Illinois SB 3391: SCH CD-CHARTER SCHOOL-CLOSURE

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 Full Text of SB3391

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SB3391 EngrossedLRB104 20151 LNS 33602 b

1 AN ACT concerning education.

2 Be it enacted by the People of the State of Illinois, 

3represented in the General Assembly:

4 Section 1. This Act may be referred to as the Charter 

5School Closure Financial Accountability Law.

6 Section 5. Findings. The General Assembly finds and 

7declares all of the following: 

8 (1) Public funds and public property provided to 

9 charter schools must be protected and used for students' 

10 education. 

11 (2) Charter schools in this State may close during a 

12 school year, and when they do there is a risk that 

13 students, employees, and public assets will suffer harm 

14 while the charter operator faces no meaningful financial 

15 accountability. 

16 (3) Current law and administrative guidance address 

17 closure procedures but do not uniformly require a 

18 prefunded financial mechanism sufficient to cover 

19 transition costs, severance, and the return of publicly 

20 funded property. 

21 (4) It is, therefore, necessary to require charter 

22 operators to maintain closure reserves, require return of 

23 public assets purchased with public funds, provide 

SB3391 Engrossed- 2 -LRB104 20151 LNS 33602 b

1 remedies to recover costs incurred by authorizers and 

2 students' home districts, and impose penalties for 

3 mid-year abandonment that is negligent or in bad faith.

4 Section 10. The School Code is amended by changing 

5Sections 27A-3 and 27A-9 and by adding Sections 27A-9.5, 

627A-10.15, and 27A-10.20 as follows:

7 (105 ILCS 5/27A-3)

8 Sec. 27A-3. Defini