3.__General authority.__A charter school may not levy taxes or issue bonds secured by tax revenues.

§2420.__Immunity and exemption

1.__Exemption from state law.__Except as provided in this chapter, a charter school is exempt from all laws and rules applicable to a school board or school district, although it may elect to comply with applicable laws or rules.

2.__Liability.__The charter school may sue and be sued, however, the chartering authority of a charter school, members of the board of the chartering authority in their official capacity and employees of a chartering authority are immune from civil or criminal liability with respect to all activities related to a charter school.

3.__Categorical education funding.__Charter schools are exempt from the restrictions normally associated with any state-funded categorical education funding program.

§2421.__Leased space

A school district may lease space or sell services to a charter school.__A charter school may lease space or secure services from another public body, nonprofit organization, private organization or individual.

§2422.__Transportation

Transportation for students residing in the district in which the charter school is located must be provided by that district.__ Students living outside the district in which the charter school is located are eligible for transportation by the district in which they live to and from the border of their district of residence.__Districts may provide transportation for nonresident students.__The charter school, at its option, may receive a proportionate share of any state or local transportation funds and arrange for its own transportation service.

§2423.__Initial Costs

A chartering authority may authorize a charter school before the applicant has secured space, equipment or personnel if the