appropriation 11 therefor, and (2) the board may enter into agreements to 12 guarantee the repayment or otherwise enhance the credit of 13 the debt obligations of a charter school as provided in 14 subsection (k) of Section 27A-11 of this Code for a term not 15 to exceed 30 years. This Section does not prevent the making 16 of lawful contracts for the construction of buildings, the 17 purchase of insurance, the leasing of equipment, the purchase 18 of personal property by a conditional sales agreement, or the 19 leasing of personal property under an agreement that upon 20 compliance with the terms of which the board shall become or 21 has the option to become the owner of the property for no 22 additional consideration or for a nominal consideration, the 23 term of which may be for periods of more than 1 year, but, in 24 no case, shall such conditional sales agreements or leases of 25 personal property by which the board may or will become the 26 owner of the personal property, provide for the consideration 27 to be paid during a period of time in excess of 10 years nor 28 shall such contracts provide for the payment of interest in 29 excess of the maximum rate authorized by the Bond 30 Authorization Act, as amended at the time of the making of 31 the contract, on the unpaid balance owing; nor shall this 32 Section prevent the making of lawful contracts for the 33 purchase of fuel and the removal of ashes for a period from 34 July 1 of any year to June 30 of the year following, or the SB636 Engrossed -10- LRB9207928NTsb 1 making of lawful contracts for the transportation of pupils 2 to and from school, or the entering into of employment 3 contracts with individuals or groups of employees for any 4 period not to exceed 4 years, or the entering into contracts 5 with third parties for services otherwise performed by 6 employees for any period not to exceed 5 years provided that 7 the contracts with third parties for services provided at 8 attendance centers shall specify that the principal of an 9 attendance center shall have authority, to the maximum extent 10 possible, to direct persons assigned to the attendance center 11 pursuant to that contract, or the making of requirement 12 contracts for not to exceed one year the terms of which may 13 extend into the succeeding fiscal year provided, however, 14 that such contracts contain a limitation on the amount to be 15 expended and that such contracts shall impose no obligation 16 on the board except pursuant to written purchase order. 17 With respect to instruments for the payment of money 18 issued under this Section either before, on, or after the 19 effective date of this amendatory Act of 1989, it is and 20 always has been the intention of the General Assembly (i) 21 that the Omnibus Bond Acts are and always have been 22 supplementary grants of power to issue instruments in 23 accordance with the Omnibus Bond Acts, regardless of any 24 provision of this Act that may appear to be or to have been 25 more restrictive than those Acts, (ii) that the provisions of 26 this Section are not a limitation on the supplementary 27 authority granted by the Omnibus Bond Acts, and (iii) that 28 instruments issued under this Section within the 29 supplementary authority granted by the Omnibus Bond Acts are 30 not invalid because of any provision of this Act that may 31 appear to be or to have been more restrictive than those 32 Acts. 33 (Source: P.A. 89-15, eff. 5-30-95.)