Illinois General Assembly - Full Text of SB1226
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Full Text of SB1226  101st General Assembly




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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 State Finance Act is amended by changing
5Section 5.796 as follows:
6    (30 ILCS 105/5.796)
7    Sec. 5.796. The State Charter School Commission Fund. This
8Section is repealed on July 31, 2020.
9(Source: P.A. 97-152, eff. 7-20-11; 97-813, eff. 7-13-12.)
10    Section 10. The School Code is amended by changing Sections
1127A-3, 27A-5, 27A-6.5, 27A-7.5, 27A-7.10, 27A-8, 27A-9,
1227A-10.10, 27A-11, 27A-11.5, and 27A-12 as follows:
13    (105 ILCS 5/27A-3)
14    Sec. 27A-3. Definitions. For purposes of this Article:
15    "At-risk pupil" means a pupil who, because of physical,
16emotional, socioeconomic, or cultural factors, is less likely
17to succeed in a conventional educational environment.
18    "Authorizer" means an entity authorized under this Article
19to review applications, decide whether to approve or reject
20applications, enter into charter contracts with applicants,
21oversee charter schools, and decide whether to renew, not



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1renew, or revoke a charter.
2    "Commission" means the State Charter School Commission
3established under Section 27A-7.5 of this Code.
4    "Local school board" means the duly elected or appointed
5school board or board of education of a public school district,
6including special charter districts and school districts
7located in cities having a population of more than 500,000,
8organized under the laws of this State.
9    "State Board" means the State Board of Education.
10(Source: P.A. 97-152, eff. 7-20-11.)
11    (105 ILCS 5/27A-5)
12    Sec. 27A-5. Charter school; legal entity; requirements.
13    (a) A charter school shall be a public, nonsectarian,
14nonreligious, non-home based, and non-profit school. A charter
15school shall be organized and operated as a nonprofit
16corporation or other discrete, legal, nonprofit entity
17authorized under the laws of the State of Illinois.
18    (b) A charter school may be established under this Article
19by creating a new school or by converting an existing public
20school or attendance center to charter school status. Beginning
21on April 16, 2003 (the effective date of Public Act 93-3), in
22all new applications to establish a charter school in a city
23having a population exceeding 500,000, operation of the charter
24school shall be limited to one campus. The changes made to this
25Section by Public Act 93-3 do not apply to charter schools



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1existing or approved on or before April 16, 2003 (the effective
2date of Public Act 93-3).
3    (b-5) In this subsection (b-5), "virtual-schooling" means
4a cyber school where students engage in online curriculum and
5instruction via the Internet and electronic communication with
6their teachers at remote locations and with students
7participating at different times.
8    From April 1, 2013 through December 31, 2016, there is a
9moratorium on the establishment of charter schools with
10virtual-schooling components in school districts other than a
11school district organized under Article 34 of this Code. This
12moratorium does not apply to a charter school with
13virtual-schooling components existing or approved prior to
14April 1, 2013 or to the renewal of the charter of a charter
15school with virtual-schooling components already approved
16prior to April 1, 2013.
17    On or before March 1, 2014, the Commission shall submit to
18the General Assembly a report on the effect of
19virtual-schooling, including without limitation the effect on
20student performance, the costs associated with
21virtual-schooling, and issues with oversight. The report shall
22include policy recommendations for virtual-schooling.
23    (c) A charter school shall be administered and governed by
24its board of directors or other governing body in the manner
25provided in its charter. The governing body of a charter school
26shall be subject to the Freedom of Information Act and the Open



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1Meetings Act.
2    (d) For purposes of this subsection (d), "non-curricular
3health and safety requirement" means any health and safety
4requirement created by statute or rule to provide, maintain,
5preserve, or safeguard safe or healthful conditions for
6students and school personnel or to eliminate, reduce, or
7prevent threats to the health and safety of students and school
8personnel. "Non-curricular health and safety requirement" does
9not include any course of study or specialized instructional
10requirement for which the State Board has established goals and
11learning standards or which is designed primarily to impart
12knowledge and skills for students to master and apply as an
13outcome of their education.
14    A charter school shall comply with all non-curricular
15health and safety requirements applicable to public schools
16under the laws of the State of Illinois. On or before September
171, 2015, the State Board shall promulgate and post on its
18Internet website a list of non-curricular health and safety
19requirements that a charter school must meet. The list shall be
20updated annually no later than September 1. Any charter
21contract between a charter school and its authorizer must
22contain a provision that requires the charter school to follow
23the list of all non-curricular health and safety requirements
24promulgated by the State Board and any non-curricular health
25and safety requirements added by the State Board to such list
26during the term of the charter. Nothing in this subsection (d)



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1precludes an authorizer from including non-curricular health
2and safety requirements in a charter school contract that are
3not contained in the list promulgated by the State Board,
4including non-curricular health and safety requirements of the
5authorizing local school board.
6    (e) Except as otherwise provided in the School Code, a
7charter school shall not charge tuition; provided that a
8charter school may charge reasonable fees for textbooks,
9instructional materials, and student activities.
10    (f) A charter school shall be responsible for the
11management and operation of its fiscal affairs including, but
12not limited to, the preparation of its budget. An audit of each
13charter school's finances shall be conducted annually by an
14outside, independent contractor retained by the charter
15school. To ensure financial accountability for the use of
16public funds, on or before December 1 of every year of
17operation, each charter school shall submit to its authorizer
18and the State Board a copy of its audit and a copy of the Form
19990 the charter school filed that year with the federal
20Internal Revenue Service. In addition, if deemed necessary for
21proper financial oversight of the charter school, an authorizer
22may require quarterly financial statements from each charter
24    (g) A charter school shall comply with all provisions of
25this Article, the Illinois Educational Labor Relations Act, all
26federal and State laws and rules applicable to public schools



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1that pertain to special education and the instruction of
2English learners, and its charter. A charter school is exempt
3from all other State laws and regulations in this Code
4governing public schools and local school board policies;
5however, a charter school is not exempt from the following:
6        (1) Sections 10-21.9 and 34-18.5 of this Code regarding
7    criminal history records checks and checks of the Statewide
8    Sex Offender Database and Statewide Murderer and Violent
9    Offender Against Youth Database of applicants for
10    employment;
11        (2) Sections 10-20.14, 10-22.6, 24-24, 34-19, and
12    34-84a of this Code regarding discipline of students;
13        (3) the Local Governmental and Governmental Employees
14    Tort Immunity Act;
15        (4) Section 108.75 of the General Not For Profit
16    Corporation Act of 1986 regarding indemnification of
17    officers, directors, employees, and agents;
18        (5) the Abused and Neglected Child Reporting Act;
19        (5.5) subsection (b) of Section 10-23.12 and
20    subsection (b) of Section 34-18.6 of this Code;
21        (6) the Illinois School Student Records Act;
22        (7) Section 10-17a of this Code regarding school report
23    cards;
24        (8) the P-20 Longitudinal Education Data System Act;
25        (9) Section 27-23.7 of this Code regarding bullying
26    prevention;



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1        (10) Section 2-3.162 of this Code regarding student
2    discipline reporting;
3        (11) Sections 22-80 and 27-8.1 of this Code;
4        (12) Sections 10-20.60 and 34-18.53 of this Code;
5        (13) Sections 10-20.63 and 34-18.56 of this Code; and
6        (14) Section 26-18 of this Code; and
7        (15) Section 22-30 of this Code.
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 April
2116, 2003 (the effective date of Public Act 93-3) and that
22operates in a city having a population exceeding 500,000 may
23not contract with a for-profit entity to manage or operate the
24school during the period that commences on April 16, 2003 (the
25effective date of Public Act 93-3) and concludes at the end of
26the 2004-2005 school year. Except as provided in subsection (i)



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1of this Section, a school district may charge a charter school
2reasonable rent for the use of the district's buildings,
3grounds, and facilities. Any services for which a charter
4school contracts with a school district shall be provided by
5the district at cost. Any services for which a charter school
6contracts with a local school board or with the governing body
7of a State college or university or public community college
8shall be provided by the public entity at cost.
9    (i) In no event shall a charter school that is established
10by converting an existing school or attendance center to
11charter school status be required to pay rent for space that is
12deemed available, as negotiated and provided in the charter
13agreement, in school district facilities. However, all other
14costs for the operation and maintenance of school district
15facilities that are used by the charter school shall be subject
16to negotiation between the charter school and the local school
17board and shall be set forth in the charter.
18    (j) A charter school may limit student enrollment by age or
19grade level.
20    (k) If the charter school is approved by the State Board
21Commission, then the State Board Commission charter school is
22its own local education agency.
23(Source: P.A. 99-30, eff. 7-10-15; 99-78, eff. 7-20-15; 99-245,
24eff. 8-3-15; 99-325, eff. 8-10-15; 99-456, eff. 9-15-16;
2599-642, eff. 7-28-16; 99-927, eff. 6-1-17; 100-29, eff. 1-1-18;
26100-156, eff. 1-1-18; 100-163, eff. 1-1-18; 100-413, eff.



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11-1-18; 100-468, eff. 6-1-18; 100-726, eff. 1-1-19; 100-863,
2eff. 8-14-18; revised 10-5-18.)
3    (105 ILCS 5/27A-6.5)
4    Sec. 27A-6.5. Charter school referendum.
5    (a) No charter shall go into effect under this Section that
6would convert any existing private, parochial, or non-public
7school to a charter school or whose proposal has not been
8certified by the State Board.
9    (b) A local school board shall, whenever petitioned to do
10so by 5% or more of the voters of a school district or
11districts identified in a charter school proposal, order
12submitted to the voters thereof at a regularly scheduled
13election the question of whether a new charter school shall be
14established, which proposal has been found by the State Board
15Commission to be in compliance with the provisions of this
16Article, and the secretary shall certify the proposition to the
17proper election authorities for submission in accordance with
18the general election law. The proposition shall be in
19substantially the following form:
20        "FOR the establishment of (name of proposed charter
21    school) under charter school proposal (charter school
22    proposal number).
23        AGAINST the establishment of (name of proposed charter
24    school) under charter school proposal (charter school
25    proposal number)".



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1    (c) Before circulating a petition to submit the question of
2whether to establish a charter school to the voters under
3subsection (b) of this Section, the governing body of a
4proposed charter school that desires to establish a new charter
5school by referendum shall submit the charter school proposal
6to the State Board Commission in the form of a proposed
7contract to be entered into between the State Board Commission
8and the governing body of the proposed charter school, together
9with written notice of the intent to have a new charter school
10established by referendum. The contract shall comply with the
11provisions of this Article.
12    If the State Board Commission finds that the proposed
13contract complies with the provisions of this Article, it shall
14immediately direct the local school board to notify the proper
15election authorities that the question of whether to establish
16a new charter school shall be submitted for referendum.
17    (d) If the State Board Commission finds that the proposal
18fails to comply with the provisions of this Article, it shall
19provide written explanation, detailing its reasons for
20refusal, to the local school board and to the individuals or
21organizations submitting the proposal. The State Board
22Commission shall also notify the local school board and the
23individuals or organizations submitting the proposal that the
24proposal may be amended and resubmitted under the same
25provisions required for an original submission.
26    (e) If a majority of the votes cast upon the proposition in



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1each school district designated in the charter school proposal
2is in favor of establishing a charter school, the local school
3board shall notify the State Board and the Commission of the
4passage of the proposition in favor of establishing a charter
5school and the State Board Commission shall approve the charter
6within 7 days after the State Board of Elections has certified
7that a majority of the votes cast upon the proposition is in
8favor of establishing a charter school. The State Board
9Commission shall be the chartering entity for charter schools
10established by referendum under this Section.
11    (f) (Blank). The State Board shall determine whether the
12charter proposal approved by the Commission is consistent with
13the provisions of this Article and, if the approved proposal
14complies, certify the proposal pursuant to this Article.
15(Source: P.A. 98-739, eff. 7-16-14.)
16    (105 ILCS 5/27A-7.5)
17    Sec. 27A-7.5. State Charter School Commission abolished;
18transfer to State Board.
19    (a) On July 1, 2020, the A State Charter School Commission
20is abolished and the terms of all members end. On that date,
21all of the powers, duties, assets, liabilities, contracts,
22property, records, and pending business of the Commission are
23transferred to the State Board. For purposes of the Successor
24Agency Act and Section 9b of the State Finance Act, the State
25Board is declared to be the successor agency of the Commission.



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1Beginning on July 1, 2020, references in statutes, rules,
2forms, and other documents to the Commission shall, in
3appropriate contexts, be deemed to refer to the State Board.
4Standards and procedures of the Commission in effect on July 1,
52020 shall be deemed standards and procedures of the State
6Board and shall remain in effect until amended or repealed by
7the State Board. established as an independent commission with
8statewide chartering jurisdiction and authority. The
9Commission shall be under the State Board for administrative
10purposes only.
11    (a-5) The State Board shall provide administrative support
12to the Commission as needed.
13    (b) The Commission is responsible for authorizing
14high-quality charter schools throughout this State,
15particularly schools designed to expand opportunities for
16at-risk students, consistent with the purposes of this Article.
17    (c) The Commission shall consist of 9 members, appointed by
18the State Board. The State Board shall make these appointments
19from a slate of candidates proposed by the Governor, within 60
20days after the effective date of this amendatory Act of the
2197th General Assembly with respect to the initial Commission
22members. In making the appointments, the State Board shall
23ensure statewide geographic diversity among Commission
24members. The Governor shall propose a slate of candidates to
25the State Board within 60 days after the effective date of this
26amendatory Act of the 97th General Assembly and 60 days prior



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1to the expiration of the term of a member thereafter. If the
2Governor fails to timely propose a slate of candidates
3according to the provisions of this subsection (c), then the
4State Board may appoint the member or members of the
6    (d) Members appointed to the Commission shall collectively
7possess strong experience and expertise in public and nonprofit
8governance, management and finance, public school leadership,
9higher education, assessments, curriculum and instruction, and
10public education law. All members of the Commission shall have
11demonstrated understanding of and a commitment to public
12education, including without limitation charter schooling. At
13least 3 members must have past experience with urban charter
15    (e) To establish staggered terms of office, the initial
16term of office for 3 Commission members shall be 4 years and
17thereafter shall be 4 years; the initial term of office for
18another 3 members shall be 3 years and thereafter shall be 4
19years; and the initial term of office for the remaining 3
20members shall be 2 years and thereafter shall be 4 years. The
21initial appointments must be made no later than October 1,
23    (f) Whenever a vacancy on the Commission exists, the State
24Board shall appoint a member for the remaining portion of the
26    (g) Subject to the State Officials and Employees Ethics



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1Act, the Commission is authorized to receive and expend gifts,
2grants, and donations of any kind from any public or private
3entity to carry out the purposes of this Article, subject to
4the terms and conditions under which they are given, provided
5that all such terms and conditions are permissible under law.
6Funds received under this subsection (g) must be deposited into
7the State Charter School Commission Fund.
8    (b) The State Charter School Commission Fund is created as
9a special fund in the State treasury. All money in the Fund
10shall be used, subject to appropriation, by the State Board,
11acting on behalf and with the consent of the Commission, for
12operational and administrative costs of the Commission. On July
131, 2020, the State Comptroller shall order transferred and the
14State Treasurer shall transfer all money in the State Charter
15School Commission Fund to the State Board of Education Special
16Purpose Trust Fund.
17    Subject to appropriation, any funds appropriated for use by
18the State Board, acting on behalf and with the consent of the
19Commission, may be used for the following purposes, without
20limitation: personal services, contractual services, and other
21operational and administrative costs. The State Board is
22further authorized to make expenditures with respect to any
23other amounts deposited in accordance with law into the State
24Charter School Commission Fund.
25    (g-5) Funds or spending authority for the operation and
26administrative costs of the Commission shall be appropriated to



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1the State Board in a separate line item. The State
2Superintendent of Education may not reduce or modify the budget
3of the Commission or use funds appropriated to the Commission
4without the approval of the Commission.
5    (h) The Commission shall operate with dedicated resources
6and staff qualified to execute the day-to-day responsibilities
7of charter school authorizing in accordance with this Article.
8The Commission may employ and fix the compensation of such
9employees and technical assistants as it deems necessary to
10carry out its powers and duties under this Article, without
11regard to the requirements of any civil service or personnel
12statute; and may establish and administer standards of
13classification of all such persons with respect to their
14compensation, duties, performance, and tenure and enter into
15contracts of employment with such persons for such periods and
16on such terms as the Commission deems desirable.
17    (i) Every 2 years, the Commission shall provide to the
18State Board and local school boards a report on best practices
19in charter school authorizing, including without limitation
20evaluating applications, oversight of charters, and renewal of
21charter schools.
22    (j) The Commission may charge a charter school that it
23authorizes a fee, not to exceed 3% of the revenue provided to
24the school, to cover the cost of undertaking the ongoing
25administrative responsibilities of the eligible chartering
26authority with respect to the school. This fee must be



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1deposited into the State Charter School Commission Fund.
2    (c) On July 1, 2020, any (k) Any charter school authorized
3by the State Charter School Commission State Board prior to
4July 1, 2020 this amendatory Act of the 97th General Assembly
5shall have its authorization transferred to the Commission upon
6a vote of the State Board, which shall then become the school's
7authorizer for all purposes under this Article. On July 1, 2020
8However, in no case shall such transfer take place later than
9July 1, 2012. At this time, all of the powers, duties, assets,
10liabilities, contracts, property, records, and pending
11business of the State Charter School Commission State Board as
12the school's authorizer must be transferred to the State Board
13Commission. Any charter school authorized by a local school
14board or boards may seek transfer of authorization to the
15Commission during its current term only with the approval of
16the local school board or boards. At the end of its charter
17term, a charter school may authorized by a local school board
18or boards must reapply to the board or boards for authorization
19before it may apply for authorization to the Commission under
20the terms of this amendatory Act of the 97th General Assembly.
21    (d) On July 1, 2020 the effective date of this amendatory
22Act of the 97th General Assembly, all rules of the State Board
23applicable to matters falling within the responsibility of the
24State Charter School Commission shall be applicable to the
25actions of the State Board Commission. The Commission shall
26thereafter have the authority to propose to the State Board



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1modifications to all rules applicable to matters falling within
2the responsibility of the Commission. The State Board shall
3retain rulemaking authority for the Commission, but shall work
4jointly with the Commission on any proposed modifications. Upon
5recommendation of proposed rule modifications by the
6Commission and pursuant to the Illinois Administrative
7Procedure Act, the State Board shall consider such changes
8within the intent of this amendatory Act of the 97th General
9Assembly and grant any and all changes consistent with that
11    (l) The Commission shall have the responsibility to
12consider appeals under this Article immediately upon
13appointment of the initial members of the Commission under
14subsection (c) of this Section. Appeals pending at the time of
15initial appointment shall be determined by the Commission; the
16Commission may extend the time for review as necessary for
17thorough review, but in no case shall the extension exceed the
18time that would have been available had the appeal been
19submitted to the Commission on the date of appointment of its
20initial members. In any appeal filed with the Commission under
21this Article, both the applicant and the school district in
22which the charter school plans to locate shall have the right
23to request a hearing before the Commission. If more than one
24entity requests a hearing, then the Commission may hold only
25one hearing, wherein the applicant and the school district
26shall have an equal opportunity to present their respective



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2(Source: P.A. 97-152, eff. 7-20-11; 97-641, eff. 12-19-11;
397-1156, eff. 1-25-13.)
4    (105 ILCS 5/27A-7.10)
5    Sec. 27A-7.10. Authorizer powers and duties; immunity;
6principles and standards.
7    (a) Authorizers are responsible for executing, in
8accordance with this Article, all of the following powers and
10        (1) Soliciting and evaluating charter applications.
11        (2) Approving quality charter applications that meet
12    identified educational needs and promote a diversity of
13    educational choices.
14        (3) Declining to approve weak or inadequate charter
15    applications.
16        (4) Negotiating and executing sound charter contracts
17    with each approved charter school.
18        (5) Monitoring, in accordance with charter contract
19    terms, the performance and legal compliance of charter
20    schools.
21        (6) Determining whether each charter contract merits
22    renewal, nonrenewal, or revocation.
23    (b) An authorizing entity may delegate its duties to
24officers, employees, and contractors.
25    (c) Regulation by authorizers is limited to the powers and



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1duties set forth in subsection (a) of this Section and must be
2consistent with the spirit and intent of this Article.
3    (d) An authorizing entity, members of the local school
4board, and or the State Board Commission, in their official
5capacity, and employees of an authorizer are immune from civil
6and criminal liability with respect to all activities related
7to a charter school that they authorize, except for willful or
8wanton misconduct.
9    (e) The State Board Commission and all local school boards
10that have a charter school operating are required to develop
11and maintain chartering policies and practices consistent with
12recognized principles and standards for quality charter
13authorizing in all major areas of authorizing responsibility,
14including all of the following:
15        (1) Organizational capacity and infrastructure.
16        (2) Soliciting and evaluating charter applications.
17        (3) Performance contracting.
18        (4) Ongoing charter school oversight and evaluation.
19        (5) Charter renewal decision-making.
20    Authorizers shall carry out all their duties under this
21Article in a manner consistent with nationally recognized
22principles and standards and with the spirit and intent of this
24(Source: P.A. 97-152, eff. 7-20-11.)
25    (105 ILCS 5/27A-8)



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1    Sec. 27A-8. Evaluation of charter proposals.
2    (a) This Section does not apply to a charter school
3established by referendum under Section 27A-6.5. In evaluating
4any charter school proposal submitted to it, the local school
5board and the Commission shall give preference to proposals
7        (1) demonstrate a high level of local pupil, parental,
8    community, business, and school personnel support;
9        (2) set rigorous levels of expected pupil achievement
10    and demonstrate feasible plans for attaining those levels
11    of achievement; and
12        (3) are designed to enroll and serve a substantial
13    proportion of at-risk children; provided that nothing in
14    the Charter Schools Law shall be construed as intended to
15    limit the establishment of charter schools to those that
16    serve a substantial portion of at-risk children or to in
17    any manner restrict, limit, or discourage the
18    establishment of charter schools that enroll and serve
19    other pupil populations under a nonexclusive,
20    nondiscriminatory admissions policy.
21    (b) In the case of a proposal to establish a charter school
22by converting an existing public school or attendance center to
23charter school status, evidence that the proposed formation of
24the charter school has received majority support from certified
25teachers and from parents and guardians in the school or
26attendance center affected by the proposed charter, and, if



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



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1are subject to judicial review under the Administrative Review
2Law. Only after the local school board process is followed may
3a charter school applicant appeal to the 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



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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



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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) For charters granted before January 1, 2017 (the
10effective date of Public Act 99-840), a charter may be granted
11for a period not less than 5 and not more than 10 school years.
12For charters granted on or after January 1, 2017 (the effective
13date of Public Act 99-840), a charter shall be granted for a
14period of 5 school years. For charters renewed before January
151, 2017 (the effective date of Public Act 99-840), a charter
16may be renewed in incremental periods not to exceed 5 school
17years. For charters renewed on or after January 1, 2017 (the
18effective date of Public Act 99-840), a charter may be renewed
19in incremental periods not to exceed 10 school years; however,
20the State Board Commission may renew a charter only in
21incremental periods not to exceed 5 years. Authorizers shall
22ensure that every charter granted on or after January 1, 2017
23(the effective date of Public Act 99-840) includes standards
24and goals for academic, organizational, and financial
25performance. A charter must meet all standards and goals for



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1academic, organizational, and financial performance set forth
2by the authorizer in order to be renewed for a term in excess
3of 5 years but not more than 10 years. If an authorizer fails
4to establish standards and goals, a charter shall not be
5renewed for a term in excess of 5 years. Nothing contained in
6this Section shall require an authorizer to grant a full
710-year renewal term to any particular charter school, but an
8authorizer may award a full 10-year renewal term to charter
9schools that have a demonstrated track record of improving
10student performance.
11    (b) A charter school renewal proposal submitted to the
12local school board or the State Board Commission, as the
13chartering entity, shall contain:
14        (1) A report on the progress of the charter school in
15    achieving the goals, objectives, pupil performance
16    standards, content standards, and other terms of the
17    initial approved charter proposal; and
18        (2) A financial statement that discloses the costs of
19    administration, instruction, and other spending categories
20    for the charter school that is understandable to the
21    general public and that will allow comparison of those
22    costs to other schools or other comparable organizations,
23    in a format required by the State Board.
24    (c) A charter may be revoked or not renewed if the local
25school board or the State Board Commission, as the chartering
26entity, clearly demonstrates that the charter school did any of



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



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1school's students is at risk, the revocation shall take place
2at the end of a school year. Nothing in Public Act 96-105 shall
3be construed to prohibit an implementation timetable that is
4less than 2 years in duration. No local school board may
5arbitrarily or capriciously revoke or not renew a charter.
6Except for extenuating circumstances outlined in this Section,
7if a local school board revokes or does not renew a charter, it
8must ensure that all students currently enrolled in the charter
9school are placed in schools that are higher performing than
10that charter school, as defined in the State's federal Every
11Student Succeeds Act accountability plan. In determining
12whether extenuating circumstances exist, a local school board
13must detail, by clear and convincing evidence, that factors
14unrelated to the charter school's accountability designation
15outweigh the charter school's academic performance.
16    (d) (Blank).
17    (e) Notice of a local school board's decision to deny,
18revoke, or not renew a charter shall be provided to the
19Commission and the State Board. The Commission may reverse a
20local board's decision if the Commission finds that the charter
21school or charter school proposal (i) is in compliance with
22this Article, and (ii) is in the best interests of the students
23it is designed to serve. The Commission may condition the
24granting of an appeal on the acceptance by the charter school
25of funding in an amount less than that requested in the
26proposal submitted to the local school board. Final decisions



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1of the Commission shall be subject to judicial review under the
2Administrative Review Law.
3    (f) Notwithstanding other provisions of this Article, if
4the Commission on appeal reverses a local board's decision or
5if a charter school is approved by referendum, the State Board
6Commission shall act as the authorized chartering entity for
7the charter school. The State Board Commission shall approve
8the charter and shall perform all functions under this Article
9otherwise performed by the local school board. The State Board
10shall determine whether the charter proposal approved by the
11Commission is consistent with the provisions of this Article
12and, if the approved proposal complies, certify the proposal
13pursuant to this Article. The State Board shall report the
14aggregate number of charter school pupils resident in a school
15district to that district and shall notify the district of the
16amount of funding to be paid by the State Board to the charter
17school enrolling such students. The State Board Commission
18shall require the charter school to maintain accurate records
19of daily attendance that shall be deemed sufficient to file
20claims under Section 18-8.05 or 18-8.15 notwithstanding any
21other requirements of that Section regarding hours of
22instruction and teacher certification. The State Board shall
23withhold from funds otherwise due the district the funds
24authorized by this Article to be paid to the charter school and
25shall pay such amounts to the charter school.
26    (g) (Blank). For charter schools authorized by the



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1Commission, the Commission shall quarterly certify to the State
2Board the student enrollment for each of its charter schools.
3    (h) For charter schools authorized by the State Board
4Commission, the State Board shall pay directly to a charter
5school any federal or State aid attributable to a student with
6a disability attending the school.
7(Source: P.A. 99-840, eff. 1-1-17; 100-201, eff. 8-18-17;
8100-465, eff. 8-31-17.)
9    (105 ILCS 5/27A-10.10)
10    Sec. 27A-10.10. Closure of charter school; unspent public
11funds; procedures for the disposition of property and assets.
12    (a) Upon the closing of a charter school authorized by one
13or more local school boards, the governing body of the charter
14school or its designee shall refund to the chartering entity or
15entities all unspent public funds. The charter school's other
16property and assets shall be disposed of under the provisions
17of the charter application and contract. If the application and
18contract are silent or ambiguous as to the disposition of any
19of the school's property or assets, any property or assets of
20the charter school purchased with public funds shall be
21returned to the school district or districts from which the
22charter school draws enrollment, at no cost to the receiving
23district or districts, subject to each district's acceptance of
24the property or asset. Any unspent public funds or other
25property or assets received by the charter school directly from



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1any State or federal agency shall be refunded to or revert back
2to that State or federal agency, respectively.
3    (b) Upon the closing of a charter school authorized by the
4State Board Commission, the governing body of the charter
5school or its designee shall refund all unspent public funds to
6the State Board of Education. The charter school's other
7property and assets shall be disposed of under the provisions
8of the charter application and contract. If the application and
9contract are silent or ambiguous as to the disposition of any
10of the school's property or assets, any property or assets of
11the charter school purchased with public funds shall be
12returned to the school district or districts from which the
13charter school draws its enrollment, at no cost to the
14receiving district or districts, subject to each district's
15acceptance of the property or asset. Any unspent public funds
16or other property or assets provided by a State agency other
17than the State Board of Education or by a federal agency shall
18be refunded to or revert back to that State or federal agency,
20    (c) If a determination is made to close a charter school
21located within the boundaries of a school district organized
22under Article 34 of this Code for at least one school year, the
23charter school shall give at least 60 days' notice of the
24closure to all affected students and parents or legal
26(Source: P.A. 100-179, eff. 8-18-17.)



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1    (105 ILCS 5/27A-11)
2    Sec. 27A-11. Local financing.
3    (a) For purposes of this the School Code, pupils enrolled
4in a charter school shall be included in the pupil enrollment
5of the school district within which the pupil resides. Each
6charter school (i) shall determine the school district in which
7each pupil who is enrolled in the charter school resides, (ii)
8shall report the aggregate number of pupils resident of a
9school district who are enrolled in the charter school to the
10school district in which those pupils reside, and (iii) shall
11maintain accurate records of daily attendance that shall be
12deemed sufficient to file claims under Section 18-8 or 18-8.15
13notwithstanding any other requirements of that Section
14regarding hours of instruction and teacher certification.
15    (b) Except for a charter school established by referendum
16under Section 27A-6.5, as part of a charter school contract,
17the charter school and the local school board shall agree on
18funding and any services to be provided by the school district
19to the charter school. Agreed funding that a charter school is
20to receive from the local school board for a school year shall
21be paid in equal quarterly installments with the payment of the
22installment for the first quarter being made not later than
23July 1, unless the charter establishes a different payment
24schedule. However, if a charter school dismisses a pupil from
25the charter school after receiving a quarterly payment, the



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1charter school shall return to the school district, on a
2quarterly basis, the prorated portion of public funding
3provided for the education of that pupil for the time the
4student is not enrolled at the charter school. Likewise, if a
5pupil transfers to a charter school between quarterly payments,
6the school district shall provide, on a quarterly basis, a
7prorated portion of the public funding to the charter school to
8provide for the education of that pupil.
9    All services centrally or otherwise provided by the school
10district including, but not limited to, rent, food services,
11custodial services, maintenance, curriculum, media services,
12libraries, transportation, and warehousing shall be subject to
13negotiation between a charter school and the local school board
14and paid for out of the revenues negotiated pursuant to this
15subsection (b); provided that the local school board shall not
16attempt, by negotiation or otherwise, to obligate a charter
17school to provide pupil transportation for pupils for whom a
18district is not required to provide transportation under the
19criteria set forth in subsection (a)(13) of Section 27A-7.
20    In no event shall the funding be less than 97% or more than
21103% of the school district's per capita student tuition
22multiplied by the number of students residing in the district
23who are enrolled in the charter school.
24    It is the intent of the General Assembly that funding and
25service agreements under this subsection (b) shall be neither a
26financial incentive nor a financial disincentive to the



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1establishment of a charter school.
2    The charter school may set and collect reasonable fees.
3Fees collected from students enrolled at a charter school shall
4be retained by the charter school.
5    (c) Notwithstanding subsection (b) of this Section, the
6proportionate share of State and federal resources generated by
7students with disabilities or staff serving them shall be
8directed to charter schools enrolling those students by their
9school districts or administrative units. The proportionate
10share of moneys generated under other federal or State
11categorical aid programs shall be directed to charter schools
12serving students eligible for that aid.
13    (d) The governing body of a charter school is authorized to
14accept gifts, donations, or grants of any kind made to the
15charter school and to expend or use gifts, donations, or grants
16in accordance with the conditions prescribed by the donor;
17however, a gift, donation, or grant may not be accepted by the
18governing body if it is subject to any condition contrary to
19applicable law or contrary to the terms of the contract between
20the charter school and the local school board. Charter schools
21shall be encouraged to solicit and utilize community volunteer
22speakers and other instructional resources when providing
23instruction on the Holocaust and other historical events.
24    (e) (Blank).
25    (f) The State Board Commission shall provide technical
26assistance to persons and groups preparing or revising charter



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2    (g) At the non-renewal or revocation of its charter, each
3charter school shall refund to the local board of education all
4unspent funds.
5    (h) A charter school is authorized to incur temporary,
6short term debt to pay operating expenses in anticipation of
7receipt of funds from the local school board.
8(Source: P.A. 99-78, eff. 7-20-15; 100-465, eff. 8-31-17.)
9    (105 ILCS 5/27A-11.5)
10    Sec. 27A-11.5. State financing. The State Board of
11Education shall make the following funds available to school
12districts and charter schools:
13        (1) From a separate appropriation made to the State
14    Board for purposes of this subdivision (1), the State Board
15    shall make transition impact aid available to school
16    districts that approve a new charter school or that have
17    funds withheld by the State Board to fund a new charter
18    school that is chartered by the State Board Commission. The
19    amount of the aid shall equal 90% of the per capita funding
20    paid to the charter school during the first year of its
21    initial charter term, 65% of the per capita funding paid to
22    the charter school during the second year of its initial
23    term, and 35% of the per capita funding paid to the charter
24    school during the third year of its initial term. This
25    transition impact aid shall be paid to the local school



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1    board in equal quarterly installments, with the payment of
2    the installment for the first quarter being made by August
3    1st immediately preceding the first, second, and third
4    years of the initial term. The district shall file an
5    application for this aid with the State Board in a format
6    designated by the State Board. If the appropriation is
7    insufficient in any year to pay all approved claims, the
8    impact aid shall be prorated. However, for fiscal year
9    2004, the State Board of Education shall pay approved
10    claims only for charter schools with a valid charter
11    granted prior to June 1, 2003. If any funds remain after
12    these claims have been paid, then the State Board of
13    Education may pay all other approved claims on a pro rata
14    basis. Transition impact aid shall be paid beginning in the
15    1999-2000 school year for charter schools that are in the
16    first, second, or third year of their initial term.
17    Transition impact aid shall not be paid for any charter
18    school that is proposed and created by one or more boards
19    of education, as authorized under the provisions of Public
20    Act 91-405.
21        (2) From a separate appropriation made for the purpose
22    of this subdivision (2), the State Board shall make grants
23    to charter schools to pay their start-up costs of acquiring
24    educational materials and supplies, textbooks, electronic
25    textbooks and the technological equipment necessary to
26    gain access to and use electronic textbooks, furniture, and



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1    other equipment or materials needed during their initial
2    term. The State Board shall annually establish the time and
3    manner of application for these grants, which shall not
4    exceed $250 per student enrolled in the charter school.
5        (3) The Charter Schools Revolving Loan Fund is created
6    as a special fund in the State treasury. Federal funds,
7    such other funds as may be made available for costs
8    associated with the establishment of charter schools in
9    Illinois, and amounts repaid by charter schools that have
10    received a loan from the Charter Schools Revolving Loan
11    Fund shall be deposited into the Charter Schools Revolving
12    Loan Fund, and the moneys in the Charter Schools Revolving
13    Loan Fund shall be appropriated to the State Board and used
14    to provide interest-free loans to charter schools. These
15    funds shall be used to pay start-up costs of acquiring
16    educational materials and supplies, textbooks, electronic
17    textbooks and the technological equipment necessary to
18    gain access to and use electronic textbooks, furniture, and
19    other equipment or materials needed in the initial term of
20    the charter school and for acquiring and remodeling a
21    suitable physical plant, within the initial term of the
22    charter school. Loans shall be limited to one loan per
23    charter school and shall not exceed $750 per student
24    enrolled in the charter school. A loan shall be repaid by
25    the end of the initial term of the charter school. The
26    State Board may deduct amounts necessary to repay the loan



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1    from funds due to the charter school or may require that
2    the local school board that authorized the charter school
3    deduct such amounts from funds due the charter school and
4    remit these amounts to the State Board, provided that the
5    local school board shall not be responsible for repayment
6    of the loan. The State Board may use up to 3% of the
7    appropriation to contract with a non-profit entity to
8    administer the loan program.
9        (4) A charter school may apply for and receive, subject
10    to the same restrictions applicable to school districts,
11    any grant administered by the State Board that is available
12    for school districts.
13(Source: P.A. 98-739, eff. 7-16-14; 99-840, eff. 1-1-17.)
14    (105 ILCS 5/27A-12)
15    Sec. 27A-12. Evaluation; report. On or before September 30
16of every odd-numbered year, all local school boards with at
17least one charter school, as well as the Commission, shall
18submit to the State Board any information required by the State
19Board pursuant to applicable rule. On or before the second
20Wednesday in January of every even-numbered year, the State
21Board shall issue a report to the General Assembly and the
22Governor on its findings for the previous 2 school years. The
23State Board's report shall summarize all of the following:
24        (1) The authorizer's strategic vision for chartering
25    and progress toward achieving that vision.



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1        (2) The academic and financial performance of all
2    operating charter schools overseen by the authorizer,
3    according to the performance expectations for charter
4    schools set forth in this Article.
5        (3) The status of the authorizer's charter school
6    portfolio, identifying all charter schools in each of the
7    following categories: approved (but not yet open),
8    operating, renewed, transferred, revoked, not renewed,
9    voluntarily closed, or never opened.
10        (4) The authorizing functions provided by the
11    authorizer to the charter schools under its purview,
12    including the authorizer's operating costs and expenses
13    detailed in annual audited financial statements, which
14    must conform with generally accepted accounting
15    principles.
16    Further, in the report required by this Section, the State
17Board (i) shall compare the performance of charter school
18pupils with the performance of ethnically and economically
19comparable groups of pupils in other public schools who are
20enrolled in academically comparable courses, (ii) shall review
21information regarding the regulations and policies from which
22charter schools were released to determine if the exemptions
23assisted or impeded the charter schools in meeting their stated
24goals and objectives, and (iii) shall include suggested changes
25in State law necessary to strengthen charter schools.
26    In addition, the State Board shall undertake and report on



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1periodic evaluations of charter schools that include
2evaluations of student academic achievement, the extent to
3which charter schools are accomplishing their missions and
4goals, the sufficiency of funding for charter schools, and the
5need for changes in the approval process for charter schools.
6    Based on the information that the State Board receives from
7authorizers and the State Board's ongoing monitoring of both
8charter schools and authorizers, the State Board has the power
9to remove the power to authorize from any authorizer in this
10State if the authorizer does not demonstrate a commitment to
11high-quality authorization practices and, if necessary, revoke
12the chronically low-performing charters authorized by the
13authorizer at the time of the removal. The State Board shall
14adopt rules as needed to carry out this power, including
15provisions to determine the status of schools authorized by an
16authorizer whose authorizing power is revoked.
17(Source: P.A. 96-105, eff. 7-30-09; 97-152, eff. 7-20-11.)