HB0548 102ND GENERAL ASSEMBLY

LRB102 12137 CMG 17474 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0548

Introduced 2/8/2021, by Rep. Rita Mayfield

SYNOPSIS AS INTRODUCED:

105 ILCS 5/1H-15
105 ILCS 5/1H-115

Amends the Financial Oversight Panel Law of the School Code. Requires the State Board of Education to establish a financial oversight panel for Waukegan Community Unit School District 60. Provides that 10 years after the creation of the panel, the State Board shall determine whether to abolish the panel. Requires the State Board to establish a transition plan once the determination is made to abolish the panel.

FISCAL NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The School Code is amended by changing Sections 1H-15 and 1H-115 as follows:

(105 ILCS 5/1H-15)

Sec. 1H-15. Establishment of Financial Oversight Panels; duties of district.

(a) A school district may petition the State Board for the establishment of a Financial Oversight Panel for the district or the State Board may establish a Panel without a petition from the district. The petition shall cite the reasons why the creation of a Financial Oversight Panel for the district is necessary. In determining whether or not to place a district under a Panel, the State Board shall consider all of the following:

(1) If a Panel is in the best educational and financial interests of the district.

(2) If a Panel is in the best interest of other schools in the area and the educational welfare of all the pupils therein.

(3) Whether the board of education has complied with the requirements of Section 1A-8 of this Code.

Notwithstanding the other provisions of this subsection (a), the State Board shall establish a Panel for Waukegan Community Unit School District 60.

(b) Upon establishment of a Financial Oversight Panel, all of the following shall occur:

(1) There is established a body both corporate and politic to be known as the "(Name of School District) Financial Oversight Panel", which in this name shall exercise all authority vested in a Panel by this Article.

(2) The powers and duties of a Financial Oversight Panel established pursuant to this Article shall include the duties and obligations of financial oversight panels established under Article 1B of this Code, in addition to any duties and obligations established under this Article. However, if there is any conflict between the provisions of this Article and the provisions of Article 1B of this Code, the provisions of this Article control.

(3) The Financial Oversight Panel, the school board, and the district superintendent or chief executive officer shall develop goals and objectives to assist the district in obtaining financial stability. The goals and objectives must be developed as part of the financial plan that the school board is required to develop, adopt, and submit to the Panel in accordance with Section 1B-12 of this Code. The goals and objectives must be formally reviewed at agreed to intervals, but at least one time per year. Review shall include progress made and recommendations and modifications needed to achieve abolition of financial oversight provided for under Section 1H-115 of this Code.

(c) Any school district having a Financial Oversight Panel established under Article 1B of this Code or any Financial Oversight Panel established under Article 1B may petition the State Board for the establishment of a Financial Oversight Panel under this Article and concurrent dissolution of the Article 1B Panel. All records, papers, books, funds, or other assets or liabilities belonging to the dissolving Financial Oversight Panel shall be transferred to the newly established Financial Oversight Panel.

(Source: P.A. 97-429, eff. 8-16-11.)

(105 ILCS 5/1H-115)

Sec. 1H-115. Abolition of Panel.

(a) Except as provided in subsections (b), (c), (d), and (e), and (f) of this Section, the Panel shall be abolished 10 years after its creation.

(b) Except as provided in subsection (f), the The State Board, upon recommendation of the Panel or petition of the school board, may abolish the Panel at any time after the Panel has been in existence for 3 years if no obligations of the Panel are outstanding or remain undefeased and upon investigation and finding that:

(1) none of the factors specified in Section 1A-8 of this Code remain applicable to the district; and

(2) there has been substantial achievement of the goals and objectives established pursuant to the financial plan and required under Section 1H-15 of this Code.

(c) Except as provided in subsection (f), the The Panel of a district that otherwise meets all of the requirements for abolition of a Panel under subsection (b) of this Section, except for the fact that there are outstanding financial obligations of the Panel, may petition the State Board for reinstatement of all of the school board's powers and duties assumed by the Panel; and if approved by the State Board, then:

(1) the Panel shall continue in operation, but its powers and duties shall be limited to those necessary to manage and administer its outstanding obligations;

(2) the school board shall once again begin exercising all of the powers and duties otherwise allowed by statute; and

(3) the Panel shall be abolished as provided in subsection (a) of this Section.

(d) Except as provided in subsection (f), if If the Panel of a district otherwise meets all of the requirements for abolition of a Panel under subsection (b) of this Section, except for outstanding obligations of the Panel, then the district may petition the State Board for abolition of the Panel if the district:

(1) establishes an irrevocable trust fund, the purpose of which is to provide moneys to defease the outstanding obligations of the Panel; and

(2) issues funding bonds pursuant to the provisions of Sections 19-8 and 19-9 of this Code.

A district with a Panel that falls under this subsection (d) shall be abolished as provided in subsection (a) of this Section.

(e) Except as provided in subsection (f), the The duration of a Panel may be continued for more than 10 years after the date of its creation if the State Board extends the Panel's duration under paragraph (3) of subsection (e) of Section 18-8.15 of this Code.

(f) Ten years after the creation of the Waukegan Community Unit School District 60 Financial Oversight Panel, the State Board shall determine whether to abolish the Panel. Once the determination is made to abolish the Panel, the State Board shall establish a transition plan for the transfer of the Panel's powers and duties to the school board.

(Source: P.A. 101-643, eff. 6-18-20.)