summary
Introduced
02/04/2026
02/04/2026
In Committee
02/10/2026
02/10/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Charter Schools Law of the School Code. Provides that upon approval of a charter renewal by an authorizer, the charter operator shall execute the renewal agreement no later than 90 days after the date of the authorizer's final renewal approval. Provides that a charter school that is deemed nonrenewed is ineligible to receive any payments from a school district. Provides that a charter operator that fails to execute a renewal agreement within a specified period may not continue to operate the charter school beyond the expiration of the existing charter term and is subject to closure procedures. Requires every charter operator to maintain closure security. Provides that failure to maintain closure security is a basis for the authorizer to withhold a portion of per-pupil payments until compliance is achieved and for consideration in denying a charter renewal or revoking the charter or ineligibility to operate additional charter campuses. Provides that if the closure security is insufficient to cover the costs of a closure event, the authorizer or the State Board of Education may bring a civil action against the charter operator to recover the unpaid amounts and seek to impose a lien on any property owned by the charter operator to secure recovery. Provides that if an authorizer determines that a charter school is in financial distress, the authorizer may require the charter operator to submit a financial remediation plan within 30 days. Provides that if the authorizer determines that the charter school has failed to implement an approved remediation plan or the financial distress presents an immediate risk to students, employees, or public funds, the authorizer may initiate financial intervention by appointing an independent fiscal manager approved by the authorizer and the State Board. Allows the fiscal manager to exercise authority limited to financial matters. Provides that financial intervention is temporary and may not exceed 180 days, except that the authorizer may extend the intervention once for good cause. Makes other changes. Effective immediately.
AI Summary
This bill, titled the Charter School Closure Financial Accountability Law, aims to strengthen financial oversight and accountability for charter schools in Illinois. Key provisions include requiring charter operators to execute renewal agreements within 90 days of an authorizer's approval, with failure to do so resulting in nonrenewal and ineligibility for district payments, and mandating that charter operators maintain "closure security," which is a financial instrument like an escrow account or surety bond, to cover costs associated with a "closure event" (the permanent cessation of operations). If this security is insufficient, the authorizer or State Board of Education can pursue civil action or place liens on the operator's property. The bill also introduces a process for "financial intervention" where, if a charter school is deemed in "financial distress" (defined by conditions like failure to meet payroll or significant audit findings), an authorizer can appoint a fiscal manager to oversee financial matters for a limited period to stabilize the school. This legislation seeks to protect students, employees, and public funds by ensuring charter schools have a pre-funded mechanism to manage closures and financial difficulties.
Sponsors (1)
Last Action
Referred to Rules Committee (on 02/10/2026)
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