H.B. No. 561 Summary

• Prohibits for-profit operators from managing community schools on or after July 1, 2026; requires community schools with for-profit operators to cease qualifying as public schools on that date.

• Mandates for-profit operators or management companies to notify governing authorities by January 1, 2025 of their intention to become nonprofit organizations by July 1, 2026 or face contract termination.

• Requires governing authorities to identify an educational service center as the new operator by July 1, 2025 if a for-profit operator does not comply; schools must close by end of 2025-2026 school year if no replacement operator is identified.

• Redefines "operator" or "management company" in statute to exclude for-profit entities, permitting only nonprofit organizations or educational service center governing boards to operate community schools.

• Allows contracts entered into before the effective date to continue for their full term.