State of Illinois
91st General Assembly
Legislation

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91_SB0648eng

 
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 1        AN ACT concerning charter schools, amending named Acts.

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

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

 6        (30 ILCS 105/5.490 new)
 7        Sec. 5.490.  The Charter Schools Revolving Loan Fund.

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

11        (105 ILCS 5/27A-4)
12        Sec. 27A-4.  General Provisions.
13        (a)  The  General  Assembly  does  not intend to alter or
14    amend the provisions of any court-ordered desegregation  plan
15    in effect for any school district.  A charter school shall be
16    subject  to  all  federal  and  State laws and constitutional
17    provisions  prohibiting  discrimination  on  the   basis   of
18    disability,  race,  creed,  color,  gender,  national origin,
19    religion, ancestry,  marital  status,  or  need  for  special
20    education services.
21        (b)  The  total number of charter schools operating under
22    this Article at any one time shall not exceed  45  except  as
23    otherwise provided in this subsection (b). Not more than that
24     15 charter schools shall operate at any one time in any city
25    having  a  population  exceeding  500,000;  not  more than 15
26    charter schools shall operate at any one time in the counties
27    of DuPage, Kane, Lake, McHenry, Will,  and  that  portion  of
28    Cook   County  that  is  located  outside  a  city  having  a
29    population exceeding 500,000; and not more  than  15  charter
 
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 1    schools shall operate at any one time in the remainder of the
 2    State.  However,  when  the maximum number of charter schools
 3    for a region has been reached, the number of charter  schools
 4    authorized to operate at any one time in that region shall be
 5    increased  by  15,  with further increases by 15 when the new
 6    maximum numbers have been reached but with no  more  than  15
 7    new charter schools being authorized per region, per year.
 8        For  purposes  of  implementing  this  Section, the State
 9    Board shall assign a number to  each  charter  submission  it
10    receives   under   Section   27A-6   for   its   review   and
11    certification,  based on the chronological order in which the
12    submission is received by it.  The State Board shall promptly
13    notify local  school  boards  when  the  maximum  numbers  of
14    certified  charter  schools  authorized  to operate have been
15    reached.
16        (c)  No charter shall be granted under this Article  that
17    would  convert any existing private, parochial, or non-public
18    school to a charter school.
19        (d)  Enrollment in a charter school shall be open to  any
20    pupil  who  resides  within  the geographic boundaries of the
21    area served by the local school board.  However, no more than
22    50% of the number of resident  pupils  enrolled  in  any  one
23    grade  in  a  school  district  with only a single attendance
24    center covering that grade  may  be  enrolled  in  a  charter
25    school at one time.
26        (e)  Nothing  in  this  Article  shall  prevent 2 or more
27    local school boards from  jointly  issuing  a  charter  to  a
28    single  shared  charter  school,  provided  that  all  of the
29    provisions of this Article are met as to those  local  school
30    boards.
31        (f)  No  local school board shall require any employee of
32    the school district to be employed in a charter school.
33        (g)  No  local  school  board  shall  require  any  pupil
34    residing within the geographic boundary of  its  district  to
 
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 1    enroll in a charter school.
 2        (h)  If there are more eligible applicants for enrollment
 3    in   a  charter  school  than  there  are  spaces  available,
 4    successful applicants shall be selected by lottery.  However,
 5    priority shall be given to siblings of pupils enrolled in the
 6    charter school and to pupils who were enrolled in the charter
 7    school the previous school year, unless expelled  for  cause.
 8    Dual  enrollment at both a charter school and a public school
 9    or non-public school shall not be allowed.  A  pupil  who  is
10    suspended  or  expelled from a charter school shall be deemed
11    to be suspended or expelled from the public  schools  of  the
12    school district in which the pupil resides.
13        (i)  (Blank).  No  charter  school established under this
14    Article may be authorized to open prior to  the  school  year
15    beginning in the fall of 1996.
16    (Source: P.A. 89-450, eff. 4-10-96; revised 2-24-98.)

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

30        (105 ILCS 5/27A-6)
31        Sec. 27A-6.  Contract contents; applicability of laws and
32    regulations.
33        (a)  A  certified  charter  shall  constitute  a  binding
 
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 1    contract and agreement between the charter school and a local
 2    school board under the terms of which the local school  board
 3    authorizes  the  governing  body  of  the  charter  school to
 4    operate the charter school on  the  terms  specified  in  the
 5    contract.
 6        (b)  Notwithstanding any other provision of this Article,
 7    the  certified  charter  may not waive or release the charter
 8    school from  the  State  goals,  standards,  and  assessments
 9    established pursuant to Section 2-3.64.
10        (c)  Subject  to  the  provisions  of  subsection  (e), a
11    material revision to a previously  certified  contract  or  a
12    renewal  shall  be  made  with the approval of both the local
13    school board and the governing body of the charter school.
14        (c-5)  The proposed contract shall include a provision on
15    how  both  parties  will  address  minor  violations  of  the
16    contract.
17        (d)  The proposed contract between the governing body  of
18    a  proposed  charter  school  and  the  local school board as
19    described in Section 27A-7 must be submitted to and certified
20    by the State Board before it can take effect.  If  the  State
21    Board  recommends  that the proposed contract be modified for
22    consistency with this Article before it can be certified, the
23    modifications must be consented to by both the governing body
24    of the  charter  school  and  the  local  school  board,  and
25    resubmitted to the State Board for its certification.  If the
26    proposed  contract  is  resubmitted  in  a  form  that is not
27    consistent with this Article, the State Board may  refuse  to
28    certify the charter.
29        The  State Board shall assign a number to each submission
30    or resubmission in chronological order of receipt, and  shall
31    determine  whether  the  proposed contract is consistent with
32    the provisions of this Article.   If  the  proposed  contract
33    complies, the State Board shall so certify.
34        (e)  No  material  revision  to  a  previously  certified
 
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 1    contract or a renewal shall be effective unless and until the
 2    State  Board  certifies  that  the  revision  or  renewal  is
 3    consistent with the provisions of this Article.
 4    (Source: P.A. 89-450, eff. 4-10-96.)

 5        (105 ILCS 5/27A-6.5 new)
 6        Sec. 27A-6.5.  Charter school referendum.
 7        (a)  No charter shall be approved under this Section that
 8    would  convert any existing private, parochial, or non-public
 9    school to a charter school or whose  proposal  has  not  been
10    certified by the State Board.
11        (b)  A  local  school board shall, whenever petitioned to
12    do so by 5% or more of the voters of  a  school  district  or
13    districts  identified  in  a  charter  school proposal, order
14    submitted to the voters  thereof  at  a  regularly  scheduled
15    election  the  question of whether a new charter school shall
16    be established, which proposal  has  been  certified  by  the
17    State  Board  to be in compliance with the provisions of this
18    Article, and the secretary shall certify the  proposition  to
19    the  proper election authorities for submission in accordance
20    with the general election law.  The proposition shall  be  in
21    substantially the following form:
22             "FOR  the establishment of (name of proposed charter
23        school) under charter  school  proposal  (charter  school
24        proposal number).
25             AGAINST  the  establishment  of  (name  of  proposed
26        charter  school)  under  charter school proposal (charter
27        school proposal number)".
28        (c)  Before circulating a petition to submit the question
29    of whether to establish a charter school to the voters  under
30    subsection  (b)  of  this  Section,  the  governing body of a
31    proposed charter school  that  desires  to  establish  a  new
32    charter  school by referendum shall submit the charter school
33    proposal to the  State  Board  in  the  form  of  a  proposed
 
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 1    contract  to  be entered into between the State Board and the
 2    governing body of the proposed charter  school,  as  provided
 3    under  Section  27A-6,  together  with  written notice of the
 4    intent  to  have  a  new  charter   school   established   by
 5    referendum.  The contract shall comply with the provisions of
 6    this Article.
 7        If the State  Board  finds  that  the  proposed  contract
 8    complies  with  the  provisions  of  this  Article,  it shall
 9    immediately certify that the proposed contract complies  with
10    the  provisions  of  this Article and direct the local school
11    board to notify the  proper  election  authorities  that  the
12    question  of  whether to establish a new charter school shall
13    be submitted for referendum.
14        (d)  If the State Board finds that the proposal fails  to
15    comply  with  the provisions of this Article, it shall refuse
16    to certify the  proposal  and  provide  written  explanation,
17    detailing  its reasons for refusal, to the local school board
18    and  to  the  individuals  or  organizations  submitting  the
19    proposal.  The State Board shall also notify the local school
20    board and the individuals  or  organizations  submitting  the
21    proposal  that  the  proposal  may be amended and resubmitted
22    under  the  same  provisions   required   for   an   original
23    submission.
24        (e)  If a majority of the votes cast upon the proposition
25    in  each  school  district  designated  in the charter school
26    proposal is in favor of establishing a  charter  school,  the
27    local  school  board  shall  notify  the  State  Board of the
28    passage of the proposition in favor of establishing a charter
29    school and the State Board shall approve the charter within 7
30    days after the State Board of Elections has certified that  a
31    majority  of  the votes cast upon the proposition is in favor
32    of establishing a charter school.  The State Board  shall  be
33    the  chartering  entity  for  charter  schools established by
34    referendum under this Section.
 
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 1        (105 ILCS 5/27A-8)
 2        Sec. 27A-8.  Evaluation of charter proposals.
 3        (a)  This Section does not  apply  to  a  charter  school
 4    established   by   referendum   under   Section  27A-6.5.  In
 5    evaluating any charter school proposal submitted to  it,  the
 6    local school board shall give preference to proposals that:
 7             (1)  demonstrate   a  high  level  of  local  pupil,
 8        parental,  community,  business,  and  school   personnel
 9        support;
10             (2)  set   rigorous   levels   of   expected   pupil
11        achievement  and demonstrate feasible plans for attaining
12        those levels of achievement; and
13             (3)  are designed to enroll and serve a  substantial
14        proportion  of at-risk children; provided that nothing in
15        the Charter Schools Law shall be construed as intended to
16        limit the establishment of charter schools to those  that
17        serve  a substantial portion of at-risk children or to in
18        any   manner   restrict,   limit,   or   discourage   the
19        establishment of charter schools that  enroll  and  serve
20        other    pupil    populations   under   a   nonexclusive,
21        nondiscriminatory admissions policy.
22        (b)  In the case of a proposal  to  establish  a  charter
23    school  by converting an existing public school or attendance
24    center to charter school status, evidence that  the  proposed
25    formation of the charter school has received majority support
26    from certified teachers and from parents and guardians in the
27    school or attendance center affected by the proposed charter,
28    and,  if  applicable,  from  a local school council, shall be
29    demonstrated by a petition in support of the  charter  school
30    signed by certified teachers and a petition in support of the
31    charter  school  signed  by  parents  and  guardians  and, if
32    applicable, by a vote of the local school council held  at  a
33    public  meeting.   In  the  case  of  all  other proposals to
34    establish a charter school, evidence of sufficient support to
 
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 1    fill the number of pupil seats set forth in the proposal  may
 2    be  demonstrated  by  a  petition  in  support of the charter
 3    school signed by parents and guardians of  students  eligible
 4    to  attend the charter school. In all cases, the individuals,
 5    organizations, or  entities  who  initiate  the  proposal  to
 6    establish  a  charter  school may elect, in lieu of including
 7    any petition referred to in this subsection as a part of  the
 8    proposal  submitted to the local school board, to demonstrate
 9    that the charter school has received the support referred  to
10    in   this   subsection  by  other  evidence  and  information
11    presented at the public meeting that the local  school  board
12    is required to convene under this Section.
13        (c)  Within  45  days  of  receipt  of  a  charter school
14    proposal, the local  school  board  shall  convene  a  public
15    meeting  to  obtain  information  to  assist the board in its
16    decision to grant or deny the charter school proposal.
17        (d)  Notice  of  the  public  meeting  required  by  this
18    Section shall be published in a community newspaper published
19    in the school district  in  which  the  proposed  charter  is
20    located  and,  if  there  is  no  such  newspaper,  then in a
21    newspaper published in the county and having  circulation  in
22    the school district.  The notices shall be published not more
23    than  10  days  nor  less  than 5 days before the meeting and
24    shall state  that  information  regarding  a  charter  school
25    proposal  will be heard at the meeting.  Copies of the notice
26    shall also be posted at appropriate locations in  the  school
27    or  attendance center proposed to be established as a charter
28    school, the public schools in the school  district,  and  the
29    local school board office.
30        (e)  Within  30  days  of  the  public meeting, the local
31    school board shall vote, in a public meeting, to either grant
32    or deny the charter school proposal.
33        (f)  Within 7 days of the public meeting  required  under
34    subsection  (e),  the  local school board shall file a report
 
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 1    with the State Board granting or denying the proposal. Within
 2    14 days of receipt of the local school  board's  report,  the
 3    State  Board  shall  determine  whether  the approved charter
 4    proposal is consistent with the provisions  of  this  Article
 5    and,  if the approved proposal complies, certify the proposal
 6    pursuant to Section 27A-6.
 7    (Source: P.A. 89-450, eff. 4-10-96; 90-548, eff. 1-1-98.)

 8        (105 ILCS 5/27A-9)
 9        Sec. 27A-9. Term of charter; renewal.
10        (a)  A charter may be granted for a period not less than
11    5 3 and not more than 10 5 school years.  A  charter  may  be
12    renewed in incremental periods not to exceed 5 school years.
13        (b)  A  charter  school renewal proposal submitted to the
14    local school board or State Board, as the chartering  entity,
15    shall contain:
16             (1)  A  report on the progress of the charter school
17        in achieving the  goals,  objectives,  pupil  performance
18        standards,  content  standards,  and  other  terms of the
19        initial approved charter proposal; and
20             (2)  A financial statement that discloses the  costs
21        of   administration,   instruction,  and  other  spending
22        categories for the charter school that is  understandable
23        to  the  general public and that will allow comparison of
24        those  costs  to  other  schools  or   other   comparable
25        organizations, in a format required by the State Board.
26        (c)  A charter may be revoked or not renewed if the local
27    school  board  or  State  Board,  as  the  chartering entity,
28    clearly demonstrates that the charter school did any  of  the
29    following,   or   otherwise   failed   to   comply  with  the
30    requirements of this law:
31             (1)  Committed a material violation of  any  of  the
32        conditions,  standards,  or  procedures  set forth in the
33        charter.
 
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 1             (2)  Failed to  meet  or  make  reasonable  progress
 2        toward  achievement  of  the  content  standards or pupil
 3        performance standards identified in the charter.
 4             (3)  Failed to meet generally accepted standards  of
 5        fiscal management.
 6             (4)  Violated  any  provision  of law from which the
 7        charter school was not exempted.
 8        (d)  (Blank).
 9        (e)  Notice of a local school board's decision  to  deny,
10    revoke  or  not  to  renew a charter shall be provided to the
11    State Board. The State Board  may  reverse  a  local  board's
12    decision  if the State Board finds that the charter school or
13    charter school  proposal  (i)  is  in  compliance  with  this
14    Article, and (ii) is in the best interests of the students it
15    is  designed  to  serve.    The State Board may condition the
16    granting of an appeal on the acceptance by the charter school
17    of funding in an amount  less  than  that  requested  in  the
18    proposal submitted to the local school board. Final decisions
19    of  the State Board shall be subject to judicial review under
20    the Administrative Review Law.
21        (f)  Notwithstanding other provisions of this Article, if
22    the State Board on appeal reverses a local  board's  decision
23    or  if  a charter school is approved by referendum, the State
24    Board shall act as the authorized chartering entity  for  the
25    charter  school.    The State Board shall approve and certify
26    the charter  and  shall  perform  all  functions  under  this
27    Article  otherwise  performed by the local school board.  The
28    State Board shall report  the  aggregate  number  of  charter
29    school  pupils resident in a school district to that district
30    and shall notify the district of the amount of funding to  be
31    paid  by the State Board to the charter school enrolling such
32    students.   The  State  Board  shall  withhold   from   funds
33    otherwise  due  the  district  the  funds  authorized by this
34    Article to be paid to the charter school and shall  pay  such
 
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 1    amounts to the charter school.
 2    (Source: P.A. 89-450, eff. 4-10-96; 90-548, eff. 1-1-98.)

 3        (105 ILCS 5/27A-11)
 4        Sec. 27A-11.  Local financing.
 5        (a)  For  purposes of the School Code, pupils enrolled in
 6    a charter school shall be included in the pupil enrollment of
 7    the school district within which  the  pupil  resides.   Each
 8    charter  school  (i)  shall  determine the school district in
 9    which each pupil  who  is  enrolled  in  the  charter  school
10    resides,  (ii)  shall  report  the aggregate number of pupils
11    resident of a school district who are enrolled in the charter
12    school to the school district in which those  pupils  reside,
13    and (iii) shall maintain accurate records of daily attendance
14    that  shall be deemed sufficient to file claims under Section
15    18-8 notwithstanding any other requirements of  that  Section
16    regarding hours of instruction and teacher certification.
17        (b)  Except   for   a   charter   school  established  by
18    referendum under Section 27A-6.5, as part of a charter school
19    contract, the charter school and the local school board shall
20    agree on funding and any  services  to  be  provided  by  the
21    school  district to the charter school. Agreed funding that a
22    charter school is to receive from the local school board  for
23    a  school  year shall be paid in equal quarterly installments
24    with the payment of the installment  for  the  first  quarter
25    being  made  not  later  than  July  1,  unless  the  charter
26    establishes a different payment schedule.
27        All  services  centrally  or  otherwise  provided  by the
28    school district including, but not  limited  to,  rent,  food
29    services,  custodial services, maintenance, curriculum, media
30    services, libraries, transportation, and warehousing shall be
31    subject to negotiation between a charter school and the local
32    school board and paid for  out  of  the  revenues  negotiated
33    pursuant  to  this  subsection  (b);  provided that the local
 
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 1    school board shall not attempt, by negotiation or  otherwise,
 2    to  obligate a charter school to provide pupil transportation
 3    for pupils for whom a district is  not  required  to  provide
 4    transportation  under  the  criteria  set forth in subsection
 5    (a)(13) of Section 27A-7.
 6        In no event shall the funding be less than  75%  or  more
 7    than 125% of the school district's per capita student tuition
 8    multiplied by the number of students residing in the district
 9    who are enrolled in the charter school.
10        It is the intent of the General Assembly that funding and
11    service agreements under this subsection (b) shall be neither
12    a  financial  incentive  nor  a financial disincentive to the
13    establishment of a charter school.
14        The charter school may set and collect  reasonable  fees.
15    Fees  collected  from  students  enrolled at a charter school
16    shall be retained by the charter school.
17        (c)  Notwithstanding subsection (b) of this Section,  the
18    proportionate  share of State and federal resources generated
19    by students with disabilities or staff serving them shall  be
20    directed to charter schools enrolling those students by their
21    school  districts or administrative units.  The proportionate
22    share of  moneys  generated  under  other  federal  or  State
23    categorical aid programs shall be directed to charter schools
24    serving students eligible for that aid.
25        (d)(1)  The   governing  body  of  a  charter  school  is
26    authorized to accept gifts, donations, or grants of any  kind
27    made  to  the  charter  school  and  to  expend or use gifts,
28    donations,  or  grants  in  accordance  with  the  conditions
29    prescribed by the donor; however, a gift, donation, or  grant
30    may not be accepted by the governing body if it is subject to
31    any  condition  contrary to applicable law or contrary to the
32    terms of the contract between  the  charter  school  and  the
33    local  school  board.  Charter schools shall be encouraged to
34    solicit and utilize community volunteer  speakers  and  other
 
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 1    instructional  resources  when  providing  instruction on the
 2    Holocaust and other historical events.
 3        (2)  From amounts appropriated to  the  State  Board  for
 4    purposes  of this subsection (d)(2), the State Board may make
 5    loans to charter schools established under this Article to be
 6    used by those  schools  to  defer  their  start-up  costs  of
 7    acquiring   textbooks  and  laboratory  and  other  equipment
 8    required for student instruction. Any such loan shall be made
 9    to a charter school at the  inception  of  the  term  of  its
10    charter,  under  terms  established  by  the State Board, and
11    shall be repaid by the charter school over the  term  of  its
12    charter.   A  local  school  board is not responsible for the
13    repayment of the loan.
14        (e)  (Blank). No later than January 1,  1997,  the  State
15    Board  shall  issue  a report to the General Assembly and the
16    Governor describing the charter schools certified under  this
17    Article,  their  geographic  locations, their areas of focus,
18    and the numbers of school children served by them.
19        (f)  The State Board shall provide  technical  assistance
20    to   persons   and   groups  preparing  or  revising  charter
21    applications.
22        (g)  At the non-renewal or  revocation  of  its  charter,
23    each  charter  school  shall  refund  to  the  local board of
24    education all unspent funds.
25        (h)  A charter school is authorized to  incur  temporary,
26    short  term debt to pay operating expenses in anticipation of
27    receipt of funds from the local school board.
28    (Source: P.A. 89-450,  eff.  4-10-96;  90-548,  eff.  1-1-98;
29    90-757, eff. 8-14-98.)

30        (105 ILCS 5/27A-11.5 new)
31        Sec.  27A-11.5.  State  financing.   The  State  Board of
32    Education shall make the following funds available to  school
33    districts and charter schools:
 
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 1             (1)  From a separate appropriation made to the State
 2        Board  for  purposes  of  this subdivision (1), the State
 3        Board shall  make  transition  impact  aid  available  to
 4        school  districts  that  approve  a new charter school or
 5        that have funds withheld by the State Board to fund a new
 6        charter school that is chartered by the State Board.  The
 7        amount of the aid shall  equal  90%  of  the  per  capita
 8        funding  paid to the charter school during the first year
 9        of its initial  charter  term,  65%  of  the  per  capita
10        funding paid to the charter school during the second year
11        of  its  initial  term, and 35% of the per capita funding
12        paid to the charter school during the third year  of  its
13        initial  term.   This transition impact aid shall be paid
14        to  the   local   school   board   in   equal   quarterly
15        installments, with the payment of the installment for the
16        first  quarter  being  made  by  August  1st  immediately
17        preceding  the  first,  second,  and  third  years of the
18        initial term.  The district shall file an application for
19        this aid with the State Board in a format  designated  by
20        the State Board.  If the appropriation is insufficient in
21        any year to pay all approved claims, the impact aid shall
22        be prorated.
23             (2)  From  a  separate  appropriation  made  for the
24        purpose of this subdivision (2), the  State  Board  shall
25        make  grants  to  charter  schools  to pay their start-up
26        costs of acquiring educational  materials  and  supplies,
27        textbooks,  furniture,  and other equipment needed during
28        their initial  term.   The  State  Board  shall  annually
29        establish  the  time  and manner of application for these
30        grants, which shall not exceed $250 per student  enrolled
31        in the charter school.
32             (3)  The  Charter  Schools  Revolving  Loan  Fund is
33        created as a special fund in the State treasury.  Federal
34        funds, such other funds as  may  be  made  available  for
 
SB648 Engrossed             -17-               LRB9105854NTsb
 1        costs   associated  with  the  establishment  of  charter
 2        schools  in  Illinois,  and  amounts  repaid  by  charter
 3        schools that  have  received  a  loan  from  the  Charter
 4        Schools  Revolving  Loan Fund shall be deposited into the
 5        Charter Schools Revolving Loan Fund, and  the  moneys  in
 6        the   Charter   Schools  Revolving  Loan  Fund  shall  be
 7        appropriated to the  State  Board  and  used  to  provide
 8        interest-free  loans  to  charter  schools.   These funds
 9        shall  be  used  to  pay  start-up  costs  of   acquiring
10        educational materials and supplies, textbooks, furniture,
11        and  other  equipment  needed  in the initial term of the
12        charter  school  and  for  acquiring  and  remodeling   a
13        suitable  physical  plant, within the initial term of the
14        charter school.  Loans shall be limited to one  loan  per
15        charter  school  and  shall  not  exceed $250 per student
16        enrolled in the charter school.  A loan shall  be  repaid
17        by  the  end  of  the initial term of the charter school.
18        The State Board may deduct amounts necessary to repay the
19        loan from funds due to the charter school or may  require
20        that  the  local school board that authorized the charter
21        school deduct such amounts from  funds  due  the  charter
22        school  and  remit  these  amounts  to  the  State Board,
23        provided  that  the  local  school  board  shall  not  be
24        responsible for repayment of the loan.
25             (4)  A charter school may  apply  for  and  receive,
26        subject  to  the  same  restrictions applicable to school
27        districts, any grant administered by the State Board that
28        is available for school districts.

29        (105 ILCS 5/27A-12)
30        Sec. 27A-12.  Evaluation; annual report.  The State Board
31    shall compile annual evaluations of charter schools  received
32    from  local  school boards and shall prepare an annual report
33    on charter schools. The State Board shall review  information
 
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 1    regarding  the  regulations  and  policies from which charter
 2    schools were released to determine if the exemption  assisted
 3    or  impeded the charter schools in meeting their stated goals
 4    and objectives.  Each annual report shall  include  suggested
 5    changes  in  State  law  necessary  to  strengthen  or change
 6    charter schools.
 7        On or before the second Wednesday of January,  1998,  and
 8    on  or  before  the  second  Wednesday  of  January  of  each
 9    subsequent  calendar  year,  the  State  Board  shall issue a
10    report to the  General  Assembly  and  the  Governor  on  its
11    findings for the school year ending in the preceding calendar
12    year.
13        In  preparing the annual report required by this Section,
14    the State Board (i) shall compare the performance of  charter
15    school   pupils   with  the  performance  of  ethnically  and
16    economically comparable groups  of  pupils  in  other  public
17    schools  who are enrolled in academically comparable courses,
18    (ii) shall review information regarding the  regulations  and
19    policies   from   which  charter  schools  were  released  to
20    determine if the exemptions assisted or impeded  the  charter
21    schools  in  meeting  their  stated goals and objectives, and
22    (iii) shall include suggested changes in State law  necessary
23    to strengthen charter schools.
24        In  addition,  the State Board shall undertake and report
25    on periodic  evaluations  of  charter  schools  that  include
26    evaluations  of  student  academic achievement, the extent to
27    which charter schools are accomplishing  their  missions  and
28    goals,  the  sufficiency  of funding for charter schools, and
29    the need for changes in  the  approval  process  for  charter
30    schools.
31    (Source: P.A. 89-450, eff. 4-10-96.)

32        (105 ILCS 5/29-4) (from Ch. 122, par. 29-4)
33        Sec. 29-4. Pupils attending a charter school or nonpublic
 
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 1      other  than a public school. The school board of any school
 2    district that provides  any  school  bus  or  conveyance  for
 3    transporting  pupils  to  and  from  the public schools shall
 4    afford transportation, without cost, for children who attend
 5    a charter school or any school other than  a  public  school,
 6    who reside at least 1 1/2 miles from the school attended, and
 7    who  reside  on or along the highway constituting the regular
 8    route  of  such  public  school  bus  or   conveyance,   such
 9    transportation to extend from some point on the regular route
10    nearest  or most easily accessible to their homes to and from
11    the school attended, or to or from a point  on  such  regular
12    route  which  is  nearest  or  most  easily accessible to the
13    school attended by such children.  Nothing  herein  shall  be
14    construed  to prevent high school districts from transporting
15    public or non-public elementary school pupils  on  a  regular
16    route  where  deemed appropriate.  The elementary district in
17    which such pupils  reside  shall  enter  into  a  contractual
18    agreement   with  the  high  school  district  providing  the
19    service, make payments accordingly, and make  claims  to  the
20    State  in the amount of such contractual payments. The person
21    in charge of any charter school or school other than a public
22    school shall certify on a form to be provided  by  the  State
23    Superintendent  of  Education,  the  names  and  addresses of
24    pupils transported and when such pupils were in attendance at
25    the school. If any such children reside within  1  1/2  miles
26    from  the school attended, the school board shall afford such
27    transportation to such children  on  the  same  basis  as  it
28    provides  transportation  for  its own pupils residing within
29    that distance from the school attended.
30        Nothing herein shall be construed to  preclude  a  school
31    district  from operating separate regular bus routes, subject
32    to the limitations  of  this  Section,  for  the  benefit  of
33    children who attend a charter school or any school other than
34    a  public school where the operation of such routes is safer,
 
SB648 Engrossed             -20-               LRB9105854NTsb
 1    more economical  and  more  efficient  than  if  such  school
 2    district  were  precluded from operating separate regular bus
 3    routes.
 4        If a school district  is  required  by  this  Section  to
 5    afford transportation without cost for any child who is not a
 6    resident  of the district, the school district providing such
 7    transportation is entitled to reimbursement from  the  school
 8    district   in  which  the  child  resides  for  the  cost  of
 9    furnishing  that  transportation,  including   a   reasonable
10    allowance  for  depreciation  on  each  vehicle  so used. The
11    school district where the child resides shall  reimburse  the
12    district  providing the transportation for such costs, by the
13    10th of each month or on such less frequent schedule  as  may
14    be agreed to by the 2 school districts.
15    (Source: P.A. 81-1050.)

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