98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3754

 

Introduced , by Rep. Linda Chapa LaVia

 

SYNOPSIS AS INTRODUCED:
 
105 ILCS 5/27A-3
105 ILCS 5/27A-5
105 ILCS 5/27A-8
105 ILCS 5/27A-9
105 ILCS 5/27A-12
30 ILCS 105/5.796 rep.
105 ILCS 5/27A-7.5 rep.
105 ILCS 5/27A-7.10 rep.

    Amends the Charter Schools Law of the School Code and the State Finance Act. Repeals provisions in the Charter Schools Law and the State Finance Act concerning the State Charter School Commission; makes related changes. Removes a provision allowing a school board to develop its own process for receiving charter school proposals. Requires the State Board of Education to compile annual evaluations of charter schools received from school boards and prepare an annual report on charter schools (instead of requiring school boards to submit to the State Board any information required by the State Board pursuant to rule). Makes changes concerning the report the State Board issues to the General Assembly and the Governor. Effective July 1, 2014.


LRB098 14418 NHT 49097 b

FISCAL NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB3754LRB098 14418 NHT 49097 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The School Code is amended by changing Sections
527A-3, 27A-5, 27A-8, 27A-9, and 27A-12 as follows:
 
6    (105 ILCS 5/27A-3)
7    Sec. 27A-3. Definitions. For purposes of this Article:
8    "At-risk pupil" means a pupil who, because of physical,
9emotional, socioeconomic, or cultural factors, is less likely
10to succeed in a conventional educational environment.
11    "Authorizer" means an entity authorized under this Article
12to review applications, decide whether to approve or reject
13applications, enter into charter contracts with applicants,
14oversee charter schools, and decide whether to renew, not
15renew, or revoke a charter.
16    "Commission" means the State Charter School Commission
17established under Section 27A-7.5 of this Code.
18    "Local school board" means the duly elected or appointed
19school board or board of education of a public school district,
20including special charter districts and school districts
21located in cities having a population of more than 500,000,
22organized under the laws of this State.
23    "State Board" means the State Board of Education.

 

 

HB3754- 2 -LRB098 14418 NHT 49097 b

1(Source: P.A. 97-152, eff. 7-20-11.)
 
2    (105 ILCS 5/27A-5)
3    Sec. 27A-5. Charter school; legal entity; requirements.
4    (a) A charter school shall be a public, nonsectarian,
5nonreligious, non-home based, and non-profit school. A charter
6school shall be organized and operated as a nonprofit
7corporation or other discrete, legal, nonprofit entity
8authorized under the laws of the State of Illinois.
9    (b) A charter school may be established under this Article
10by creating a new school or by converting an existing public
11school or attendance center to charter school status. Beginning
12on the effective date of this amendatory Act of the 93rd
13General Assembly, in all new applications submitted to the
14State Board or a local school board to establish a charter
15school in a city having a population exceeding 500,000,
16operation of the charter school shall be limited to one campus.
17The changes made to this Section by this amendatory Act of the
1893rd General Assembly do not apply to charter schools existing
19or approved on or before the effective date of this amendatory
20Act.
21    (b-5) In this subsection (b-5), "virtual-schooling" means
22the teaching of courses through online methods with online
23instructors, rather than the instructor and student being at
24the same physical location. "Virtual-schooling" includes
25without limitation instruction provided by full-time, online

 

 

HB3754- 3 -LRB098 14418 NHT 49097 b

1virtual schools.
2    From April 1, 2013 through April 1, 2014, there is a
3moratorium on the establishment of charter schools with
4virtual-schooling components in school districts other than a
5school district organized under Article 34 of this Code. This
6moratorium does not apply to a charter school with
7virtual-schooling components existing or approved prior to
8April 1, 2013 or to the renewal of the charter of a charter
9school with virtual-schooling components already approved
10prior to April 1, 2013.
11    On or before March 1, 2014, the Commission shall submit to
12the General Assembly a report on the effect of
13virtual-schooling, including without limitation the effect on
14student performance, the costs associated with
15virtual-schooling, and issues with oversight. The report shall
16include policy recommendations for virtual-schooling.
17    (c) A charter school shall be administered and governed by
18its board of directors or other governing body in the manner
19provided in its charter. The governing body of a charter school
20shall be subject to the Freedom of Information Act and the Open
21Meetings Act.
22    (d) A charter school shall comply with all applicable
23health and safety requirements applicable to public schools
24under the laws of the State of Illinois.
25    (e) Except as otherwise provided in the School Code, a
26charter school shall not charge tuition; provided that a

 

 

HB3754- 4 -LRB098 14418 NHT 49097 b

1charter school may charge reasonable fees for textbooks,
2instructional materials, and student activities.
3    (f) A charter school shall be responsible for the
4management and operation of its fiscal affairs including, but
5not limited to, the preparation of its budget. An audit of each
6charter school's finances shall be conducted annually by an
7outside, independent contractor retained by the charter
8school. Annually, by December 1, every charter school must
9submit to the State Board a copy of its audit and a copy of the
10Form 990 the charter school filed that year with the federal
11Internal Revenue Service.
12    (g) A charter school shall comply with all provisions of
13this Article, the Illinois Educational Labor Relations Act, and
14its charter. A charter school is exempt from all other State
15laws and regulations in the School Code governing public
16schools and local school board policies, except the following:
17        (1) Sections 10-21.9 and 34-18.5 of the School Code
18    regarding criminal history records checks and checks of the
19    Statewide Sex Offender Database and Statewide Murderer and
20    Violent Offender Against Youth Database of applicants for
21    employment;
22        (2) Sections 24-24 and 34-84A of the School Code
23    regarding discipline of students;
24        (3) The Local Governmental and Governmental Employees
25    Tort Immunity Act;
26        (4) Section 108.75 of the General Not For Profit

 

 

HB3754- 5 -LRB098 14418 NHT 49097 b

1    Corporation Act of 1986 regarding indemnification of
2    officers, directors, employees, and agents;
3        (5) The Abused and Neglected Child Reporting Act;
4        (6) The Illinois School Student Records Act;
5        (7) Section 10-17a of the School Code regarding school
6    report cards; and
7        (8) The P-20 Longitudinal Education Data System Act.
8    The change made by Public Act 96-104 to this subsection (g)
9is declaratory of existing law.
10    (h) A charter school may negotiate and contract with a
11school district, the governing body of a State college or
12university or public community college, or any other public or
13for-profit or nonprofit private entity for: (i) the use of a
14school building and grounds or any other real property or
15facilities that the charter school desires to use or convert
16for use as a charter school site, (ii) the operation and
17maintenance thereof, and (iii) the provision of any service,
18activity, or undertaking that the charter school is required to
19perform in order to carry out the terms of its charter.
20However, a charter school that is established on or after the
21effective date of this amendatory Act of the 93rd General
22Assembly and that operates in a city having a population
23exceeding 500,000 may not contract with a for-profit entity to
24manage or operate the school during the period that commences
25on the effective date of this amendatory Act of the 93rd
26General Assembly and concludes at the end of the 2004-2005

 

 

HB3754- 6 -LRB098 14418 NHT 49097 b

1school year. Except as provided in subsection (i) of this
2Section, a school district may charge a charter school
3reasonable rent for the use of the district's buildings,
4grounds, and facilities. Any services for which a charter
5school contracts with a school district shall be provided by
6the district at cost. Any services for which a charter school
7contracts with a local school board or with the governing body
8of a State college or university or public community college
9shall be provided by the public entity at cost.
10    (i) In no event shall a charter school that is established
11by converting an existing school or attendance center to
12charter school status be required to pay rent for space that is
13deemed available, as negotiated and provided in the charter
14agreement, in school district facilities. However, all other
15costs for the operation and maintenance of school district
16facilities that are used by the charter school shall be subject
17to negotiation between the charter school and the local school
18board and shall be set forth in the charter.
19    (j) A charter school may limit student enrollment by age or
20grade level.
21    (k) (Blank). If the charter school is approved by the
22Commission, then the Commission charter school is its own local
23education agency.
24(Source: P.A. 97-152, eff. 7-20-11; 97-154, eff. 1-1-12;
2597-813, eff. 7-13-12; 98-16, eff. 5-24-13.)
 

 

 

HB3754- 7 -LRB098 14418 NHT 49097 b

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
4established by referendum under Section 27A-6.5. In evaluating
5any charter school proposal submitted to it, the local school
6board and the Commission shall give preference to proposals
7that:
8        (1) demonstrate a high level of local pupil, parental,
9    community, business, and school personnel support;
10        (2) set rigorous levels of expected pupil achievement
11    and demonstrate feasible plans for attaining those levels
12    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 school
23by converting an existing public school or attendance center to
24charter school status, evidence that the proposed formation of
25the charter school has received majority support from certified
26teachers and from parents and guardians in the school or

 

 

HB3754- 8 -LRB098 14418 NHT 49097 b

1attendance center affected by the proposed charter, and, if
2applicable, from a local school council, shall be demonstrated
3by a petition in support of the charter school signed by
4certified teachers and a petition in support of the charter
5school signed by parents and guardians and, if applicable, by a
6vote of the local school council held at a public meeting. In
7the case of all other proposals to establish a charter school,
8evidence of sufficient support to fill the number of pupil
9seats set forth in the proposal may be demonstrated by a
10petition in support of the charter school signed by parents and
11guardians of students eligible to attend the charter school. In
12all cases, the individuals, organizations, or entities who
13initiate the proposal to establish a charter school may elect,
14in lieu of including any petition referred to in this
15subsection as a part of the proposal submitted to the local
16school board, to demonstrate that the charter school has
17received the support referred to in this subsection by other
18evidence and information presented at the public meeting that
19the local school board is required to convene under this
20Section.
21    (c) Within 45 days of receipt of a charter school proposal,
22the local school board shall convene a public meeting to obtain
23information to assist the board in its decision to grant or
24deny the charter school proposal. A local school board may
25develop its own process for receiving charter school proposals
26on an annual basis that follows the same timeframes as set

 

 

HB3754- 9 -LRB098 14418 NHT 49097 b

1forth in this Article. Only after the local school board
2process is followed may a charter school applicant appeal to
3the Commission.
4    (d) Notice of the public meeting required by this Section
5shall be published in a community newspaper published in the
6school district in which the proposed charter is located and,
7if there is no such newspaper, then in a newspaper published in
8the county and having circulation in the school district. The
9notices shall be published not more than 10 days nor less than
105 days before the meeting and shall state that information
11regarding a charter school proposal will be heard at the
12meeting. Copies of the notice shall also be posted at
13appropriate locations in the school or attendance center
14proposed to be established as a charter school, the public
15schools in the school district, and the local school board
16office. If 45 days pass without the local school board holding
17a public meeting, then the charter applicant may submit the
18proposal to the Commission, where it must be addressed in
19accordance with the provisions set forth in subsection (g) of
20this Section.
21    (e) Within 30 days of the public meeting, the local school
22board shall vote, in a public meeting, to either grant or deny
23the charter school proposal. If the local school board has not
24voted in a public meeting within 30 days after the public
25meeting, then the charter applicant may submit the proposal to
26the Commission, where it must be addressed in accordance with

 

 

HB3754- 10 -LRB098 14418 NHT 49097 b

1the provisions set forth in subsection (g) of this Section.
2    (f) Within 7 days of the public meeting required under
3subsection (e) of this Section, the local school board shall
4file a report with the State Board granting or denying the
5proposal. If the local school board has approved the proposal,
6within 30 days of receipt of the local school board's report,
7the State Board shall determine whether the approved charter
8proposal is consistent with the provisions of this Article and,
9if the approved proposal complies, certify the proposal
10pursuant to Section 27A-6.
11    (g) (Blank). If the local school board votes to deny the
12proposal, then the charter school applicant has 30 days from
13the date of that vote to submit an appeal to the Commission. In
14such instances or in those instances referenced in subsections
15(d) and (e) of this Section, the Commission shall follow the
16same process and be subject to the same timelines for review as
17the local school board.
18    (h) (Blank). The Commission may reverse a local school
19board's decision to deny a charter school proposal if the
20Commission finds that the proposal (i) is in compliance with
21this Article and (ii) is in the best interests of the students
22the charter school is designed to serve. Final decisions of the
23Commission are subject to judicial review under the
24Administrative Review Law.
25    (i) (Blank). In the case of a charter school proposed to be
26jointly authorized by 2 or more school districts, the local

 

 

HB3754- 11 -LRB098 14418 NHT 49097 b

1school boards may unanimously deny the charter school proposal
2with a statement that the local school boards are not opposed
3to the charter school, but that they yield to the Commission in
4light of the complexities of joint administration.
5(Source: P.A. 96-105, eff. 7-30-09; 96-734, eff. 8-25-09;
696-1000, eff. 7-2-10; 97-152, eff. 7-20-11.)
 
7    (105 ILCS 5/27A-9)
8    Sec. 27A-9. Term of charter; renewal.
9    (a) A charter may be granted for a period not less than 5
10and not more than 10 school years. A charter may be renewed in
11incremental periods not to exceed 5 school years.
12    (b) A charter school renewal proposal submitted to the
13local school board or State Board the Commission, as the
14chartering entity, shall contain:
15        (1) A report on the progress of the charter school in
16    achieving the goals, objectives, pupil performance
17    standards, content standards, and other terms of the
18    initial approved charter proposal; and
19        (2) A financial statement that discloses the costs of
20    administration, instruction, and other spending categories
21    for the charter school that is understandable to the
22    general public and that will allow comparison of those
23    costs to other schools or other comparable organizations,
24    in a format required by the State Board.
25    (c) A charter may be revoked or not renewed if the local

 

 

HB3754- 12 -LRB098 14418 NHT 49097 b

1school board or State Board the Commission, as the chartering
2entity, clearly demonstrates that the charter school did any of
3the following, or otherwise failed to comply with the
4requirements of this law:
5        (1) Committed a material violation of any of the
6    conditions, standards, or procedures set forth in the
7    charter.
8        (2) Failed to meet or make reasonable progress toward
9    achievement of the content standards or pupil performance
10    standards identified in the charter.
11        (3) Failed to meet generally accepted standards of
12    fiscal management.
13        (4) Violated any provision of law from which the
14    charter school was not exempted.
15    In the case of revocation, the local school board or State
16Board the Commission, as the chartering entity, shall notify
17the charter school in writing of the reason why the charter is
18subject to revocation. The charter school shall submit a
19written plan to the local school board or State Board the
20Commission, whichever is applicable, to rectify the problem.
21The plan shall include a timeline for implementation, which
22shall not exceed 2 years or the date of the charter's
23expiration, whichever is earlier. If the local school board or
24State Board the Commission, as the chartering entity, finds
25that the charter school has failed to implement the plan of
26remediation and adhere to the timeline, then the chartering

 

 

HB3754- 13 -LRB098 14418 NHT 49097 b

1entity shall revoke the charter. Except in situations of an
2emergency where the health, safety, or education of the charter
3school's students is at risk, the revocation shall take place
4at the end of a school year. Nothing in this amendatory Act of
5the 96th General Assembly shall be construed to prohibit an
6implementation timetable that is less than 2 years in duration.
7    (d) (Blank).
8    (e) Notice of a local school board's decision to deny,
9revoke or not to renew a charter shall be provided to the
10Commission and the State Board. The State Board Commission may
11reverse a local board's decision if the State Board Commission
12finds that the charter school or charter school proposal (i) is
13in compliance with this Article, and (ii) is in the best
14interests of the students it is designed to serve. The State
15Board may condition the granting of an appeal on the acceptance
16by the charter school of funding in an amount less than that
17requested in the proposal submitted to the local school board.
18Final decisions of the State Board Commission shall be subject
19to judicial review under the Administrative Review Law.
20    (f) Notwithstanding other provisions of this Article, if
21the State Board Commission on appeal reverses a local board's
22decision or if a charter school is approved by referendum, the
23State Board Commission shall act as the authorized chartering
24entity for the charter school. The State Board Commission shall
25approve and certify the charter and shall perform all functions
26under this Article otherwise performed by the local school

 

 

HB3754- 14 -LRB098 14418 NHT 49097 b

1board. The State Board shall determine whether the charter
2proposal approved by the Commission is consistent with the
3provisions of this Article and, if the approved proposal
4complies, certify the proposal pursuant to this Article. The
5State Board shall report the aggregate number of charter school
6pupils resident in a school district to that district and shall
7notify the district of the amount of funding to be paid by the
8State Board Commission to the charter school enrolling such
9students. The State Board Commission shall require the charter
10school to maintain accurate records of daily attendance that
11shall be deemed sufficient to file claims under Section 18-8.05
12notwithstanding any other requirements of that Section
13regarding hours of instruction and teacher certification. The
14State Board shall withhold from funds otherwise due the
15district the funds authorized by this Article to be paid to the
16charter school and shall pay such amounts to the charter
17school.
18    (g) (Blank). For charter schools authorized by the
19Commission, the Commission shall quarterly certify to the State
20Board the student enrollment for each of its charter schools.
21    (h) (Blank). For charter schools authorized by the
22Commission, the State Board shall pay directly to a charter
23school any federal or State aid attributable to a student with
24a disability attending the school.
25(Source: P.A. 96-105, eff. 7-30-09; 97-152, eff. 7-20-11.)
 

 

 

HB3754- 15 -LRB098 14418 NHT 49097 b

1    (105 ILCS 5/27A-12)
2    Sec. 27A-12. Evaluation; report. The State Board shall
3compile annual evaluations of charter schools received from
4local school boards and shall prepare an annual report on
5charter schools.
6    On or before the second Wednesday of every even-numbered
7year, the State Board shall issue a report to the General
8Assembly and the Governor on its findings for the previous 2
9school years. On or before September 30 of every odd-numbered
10year, all local school boards with at least one charter school,
11as well as the Commission, shall submit to the State Board any
12information required by the State Board pursuant to applicable
13rule. On or before the second Wednesday in January of every
14even-numbered year, the State Board shall issue a report to the
15General Assembly and the Governor on its findings for the
16previous 2 school years. The State Board's report shall
17summarize all of the following:
18        (1) The authorizer's strategic vision for chartering
19    and progress toward achieving that vision.
20        (2) The academic and financial performance of all
21    operating charter schools overseen by the authorizer,
22    according to the performance expectations for charter
23    schools set forth in this Article.
24        (3) The status of the authorizer's charter school
25    portfolio, identifying all charter schools in each of the
26    following categories: approved (but not yet open),

 

 

HB3754- 16 -LRB098 14418 NHT 49097 b

1    operating, renewed, transferred, revoked, not renewed,
2    voluntarily closed, or never opened.
3        (4) The authorizing functions provided by the
4    authorizer to the charter schools under its purview,
5    including the authorizer's operating costs and expenses
6    detailed in annual audited financial statements, which
7    must conform with generally accepted accounting
8    principles.
9    In Further, in the report required by this Section, the
10State Board (i) shall compare the performance of charter school
11pupils with the performance of ethnically and economically
12comparable groups of pupils in other public schools who are
13enrolled in academically comparable courses, (ii) shall review
14information regarding the regulations and policies from which
15charter schools were released to determine if the exemptions
16assisted or impeded the charter schools in meeting their stated
17goals and objectives, and (iii) shall include suggested changes
18in State law necessary to strengthen charter schools.
19    In addition, the State Board shall undertake and report on
20periodic evaluations of charter schools that include
21evaluations of student academic achievement, the extent to
22which charter schools are accomplishing their missions and
23goals, the sufficiency of funding for charter schools, and the
24need for changes in the approval process for charter schools.
25    Based on the information that the State Board receives from
26authorizers and the State Board's ongoing monitoring of both

 

 

HB3754- 17 -LRB098 14418 NHT 49097 b

1charter schools and authorizers, the State Board has the power
2to remove the power to authorize from any authorizer in this
3State if the authorizer does not demonstrate a commitment to
4high-quality authorization practices and, if necessary, revoke
5the chronically low-performing charters authorized by the
6authorizer at the time of the removal. The State Board shall
7adopt rules as needed to carry out this power, including
8provisions to determine the status of schools authorized by an
9authorizer whose authorizing power is revoked.
10(Source: P.A. 96-105, eff. 7-30-09; 97-152, eff. 7-20-11.)
 
11    (30 ILCS 105/5.796 rep.)
12    Section 10. The State Finance Act is amended by repealing
13Section 5.796.
 
14    (105 ILCS 5/27A-7.5 rep.)
15    (105 ILCS 5/27A-7.10 rep.)
16    Section 15. The School Code is amended by repealing
17Sections 27A-7.5 and 27A-7.10.
 
18    Section 99. Effective date. This Act takes effect July 1,
192014.