SB 4040 Illinois Senate · 104th Regular Session

CHARTER SCH-CONTRACT TRANSFER

Summary
Amends the Charter Schools Article of the School Code. Provides that on July 1, 2027, any charter school authorized by the State Board of Education and located outside of the geographical area of a district located in a city of over 500,000 inhabitants shall have its authorization transferred to the local board or boards for each district from which the charter school draws enrollment. Provides that all authorizer powers, duties, contracts, and pending business of the State Board as the school's authorizer must be transferred to the local board or boards. Provides that all charter contract terms shall remain in full force and effect unless amended by mutual agreement of the parties, except that the term of the contract shall be 7 years starting July 1, 2027. Provides that if a State-authorized charter school that is subject to transfer is authorized to enroll students from more than one district, the boards of all districts from which the charter school draws enrollment must establish a joint charter management team that consists of at minimum one administrator from each district. Provides that the joint charter management team must develop and execute a charter oversight plan that is submitted to the State Board as part of the charter certification process. Provides that final decisions of a local school board to deny, revoke, or not renew a charter are subject to judicial review under the Administrative Review Law. Removes language providing that: the State Board of Education may reverse a local board's decision to revoke or not renew a charter if the State Board finds that the charter school or charter school proposal (i) is in compliance with the Article and (ii) is in the best interests of the students it is designed to serve; the State Board may condition the granting of an appeal on the acceptance by the charter school of funding in an amount less than that requested in the proposal submitted to the local school board; and the State Board must appoint and utilize a hearing officer for any appeals. Makes conforming changes. Effective immediately.
Bill status passed 3 of 5 stages cleared
Introduction
May 2026
Committee Review
May 2026
Senate Passage
May 2026
House Passage
Governor
Introduced May 28, 2026 Last action May 31, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Engrossed · 6 edits · May 28, 2026
MODERATE
This bill modifies the Illinois School Code to establish a new pilot program starting July 1, 2027, that transfers authorization of certain State Board charter schools to local school boards. The change shifts authority from the State Board to local districts for schools located outside large cities, while maintaining existing contract terms and adding a joint management requirement for schools serving multiple districts.
Scope change
The bill expands local control over charter schools by creating a new eligibility category for schools located outside the area of districts with over 500,000 inhabitants to be authorized by local boards instead of the State Board, effective in 2027.
TIMELINE

Establishes a new effective date of July 1, 2027, for the transfer of charter school authorization from the State Board to local school boards.

ELIGIBILITY

Creates a pilot program allowing local school boards to authorize State-authorized charter schools that are located outside the geographical area of a district in a city with over 500,000 inhabitants.

REQUIREMENT

Requires that if a transferred charter school draws enrollment from more than one district, those districts must form a joint charter management team with at least one administrator from each.

Mandates that the joint charter management team develop and submit a charter oversight plan to the State Board.

Clarifies that charter contract terms remain in full force unless mutually agreed upon, with a specific 7-year term starting July 1, 2027, for transferred schools.

ENFORCEMENT

Removes the State Board's ability to reverse local decisions to revoke or not renew charters, limiting local boards' authority and removing State Board oversight on appeals.

Floor votes · Senate May 28, 2026

How they voted

3619
Passed · 3 other
Total votes 58
May 28, 2026
D Democratic39
36 Yea 3
92% Yea
R Republican19
19 Nay
100% Nay
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
36
Key actions
4
Committee
9
Amendments
7
May 31, 2026
Committee
Rule 19(a) / Re-referred to Rules Committee
lower
May 29, 2026
Introduced
Motion Filed to Suspend Rule 21 Elementary & Secondary Education: Administration, Licensing & Charter Schools; Rep. Katie Stuart
lower
May 29, 2026
Lower · Passed
Committee/Final Action Deadline Extended-9(b) May 31, 2026
lower
May 29, 2026
Committee
Assigned to Elementary & Secondary Education: Administration, Licensing & Charter Schools
lower
May 29, 2026
Committee
Referred to Rules Committee
lower
May 28, 2026
Introduced
Arrived in House
lower
May 28, 2026
Upper · Passed
Third Reading - Passed; 038-019-000
upper
May 28, 2026
Upper · Passed
Senate Floor Amendment No. 2 Adopted; Castro
upper
May 20, 2026
Introduced
Senate Floor Amendment No. 2 Recommend Do Adopt Executive; 008-003-000
upper
May 19, 2026
Introduced
Senate Floor Amendment No. 2 Assignments Refers to Executive
upper
May 14, 2026
Committee
Senate Floor Amendment No. 2 Referred to Assignments
upper
May 14, 2026
Introduced
Senate Floor Amendment No. 2 Filed with Secretary by Sen. Cristina Castro
upper
Apr 15, 2026
Introduced
Senate Floor Amendment No. 1 Recommend Do Adopt Executive; 009-004-000
upper
Apr 14, 2026
Introduced
Senate Floor Amendment No. 1 Assignments Refers to Executive
upper
Apr 14, 2026
Committee
Senate Floor Amendment No. 1 Referred to Assignments
upper
Apr 14, 2026
Introduced
Senate Floor Amendment No. 1 Filed with Secretary by Sen. Cristina Castro
upper
Mar 11, 2026
Upper · Passed
Do Pass Executive; 009-003-000
upper
Feb 24, 2026
Committee
Assigned to Executive
upper
Feb 6, 2026
Committee
Referred to Assignments
upper
2 primary · 2 co-sponsors

Sponsors