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.


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FISCAL NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB0548LRB102 12137 CMG 17474 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The School Code is amended by changing Sections
51H-15 and 1H-115 as follows:
 
6    (105 ILCS 5/1H-15)
7    Sec. 1H-15. Establishment of Financial Oversight Panels;
8duties of district.
9    (a) A school district may petition the State Board for the
10establishment of a Financial Oversight Panel for the district
11or the State Board may establish a Panel without a petition
12from the district. The petition shall cite the reasons why the
13creation of a Financial Oversight Panel for the district is
14necessary. In determining whether or not to place a district
15under a Panel, the State Board shall consider all of the
16following:
17        (1) If a Panel is in the best educational and
18    financial interests of the district.
19        (2) If a Panel is in the best interest of other schools
20    in the area and the educational welfare of all the pupils
21    therein.
22        (3) Whether the board of education has complied with
23    the requirements of Section 1A-8 of this Code.

 

 

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1    Notwithstanding the other provisions of this subsection
2(a), the State Board shall establish a Panel for Waukegan
3Community Unit School District 60.
4    (b) Upon establishment of a Financial Oversight Panel, all
5of the following shall occur:
6        (1) There is established a body both corporate and
7    politic to be known as the "(Name of School District)
8    Financial Oversight Panel", which in this name shall
9    exercise all authority vested in a Panel by this Article.
10        (2) The powers and duties of a Financial Oversight
11    Panel established pursuant to this Article shall include
12    the duties and obligations of financial oversight panels
13    established under Article 1B of this Code, in addition to
14    any duties and obligations established under this Article.
15    However, if there is any conflict between the provisions
16    of this Article and the provisions of Article 1B of this
17    Code, the provisions of this Article control.
18        (3) The Financial Oversight Panel, the school board,
19    and the district superintendent or chief executive officer
20    shall develop goals and objectives to assist the district
21    in obtaining financial stability. The goals and objectives
22    must be developed as part of the financial plan that the
23    school board is required to develop, adopt, and submit to
24    the Panel in accordance with Section 1B-12 of this Code.
25    The goals and objectives must be formally reviewed at
26    agreed to intervals, but at least one time per year.

 

 

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1    Review shall include progress made and recommendations and
2    modifications needed to achieve abolition of financial
3    oversight provided for under Section 1H-115 of this Code.
4    (c) Any school district having a Financial Oversight Panel
5established under Article 1B of this Code or any Financial
6Oversight Panel established under Article 1B may petition the
7State Board for the establishment of a Financial Oversight
8Panel under this Article and concurrent dissolution of the
9Article 1B Panel. All records, papers, books, funds, or other
10assets or liabilities belonging to the dissolving Financial
11Oversight Panel shall be transferred to the newly established
12Financial Oversight Panel.
13(Source: P.A. 97-429, eff. 8-16-11.)
 
14    (105 ILCS 5/1H-115)
15    Sec. 1H-115. Abolition of Panel.
16    (a) Except as provided in subsections (b), (c), (d), and
17(e), and (f) of this Section, the Panel shall be abolished 10
18years after its creation.
19    (b) Except as provided in subsection (f), the The State
20Board, upon recommendation of the Panel or petition of the
21school board, may abolish the Panel at any time after the Panel
22has been in existence for 3 years if no obligations of the
23Panel are outstanding or remain undefeased and upon
24investigation and finding that:
25        (1) none of the factors specified in Section 1A-8 of

 

 

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1    this Code remain applicable to the district; and
2        (2) there has been substantial achievement of the
3    goals and objectives established pursuant to the financial
4    plan and required under Section 1H-15 of this Code.
5    (c) Except as provided in subsection (f), the The Panel of
6a district that otherwise meets all of the requirements for
7abolition of a Panel under subsection (b) of this Section,
8except for the fact that there are outstanding financial
9obligations of the Panel, may petition the State Board for
10reinstatement of all of the school board's powers and duties
11assumed by the Panel; and if approved by the State Board, then:
12        (1) the Panel shall continue in operation, but its
13    powers and duties shall be limited to those necessary to
14    manage and administer its outstanding obligations;
15        (2) the school board shall once again begin exercising
16    all of the powers and duties otherwise allowed by statute;
17    and
18        (3) the Panel shall be abolished as provided in
19    subsection (a) of this Section.
20    (d) Except as provided in subsection (f), if If the Panel
21of a district otherwise meets all of the requirements for
22abolition of a Panel under subsection (b) of this Section,
23except for outstanding obligations of the Panel, then the
24district may petition the State Board for abolition of the
25Panel if the district:
26        (1) establishes an irrevocable trust fund, the purpose

 

 

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1    of which is to provide moneys to defease the outstanding
2    obligations of the Panel; and
3        (2) issues funding bonds pursuant to the provisions of
4    Sections 19-8 and 19-9 of this Code.
5    A district with a Panel that falls under this subsection
6(d) shall be abolished as provided in subsection (a) of this
7Section.
8    (e) Except as provided in subsection (f), the The duration
9of a Panel may be continued for more than 10 years after the
10date of its creation if the State Board extends the Panel's
11duration under paragraph (3) of subsection (e) of Section
1218-8.15 of this Code.
13    (f) Ten years after the creation of the Waukegan Community
14Unit School District 60 Financial Oversight Panel, the State
15Board shall determine whether to abolish the Panel. Once the
16determination is made to abolish the Panel, the State Board
17shall establish a transition plan for the transfer of the
18Panel's powers and duties to the school board.
19(Source: P.A. 101-643, eff. 6-18-20.)