HB3754sam001 98TH GENERAL ASSEMBLY

Sen. Kimberly A. Lightford

Filed: 5/9/2014

09800HB3754sam001 LRB098 14418 NHT 59336 a

AMENDMENT TO HOUSE BILL 3754

AMENDMENT NO. ______. Amend House Bill 3754 by replacing everything after the enacting clause with the following:

"Section 5. The State Finance Act is amended by changing Section 5.796 as follows:

(30 ILCS 105/5.796)

Sec. 5.796. The State Board Charter Appeal and Charter Authorization Charter School Commission Fund.

(Source: P.A. 97-152, eff. 7-20-11; 97-813, eff. 7-13-12.)

Section 10. The School Code is amended by changing Sections 27A-3, 27A-5, 27A-7.5, 27A-7.10, 27A-8, 27A-9, and 27A-12 and by adding Sections 27A-9.5, 27A-9.10, and 27A-9.15 as follows:

(105 ILCS 5/27A-3)

Sec. 27A-3. Definitions. For purposes of this Article:

"At-risk pupil" means a pupil who, because of physical, emotional, socioeconomic, or cultural factors, is less likely to succeed in a conventional educational environment.

"Authorizer" means either:

(1) a local school board that authorizes a district charter school pursuant to Section 27A-8 of this Code; or

(2) the State Board acting pursuant to Section 27A-9.10 of this Code. an entity authorized under this Article to review applications, decide whether to approve or reject applications, enter into charter contracts with applicants, oversee charter schools, and decide whether to renew, not renew, or revoke a charter.

"Commission" means the State Charter School Commission established under Section 27A-7.5 of this Code.

"Local school board" means the duly elected or appointed school board or board of education of a public school district, including special charter districts and school districts located in cities having a population of more than 500,000, organized under the laws of this State.

"State Board" means the State Board of Education.

(Source: P.A. 97-152, eff. 7-20-11.)

(105 ILCS 5/27A-5)

Sec. 27A-5. Charter school; legal entity; requirements.

(a) A charter school shall be a public, nonsectarian, nonreligious, non-home based, and non-profit school. A charter school shall be organized and operated as a nonprofit corporation or other discrete, legal, nonprofit entity authorized under the laws of the State of Illinois.

(b) A charter school may be established under this Article by creating a new school or by converting an existing public school or attendance center to charter school status. Beginning on the effective date of this amendatory Act of the 93rd General Assembly, in all new applications submitted to the State Board or a local school board to establish a charter school in a city having a population exceeding 500,000, operation of the charter school shall be limited to one campus. The changes made to this Section by this amendatory Act of the 93rd General Assembly do not apply to charter schools existing or approved on or before the effective date of this amendatory Act.

(b-5) In this subsection (b-5), "virtual-schooling" means the teaching of courses through online methods with online instructors, rather than the instructor and student being at the same physical location. "Virtual-schooling" includes without limitation instruction provided by full-time, online virtual schools.

From April 1, 2013 through April 1, 2014, there is a moratorium on the establishment of charter schools with virtual-schooling components in school districts other than a school district organized under Article 34 of this Code. This moratorium does not apply to a charter school with virtual-schooling components existing or approved prior to April 1, 2013 or to the renewal of the charter of a charter school with virtual-schooling components already approved prior to April 1, 2013.

On or before March 1, 2014, the Commission shall submit to the General Assembly a report on the effect of virtual-schooling, including without limitation the effect on student performance, the costs associated with virtual-schooling, and issues with oversight. The report shall include policy recommendations for virtual-schooling.

(c) A charter school shall be administered and governed by its board of directors or other governing body in the manner provided in its charter. The governing body of a charter school shall be subject to the Freedom of Information Act and the Open Meetings Act.

(d) A charter school shall comply with all applicable health and safety requirements applicable to public schools under the laws of the State of Illinois.

(e) Except as otherwise provided in the School Code, a charter school shall not charge tuition; provided that a charter school may charge reasonable fees for textbooks, instructional materials, and student activities.

(f) A charter school shall be responsible for the management and operation of its fiscal affairs including, but not limited to, the preparation of its budget. An audit of each charter school's finances shall be conducted annually by an outside, independent contractor retained by the charter school. Annually, by December 1, every charter school must submit to the State Board a copy of its audit and a copy of the Form 990 the charter school filed that year with the federal Internal Revenue Service.

(g) A charter school shall comply with all provisions of this Article, the Illinois Educational Labor Relations Act, and its charter. A charter school is exempt from all other State laws and regulations in the School Code governing public schools and local school board policies, except the following:

(1) Sections 10-21.9 and 34-18.5 of the School Code regarding criminal history records checks and checks of the Statewide Sex Offender Database and Statewide Murderer and Violent Offender Against Youth Database of applicants for employment;

(2) Sections 24-24 and 34-84A of the School Code regarding discipline of students;

(3) The Local Governmental and Governmental Employees Tort Immunity Act;

(4) Section 108.75 of the General Not For Profit Corporation Act of 1986 regarding indemnification of officers, directors, employees, and agents;

(5) The Abused and Neglected Child Reporting Act;

(6) The Illinois School Student Records Act;

(7) Section 10-17a of the School Code regarding school report cards; and

(8) The P-20 Longitudinal Education Data System Act.

The change made by Public Act 96-104 to this subsection (g) is declaratory of existing law.

(h) A charter school may negotiate and contract with a school district, the governing body of a State college or university or public community college, or any other public or for-profit or nonprofit private entity for: (i) the use of a school building and grounds or any other real property or facilities that the charter school desires to use or convert for use as a charter school site, (ii) the operation and maintenance thereof, and (iii) the provision of any service, activity, or undertaking that the charter school is required to perform in order to carry out the terms of its charter. However, a charter school that is established on or after the effective date of this amendatory Act of the 93rd General Assembly and that operates in a city having a population exceeding 500,000 may not contract with a for-profit entity to manage or operate the school during the period that commences on the effective date of this amendatory Act of the 93rd General Assembly and concludes at the end of the 2004-2005 school year. Except as provided in subsection (i) of this Section, a school district may charge a charter school reasonable rent for the use of the district's buildings, grounds, and facilities. Any services for which a charter school contracts with a school district shall be provided by the district at cost. Any services for which a charter school contracts with a local school board or with the governing body of a State college or university or public community college shall be provided by the public entity at cost.

(i) In no event shall a charter school that is established by converting an existing school or attendance center to charter school status be required to pay rent for space that is deemed available, as negotiated and provided in the charter agreement, in school district facilities. However, all other costs for the operation and maintenance of school district facilities that are used by the charter school shall be subject to negotiation between the charter school and the local school board and shall be set forth in the charter.

(j) A charter school may limit student enrollment by age or grade level.

(k) Any charter school overseen by the State Board in accordance with Section 27A-9.10 of this Code shall be regarded as If the charter school is approved by the Commission, then the Commission charter school is its own local education agency.

(Source: P.A. 97-152, eff. 7-20-11; 97-154, eff. 1-1-12; 97-813, eff. 7-13-12; 98-16, eff. 5-24-13.)

(105 ILCS 5/27A-7.5)

Sec. 27A-7.5. State Charter School Commission abolished; transfer to the State Board.

(a) On the effective date of this amendatory Act of the 98th General Assembly, the A State Charter School Commission is abolished and the terms of all members end. On that date, all of the powers, duties, assets, liabilities, contracts, property, records, and pending business of the Commission are transferred to the State Board. For purposes of the Successor Agency Act and Section 9b of the State Finance Act, the State Board is declared to be the successor agency of the Commission. Beginning on the effective date of this amendatory Act of the 98th General Assembly, references in statutes, rules, forms, and other documents to the Commission shall, in appropriate contexts, be deemed to refer to the State Board. Standards and procedures of the Commission pertaining to the review of charter school applications, charter school contracting and oversight, and decisions on whether to renew, not renew, or revoke a charter that are in effect on the effective date of this amendatory Act of the 98th General Assembly shall be deemed standards and procedures of the State Board and shall remain in effect until amended or repealed by the State Board. established as an independent commission with statewide chartering jurisdiction and authority. The Commission shall be under the State Board for administrative purposes only.

(a-5) (Blank). The State Board shall provide administrative support to the Commission as needed.

(b) (Blank). The Commission is responsible for authorizing high-quality charter schools throughout this State, particularly schools designed to expand opportunities for at-risk students, consistent with the purposes of this Article.

(c) (Blank). The Commission shall consist of 9 members, appointed by the State Board. The State Board shall make these appointments from a slate of candidates proposed by the Governor, within 60 days after the effective date of this amendatory Act of the 97th General Assembly with respect to the initial Commission members. In making the appointments, the State Board shall ensure statewide geographic diversity among Commission members. The Governor shall propose a slate of candidates to the State Board within 60 days after the effective date of this amendatory Act of the 97th General Assembly and 60 days prior to the expiration of the term of a member thereafter. If the Governor fails to timely propose a slate of candidates according to the provisions of this subsection (c), then the State Board may appoint the member or members of the Commission.

(d) (Blank). Members appointed to the Commission shall collectively possess strong experience and expertise in public and nonprofit governance, management and finance, public school leadership, higher education, assessments, curriculum and instruction, and public education law. All members of the Commission shall have demonstrated understanding of and a commitment to public education, including without limitation charter schooling. At least 3 members must have past experience with urban charter schools.

(e) (Blank). To establish staggered terms of office, the initial term of office for 3 Commission members shall be 4 years and thereafter shall be 4 years; the initial term of office for another 3 members shall be 3 years and thereafter shall be 4 years; and the initial term of office for the remaining 3 members shall be 2 years and thereafter shall be 4 years. The initial appointments must be made no later than October 1, 2011.

(f) (Blank). Whenever a vacancy on the Commission exists, the State Board shall appoint a member for the remaining portion of the term.

(g) On the effective date of this amendatory Act of the 98th General Assembly, the Subject to the State Officials and Employees Ethics Act, the Commission is authorized to receive and expend gifts, grants, and donations of any kind from any public or private entity to carry out the purposes of this Article, subject to the terms and conditions under which they are given, provided that all such terms and conditions are permissible under law. Funds received under this subsection (g) must be deposited into the State Charter School Commission Fund. The State Charter School Commission Fund, is created as a special fund in the State treasury, is renamed the State Board Charter Appeal and Charter Authorization Fund. All money in the Fund shall thereafter be used, subject to appropriation, by the State Board, acting on behalf and with the consent of the Commission, for operational and administrative costs of the State Board incurred in carrying out the purposes of this Article Commission. Any gift, grant, or donation of any kind made by any public or private entity to the State Charter School Commission that remains unexpended in the State Charter School Commission Fund on the day before the effective date of this amendatory Act of the 98th General Assembly must be returned to the participating public or private entity in accordance with the terms of the gift, grant, or donation.

Any fees collected by the State Board, acting pursuant to Section 27A-9.15 of this Code, from charter schools or charter school applicants must be deposited into the State Board Charter Appeal and Charter Authorization Fund, to be used Subject to appropriation, any funds appropriated for use by the State Board, acting on behalf and with the consent of the Commission, may be used for the following purposes, without limitation: personal services, contractual services, and other operational and administrative costs. The State Board is further authorized to make expenditures with respect to any other amounts deposited in accordance with law into the State Charter School Commission Fund.

(g-5) (Blank). Funds or spending authority for the operation and administrative costs of the Commission shall be appropriated to the State Board in a separate line item. The State Superintendent of Education may not reduce or modify the budget of the Commission or use funds appropriated to the Commission without the approval of the Commission.

(h) (Blank). The Commission shall operate with dedicated resources and staff qualified to execute the day-to-day responsibilities of charter school authorizing in accordance with this Article. The Commission may employ and fix the compensation of such employees and technical assistants as it deems necessary to carry out its powers and duties under this Article, without regard to the requirements of any civil service or personnel statute; and may establish and administer standards of classification of all such persons with respect to their compensation, duties, performance, and tenure and enter into contracts of employment with such persons for such periods and on such terms as the Commission deems desirable.

(i) (Blank). Every 2 years, the Commission shall provide to the State Board and local school boards a report on best practices in charter school authorizing, including without limitation evaluating applications, oversight of charters, and renewal of charter schools.

(j) (Blank). The Commission may charge a charter school that it authorizes a fee, not to exceed 3% of the revenue provided to the school, to cover the cost of undertaking the ongoing administrative responsibilities of the eligible chartering authority with respect to the school. This fee must be deposited into the State Charter School Commission Fund.

(k) On the effective date of this amendatory Act of the 98th General Assembly, any Any charter school authorized by the State Charter School Commission State Board prior to this amendatory Act of the 98th 97th General Assembly shall have its authorization transferred to the Commission upon a vote of the State Board, which shall then become the school's authorizer for all purposes under this Article. However, in no case shall such transfer take place later than July 1, 2012. At this time, all of the powers, duties, assets, liabilities, contracts, property, records, and pending business of the State Charter School Commission State Board as the school's authorizer must be transferred to the State Board Commission. Any charter school authorized by a local school board or boards may seek transfer of authorization to the State Board Commission during its current term only with the approval of the local school board or boards. The charter school must submit a proposed agreement to the Charter School Appeal Board, where it must be addressed by that body in accordance with Section 27A-9.5 of this Code. At the end of its charter term, a charter school authorized by a local school board or boards must reapply to the board or boards before it may apply for authorization to the State Board Commission under the terms of this Article amendatory Act of the 97th General Assembly.

(k-5) On the effective date of this amendatory Act of the 98th 97th General Assembly, all rules of the State Board applicable to matters falling within the responsibility of the State Charter School Commission shall be applicable to the actions of the State Board Commission. The Commission shall thereafter have the authority to propose to the State Board modifications to all rules applicable to matters falling within the responsibility of the Commission. The State Board shall retain rulemaking authority for the Commission, but shall work jointly with the Commission on any proposed modifications. Upon recommendation of proposed rule modifications by the Commission and pursuant to the Illinois Administrative Procedure Act, the State Board shall consider such changes within the intent of this amendatory Act of the 97th General Assembly and grant any and all changes consistent with that intent.

(l) (Blank). The Commission shall have the responsibility to consider appeals under this Article immediately upon appointment of the initial members of the Commission under subsection (c) of this Section. Appeals pending at the time of initial appointment shall be determined by the Commission; the Commission may extend the time for review as necessary for thorough review, but in no case shall the extension exceed the time that would have been available had the appeal been submitted to the Commission on the date of appointment of its initial members. In any appeal filed with the Commission under this Article, both the applicant and the school district in which the charter school plans to locate shall have the right to request a hearing before the Commission. If more than one entity requests a hearing, then the Commission may hold only one hearing, wherein the applicant and the school district shall have an equal opportunity to present their respective positions.

(Source: P.A. 97-152, eff. 7-20-11; 97-641, eff. 12-19-11; 97-1156, eff. 1-25-13.)

(105 ILCS 5/27A-7.10)

Sec. 27A-7.10. Authorizer powers and duties; immunity; principles and standards.

(a) Authorizers are responsible for executing, in accordance with this Article, all of the following powers and duties:

(1) Evaluating all Soliciting and evaluating charter applications in accordance with all timelines, rules, and procedures set forth in this Article.

(2) Approving quality charter applications that meet identified educational needs and promote a diversity of educational choices.

(3) Declining to approve weak or inadequate charter applications.

(4) Negotiating and executing sound charter contracts with each approved charter school.

(5) Monitoring, in accordance with charter contract terms, the performance and legal compliance of charter schools.

(6) Determining whether each charter contract merits renewal, nonrenewal, or revocation.

(b) An authorizing entity may delegate its duties to officers, employees, and contractors. This includes delegation by the State Board of any of its duties related to charter school authorization work to the Charter School Appeal Board.

(c) Regulation by authorizers is limited to the powers and duties set forth in subsection (a) of this Section and must be consistent with the spirit and intent of this Article.

(d) An authorizing entity, members of the local school board, or the Charter School Appeal Board Commission, in their official capacity, and employees of an authorizer are immune from civil and criminal liability with respect to all activities related to a charter school that they authorize, except for willful or wanton misconduct.

(e) All The Commission and all local school boards that have a charter school operating are required to develop and maintain chartering policies and practices consistent with recognized principles and standards for quality charter authorizing in all major areas of authorizing responsibility, including all of the following:

(1) Organizational capacity and infrastructure.

(2) Soliciting and evaluating charter applications.

(3) Performance contracting.

(4) Ongoing charter school oversight and evaluation.

(5) Charter renewal decision-making.

Authorizers shall carry out all their duties under this Article in a manner consistent with nationally recognized principles and standards and with the spirit and intent of this Article.

(Source: P.A. 97-152, eff. 7-20-11.)

(105 ILCS 5/27A-8)

Sec. 27A-8. Evaluation of charter proposals.

(a) This Section does not apply to a charter school established by referendum under Section 27A-6.5. In evaluating any charter school proposal submitted to it, the local school board and the Charter School Appeal Board in accordance with Section 27A-9.5 of this Code Commission shall give preference to proposals that:

(1) demonstrate a high level of local pupil, parental, community, business, and school personnel support;

(2) set rigorous levels of expected pupil achievement and demonstrate feasible plans for attaining those levels of achievement; and

(3) are designed to enroll and serve a substantial proportion of at-risk children; provided that nothing in the Charter Schools Law shall be construed as intended to limit the establishment of charter schools to those that serve a substantial portion of at-risk children or to in any manner restrict, limit, or discourage the establishment of charter schools that enroll and serve other pupil populations under a nonexclusive, nondiscriminatory admissions policy.

(b) In the case of a proposal to establish a charter school by converting an existing public school or attendance center to charter school status, evidence that the proposed formation of the charter school has received majority support from certified teachers and from parents and guardians in the school or attendance center affected by the proposed charter, and, if applicable, from a local school council, shall be demonstrated by a petition in support of the charter school signed by certified teachers and a petition in support of the charter school signed by parents and guardians and, if applicable, by a vote of the local school council held at a public meeting. In the case of all other proposals to establish a charter school, evidence of sufficient support to fill the number of pupil seats set forth in the proposal may be demonstrated by a petition in support of the charter school signed by parents and guardians of students eligible to attend the charter school. In all cases, the individuals, organizations, or entities who initiate the proposal to establish a charter school may elect, in lieu of including any petition referred to in this subsection as a part of the proposal submitted to the local school board, to demonstrate that the charter school has received the support referred to in this subsection by other evidence and information presented at the public meeting that the local school board is required to convene under this Section.

(c) Within 45 days of receipt of a charter school proposal, the local school board shall convene a public meeting to obtain information to assist the board in its decision to grant or deny the charter school proposal. A local school board may develop its own process for receiving charter school proposals on an annual basis that follows the same timeframes as set forth in this Article. Only after the local school board process is followed may a charter school applicant appeal to the Charter School Appeal Board, in accordance with Section 27A-9.5 of this Code Commission.

(d) Notice of the public meeting required by this Section shall be published in a community newspaper published in the school district in which the proposed charter is located and, if there is no such newspaper, then in a newspaper published in the county and having circulation in the school district. The notices shall be published not more than 10 days nor less than 5 days before the meeting and shall state that information regarding a charter school proposal will be heard at the meeting. Copies of the notice shall also be posted at appropriate locations in the school or attendance center proposed to be established as a charter school, the public schools in the school district, and the local school board office. If 45 days pass without the local school board holding a public meeting, then the charter applicant may submit the proposal to the Charter School Appeal Board Commission, where it must be addressed by that body in accordance with Section 27A-9.5 of this Code in accordance with the provisions set forth in subsection (g) of this Section.

(e) Within 30 days of the public meeting, the local school board shall vote, in a public meeting, to either grant or deny the charter school proposal. If the local school board has not voted in a public meeting within 30 days after the public meeting, then the charter applicant may submit the proposal to the Charter School Appeal Board Commission, where it must be addressed by that body in accordance with Section 27A-9.5 of this Code in accordance with the provisions set forth in subsection (g) of this Section.

(f) Within 7 days of the public meeting required under subsection (e) of this Section, the local school board shall file a report with the State Board granting or denying the proposal. If the local school board has approved the proposal, within 30 days of receipt of the local school board's report, the State Board shall determine whether the approved charter proposal is consistent with the provisions of this Article and, if the approved proposal complies, certify the proposal pursuant to Section 27A-6.

(g) If the local school board votes to deny the proposal, then the charter school applicant has 30 days from the date of that vote to submit an appeal to the Charter School Appeal Board, where it must be addressed by that body in accordance with Section 27A-9.5 of this Code. Commission. In such instances or in those instances referenced in subsections (d) and (e) of this Section, the Commission shall follow the same process and be subject to the same timelines for review as the local school board.

(h) (Blank). The Commission may reverse a local school board's decision to deny a charter school proposal if the Commission finds that the proposal (i) is in compliance with this Article and (ii) is in the best interests of the students the charter school is designed to serve. Final decisions of the Commission are subject to judicial review under the Administrative Review Law.

(i) In the case of a charter school proposed to be jointly authorized by 2 or more school districts, the local school boards may unanimously deny the charter school proposal with a statement that the local school boards are not opposed to the charter school, but that they yield authorization authority to the State Board Commission in light of the complexities of joint administration. In such instances, the charter school must submit a proposed agreement to the Charter School Appeal Board, where it must be addressed by that body in accordance with Section 27A-9.5 of this Code.

(Source: P.A. 96-105, eff. 7-30-09; 96-734, eff. 8-25-09; 96-1000, eff. 7-2-10; 97-152, eff. 7-20-11.)

(105 ILCS 5/27A-9)

Sec. 27A-9. Term of charter; renewal.

(a) A charter may be granted for a period not less than 5 and not more than 10 school years. A charter may be renewed in incremental periods not to exceed 5 school years.

(b) A charter school renewal proposal submitted to the local school board or the State Board Commission, as the chartering entity, shall contain:

(1) A report on the progress of the charter school in achieving the goals, objectives, pupil performance standards, content standards, and other terms of the initial approved charter proposal; and

(2) A financial statement that discloses the costs of administration, instruction, and other spending categories for the charter school that is understandable to the general public and that will allow comparison of those costs to other schools or other comparable organizations, in a format required by the State Board.

(c) A charter may be revoked or not renewed if the local school board or the State Board Commission, as the chartering entity, clearly demonstrates that the charter school did any of the following, or otherwise failed to comply with the requirements of this law:

(1) Committed a material violation of any of the conditions, standards, or procedures set forth in the charter.

(2) Failed to meet or make reasonable progress toward achievement of the content standards or pupil performance standards identified in the charter.

(3) Failed to meet generally accepted standards of fiscal management.

(4) Violated any provision of law from which the charter school was not exempted.

In the case of revocation, the local school board or the State Board Commission, as the chartering entity, shall notify the charter school in writing of the reason why the charter is subject to revocation. The charter school shall submit a written plan to the local school board or the State Board Commission, whichever is applicable, to rectify the problem. The plan shall include a timeline for implementation, which shall not exceed 2 years or the date of the charter's expiration, whichever is earlier. If the local school board or the State Board Commission, as the chartering entity, finds that the charter school has failed to implement the plan of remediation and adhere to the timeline, then the chartering entity shall revoke the charter. Except in situations of an emergency where the health, safety, or education of the charter school's students is at risk, the revocation shall take place at the end of a school year. Nothing in this amendatory Act of the 96th General Assembly shall be construed to prohibit an implementation timetable that is less than 2 years in duration.

(d) (Blank).

(d-5) A decision by the local school board or the State Board, as the chartering entity, to renew, not renew, or revoke a charter must be made by vote in a public meeting.

(d-10) If, in accordance with this Section, the local school board votes to revoke or not renew a charter, the charter school has 30 days from the date of the decision to submit an appeal to the Charter School Appeal Board, where it must be addressed in accordance with Section 27A-9.5 of this Code.

(e) (Blank). Notice of a local school board's decision to deny, revoke or not to renew a charter shall be provided to the Commission and the State Board. The Commission may reverse a local board's decision if the Commission finds that the charter school or charter school proposal (i) is in compliance with this Article, and (ii) is in the best interests of the students it is designed to serve. The State Board may condition the granting of an appeal on the acceptance by the charter school of funding in an amount less than that requested in the proposal submitted to the local school board. Final decisions of the Commission shall be subject to judicial review under the Administrative Review Law.

(f) (Blank). Notwithstanding other provisions of this Article, if the Commission on appeal reverses a local board's decision or if a charter school is approved by referendum, the Commission shall act as the authorized chartering entity for the charter school. The Commission shall approve the charter and shall perform all functions under this Article otherwise performed by the local school board. The State Board shall determine whether the charter proposal approved by the Commission is consistent with the provisions of this Article and, if the approved proposal complies, certify the proposal pursuant to this Article. The State Board shall report the aggregate number of charter school pupils resident in a school district to that district and shall notify the district of the amount of funding to be paid by the Commission to the charter school enrolling such students. The Commission shall require the charter school to maintain accurate records of daily attendance that shall be deemed sufficient to file claims under Section 18-8.05 notwithstanding any other requirements of that Section regarding hours of instruction and teacher certification. The State Board shall withhold from funds otherwise due the district the funds authorized by this Article to be paid to the charter school and shall pay such amounts to the charter school.

(g) (Blank). For charter schools authorized by the Commission, the Commission shall quarterly certify to the State Board the student enrollment for each of its charter schools.

(h) (Blank). For charter schools authorized by the Commission, the State Board shall pay directly to a charter school any federal or State aid attributable to a student with a disability attending the school.

(Source: P.A. 96-105, eff. 7-30-09; 97-152, eff. 7-20-11.)

(105 ILCS 5/27A-9.5 new)

Sec. 27A-9.5. Charter School Appeal Board.

(a) To address charter school proposals that were not addressed by a local school board within the timelines established in Section 27A-8 of this Code and to address appeals of a local school board's decision to deny, revoke, or not renew a charter school, there is created a Charter School Appeal Board within the State Board. The Charter School Appeal Board shall be convened and staffed by the State Board. It shall consist of the State Superintendent of Education or a representative appointed by him or her, who shall serve as a non-voting, ex officio chairperson, and 9 additional members who are selected by the State Superintendent and are representative of the geographic, racial, ethnic, and cultural diversity of this State. The 9 members selected by the State Superintendent shall comprise the voting members of the Charter School Appeal Board.

All members of the Charter School Appeal Board must be selected within 60 days after the effective date of this amendatory Act of the 98th General Assembly. Members of the Charter School Appeal Board shall collectively possess, without limitation, strong experience and expertise in public and nonprofit governance, management, and finance, public school leadership, higher education, assessments, curriculum and instruction, and public education law. At least 3 members of the Charter School Appeal Board must have past experience with urban charter schools, at least one member of the Charter School Appeal Board must be experienced and knowledgeable relative to the provision of special education and related services for individuals with disabilities, and at least one member of the Charter School Appeal Board must be experienced and knowledgeable related to the provision of English Language Learning programs and services. All members of the Charter School Appeal Board must have a demonstrated understanding of and a commitment to public education, including without limitation charter schooling.

(b) The initial term of each voting member of the Charter School Appeal Board shall begin on the date that the member is selected and shall terminate 2 years after the effective date of this amendatory Act of the 98th General Assembly. Thereafter, the regular term for each voting member of the Charter School Appeal Board is 2 years. Open seats shall be filled as follows:

(1) The State Superintendent shall select a member to fill an expiring term of a voting member of the Charter School Appeal Board not less than 30 days before the expiration of that term.

(2) Whenever a vacancy occurs in the voting membership of the Charter School Appeal Board due to death, resignation, or otherwise, the State Superintendent shall select a new member to fill that vacancy for the remaining portion of the term. The State Superintendent shall make the selection within 30 days after the effective date of the vacancy.

(c) The State Superintendent shall select a secretary of the Charter School Appeal Board.

(d) The Charter School Appeal Board shall have the responsibility to consider appeals under this Article immediately upon constitution, including any appeals pending before the State Charter School Commission on the effective date of this amendatory Act of the 98th General Assembly, and shall meet at least quarterly and for such other special meetings as may be necessary to carry out its duties.

(e) Notice of a local school board's decision to deny, revoke, or not renew a charter shall be provided to the Charter School Appeal Board and the State Board. The Charter School Appeal Board may approve a charter school proposal that was not addressed by a local school board within the timelines established in Section 27A-8 of this Code or may reverse a local school board's decision to deny, revoke, or not renew a charter if the Charter School Appeal Board finds that the charter school or charter school proposal (i) is in compliance with this Article and (ii) is in the best interests of the students it is designed to serve. In determining whether the proposal is in compliance with this Article, the Charter School Appeal Board shall consider whether the proposal addresses all of the requirements of subsection (a) of Section 27A-7 of this Code, including whether the terms of the charter as proposed are economically sound for both the charter school and the school district. The Charter School Appeal Board may condition the granting of an appeal on the acceptance by the charter school of funding in an amount less than that requested in the proposal submitted to the local school board.

(f) The Charter School Appeal Board shall consider any appeal or request for consideration of a charter school proposal submitted in accordance with this Article at its next regularly scheduled meeting, provided that the next regularly scheduled meeting is no earlier than 45 days after receipt by the Charter School Appeal Board of the appeal or request for consideration. In all other cases, the Charter School Appeal Board shall consider the appeal or request for consideration at the regularly scheduled meeting that follows the next regularly scheduled meeting of the Charter School Appeal Board.

(g) The State Board shall have the power to reverse a decision of the Charter School Appeal Board within 90 days after the date of the vote of the Charter School Appeal Board. If the State Board does not act on a decision of the Charter School Appeal Board within 90 days after the date of the vote, the decision of the Charter School Appeal Board is considered final and is subject to judicial review under the Administrative Review Law. If the State Board overturns the decision of the Charter School Appeal Board within 90 days after the date of the vote, the decision of the State Board is considered final and is subject to judicial review under the Administrative Review Law.

(h) All records submitted to the Charter School Appeal Board or to the State Board for the purposes of its review of a charter school proposal and any written decision by the Charter School Appeal Board or by the State Board pertaining to a charter school proposal are considered public records under the Freedom of Information Act and must be posted on the Internet website maintained by the State Board.

(i) The necessary expenses of the Charter School Appeal Board shall be provided through the State Board. The State Board, in consultation with the Charter School Appeal Board, may adopt such rules as may be necessary for the administration of this Article.

(j) The State Board shall review the operations of the Charter School Appeal Board and the effect of its charter school authorization work on the public school system. Not later than January 1, 2017, the State Board shall issue a report to the General Assembly and the Governor on its findings for the 2 previous years. The State Board's report shall include findings with respect to all of the following, without limitation:

(1) The capacity of the Charter School Appeal Board to address charter school proposals and process charter school appeals in accordance with this Article.

(2) The capacity of the State Board to act as the authorized chartering entity for charter schools in accordance with this Article.

(3) The need for a State appropriation to support the work of the Charter School Appeal Board or the State Board in carrying out its duties and functions under this Article.

(4) Whether charter schools or charter school applicants were charged any fees by the State Board in accordance with Section 27A-9.15 of this Code.

(5) Suggested changes in State law necessary to strengthen charter school authorization at the State level.

(k) The State Board may adopt rules to implement this Section.

(105 ILCS 5/27A-9.10 new)

Sec. 27A-9.10. Charter schools authorized by the State Board.

(a) Notwithstanding other provisions of this Article, the State Board shall act as the authorized chartering entity for all charter schools:

(1) approved by referendum under Section 27A-6.5 of this Code;

(2) approved by the Charter School Appeal Board upon any appeal or request for consideration made in accordance with this Article;

(3) approved by the State Board upon reversal of any decision of the Charter School Appeal Board to deny a charter school proposal; and

(4) transferred to the State Board from the State Charter School Commission under Section 27A-7.5 of this Code. The State Board shall approve each such charter and shall perform all functions under this Article otherwise performed by the local school board.

The State Board shall report the aggregate number of charter school pupils resident in a school district to that district and shall notify the district of the amount of funding to be paid by the State Board to the charter school enrolling those students. The State Board shall require the charter school to maintain accurate records of daily attendance that are deemed sufficient to file claims under Section 18-8.05 of this Code, notwithstanding any other requirements of Section 18-8.05 of this Code regarding hours of instruction and teacher certification. The State Board shall withhold from funds otherwise due the district the funds authorized by this Article to be paid to the charter school and shall pay such amounts to the charter school.

(b) For charter schools overseen by the State Board in accordance with this Section, the State Board shall pay directly to a charter school any federal or State aid attributable to a student with a disability attending the charter school.

(105 ILCS 5/27A-9.15 new)

Sec. 27A-9.15. Annual appropriation; fees. The State Board shall annually request an appropriation from the General Revenue Fund to carry out the purposes of this Article. If the State Board does not receive an appropriation in any fiscal year in an amount sufficient to carry out the work of the Charter School Appeal Board and the work of the State Board as a charter school authorizer under this Article, the State Board is authorized to charge any charter school that it authorizes a fee not to exceed 3% of the revenue provided to the charter school and to charge a processing fee to any charter school applicant that submits a charter school appeal or request for consideration to the Charter School Appeal Board. Any fee received in accordance with this Section from a charter school or charter applicant must be deposited into the State Board Charter Appeal and Charter Authorization Fund, in accordance with Section 27A-7.5 of this Code.

(105 ILCS 5/27A-12)

Sec. 27A-12. Evaluation; report. On or before September 30 of every odd-numbered year, all local school boards with at least one charter school, as well as the Commission, shall submit to the State Board any information required by the State Board pursuant to applicable rule. On or before the second Wednesday in January of every even-numbered year, the State Board shall issue a report to the General Assembly and the Governor on its findings for the previous 2 school years. The State Board's report shall summarize all of the following:

(1) The authorizer's strategic vision for chartering and progress toward achieving that vision.

(2) The academic and financial performance of all operating charter schools overseen by the authorizer, according to the performance expectations for charter schools set forth in this Article.

(3) The status of the authorizer's charter school portfolio, identifying all charter schools in each of the following categories: approved (but not yet open), operating, renewed, transferred, revoked, not renewed, voluntarily closed, or never opened.

(4) The authorizing functions provided by the authorizer to the charter schools under its purview, including the authorizer's operating costs and expenses detailed in annual audited financial statements, which must conform with generally accepted accounting principles.

Further, in the report required by this Section, the State Board (i) shall compare the performance of charter school pupils with the performance of ethnically and economically comparable groups of pupils in other public schools who are enrolled in academically comparable courses, (ii) shall review information regarding the regulations and policies from which charter schools were released to determine if the exemptions assisted or impeded the charter schools in meeting their stated goals and objectives, and (iii) shall include suggested changes in State law necessary to strengthen charter schools.

In addition, the State Board shall undertake and report on periodic evaluations of charter schools that include evaluations of student academic achievement, the extent to which charter schools are accomplishing their missions and goals, the sufficiency of funding for charter schools, and the need for changes in the approval process for charter schools.

Based on the information that the State Board receives from authorizers and the State Board's ongoing monitoring of both charter schools and authorizers, the State Board has the power to remove the power to authorize from any authorizer in this State if the authorizer does not demonstrate a commitment to high-quality authorization practices and, if necessary, revoke the chronically low-performing charters authorized by the authorizer at the time of the removal. The State Board shall adopt rules as needed to carry out this power, including provisions to determine the status of schools authorized by an authorizer whose authorizing power is revoked.

(Source: P.A. 96-105, eff. 7-30-09; 97-152, eff. 7-20-11.)".