(1) (a) An approved institute charter school application shall serve as the basis for a charter contract between the institute charter school and the institute.

(b) The institute board may approve an institute charter school application submitted by a nonprofit entity, and the institute may enter into a charter contract directly with the nonprofit entity to operate an institute charter school. The institute board shall not approve a charter school application that is submitted by a for-profit entity or that identifies a for-profit entity as one of the charter applicants, and the institute shall not enter into a charter contract directly with a for-profit entity to operate an institute charter school.

(2) Repealed.

(3) The charter contract between the institute charter school and the institute shall reflect all requests for release from state statutes and rules made by the institute charter school applicant. Within forty-five days after a request for release is received by the state board, the state board shall either grant or deny the request. If the state board grants the request, it may orally notify the institute charter school of its decision. If the state board denies the request, it shall notify the institute charter school in writing that the request is denied and specify the reasons for denial. If the institute charter school does not receive notice of the state board's decision within forty-five days after submittal of the request for release, the request shall be deemed granted. If the state board denies a request for release that includes multiple state statutes or rules, the denial shall specify the state statutes and rules for which the release is denied, and the denial shall apply only to those state statutes and rules so specified.

(4) A material revision of the terms of the charter contract may be made only with the approval of the institute and the governing body of the institute charter school.

(5) Any term included in a charter contract that would require an institute charter school to waive or otherwise forgo receipt of any amount of operational or capital construction funds provided to the institute charter school pursuant to the provisions of this part 5 or pursuant to any other provision of law is hereby declared null and void as against public policy and is unenforceable. In no event shall this subsection (5) be construed to prohibit any institute charter school from contracting with the institute for the purchase of services, including but not limited to the purchase of educational services.