SB3391*LRB10420151LNS37615a* EngrossedSen. LRB104 20151 LNS 33602 b AN ACT concerning education.

BeCelina itVillanueva enactedFiled: by the People of the State of Illinois, represented in the General Assembly:

Section5/13/2026 1.10400SB3391sam003 LRB104 20151 LNS 37615 a AMENDMENT TO SENATE BILL 3391 AMENDMENT NO.

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Amend Senate Bill 3391 by replacing everything after the enacting clause with the following:

"Section 1.

(3) Current law and administrative guidance address 10400SB3391sam003 -2- LRB104 20151 LNS 37615 a closure procedures but do not uniformly require a prefunded financial mechanism sufficient to cover transition costs, severance, and the return of publicly funded property.

(4) It is, therefore, necessary to require charter operators to maintain closure reserves, require return of public assets purchased with public funds, provide SB3391 Engrossed - 2 - LRB104 20151 LNS 33602 b remedies to recover costs incurred by authorizers and students' home districts, and impose penalties for mid-year abandonment that is negligent or in bad faith.

"Charter operator" means the entity that has entered into 10400SB3391sam003 -3- LRB104 20151 LNS 37615 a a charter agreement with an authorizer under this Article and is legally responsible for the operation of the charter school.

"Closure event" means any termination, revocation, SB3391 Engrossed - 3 - LRB104 20151 LNS 33602 b nonrenewal, or voluntary cessation of operations of a charter school resulting in the charter school's permanent cessation of instruction to enrolled pupils that occurs during the school year.

10400SB3391sam003 -4- LRB104 20151 LNS 37615 a (4) failure to maintain required closure security or other financial reserves required under this Article;

SB3391 Engrossed - 4 - LRB104 20151 LNS 33602 b "Financial intervention" means a temporary, limited assumption of financial oversight authority by an authorizer for the purpose of stabilizing a charter school and protecting students, employees, and public assets.

(1) to be neutral regarding the unionization of any of its employees, such that the charter 10400SB3391sam003 -5- LRB104 20151 LNS 37615 a school will not at any time express a position on the matter of whether its employees will be unionized and such that the charter school will not threaten, intimidate, discriminate against, retaliate against, or take any adverse action against any employees based on their decision to support or oppose union representation;

(2) to provide any bona fide labor organization access at reasonable times to areas in which the SB3391 Engrossed - 5 - LRB104 20151 LNS 33602 b charter school's employees work for the purpose of meeting with employees to discuss their right to representation, employment rights under the law, and terms and conditions of employment;

10400SB3391sam003 -6- LRB104 20151 LNS 37615 a (a) An initial charter shall be granted for a period of 5 school years.

A charter must meet all standards and goals for academic, organizational, and financial performance SB3391 Engrossed - 6 - LRB104 20151 LNS 33602 b set forth by the authorizer in order to be renewed for a term in excess of 5 years but not more than 10 years.

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 10400SB3391sam003 -7- LRB104 20151 LNS 37615 a 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, as the chartering entity, clearly demonstrates that the charter school did any of the following, or otherwise failed to comply with the requirements SB3391 Engrossed - 7 - LRB104 20151 LNS 33602 b of this law:

The plan 10400SB3391sam003 -8- LRB104 20151 LNS 37615 a shall include a timeline for implementation, which shall not exceed 2 years or the date of the charter's expiration, whichever is earlier.

Except in situations of an emergency where the SB3391 Engrossed - 8 - LRB104 20151 LNS 33602 b 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.

(e) Notice of a local school board's decision to deny, revoke, or not renew a charter shall be provided to the State 10400SB3391sam003 -9- LRB104 20151 LNS 37615 a Board.

The State Board may condition the granting of an appeal on the acceptance by the SB3391 Engrossed - 9 - LRB104 20151 LNS 33602 b charter school of funding in an amount less than that requested in the proposal submitted to the local school board.

The charter school shall maintain accurate records of daily attendance and student enrollment and shall enter data on the students served, their characteristics, their particular 10400SB3391sam003 -10- LRB104 20151 LNS 37615 a needs, the programs in which they participate, and their academic achievement into the statewide student information system established by the State Board.

SB3391 Engrossed - 10 - LRB104 20151 LNS 33602 b (1) The amount of the first quarterly payment shall be based on the projected number of students who will be enrolled in the charter school in the upcoming school year, multiplied by one-fourth of the resident district's per capita tuition amount.

Each 10400SB3391sam003 -11- LRB104 20151 LNS 37615 a charter school shall submit its January 1 enrollment by no later than January 5 of each year on a form provided by the State Board for this purpose.

(4) The amount of the fourth quarterly payment shall be calculated such that the aggregate amount of the third and fourth installments is equal to the number of students reported as enrolled at the charter school on March 1 in SB3391 Engrossed - 11 - LRB104 20151 LNS 33602 b the State Board's student information system, multiplied by one-half of the resident district's per capita tuition amount.

10400SB3391sam003 -12- LRB104 20151 LNS 37615 a After the initial agreement, the charter operator and the authorizer shall negotiate the terms of the charter renewal agreement within 90 days after the authorizer's passage of a renewal resolution consistent with applicable State law and district policy.

In no circumstance may the charter operator operate under an expired agreement at the start of a school year that begins more than 90 days after the authorizer's SB3391 Engrossed - 12 - LRB104 20151 LNS 33602 b passage of the renewal resolution.

or (3) a segregated reserve fund reflected on the charter 10400SB3391sam003 -13- LRB104 20151 LNS 37615 a school's audited financial statements and held in a manner acceptable to the authorizer.

(b) The closure security under subsection (a) for a SB3391 Engrossed - 13 - LRB104 20151 LNS 33602 b charter school in operation for at least one fiscal year must equal 3 months of the charter school's average operating expenditures based on its last audited fiscal year.

The closure security for such a charter operator must be established and funded to at least 50% of the required amount, based on the charter operator's projected budget, at the time the charter is granted or, for a charter granted before the effective date of this amendatory Act of the 104th General Assembly, within 30 days after the effective date of this amendatory Act of the 104th General Assembly and must reach the full required amount by the end of the charter's 10400SB3391sam003 -14- LRB104 20151 LNS 37615 a second full fiscal year.

SB3391 Engrossed - 14 - LRB104 20151 LNS 33602 b (2) any outstanding payroll for employees for time worked through the closure date, including legally required benefits, and severance if contractually required under the charter operator's collective bargaining agreements or employment contracts;

Closure security may not be used to pay any preexisting, unrelated debt of the charter operator that is not connected 10400SB3391sam003 -15- LRB104 20151 LNS 37615 a to the operating obligations to students, employees, or public property, except as permitted under this subsection.

(d) A charter operator must provide the authorizer and the SB3391 Engrossed - 15 - LRB104 20151 LNS 33602 b State Board written notice of the charter operator's intent to close a charter school no fewer than 90 days before the planned closure and must provide immediate notice upon any involuntary closure action, insolvency event, or cessation of operations.

If the closure security is insufficient to cover the costs 10400SB3391sam003 -16- LRB104 20151 LNS 37615 a of a closure event as set forth in subsection (c), the authorizer or the State Board may:

SB3391 Engrossed - 16 - LRB104 20151 LNS 33602 b In cases in which a closure results from gross negligence, willful misconduct, or intentional misappropriation of public funds by the charter operator or its officers or directors, the authorizer or State Board may seek recovery from individual officers, directors, or persons who knowingly caused the gross negligence, willful misconduct, or intentional misappropriation, including civil penalties not to exceed $50,000 per violation and reasonable attorney's fees.

(g) The State Board shall adopt rules to implement this Section within one year after the effective date of this amendatory Act of the 104th General Assembly, including acceptable forms of closure security, procedures for claims on 10400SB3391sam003 -17- LRB104 20151 LNS 37615 a closure security, and documentation standards for authorizers to approve closure security.

(a) If an authorizer determines that a charter school is SB3391 Engrossed - 17 - LRB104 20151 LNS 33602 b in financial distress, the authorizer may require the charter operator to submit a financial remediation plan for approval within 30 days after that determination.

(c) The authorizer may exercise authority, limited to 10400SB3391sam003 -18- LRB104 20151 LNS 37615 a financial matters, over the charter school, including:

SB3391 Engrossed - 18 - LRB104 20151 LNS 33602 b (4) protection, inventory, and preservation of public assets;