Amends Charter Schools Law - Renewal and Closure Procedures
Summary
The Illinois House of Representatives has introduced HB5063, which amends the Charter Schools Law. The bill introduces new deadlines for charter renewal agreements, specifies consequences for non-renewal and failure to maintain closure security, and outlines procedures for financial intervention by authorizers. It also allows for civil action to recover unpaid closure costs.
What changed
Illinois House Bill 5063 introduces significant changes to the Charter Schools Law, primarily focusing on renewal processes, financial distress, and closure procedures. Key provisions include a 90-day deadline for charter operators to execute renewal agreements after authorizer approval, and consequences for non-renewal, such as ineligibility for payments and potential closure. The bill also mandates closure security for charter operators, with failure to maintain it leading to withheld payments or denial of renewal. Furthermore, it establishes a framework for authorizers to initiate financial intervention by appointing a fiscal manager for schools in distress, with the intervention limited to 180 days but extendable.
Compliance officers at charter schools and authorizers in Illinois must review HB5063 to understand the new operational and financial requirements. Charter operators need to ensure timely execution of renewal agreements and robust maintenance of closure security to avoid penalties, including closure. Authorizers must be prepared to implement the outlined financial intervention procedures if a charter school demonstrates financial distress. The bill's effective date is immediate upon passage, requiring prompt attention to these new mandates.
What to do next
- Review HB5063 for specific impacts on charter school operations and renewal processes.
- Ensure charter operators are aware of and comply with the 90-day deadline for executing renewal agreements.
- Verify maintenance of adequate closure security as required by the bill.
Penalties
Ineligibility to receive payments from a school district, subject to closure procedures, withholding of per-pupil payments, potential denial of renewal or revocation of charter, civil action to recover unpaid amounts, imposition of lien on property.
Source document (simplified)
IL HB5063 | 2025-2026 | 104th General Assembly
Illinois House Bill 5063
IL State Legislature page for HB5063
- Summary
- Sponsors
- Texts
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Status
Sponsorship: Partisan Bill (Democrat 4)
Status: Introduced on February 4 2026 - 25% progression
Action: 2026-03-27 - Rule 19(a) / Re-referred to Rules Committee
Pending: House Rules Committee
Text: Latest bill text (Introduced) [HTML]
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.
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Title
SCH CD-CHARTER SCHOOL-CLOSURE
Sponsors
| Rep. Aaron Ortiz [D] | Rep. Lilian Jimenez [D] | Rep. Justin Slaughter [D] | Rep. Will Guzzardi [D] |
History
| Date | Chamber | Action |
| --- | --- | --- |
| 2026-03-27 | House | Rule 19(a) / Re-referred to Rules Committee |
| 2026-03-25 | House | Added Chief Co-Sponsor Rep. Will Guzzardi |
| 2026-03-25 | House | Added Chief Co-Sponsor Rep. Justin Slaughter |
| 2026-03-25 | House | Added Chief Co-Sponsor Rep. Lilian Jiménez |
| 2026-03-04 | House | Assigned to Elementary & Secondary Education: Administration, Licensing & Charter Schools |
| 2026-02-10 | House | Referred to Rules Committee |
| 2026-02-10 | House | First Reading |
| 2026-02-04 | House | Filed with the Clerk by Rep. Aarón M. Ortíz |
Code Citations
| Chapter | Article | Section | Citation Type | Statute Text |
| --- | --- | --- | --- | --- |
| 105 | 5 | 27A-10.15 | New Code | See Bill Text |
| 105 | 5 | 27A-10.20 | New Code | See Bill Text |
| 105 | 5 | 27A-3 | Amended Code | Citation Text |
| 105 | 5 | 27A-9.5 | New Code | See Bill Text |
Illinois State Sources
| Type | Source |
| --- | --- |
| Summary | https://www.ilga.gov/Legislation/BillStatus?DocNum=5063&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| Text | https://www.ilga.gov/Legislation/BillStatus/FullText?LegDocId=207903&DocName=10400HB5063&DocNum=5063&DocTypeID=HB&LegID=166557&GAID=18&SessionID=114&SpecSess=&Session= |
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