State of Illinois
91st General Assembly
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91_SB0648sam001

 










                                           LRB9105854NTsbam02

 1                    AMENDMENT TO SENATE BILL 648

 2        AMENDMENT NO.     .  Amend Senate Bill 648  by  replacing
 3    the title with the following:
 4        "AN   ACT  concerning  charter  schools,  amending  named
 5    Acts."; and

 6    by replacing everything after the enacting  clause  with  the
 7    following:

 8        "Section  5.  The  State Finance Act is amended by adding
 9    Section 5.490 as follows:

10        (30 ILCS 105/5.490 new)
11        Sec. 5.490.  The Charter Schools Revolving Loan Fund.

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

15        (105 ILCS 5/27A-4)
16        Sec. 27A-4.  General Provisions.
17        (a)  The General Assembly does not  intend  to  alter  or
18    amend  the provisions of any court-ordered desegregation plan
19    in effect for any school district.  A charter school shall be
 
                            -2-            LRB9105854NTsbam02
 1    subject to all federal  and  State  laws  and  constitutional
 2    provisions   prohibiting   discrimination  on  the  basis  of
 3    disability, race,  creed,  color,  gender,  national  origin,
 4    religion,  ancestry,  marital  status,  or  need  for special
 5    education services.
 6        (b)  The total number of charter schools operating  under
 7    this  Article  at any one time shall not exceed 45.  Not more
 8    than that 15 charter schools shall operate at any one time in
 9    any city having a population exceeding 500,000; not more than
10    15 charter schools shall operate  at  any  one  time  in  the
11    counties  of  DuPage,  Kane,  Lake,  McHenry,  Will, and that
12    portion of Cook County that is located outside a city  having
13    a  population exceeding 500,000; and not more than 15 charter
14    schools shall operate at any one time in the remainder of the
15    State.
16        For purposes of  implementing  this  Section,  the  State
17    Board  shall  assign  a  number to each charter submission it
18    receives   under   Section   27A-6   for   its   review   and
19    certification, based on the chronological order in which  the
20    submission is received by it.  The State Board shall promptly
21    notify  local  school  boards  when  the  maximum  numbers of
22    certified charter schools authorized  to  operate  have  been
23    reached.
24        (c)  No  charter shall be granted under this Article that
25    would convert any existing private, parochial, or  non-public
26    school to a charter school.
27        (d)  Enrollment  in a charter school shall be open to any
28    pupil who resides within the  geographic  boundaries  of  the
29    area served by the local school board.  However, no more than
30    50%  of  the  number  of  resident pupils enrolled in any one
31    grade in a school district  with  only  a  single  attendance
32    center  covering  that  grade  may  be  enrolled in a charter
33    school at one time.
34        (e)  Nothing in this Article  shall  prevent  2  or  more
 
                            -3-            LRB9105854NTsbam02
 1    local  school  boards  from  jointly  issuing  a charter to a
 2    single shared  charter  school,  provided  that  all  of  the
 3    provisions  of  this Article are met as to those local school
 4    boards.
 5        (f)  No local school board shall require any employee  of
 6    the school district to be employed in a charter school.
 7        (g)  No  local  school  board  shall  require  any  pupil
 8    residing  within  the  geographic boundary of its district to
 9    enroll in a charter school.
10        (h)  If there are more eligible applicants for enrollment
11    in  a  charter  school  than  there  are  spaces   available,
12    successful applicants shall be selected by lottery.  However,
13    priority shall be given to siblings of pupils enrolled in the
14    charter school and to pupils who were enrolled in the charter
15    school  the  previous school year, unless expelled for cause.
16    Dual enrollment at both a charter school and a public  school
17    or  non-public  school  shall not be allowed.  A pupil who is
18    suspended or expelled from a charter school shall  be  deemed
19    to  be  suspended  or expelled from the public schools of the
20    school district in which the pupil resides.
21        (i)  (Blank). No charter school  established  under  this
22    Article  may  be  authorized to open prior to the school year
23    beginning in the fall of 1996.
24    (Source: P.A. 89-450, eff. 4-10-96; revised 2-24-98.)

25        (105 ILCS 5/27A-5)
26        Sec. 27A-5.  Charter school; legal entity; requirements.
27        (a)  A charter school shall be  a  public,  nonsectarian,
28    nonreligious,  non-home  based,  and  non-profit  school.   A
29    charter school shall be organized and operated as a nonprofit
30    corporation   or  other  discrete,  legal,  nonprofit  entity
31    authorized under the laws of the State of Illinois.
32        (b)  A charter  school  may  be  established  under  this
33    Article by creating a new school or by converting an existing
 
                            -4-            LRB9105854NTsbam02
 1    public school or attendance center to charter school status.
 2        (c)  A  charter school shall be administered and governed
 3    by its board of directors or  other  governing  body  in  the
 4    manner  provided  in  its  charter.   The governing body of a
 5    charter school shall be subject to the Freedom of Information
 6    Act and the Open Meetings Act.
 7        (d)  A charter school shall comply  with  all  applicable
 8    health  and  safety requirements applicable to public schools
 9    under the laws of the State of Illinois.
10        (e)  Except as otherwise provided in the School  Code,  a
11    charter  school  shall  not  charge  tuition; provided that a
12    charter school may  charge  reasonable  fees  for  textbooks,
13    instructional materials, and student activities.
14        (f)  A  charter  school  shall  be  responsible  for  the
15    management and operation of its fiscal affairs including, but
16    not  limited  to, the preparation of its budget.  An audit of
17    each charter school's finances shall be conducted annually by
18    an outside, independent contractor retained  by  the  charter
19    school.
20        (g)  A charter school shall comply with all provisions of
21    this  Article  and  its  charter.  A charter school is exempt
22    from all other State laws and regulations in the School  Code
23    governing  public  schools  and  local school board policies,
24    except the following:
25             (1)  Sections 10-21.9 and 34-18.5 of the School Code
26        regarding   criminal   background    investigations    of
27        applicants for employment;
28             (2)  Sections  24-24  and  34-84A of the School Code
29        regarding discipline of students;
30             (3)  The   Local   Governmental   and   Governmental
31        Employees Tort Immunity Act;
32             (4)  Section 108.75 of the General  Not  For  Profit
33        Corporation  Act  of  1986  regarding  indemnification of
34        officers, directors, employees, and agents;
 
                            -5-            LRB9105854NTsbam02
 1             (5)  The Abused and Neglected Child  Reporting  Act;
 2        and
 3             (6)  The Illinois School Student Records Act; and.
 4             (7)  Section  10-17a  of  the  School Code regarding
 5        school report cards.
 6        (h)  A charter school may negotiate and contract  with  a
 7    school  district,  the  governing  body of a State college or
 8    university or public community college, or any  other  public
 9    or for-profit or nonprofit private entity for: (i) the use of
10    a  school  building and grounds or any other real property or
11    facilities that the charter school desires to use or  convert
12    for  use  as  a  charter  school site, (ii) the operation and
13    maintenance thereof, and (iii) the provision of any  service,
14    activity,  or undertaking that the charter school is required
15    to perform in order to carry out the terms  of  its  charter.
16    Except  as  provided  in  subsection  (i)  of this Section, a
17    school district may charge a charter school  reasonable  rent
18    for  the  use  of  the  district's  buildings,  grounds,  and
19    facilities.    Any   services  for  which  a  charter  school
20    contracts with a school district shall  be  provided  by  the
21    district  at  cost.   Any services for which a charter school
22    contracts with a local school board  or  with  the  governing
23    body  of  a  State  college or university or public community
24    college shall be provided by the public entity at cost.
25        (i)  In  no  event  shall  a  charter  school   that   is
26    established  by  converting  an existing school or attendance
27    center to charter school status be required to pay  rent  for
28    space that is deemed available, as negotiated and provided in
29    the   charter   agreement,  in  school  district  facilities.
30    However, all other costs for the operation and maintenance of
31    school district facilities  that  are  used  by  the  charter
32    school  shall  be  subject to negotiation between the charter
33    school and the local school board and shall be set  forth  in
34    the charter.
 
                            -6-            LRB9105854NTsbam02
 1        (j)  A charter school may limit student enrollment by age
 2    or grade level.
 3    (Source: P.A. 89-450, eff. 4-10-96.)

 4        (105 ILCS 5/27A-6)
 5        Sec. 27A-6.  Contract contents; applicability of laws and
 6    regulations.
 7        (a)  A  certified  charter  shall  constitute  a  binding
 8    contract and agreement between the charter school and a local
 9    school  board under the terms of which the local school board
10    authorizes the  governing  body  of  the  charter  school  to
11    operate  the  charter  school  on  the terms specified in the
12    contract.
13        (b)  Notwithstanding any other provision of this Article,
14    the certified charter may not waive or  release  the  charter
15    school  from  the  State  goals,  standards,  and assessments
16    established pursuant to Section 2-3.64.
17        (c)  Subject to  the  provisions  of  subsection  (e),  a
18    material  revision  to  a  previously certified contract or a
19    renewal shall be made with the approval  of  both  the  local
20    school board and the governing body of the charter school.
21        (c-5)  The proposed contract shall include a provision on
22    how  both  parties  will  address  minor  violations  of  the
23    contract.
24        (d)  The  proposed contract between the governing body of
25    a proposed charter school  and  the  local  school  board  as
26    described in Section 27A-7 must be submitted to and certified
27    by  the  State Board before it can take effect.  If the State
28    Board recommends that the proposed contract be  modified  for
29    consistency with this Article before it can be certified, the
30    modifications must be consented to by both the governing body
31    of  the  charter  school  and  the  local  school  board, and
32    resubmitted to the State Board for its certification.  If the
33    proposed contract is  resubmitted  in  a  form  that  is  not
 
                            -7-            LRB9105854NTsbam02
 1    consistent  with  this Article, the State Board may refuse to
 2    certify the charter.
 3        The State Board shall assign a number to each  submission
 4    or  resubmission in chronological order of receipt, and shall
 5    determine whether the proposed contract  is  consistent  with
 6    the  provisions  of  this  Article.  If the proposed contract
 7    complies, the State Board shall so certify.
 8        (e)  No  material  revision  to  a  previously  certified
 9    contract or a renewal shall be effective unless and until the
10    State  Board  certifies  that  the  revision  or  renewal  is
11    consistent with the provisions of this Article.
12    (Source: P.A. 89-450, eff. 4-10-96.)

13        (105 ILCS 5/27A-6.5 new)
14        Sec. 27A-6.5.  Charter school referendum.
15        (a)  No charter shall be approved under this Section that
16    would convert any existing private, parochial, or  non-public
17    school  to  a  charter  school or whose proposal has not been
18    certified by the State Board.
19        (b)  A local school board shall, whenever  petitioned  to
20    do  so  by  5%  or more of the voters of a school district or
21    districts identified in  a  charter  school  proposal,  order
22    submitted  to  the  voters  thereof  at a regularly scheduled
23    election the question of whether a new charter  school  shall
24    be  established,  which  proposal  has  been certified by the
25    State Board to be in compliance with the provisions  of  this
26    Article,  and  the secretary shall certify the proposition to
27    the proper election authorities for submission in  accordance
28    with  the  general election law.  The proposition shall be in
29    substantially the following form:
30             "FOR the establishment of (name of proposed  charter
31        school)  under  charter  school  proposal (charter school
32        proposal number).
33             AGAINST  the  establishment  of  (name  of  proposed
 
                            -8-            LRB9105854NTsbam02
 1        charter school) under charter  school  proposal  (charter
 2        school proposal number)".
 3        (c)  Before circulating a petition to submit the question
 4    of  whether to establish a charter school to the voters under
 5    subsection (b) of this  Section,  the  governing  body  of  a
 6    proposed  charter  school  that  desires  to  establish a new
 7    charter school by referendum shall simultaneously submit  the
 8    charter  school  proposal  to  the  State Board and the local
 9    school board in the form of a proposed contract to be entered
10    into between the State Board and the governing  body  of  the
11    proposed  charter  school,  as  provided under Section 27A-6,
12    together with written notice of the  intent  to  have  a  new
13    charter school established by referendum.  The contract shall
14    comply with the provisions of this Article.  The local school
15    board  shall  immediately provide written notification to the
16    governing body of the proposed  charter  school  and  to  the
17    State  Board  of  any  portions of the contract that it finds
18    unacceptable, together with the  reasons  for  its  decision.
19    The notification shall be advisory only.
20        If  the  State  Board  finds  that  the proposed contract
21    complies with  the  provisions  of  this  Article,  it  shall
22    immediately  certify that the proposed contract complies with
23    the provisions of this Article and direct  the  local  school
24    board  to  notify  the  proper  election authorities that the
25    question of whether to establish a new charter  school  shall
26    be submitted for referendum.
27        (d)  If  the State Board finds that the proposal fails to
28    comply with the provisions of this Article, it  shall  refuse
29    to  certify  the  proposal  and  provide written explanation,
30    detailing its reasons for refusal, to the local school  board
31    and  to  the  individuals  or  organizations  submitting  the
32    proposal.  The State Board shall also notify the local school
33    board  and  the  individuals  or organizations submitting the
34    proposal that the proposal may  be  amended  and  resubmitted
 
                            -9-            LRB9105854NTsbam02
 1    under   the   same   provisions   required  for  an  original
 2    submission.
 3        (e)  If a majority of the votes cast upon the proposition
 4    in each school district  designated  in  the  charter  school
 5    proposal  is  in  favor of establishing a charter school, the
 6    local school board  shall  notify  the  State  Board  of  the
 7    passage of the proposition in favor of establishing a charter
 8    school and the State Board shall approve the charter within 7
 9    days  after the State Board of Elections has certified that a
10    majority of the votes cast upon the proposition is  in  favor
11    of  establishing  a charter school.  The State Board shall be
12    the chartering entity  for  charter  schools  established  by
13    referendum under this Section.

14        (105 ILCS 5/27A-8)
15        Sec. 27A-8.  Evaluation of charter proposals.
16        (a)  This  Section  does  not  apply  to a charter school
17    established  by  referendum   under   Section   27A-6.5.   In
18    evaluating  any  charter school proposal submitted to it, the
19    local school board shall give preference to proposals that:
20             (1)  demonstrate  a  high  level  of  local   pupil,
21        parental,   community,  business,  and  school  personnel
22        support;
23             (2)  set   rigorous   levels   of   expected   pupil
24        achievement and demonstrate feasible plans for  attaining
25        those levels of achievement; and
26             (3)  are  designed to enroll and serve a substantial
27        proportion of at-risk children; provided that nothing  in
28        the Charter Schools Law shall be construed as intended to
29        limit  the establishment of charter schools to those that
30        serve a substantial portion of at-risk children or to  in
31        any   manner   restrict,   limit,   or   discourage   the
32        establishment  of  charter  schools that enroll and serve
33        other   pupil   populations   under    a    nonexclusive,
 
                            -10-           LRB9105854NTsbam02
 1        nondiscriminatory admissions policy.
 2        (b)  In  the  case  of  a proposal to establish a charter
 3    school by converting an existing public school or  attendance
 4    center  to  charter school status, evidence that the proposed
 5    formation of the charter school has received majority support
 6    from certified teachers and from parents and guardians in the
 7    school or attendance center affected by the proposed charter,
 8    and, if applicable, from a local  school  council,  shall  be
 9    demonstrated  by  a petition in support of the charter school
10    signed by certified teachers and a petition in support of the
11    charter school  signed  by  parents  and  guardians  and,  if
12    applicable,  by  a vote of the local school council held at a
13    public meeting.  In  the  case  of  all  other  proposals  to
14    establish a charter school, evidence of sufficient support to
15    fill  the number of pupil seats set forth in the proposal may
16    be demonstrated by a  petition  in  support  of  the  charter
17    school  signed  by parents and guardians of students eligible
18    to attend the charter school. In all cases, the  individuals,
19    organizations,  or  entities  who  initiate  the  proposal to
20    establish a charter school may elect, in  lieu  of  including
21    any  petition referred to in this subsection as a part of the
22    proposal submitted to the local school board, to  demonstrate
23    that  the charter school has received the support referred to
24    in  this  subsection  by  other  evidence   and   information
25    presented  at  the public meeting that the local school board
26    is required to convene under this Section.
27        (c)  Within 45  days  of  receipt  of  a  charter  school
28    proposal,  the  local  school  board  shall  convene a public
29    meeting to obtain information to  assist  the  board  in  its
30    decision to grant or deny the charter school proposal.
31        (d)  Notice  of  the  public  meeting  required  by  this
32    Section shall be published in a community newspaper published
33    in  the  school  district  in  which  the proposed charter is
34    located and, if  there  is  no  such  newspaper,  then  in  a
 
                            -11-           LRB9105854NTsbam02
 1    newspaper  published  in the county and having circulation in
 2    the school district.  The notices shall be published not more
 3    than 10 days nor less than 5  days  before  the  meeting  and
 4    shall  state  that  information  regarding  a  charter school
 5    proposal will be heard at the meeting.  Copies of the  notice
 6    shall  also  be posted at appropriate locations in the school
 7    or attendance center proposed to be established as a  charter
 8    school,  the  public  schools in the school district, and the
 9    local school board office.
10        (e)  Within 30 days of  the  public  meeting,  the  local
11    school board shall vote, in a public meeting, to either grant
12    or deny the charter school proposal.
13        (f)  Within  7  days of the public meeting required under
14    subsection (e), the local school board shall  file  a  report
15    with the State Board granting or denying the proposal. Within
16    14  days  of  receipt of the local school board's report, the
17    State Board shall  determine  whether  the  approved  charter
18    proposal  is  consistent  with the provisions of this Article
19    and, if the approved proposal complies, certify the  proposal
20    pursuant to Section 27A-6.
21    (Source: P.A. 89-450, eff. 4-10-96; 90-548, eff. 1-1-98.)

22        (105 ILCS 5/27A-9)
23        Sec. 27A-9. Term of charter; renewal.
24        (a)  A charter may be granted for a period not less than
25    5  3  and  not more than 10 5 school years.  A charter may be
26    renewed in incremental periods not to exceed 5 school years.
27        (b)  A charter school renewal proposal submitted  to  the
28    local  school board or State Board, as the chartering entity,
29    shall contain:
30             (1)  A report on the progress of the charter  school
31        in  achieving  the  goals,  objectives, pupil performance
32        standards, content standards,  and  other  terms  of  the
33        initial approved charter proposal; and
 
                            -12-           LRB9105854NTsbam02
 1             (2)  A  financial statement that discloses the costs
 2        of  administration,  instruction,  and   other   spending
 3        categories  for the charter school that is understandable
 4        to the general public and that will allow  comparison  of
 5        those   costs   to  other  schools  or  other  comparable
 6        organizations, in a format required by the State Board.
 7        (c)  A charter may be revoked or not renewed if the local
 8    school board  or  State  Board,  as  the  chartering  entity,
 9    clearly  demonstrates  that the charter school did any of the
10    following,  or  otherwise   failed   to   comply   with   the
11    requirements of this law:
12             (1)  Committed  a  material  violation of any of the
13        conditions, standards, or procedures  set  forth  in  the
14        charter.
15             (2)  Failed  to  meet  or  make  reasonable progress
16        toward achievement of  the  content  standards  or  pupil
17        performance standards identified in the charter.
18             (3)  Failed  to meet generally accepted standards of
19        fiscal management.
20             (4)  Violated any provision of law  from  which  the
21        charter school was not exempted.
22        (d)  (Blank).
23        (e)  Notice  of  a local school board's decision to deny,
24    revoke or not to renew a charter shall  be  provided  to  the
25    State  Board.  The  State  Board  may reverse a local board's
26    decision if the State Board finds that the charter school  or
27    charter  school  proposal  (i)  is  in  compliance  with this
28    Article, and (ii) is in the best interests of the students it
29    is designed to serve.  The  State  Board  may  condition  the
30    granting of an appeal on the acceptance by the charter school
31    of  funding  in  an  amount  less  than that requested in the
32    proposal submitted to the local school board. Final decisions
33    of the State Board shall be subject to judicial review  under
34    the Administrative Review Law.
 
                            -13-           LRB9105854NTsbam02
 1        (f)  Notwithstanding other provisions of this Article, if
 2    the  State Board on appeal reverses a local board's decision,
 3    the State Board shall act as the authorized chartering entity
 4    for the charter school.  The State Board  shall  approve  and
 5    certify  the  charter  and  shall perform all functions under
 6    this Article otherwise performed by the local  school  board.
 7    The  State Board shall report the aggregate number of charter
 8    school pupils resident in a school district to that  district
 9    and  shall notify the district of the amount of funding to be
10    paid by the State Board to the charter school enrolling  such
11    students.    The   State  Board  shall  withhold  from  funds
12    otherwise due the  district  the  funds  authorized  by  this
13    Article  to  be paid to the charter school and shall pay such
14    amounts to the charter school.
15    (Source: P.A. 89-450, eff. 4-10-96; 90-548, eff. 1-1-98.)

16        (105 ILCS 5/27A-11)
17        Sec. 27A-11.  Local financing.
18        (a)  For purposes of the School Code, pupils enrolled  in
19    a charter school shall be included in the pupil enrollment of
20    the  school  district  within  which the pupil resides.  Each
21    charter school (i) shall determine  the  school  district  in
22    which  each  pupil  who  is  enrolled  in  the charter school
23    resides, (ii) shall report the  aggregate  number  of  pupils
24    resident of a school district who are enrolled in the charter
25    school  to  the school district in which those pupils reside,
26    and (iii) shall maintain accurate records of daily attendance
27    that shall be deemed sufficient to file claims under  Section
28    18-8  notwithstanding  any other requirements of that Section
29    regarding hours of instruction and teacher certification.
30        (b)  Except  for  a   charter   school   established   by
31    referendum under Section 27A-6.5, as part of a charter school
32    contract, the charter school and the local school board shall
33    agree  on  funding  and  any  services  to be provided by the
 
                            -14-           LRB9105854NTsbam02
 1    school district to the charter school. Agreed funding that  a
 2    charter  school is to receive from the local school board for
 3    a school year shall be paid in equal  quarterly  installments
 4    with  the  payment  of  the installment for the first quarter
 5    being  made  not  later  than  July  1,  unless  the  charter
 6    establishes a different payment schedule.
 7        All services  centrally  or  otherwise  provided  by  the
 8    school  district  including,  but  not limited to, rent, food
 9    services, custodial services, maintenance, curriculum,  media
10    services, libraries, transportation, and warehousing shall be
11    subject to negotiation between a charter school and the local
12    school  board  and  paid  for  out of the revenues negotiated
13    pursuant to this subsection  (b);  provided  that  the  local
14    school  board shall not attempt, by negotiation or otherwise,
15    to obligate a charter school to provide pupil  transportation
16    for  pupils  for  whom  a district is not required to provide
17    transportation under the criteria  set  forth  in  subsection
18    (a)(13) of Section 27A-7.
19        In  no  event  shall the funding be less than 75% or more
20    than 125% of the school district's per capita student tuition
21    multiplied by the number of students residing in the district
22    who are enrolled in the charter school.
23        It is the intent of the General Assembly that funding and
24    service agreements under this subsection (b) shall be neither
25    a financial incentive nor a  financial  disincentive  to  the
26    establishment of a charter school.
27        The  charter  school may set and collect reasonable fees.
28    Fees collected from students enrolled  at  a  charter  school
29    shall be retained by the charter school.
30        (c)  Notwithstanding  subsection (b) of this Section, the
31    proportionate share of State and federal resources  generated
32    by  students with disabilities or staff serving them shall be
33    directed to charter schools enrolling those students by their
34    school districts or administrative units.  The  proportionate
 
                            -15-           LRB9105854NTsbam02
 1    share  of  moneys  generated  under  other  federal  or State
 2    categorical aid programs shall be directed to charter schools
 3    serving students eligible for that aid.
 4        (d)(1)  The  governing  body  of  a  charter  school   is
 5    authorized  to accept gifts, donations, or grants of any kind
 6    made to the charter  school  and  to  expend  or  use  gifts,
 7    donations,  or  grants  in  accordance  with  the  conditions
 8    prescribed  by the donor; however, a gift, donation, or grant
 9    may not be accepted by the governing body if it is subject to
10    any condition contrary to applicable law or contrary  to  the
11    terms  of  the  contract  between  the charter school and the
12    local school board.  Charter schools shall be  encouraged  to
13    solicit  and  utilize  community volunteer speakers and other
14    instructional resources when  providing  instruction  on  the
15    Holocaust and other historical events.
16        (2)  From  amounts  appropriated  to  the State Board for
17    purposes of this subsection (d)(2), the State Board may  make
18    loans to charter schools established under this Article to be
19    used  by  those  schools  to  defer  their  start-up costs of
20    acquiring  textbooks  and  laboratory  and  other   equipment
21    required for student instruction. Any such loan shall be made
22    to  a  charter  school  at  the  inception of the term of its
23    charter, under terms established  by  the  State  Board,  and
24    shall  be  repaid  by the charter school over the term of its
25    charter.  A local school board is  not  responsible  for  the
26    repayment of the loan.
27        (e)  (Blank).  No  later  than January 1, 1997, the State
28    Board shall issue a report to the General  Assembly  and  the
29    Governor  describing the charter schools certified under this
30    Article, their geographic locations, their  areas  of  focus,
31    and the numbers of school children served by them.
32        (f)  The  State  Board shall provide technical assistance
33    to  persons  and  groups  preparing   or   revising   charter
34    applications.
 
                            -16-           LRB9105854NTsbam02
 1        (g)  At  the  non-renewal  or  revocation of its charter,
 2    each charter school  shall  refund  to  the  local  board  of
 3    education all unspent funds.
 4        (h)  A  charter  school is authorized to incur temporary,
 5    short term debt to pay operating expenses in anticipation  of
 6    receipt of funds from the local school board.
 7    (Source:  P.A.  89-450,  eff.  4-10-96;  90-548, eff. 1-1-98;
 8    90-757, eff. 8-14-98.)

 9        (105 ILCS 5/27A-11.5 new)
10        Sec. 27A-11.5.  State  financing.   The  State  Board  of
11    Education  shall make the following funds available to school
12    districts and charter schools:
13             (1)  From a separate appropriation made to the State
14        Board for purposes of this  subdivision  (1),  the  State
15        Board  shall  make  transition  impact  aid  available to
16        school districts that approve a  new  charter  school  or
17        that have funds withheld by the State Board to fund a new
18        charter school that is chartered by the State Board.  The
19        amount  of  the  aid  shall  equal  90% of the per capita
20        funding paid to the charter school during the first  year
21        of  its  initial  charter  term,  65%  of  the per capita
22        funding paid to the charter school during the second year
23        of its initial term, and 35% of the  per  capita  funding
24        paid  to  the charter school during the third year of its
25        initial term.  This transition impact aid shall  be  paid
26        to   the   local   school   board   in   equal  quarterly
27        installments, with the payment of the installment for the
28        first  quarter  being  made  by  August  1st  immediately
29        preceding the first,  second,  and  third  years  of  the
30        initial term.  The district shall file an application for
31        this  aid  with the State Board in a format designated by
32        the State Board.  If the appropriation is insufficient in
33        any year to pay all approved claims, the impact aid shall
 
                            -17-           LRB9105854NTsbam02
 1        be prorated.
 2             (2)  From a  separate  appropriation  made  for  the
 3        purpose  of  this  subdivision (2), the State Board shall
 4        make grants to charter  schools  to  pay  their  start-up
 5        costs  of  acquiring  educational materials and supplies,
 6        textbooks, furniture, and other equipment  needed  during
 7        their  initial  term.   The  State  Board  shall annually
 8        establish the time and manner of  application  for  these
 9        grants,  which shall not exceed $250 per student enrolled
10        in the charter school.
11             (3)  The Charter  Schools  Revolving  Loan  Fund  is
12        created as a special fund in the State treasury.  Federal
13        funds,  such  other  funds  as  may be made available for
14        costs  associated  with  the  establishment  of   charter
15        schools  in  Illinois,  and  amounts  repaid  by  charter
16        schools  that  have  received  a  loan  from  the Charter
17        Schools Revolving Loan Fund shall be deposited  into  the
18        Charter  Schools  Revolving  Loan Fund, and the moneys in
19        the  Charter  Schools  Revolving  Loan  Fund   shall   be
20        appropriated  to  the  State  Board  and  used to provide
21        interest-free loans  to  charter  schools.   These  funds
22        shall   be  used  to  pay  start-up  costs  of  acquiring
23        educational materials and supplies, textbooks, furniture,
24        and other equipment needed in the  initial  term  of  the
25        charter   school  and  for  acquiring  and  remodeling  a
26        suitable physical plant, within the initial term  of  the
27        charter  school.   Loans shall be limited to one loan per
28        charter school and shall  not  exceed  $250  per  student
29        enrolled  in  the charter school.  A loan shall be repaid
30        by the end of the initial term  of  the  charter  school.
31        The State Board may deduct amounts necessary to repay the
32        loan  from funds due to the charter school or may require
33        that the local school board that authorized  the  charter
34        school  deduct  such  amounts  from funds due the charter
 
                            -18-           LRB9105854NTsbam02
 1        school and  remit  these  amounts  to  the  State  Board,
 2        provided  that  the  local  school  board  shall  not  be
 3        responsible for repayment of the loan.
 4             (4)  A  charter  school  must apply for and receive,
 5        subject to the same  restrictions  applicable  to  school
 6        districts, any grant administered by the State Board that
 7        is available for school districts.

 8        (105 ILCS 5/27A-12)
 9        Sec. 27A-12.  Evaluation; annual report.  The State Board
10    shall  compile annual evaluations of charter schools received
11    from local school boards and shall prepare an  annual  report
12    on  charter schools. The State Board shall review information
13    regarding the regulations and  policies  from  which  charter
14    schools  were released to determine if the exemption assisted
15    or impeded the charter schools in meeting their stated  goals
16    and  objectives.   Each annual report shall include suggested
17    changes in  State  law  necessary  to  strengthen  or  change
18    charter schools.
19        On  or  before the second Wednesday of January, 1998, and
20    on  or  before  the  second  Wednesday  of  January  of  each
21    subsequent calendar year,  the  State  Board  shall  issue  a
22    report  to  the  General  Assembly  and  the  Governor on its
23    findings for the school year ending in the preceding calendar
24    year.
25        In preparing the annual report required by this  Section,
26    the  State Board (i) shall compare the performance of charter
27    school  pupils  with  the  performance  of   ethnically   and
28    economically  comparable  groups  of  pupils  in other public
29    schools who are enrolled in academically comparable  courses,
30    (ii)  shall  review information regarding the regulations and
31    policies  from  which  charter  schools  were   released   to
32    determine  if  the exemptions assisted or impeded the charter
33    schools in meeting their stated  goals  and  objectives,  and
 
                            -19-           LRB9105854NTsbam02
 1    (iii)  shall include suggested changes in State law necessary
 2    to strengthen charter schools.
 3        In addition, the State Board shall undertake  and  report
 4    on  periodic  evaluations  of  charter  schools  that include
 5    evaluations of student academic achievement,  the  extent  to
 6    which  charter  schools  are accomplishing their missions and
 7    goals, the sufficiency of funding for  charter  schools,  and
 8    the  need  for  changes  in  the approval process for charter
 9    schools.
10    (Source: P.A. 89-450, eff. 4-10-96.)

11        (105 ILCS 5/29-4) (from Ch. 122, par. 29-4)
12        Sec. 29-4. Pupils attending a charter school or nonpublic
13     other than a public school. The school board of  any  school
14    district  that  provides  any  school  bus  or conveyance for
15    transporting pupils to and  from  the  public  schools  shall
16    afford transportation, without cost, for children who attend
17    a  charter  school  or any school other than a public school,
18    who reside at least 1 1/2 miles from the school attended, and
19    who reside on or along the highway constituting  the  regular
20    route   of   such  public  school  bus  or  conveyance,  such
21    transportation to extend from some point on the regular route
22    nearest or most easily accessible to their homes to and  from
23    the  school  attended,  or to or from a point on such regular
24    route which is nearest  or  most  easily  accessible  to  the
25    school  attended  by  such  children. Nothing herein shall be
26    construed to prevent high school districts from  transporting
27    public  or  non-public  elementary school pupils on a regular
28    route where deemed appropriate.  The elementary  district  in
29    which  such  pupils  reside  shall  enter  into a contractual
30    agreement  with  the  high  school  district  providing   the
31    service,  make  payments  accordingly, and make claims to the
32    State in the amount of such contractual payments. The  person
33    in charge of any charter school or school other than a public
 
                            -20-           LRB9105854NTsbam02
 1    school  shall  certify  on a form to be provided by the State
 2    Superintendent of  Education,  the  names  and  addresses  of
 3    pupils transported and when such pupils were in attendance at
 4    the  school.  If  any such children reside within 1 1/2 miles
 5    from the school attended, the school board shall afford  such
 6    transportation  to  such  children  on  the  same basis as it
 7    provides transportation for its own  pupils  residing  within
 8    that distance from the school attended.
 9        Nothing  herein  shall  be construed to preclude a school
10    district from operating separate regular bus routes,  subject
11    to  the  limitations  of  this  Section,  for  the benefit of
12    children who attend a charter school or any school other than
13    a public school where the operation of such routes is  safer,
14    more  economical  and  more  efficient  than  if  such school
15    district were precluded from operating separate  regular  bus
16    routes.
17        If  a  school  district  is  required  by this Section to
18    afford transportation without cost for any child who is not a
19    resident of the district, the school district providing  such
20    transportation  is  entitled to reimbursement from the school
21    district  in  which  the  child  resides  for  the  cost   of
22    furnishing   that   transportation,  including  a  reasonable
23    allowance for depreciation  on  each  vehicle  so  used.  The
24    school  district  where the child resides shall reimburse the
25    district providing the transportation for such costs, by  the
26    10th  of  each month or on such less frequent schedule as may
27    be agreed to by the 2 school districts.
28    (Source: P.A. 81-1050.)".

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