HB5997 100TH GENERAL ASSEMBLY

LRB100 24207 AXK 43423 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5997

Introduced , by Rep. Emanuel Chris Welch

SYNOPSIS AS INTRODUCED:

105 ILCS 5/27A-10.5
105 ILCS 5/27A-11.10 new

Amends the Charter Schools Law of the School Code. Provides that a charter school established on or after the effective date of the amendatory Act may not enter into a contract with a for-profit charter management organization or educational management organization. Sets forth provisions concerning property purchased with public funds. Provides that no chief executive officer of a charter school may receive compensation greater than 80% of the compensation of the superintendent of schools of the school district where the charter school is located. Provides that no charter school principal may receive compensation greater than 10% more than the average compensation for principals in the school district where the charter school is located. Provides that a charter school authorized under the Code must expend a minimum of 84% of the total revenues due from the authorizer on incurred expenses for instruction, instructional materials, operations and maintenance, transportation, and support services that may have been applicable prior to July 1, 2018, as identified by the State Board of Education. Provides that the remaining 16% of the total revenues may, subject to limitations, be expended by the charter school, at its discretion, on administrative or program support costs.

FISCAL NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The School Code is amended by changing Section 27A-10.5 and by adding Section 27A-11.10 as follows:

(105 ILCS 5/27A-10.5)

Sec. 27A-10.5. Educational or charter management organization.

(a) In this Section:

"CMO" means a charter management organization.

"EMO" means an educational management organization.

(b) All authorizers shall ensure that any charter school established on or after January 1, 2015 (the effective date of Public Act 98-783) this amendatory Act of the 98th General Assembly has a governing body that is separate and distinct from the governing body of any CMO or EMO. In reviewing charter applications and charter renewal applications, authorizers shall review the governance model proposed by the applicant to ensure that there are no conflicts of interest.

A charter school established on or after the effective date of this amendatory Act of the 100th General Assembly may not enter into a contract with a for-profit EMO or CMO.

(c) No charter school may employ a staff person who is simultaneously employed by an EMO or CMO.

(d) All charter school equipment, furnishings, and physical plants that are purchased with public funds are the property of the charter school, not the EMO or CMO. In the event a charter school is dissolved, such property must be transferred to the authorizer.

(Source: P.A. 98-783, eff. 1-1-15.)

(105 ILCS 5/27A-11.10 new)

Sec. 27A-11.10. Proper use of funds.

(a) No chief executive officer of a charter school may receive compensation greater than 80% of the compensation of the superintendent of schools of the school district where the charter school is located. No charter school principal may receive compensation greater than 10% more than the average compensation for principals in the school district where the charter school is located. A charter school shall include these prohibitions in any contract with an educational or charter management organization.

(b) A charter school authorized under this Code must expend a minimum of 84% of the total revenues due from the authorizer on incurred expenses for instruction, instructional materials, operations and maintenance, transportation, and support services that may have been applicable prior to July 1, 2018, as identified by the State Board of Education. Expenses under this subsection (b) shall exclude charter school central administration costs, any management fees charged by a charter management organization or educational management organization, debt service, or any advertising or other student recruitment materials. Subject to these exclusions, the remaining 16% of the total revenues may be expended by the charter school, at its discretion, on administrative or program support costs.