State of Illinois
91st General Assembly
Legislation

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91_SB0648enr

 
SB648 Enrolled                                 LRB9105854NTsb

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

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

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

33        (105 ILCS 5/27A-6.5 new)
 
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 1        Sec. 27A-6.5.  Charter school referendum.
 2        (a)  No charter shall be approved under this Section that
 3    would  convert any existing private, parochial, or non-public
 4    school to a charter school or whose  proposal  has  not  been
 5    certified by the State Board.
 6        (b)  A  local  school board shall, whenever petitioned to
 7    do so by 5% or more of the voters of  a  school  district  or
 8    districts  identified  in  a  charter  school proposal, order
 9    submitted to the voters  thereof  at  a  regularly  scheduled
10    election  the  question of whether a new charter school shall
11    be established, which proposal  has  been  certified  by  the
12    State  Board  to be in compliance with the provisions of this
13    Article, and the secretary shall certify the  proposition  to
14    the  proper election authorities for submission in accordance
15    with the general election law.  The proposition shall  be  in
16    substantially the following form:
17             "FOR  the establishment of (name of proposed charter
18        school) under charter  school  proposal  (charter  school
19        proposal number).
20             AGAINST  the  establishment  of  (name  of  proposed
21        charter  school)  under  charter school proposal (charter
22        school proposal number)".
23        (c)  Before circulating a petition to submit the question
24    of whether to establish a charter school to the voters  under
25    subsection  (b)  of  this  Section,  the  governing body of a
26    proposed charter school  that  desires  to  establish  a  new
27    charter  school by referendum shall submit the charter school
28    proposal to the  State  Board  in  the  form  of  a  proposed
29    contract  to  be entered into between the State Board and the
30    governing body of the proposed charter  school,  as  provided
31    under  Section  27A-6,  together  with  written notice of the
32    intent  to  have  a  new  charter   school   established   by
33    referendum.  The contract shall comply with the provisions of
34    this Article.
 
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 1        If the State  Board  finds  that  the  proposed  contract
 2    complies  with  the  provisions  of  this  Article,  it shall
 3    immediately certify that the proposed contract complies  with
 4    the  provisions  of  this Article and direct the local school
 5    board to notify the  proper  election  authorities  that  the
 6    question  of  whether to establish a new charter school shall
 7    be submitted for referendum.
 8        (d)  If the State Board finds that the proposal fails  to
 9    comply  with  the provisions of this Article, it shall refuse
10    to certify the  proposal  and  provide  written  explanation,
11    detailing  its reasons for refusal, to the local school board
12    and  to  the  individuals  or  organizations  submitting  the
13    proposal.  The State Board shall also notify the local school
14    board and the individuals  or  organizations  submitting  the
15    proposal  that  the  proposal  may be amended and resubmitted
16    under  the  same  provisions   required   for   an   original
17    submission.
18        (e)  If a majority of the votes cast upon the proposition
19    in  each  school  district  designated  in the charter school
20    proposal is in favor of establishing a  charter  school,  the
21    local  school  board  shall  notify  the  State  Board of the
22    passage of the proposition in favor of establishing a charter
23    school and the State Board shall approve the charter within 7
24    days after the State Board of Elections has certified that  a
25    majority  of  the votes cast upon the proposition is in favor
26    of establishing a charter school.  The State Board  shall  be
27    the  chartering  entity  for  charter  schools established by
28    referendum under this Section.

29        (105 ILCS 5/27A-8)
30        Sec. 27A-8.  Evaluation of charter proposals.
31        (a)  This Section does not  apply  to  a  charter  school
32    established   by   referendum   under   Section  27A-6.5.  In
33    evaluating any charter school proposal submitted to  it,  the
 
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 1    local school board shall give preference to proposals that:
 2             (1)  demonstrate   a  high  level  of  local  pupil,
 3        parental,  community,  business,  and  school   personnel
 4        support;
 5             (2)  set   rigorous   levels   of   expected   pupil
 6        achievement  and demonstrate feasible plans for attaining
 7        those levels of achievement; and
 8             (3)  are designed to enroll and serve a  substantial
 9        proportion  of at-risk children; provided that nothing in
10        the Charter Schools Law shall be construed as intended to
11        limit the establishment of charter schools to those  that
12        serve  a substantial portion of at-risk children or to in
13        any   manner   restrict,   limit,   or   discourage   the
14        establishment of charter schools that  enroll  and  serve
15        other    pupil    populations   under   a   nonexclusive,
16        nondiscriminatory admissions policy.
17        (b)  In the case of a proposal  to  establish  a  charter
18    school  by converting an existing public school or attendance
19    center to charter school status, evidence that  the  proposed
20    formation of the charter school has received majority support
21    from certified teachers and from parents and guardians in the
22    school or attendance center affected by the proposed charter,
23    and,  if  applicable,  from  a local school council, shall be
24    demonstrated by a petition in support of the  charter  school
25    signed by certified teachers and a petition in support of the
26    charter  school  signed  by  parents  and  guardians  and, if
27    applicable, by a vote of the local school council held  at  a
28    public  meeting.   In  the  case  of  all  other proposals to
29    establish a charter school, evidence of sufficient support to
30    fill the number of pupil seats set forth in the proposal  may
31    be  demonstrated  by  a  petition  in  support of the charter
32    school signed by parents and guardians of  students  eligible
33    to  attend the charter school. In all cases, the individuals,
34    organizations, or  entities  who  initiate  the  proposal  to
 
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 1    establish  a  charter  school may elect, in lieu of including
 2    any petition referred to in this subsection as a part of  the
 3    proposal  submitted to the local school board, to demonstrate
 4    that the charter school has received the support referred  to
 5    in   this   subsection  by  other  evidence  and  information
 6    presented at the public meeting that the local  school  board
 7    is required to convene under this Section.
 8        (c)  Within  45  days  of  receipt  of  a  charter school
 9    proposal, the local  school  board  shall  convene  a  public
10    meeting  to  obtain  information  to  assist the board in its
11    decision to grant or deny the charter school proposal.
12        (d)  Notice  of  the  public  meeting  required  by  this
13    Section shall be published in a community newspaper published
14    in the school district  in  which  the  proposed  charter  is
15    located  and,  if  there  is  no  such  newspaper,  then in a
16    newspaper published in the county and having  circulation  in
17    the school district.  The notices shall be published not more
18    than  10  days  nor  less  than 5 days before the meeting and
19    shall state  that  information  regarding  a  charter  school
20    proposal  will be heard at the meeting.  Copies of the notice
21    shall also be posted at appropriate locations in  the  school
22    or  attendance center proposed to be established as a charter
23    school, the public schools in the school  district,  and  the
24    local school board office.
25        (e)  Within  30  days  of  the  public meeting, the local
26    school board shall vote, in a public meeting, to either grant
27    or deny the charter school proposal.
28        (f)  Within 7 days of the public meeting  required  under
29    subsection  (e),  the  local school board shall file a report
30    with the State Board granting or denying the proposal. Within
31    14 days of receipt of the local school  board's  report,  the
32    State  Board  shall  determine  whether  the approved charter
33    proposal is consistent with the provisions  of  this  Article
34    and,  if the approved proposal complies, certify the proposal
 
SB648 Enrolled             -11-                LRB9105854NTsb
 1    pursuant to Section 27A-6.
 2    (Source: P.A. 89-450, eff. 4-10-96; 90-548, eff. 1-1-98.)

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

32        (105 ILCS 5/27A-11)
33        Sec. 27A-11.  Local financing.
 
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 1        (a)  For  purposes of the School Code, pupils enrolled in
 2    a charter school shall be included in the pupil enrollment of
 3    the school district within which  the  pupil  resides.   Each
 4    charter  school  (i)  shall  determine the school district in
 5    which each pupil  who  is  enrolled  in  the  charter  school
 6    resides,  (ii)  shall  report  the aggregate number of pupils
 7    resident of a school district who are enrolled in the charter
 8    school to the school district in which those  pupils  reside,
 9    and (iii) shall maintain accurate records of daily attendance
10    that  shall be deemed sufficient to file claims under Section
11    18-8 notwithstanding any other requirements of  that  Section
12    regarding hours of instruction and teacher certification.
13        (b)  Except   for   a   charter   school  established  by
14    referendum under Section 27A-6.5, as part of a charter school
15    contract, the charter school and the local school board shall
16    agree on funding and any  services  to  be  provided  by  the
17    school  district to the charter school. Agreed funding that a
18    charter school is to receive from the local school board  for
19    a  school  year shall be paid in equal quarterly installments
20    with the payment of the installment  for  the  first  quarter
21    being  made  not  later  than  July  1,  unless  the  charter
22    establishes a different payment schedule.
23        All  services  centrally  or  otherwise  provided  by the
24    school district including, but not  limited  to,  rent,  food
25    services,  custodial services, maintenance, curriculum, media
26    services, libraries, transportation, and warehousing shall be
27    subject to negotiation between a charter school and the local
28    school board and paid for  out  of  the  revenues  negotiated
29    pursuant  to  this  subsection  (b);  provided that the local
30    school board shall not attempt, by negotiation or  otherwise,
31    to  obligate a charter school to provide pupil transportation
32    for pupils for whom a district is  not  required  to  provide
33    transportation  under  the  criteria  set forth in subsection
34    (a)(13) of Section 27A-7.
 
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 1        In no event shall the funding be less than  75%  or  more
 2    than 125% of the school district's per capita student tuition
 3    multiplied by the number of students residing in the district
 4    who are enrolled in the charter school.
 5        It is the intent of the General Assembly that funding and
 6    service agreements under this subsection (b) shall be neither
 7    a  financial  incentive  nor  a financial disincentive to the
 8    establishment of a charter school.
 9        The charter school may set and collect  reasonable  fees.
10    Fees  collected  from  students  enrolled at a charter school
11    shall be retained by the charter school.
12        (c)  Notwithstanding subsection (b) of this Section,  the
13    proportionate  share of State and federal resources generated
14    by students with disabilities or staff serving them shall  be
15    directed to charter schools enrolling those students by their
16    school  districts or administrative units.  The proportionate
17    share of  moneys  generated  under  other  federal  or  State
18    categorical aid programs shall be directed to charter schools
19    serving students eligible for that aid.
20        (d)(1)  The   governing  body  of  a  charter  school  is
21    authorized to accept gifts, donations, or grants of any  kind
22    made  to  the  charter  school  and  to  expend or use gifts,
23    donations,  or  grants  in  accordance  with  the  conditions
24    prescribed by the donor; however, a gift, donation, or  grant
25    may not be accepted by the governing body if it is subject to
26    any  condition  contrary to applicable law or contrary to the
27    terms of the contract between  the  charter  school  and  the
28    local  school  board.  Charter schools shall be encouraged to
29    solicit and utilize community volunteer  speakers  and  other
30    instructional  resources  when  providing  instruction on the
31    Holocaust and other historical events.
32        (2)  From amounts appropriated to  the  State  Board  for
33    purposes  of this subsection (d)(2), the State Board may make
34    loans to charter schools established under this Article to be
 
SB648 Enrolled             -15-                LRB9105854NTsb
 1    used by those  schools  to  defer  their  start-up  costs  of
 2    acquiring   textbooks  and  laboratory  and  other  equipment
 3    required for student instruction. Any such loan shall be made
 4    to a charter school at the  inception  of  the  term  of  its
 5    charter,  under  terms  established  by  the State Board, and
 6    shall be repaid by the charter school over the  term  of  its
 7    charter.   A  local  school  board is not responsible for the
 8    repayment of the loan.
 9        (e)  (Blank). No later than January 1,  1997,  the  State
10    Board  shall  issue  a report to the General Assembly and the
11    Governor describing the charter schools certified under  this
12    Article,  their  geographic  locations, their areas of focus,
13    and the numbers of school children served by them.
14        (f)  The State Board shall provide  technical  assistance
15    to   persons   and   groups  preparing  or  revising  charter
16    applications.
17        (g)  At the non-renewal or  revocation  of  its  charter,
18    each  charter  school  shall  refund  to  the  local board of
19    education all unspent funds.
20        (h)  A charter school is authorized to  incur  temporary,
21    short  term debt to pay operating expenses in anticipation of
22    receipt of funds from the local school board.
23    (Source: P.A. 89-450,  eff.  4-10-96;  90-548,  eff.  1-1-98;
24    90-757, eff. 8-14-98.)

25        (105 ILCS 5/27A-11.5 new)
26        Sec.  27A-11.5.  State  financing.   The  State  Board of
27    Education shall make the following funds available to  school
28    districts and charter schools:
29             (1)  From a separate appropriation made to the State
30        Board  for  purposes  of  this subdivision (1), the State
31        Board shall  make  transition  impact  aid  available  to
32        school  districts  that  approve  a new charter school or
33        that have funds withheld by the State Board to fund a new
 
SB648 Enrolled             -16-                LRB9105854NTsb
 1        charter school that is chartered by the State Board.  The
 2        amount of the aid shall  equal  90%  of  the  per  capita
 3        funding  paid to the charter school during the first year
 4        of its initial  charter  term,  65%  of  the  per  capita
 5        funding paid to the charter school during the second year
 6        of  its  initial  term, and 35% of the per capita funding
 7        paid to the charter school during the third year  of  its
 8        initial  term.   This transition impact aid shall be paid
 9        to  the   local   school   board   in   equal   quarterly
10        installments, with the payment of the installment for the
11        first  quarter  being  made  by  August  1st  immediately
12        preceding  the  first,  second,  and  third  years of the
13        initial term.  The district shall file an application for
14        this aid with the State Board in a format  designated  by
15        the State Board.  If the appropriation is insufficient in
16        any year to pay all approved claims, the impact aid shall
17        be  prorated.     Transition  impact  aid  shall  be paid
18        beginning  in  the  1999-2000  school  year  for  charter
19        schools that are in the first, second, or third  year  of
20        their  initial  term.    If  House  Bill  230 of the 91st
21        General Assembly becomes law, transition impact aid shall
22        not be paid for any charter school that is  proposed  and
23        created by one or more boards of education, as authorized
24        under  the  provisions  of  House  Bill  230  of the 91st
25        General Assembly.
26             (2)  From a  separate  appropriation  made  for  the
27        purpose  of  this  subdivision (2), the State Board shall
28        make grants to charter  schools  to  pay  their  start-up
29        costs  of  acquiring  educational materials and supplies,
30        textbooks, furniture, and other equipment  needed  during
31        their  initial  term.   The  State  Board  shall annually
32        establish the time and manner of  application  for  these
33        grants,  which shall not exceed $250 per student enrolled
34        in the charter school.
 
SB648 Enrolled             -17-                LRB9105854NTsb
 1             (3)  The Charter  Schools  Revolving  Loan  Fund  is
 2        created as a special fund in the State treasury.  Federal
 3        funds,  such  other  funds  as  may be made available for
 4        costs  associated  with  the  establishment  of   charter
 5        schools  in  Illinois,  and  amounts  repaid  by  charter
 6        schools  that  have  received  a  loan  from  the Charter
 7        Schools Revolving Loan Fund shall be deposited  into  the
 8        Charter  Schools  Revolving  Loan Fund, and the moneys in
 9        the  Charter  Schools  Revolving  Loan  Fund   shall   be
10        appropriated  to  the  State  Board  and  used to provide
11        interest-free loans  to  charter  schools.   These  funds
12        shall   be  used  to  pay  start-up  costs  of  acquiring
13        educational materials and supplies, textbooks, furniture,
14        and other equipment needed in the  initial  term  of  the
15        charter   school  and  for  acquiring  and  remodeling  a
16        suitable physical plant, within the initial term  of  the
17        charter  school.   Loans shall be limited to one loan per
18        charter school and shall  not  exceed  $250  per  student
19        enrolled  in  the charter school.  A loan shall be repaid
20        by the end of the initial term  of  the  charter  school.
21        The State Board may deduct amounts necessary to repay the
22        loan  from funds due to the charter school or may require
23        that the local school board that authorized  the  charter
24        school  deduct  such  amounts  from funds due the charter
25        school and  remit  these  amounts  to  the  State  Board,
26        provided  that  the  local  school  board  shall  not  be
27        responsible  for  repayment of the loan.  The State Board
28        may use up to 3% of the appropriation to contract with  a
29        non-profit entity to administer the loan program.
30             (4)  A  charter  school  may  apply for and receive,
31        subject to the same  restrictions  applicable  to  school
32        districts, any grant administered by the State Board that
33        is available for school districts.
 
SB648 Enrolled             -18-                LRB9105854NTsb
 1        (105 ILCS 5/27A-12)
 2        Sec. 27A-12.  Evaluation; annual report.  The State Board
 3    shall  compile annual evaluations of charter schools received
 4    from local school boards and shall prepare an  annual  report
 5    on  charter schools. The State Board shall review information
 6    regarding the regulations and  policies  from  which  charter
 7    schools  were released to determine if the exemption assisted
 8    or impeded the charter schools in meeting their stated  goals
 9    and  objectives.   Each annual report shall include suggested
10    changes in  State  law  necessary  to  strengthen  or  change
11    charter schools.
12        On  or  before the second Wednesday of January, 1998, and
13    on  or  before  the  second  Wednesday  of  January  of  each
14    subsequent calendar year,  the  State  Board  shall  issue  a
15    report  to  the  General  Assembly  and  the  Governor on its
16    findings for the school year ending in the preceding calendar
17    year.
18        In preparing the annual report required by this  Section,
19    the  State Board (i) shall compare the performance of charter
20    school  pupils  with  the  performance  of   ethnically   and
21    economically  comparable  groups  of  pupils  in other public
22    schools who are enrolled in academically comparable  courses,
23    (ii)  shall  review information regarding the regulations and
24    policies  from  which  charter  schools  were   released   to
25    determine  if  the exemptions assisted or impeded the charter
26    schools in meeting their stated  goals  and  objectives,  and
27    (iii)  shall include suggested changes in State law necessary
28    to strengthen charter schools.
29        In addition, the State Board shall undertake  and  report
30    on  periodic  evaluations  of  charter  schools  that include
31    evaluations of student academic achievement,  the  extent  to
32    which  charter  schools  are accomplishing their missions and
33    goals, the sufficiency of funding for  charter  schools,  and
34    the  need  for  changes  in  the approval process for charter
 
SB648 Enrolled             -19-                LRB9105854NTsb
 1    schools.
 2    (Source: P.A. 89-450, eff. 4-10-96.)

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

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

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