HB 3754 — SCH CD-ST CHARTER SCH COMM

State Charter School Commission abolished;

transfer to State Board;

appeals.

(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 in effect on the effective date of this amendatory Act of the 98th General Assembly shall be HB3754 Engrossed - 8 - LRB098 14418 NHT 49097 b deemed standards and procedures of the State Board and shall remain in effect until amended or repealed by the State Board.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) The State Board shall provide administrative support to the Commission as needed.

(b) 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) 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.

HB3754 Engrossed - 9 - LRB098 14418 NHT 49097 b (d) 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) 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) Whenever a vacancy on the Commission exists, the State Board shall appoint a member for the remaining portion of the term.

(g) 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.

HB3754 Engrossed - 10 - LRB098 14418 NHT 49097 b Funds received under this subsection (g) must be deposited into the State Charter School Commission Fund.

(b) The State Charter School Commission Fund is created as a special fund in the State treasury.

All money in the Fund shall 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 Commission.

On July 1, 2014, the State Comptroller shall order transferred and the State Treasurer shall transfer all money in the State Charter School Commission Fund to the State Board of Education Special Purpose Trust Fund.

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) 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) The Commission shall operate with dedicated resources HB3754 Engrossed - 11 - LRB098 14418 NHT 49097 b 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) 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) 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.

(c) On the effective date of this amendatory Act of the 98th General Assembly, any (k) Any charter school authorized by the Commission State Board prior to this amendatory Act of the 98th 97th General Assembly shall have its authorization HB3754 Engrossed - 12 - LRB098 14418 NHT 49097 b 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 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.

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.

(d) 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 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 HB3754 Engrossed - 13 - LRB098 14418 NHT 49097 b 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.

(e) Beginning on the effective date of this amendatory Act of the 98th General Assembly, the State Board (l) 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 on the effective date of this amendatory Act of the 98th General Assembly at the time of initial appointment shall be determined by the State Board Commission;

the State Board 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 State Board Commission on the effective date of this amendatory Act of the 98th General Assembly appointment of its initial members.

In any appeal filed with the State Board 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 State Board Commission.

If more than one entity requests a hearing, then the State Board Commission may hold only one hearing, wherein the applicant and the school district shall have an equal opportunity to present their respective positions.

HB3754 Engrossed - 14 - LRB098 14418 NHT 49097 b (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) Soliciting and evaluating charter applications.

(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.

(c) Regulation by authorizers is limited to the powers and duties set forth in subsection (a) of this Section and must be HB3754 Engrossed - 15 - LRB098 14418 NHT 49097 b consistent with the spirit and intent of this Article.

(d) An authorizing entity, members of the local school board, or the State 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) The State Board 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.

HB3754 Engrossed - 16 - LRB098 14418 NHT 49097 b (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 or and the State Board Commission shall give preference to proposals that:

(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 HB3754 - 8 - LRB098 14418 NHT 49097 b attendance center affected by the proposed charter, and, if applicable, from a local school council, shall be demonstrated HB3754 Engrossed - 17 - LRB098 14418 NHT 49097 b 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.

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 HB3754 - 9 - LRB098 14418 NHT 49097 b forth in this Article.

Only after the local school board process is followed may a charter school applicant appeal to HB3754 Engrossed - 18 - LRB098 14418 NHT 49097 b the State Board Commission.

If 45 days pass without the local school board holding a public meeting, then the charter applicant may submit the proposal to the State Board Commission, where it must be addressed in accordance with the provisions set forth in subsection (g) of this Section.

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 State Board Commission, where it must be addressed in accordance with HB3754 - 10 - LRB098 14418 NHT 49097 b the provisions set forth in subsection (g) of this Section.

HB3754 Engrossed - 19 - LRB098 14418 NHT 49097 b (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.

(g) (Blank).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 State Board Commission.

IfIn thesuch localinstances schoolor boardin votesthose toinstances denyreferenced thein proposal,subsections then(d) theand charter(e) schoolof applicantthis hasSection, 30the daysState fromBoard Commission shall follow the datesame ofprocess thatand votebe subject to submitthe ansame appealtimelines tofor review as the Commission.local school board.

In(h) suchThe instancesState orBoard inCommission thosemay instancesreverse referenceda inlocal subsectionsschool (d)board's anddecision (e)to ofdeny thisa Section,charter school proposal if the State Board Commission shallfinds followthat the sameproposal process(i) is in compliance with this Article and be(ii) subjectis toin the samebest timelinesinterests forof reviewthe asstudents the localcharter school board.is designed to serve.

(h)Final (Blank).decisions of the State Board Commission are subject to judicial review under the Administrative Review Law.

The(i) CommissionIn maythe reversecase of a localcharter school board'sproposed decision to denybe ajointly charterauthorized schoolby proposal2 ifor more school districts, the Commissionlocal findsschool thatboards may unanimously deny the charter school proposal (i)with isa inHB3754 complianceEngrossed with- this20 Article- andLRB098 (ii)14418 isNHT in49097 b statement that the bestlocal interestsschool ofboards theare studentsnot opposed to the charter schoolschool, isbut designedthat they yield to serve.the State Board Commission in light of the complexities of joint administration.

Final decisions of the Commission are subject to judicial review under the Administrative Review Law.

(i) (Blank).

In the case of a charter school proposed to be jointly authorized by 2 or more school districts, the local HB3754 - 11 - LRB098 14418 NHT 49097 b 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 to the Commission in light of the complexities of joint administration.

(c) A charter may be revoked or not renewed if the local HB3754 Engrossed - 1221 - LRB098 14418 NHT 49097 b school board or State Board the 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:

If the local school board or State Board the 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 HB3754 Engrossed - 1322 - LRB098 14418 NHT 49097 b entity shall revoke the charter.

The State Board Commission shall approve and certify the charter and shall perform all functions under this Article otherwise performed by the local school HB3754 Engrossed - 1423 - LRB098 14418 NHT 49097 b board.

(h) (Blank).For charter schools authorized by the State Board 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.

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.

7-20-11.) HB3754 Engrossed - 1524 - LRB098 14418 NHT 49097 b (105 ILCS 5/27A-12) Sec.

The State Board shall compile annual evaluations of charter schools received from local school boards and shall prepare an annual report on charter schools.

On or before the second Wednesday 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.

approved (but not yet open), HB3754 - 16 - LRB098 14418 NHT 49097 b 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 HB3754 Engrossed - 25 - LRB098 14418 NHT 49097 b principles.

In 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.

Based on the information that the State Board receives from authorizers and the State Board's ongoing monitoring of both HB3754 - 17 - LRB098 14418 NHT 49097 b 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 HB3754 Engrossed - 26 - LRB098 14418 NHT 49097 b provisions to determine the status of schools authorized by an authorizer whose authorizing power is revoked.

7-20-11.) (30 ILCS 105/5.796 rep.) Section 10.99.

The State Finance Act is amended by repealing Section 5.796.

(105 ILCS 5/27A-7.5 rep.) (105 ILCS 5/27A-7.10 rep.) Section 15.

The School Code is amended by repealing Sections 27A-7.5 and 27A-7.10.

Section 99.