98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3449

 

Introduced 2/14/2014, by Sen. Michael Noland

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the State Budget Law of the Civil Administration Code of Illinois. Provides that certain amounts shall be transferred from the General Revenue Fund to the Common School Fund. Amends the Illinois Income Tax Act. Provides that the income tax rates on individuals, trusts, estates, and corporations shall be 5%. Increases the residential real property tax credit from to 10%. Increases the limitation on the education expense credit. Increases the percentage of the earned income tax credit. Makes changes concerning distributions to the Local Government Distributive Fund. Amends the Retailers' Occupation Tax Act. Provides that certain services are taxable under the Act. Amends the School Code. Creates the Education Financial Award System Fund, the Digital Learning Technology Grant Fund, and the STEM Education Center Grant Fund. Makes changes concerning the Early Childhood Education Block Grant; financial awards for school improvement and other awards; academic early warning and watch status; an educational improvement plan; the creation of the Digital Learning Technology Grant Program, a best practices clearinghouse, the Science, Technology, Engineering, and Mathematics Education Center Grant Program, and a resource management service; audits; school board member leadership training; a school district's school report card; financial policies and plans; a capital improvement plan; protection from suit; financial accountability; non-referendum bonds; the foundation level of support under the State aid formula; the New Teacher Induction and Mentoring Program; school board associations; and transportation reimbursement. Effective immediately.


LRB098 20255 HLH 55629 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3449LRB098 20255 HLH 55629 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Budget Law of the Civil Administrative
5Code of Illinois is amended by changing Section 50-20 as
6follows:
 
7    (15 ILCS 20/50-20)  (was 15 ILCS 20/38.3)
8    Sec. 50-20. Responsible Education Funding Law.
9    (a) The Governor shall submit to the General Assembly a
10proposed budget for elementary and secondary education in which
11total General Revenue Fund appropriations are no less than the
12total General Revenue Fund appropriations of the previous
13fiscal year. In addition, the Governor shall specify the total
14amount of funds to be transferred from the General Revenue Fund
15to the Common School Fund during the budget year, which shall
16be no less than the total amount transferred during the
17previous fiscal year. The Governor may submit a proposed budget
18in which the total appropriated and transferred amounts are
19less than the previous fiscal year if the Governor declares in
20writing to the General Assembly the reason for the lesser
21amounts.
22    (b) The General Assembly shall appropriate amounts for
23elementary and secondary education from the General Revenue

 

 

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1Fund for each fiscal year so that the total General Revenue
2Fund appropriation is no less than the total General Revenue
3Fund appropriation for elementary and secondary education for
4the previous fiscal year. In addition, the General Assembly
5shall legislatively transfer from the General Revenue Fund to
6the Common School Fund for the fiscal year a total amount that
7is no less than the total amount transferred for the previous
8fiscal year. The General Assembly may appropriate or transfer
9lesser amounts if it declares by Joint Resolution the reason
10for the lesser amounts.
11    (b-5) In fiscal year 2015, no appropriation made from
12General funds to the State Board of Education, the Board of
13Higher Education, the Community College Board, the Student
14Assistance Commission, or any public university may be
15decreased from its fiscal year 2014 general appropriation
16level. An exception may be made only if a program's
17appropriation is based on actual cost and that cost has been
18determined by the Board or university to require a lesser
19appropriation; however, the aggregate appropriation to those
20Boards or universities for fiscal year 2010 shall not under any
21circumstances represent a decrease from the fiscal year 2014
22aggregate general fund appropriation level for that Board or
23university.
24    (b-10) Beginning in fiscal year 2016 and in each fiscal
25year thereafter, in addition to the amounts required to be
26transferred under subsection (b), an amount equal to the first

 

 

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133 1/3% of the amount of additional revenue generated through
2the taxes imposed by this amendatory Act of the 98th General
3Assembly in that fiscal year shall be transferred from the
4General Revenue Fund to the Common School Fund. In addition,
5beginning in fiscal year 2016 and in each fiscal year
6thereafter, an amount equal to the next 16 2/3% of the amount
7of additional revenue generated through those taxes shall be
8transferred from the General Revenue Fund to the Higher
9Education Fund.
10    (b-15) The Higher Education Fund is created as a special
11fund in the State treasury. Moneys in this Fund may be used
12only for purposes related to higher education. The Higher
13Education Fund is not subject to administrative charges that
14would in any way transfer any funds from the Higher Education
15Fund into any other fund of the State.
16    (c) This Section may be cited as the Responsible Education
17Funding Law.
18(Source: P.A. 91-239, eff. 1-1-00.)
 
19    Section 10. The State Finance Act is amended by adding
20Sections 5.855, 5.856, 5.857, and 5.858 as follows:
 
21    (30 ILCS 105/5.855 new)
22    Sec. 5.855. The Education Financial Award System Fund.
 
23    (30 ILCS 105/5.856 new)

 

 

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1    Sec. 5.856. The Digital Learning Technology Grant Fund.
 
2    (30 ILCS 105/5.857 new)
3    Sec. 5.857. The STEM Education Center Grant Fund.
 
4    (30 ILCS 105/5.858 new)
5    Sec. 5.858. The Higher Education Fund.
 
6    Section 15. The Illinois Income Tax Act is amended by
7changing Sections 201, 202.5, 204, 208, 212, and 901 as
8follows:
 
9    (35 ILCS 5/201)  (from Ch. 120, par. 2-201)
10    Sec. 201. Tax Imposed.
11    (a) In general. A tax measured by net income is hereby
12imposed on every individual, corporation, trust and estate for
13each taxable year ending after July 31, 1969 on the privilege
14of earning or receiving income in or as a resident of this
15State. Such tax shall be in addition to all other occupation or
16privilege taxes imposed by this State or by any municipal
17corporation or political subdivision thereof.
18    (b) Rates. The tax imposed by subsection (a) of this
19Section shall be determined as follows, except as adjusted by
20subsection (d-1):
21        (1) In the case of an individual, trust or estate, for
22    taxable years ending prior to July 1, 1989, an amount equal

 

 

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1    to 2 1/2% of the taxpayer's net income for the taxable
2    year.
3        (2) In the case of an individual, trust or estate, for
4    taxable years beginning prior to July 1, 1989 and ending
5    after June 30, 1989, an amount equal to the sum of (i) 2
6    1/2% of the taxpayer's net income for the period prior to
7    July 1, 1989, as calculated under Section 202.3, and (ii)
8    3% of the taxpayer's net income for the period after June
9    30, 1989, as calculated under Section 202.3.
10        (3) In the case of an individual, trust or estate, for
11    taxable years beginning after June 30, 1989, and ending
12    prior to January 1, 2011, an amount equal to 3% of the
13    taxpayer's net income for the taxable year.
14        (4) In the case of an individual, trust, or estate, for
15    taxable years beginning prior to January 1, 2011, and
16    ending after December 31, 2010, an amount equal to the sum
17    of (i) 3% of the taxpayer's net income for the period prior
18    to January 1, 2011, as calculated under Section 202.5, and
19    (ii) 5% of the taxpayer's net income for the period after
20    December 31, 2010, as calculated under Section 202.5.
21        (5) In the case of an individual, trust, or estate, for
22    taxable years beginning on or after January 1, 2011, and
23    ending prior to January 1, 2015, an amount equal to 5% of
24    the taxpayer's net income for the taxable year.
25        (5.1) (Blank). In the case of an individual, trust, or
26    estate, for taxable years beginning prior to January 1,

 

 

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1    2015, and ending after December 31, 2014, an amount equal
2    to the sum of (i) 5% of the taxpayer's net income for the
3    period prior to January 1, 2015, as calculated under
4    Section 202.5, and (ii) 3.75% of the taxpayer's net income
5    for the period after December 31, 2014, as calculated under
6    Section 202.5.
7        (5.2) (Blank). In the case of an individual, trust, or
8    estate, for taxable years beginning on or after January 1,
9    2015, and ending prior to January 1, 2025, an amount equal
10    to 3.75% of the taxpayer's net income for the taxable year.
11        (5.3) (Blank). In the case of an individual, trust, or
12    estate, for taxable years beginning prior to January 1,
13    2025, and ending after December 31, 2024, an amount equal
14    to the sum of (i) 3.75% of the taxpayer's net income for
15    the period prior to January 1, 2025, as calculated under
16    Section 202.5, and (ii) 3.25% of the taxpayer's net income
17    for the period after December 31, 2024, as calculated under
18    Section 202.5.
19        (5.4) (Blank). In the case of an individual, trust, or
20    estate, for taxable years beginning on or after January 1,
21    2025, an amount equal to 3.25% of the taxpayer's net income
22    for the taxable year.
23        (6) In the case of a corporation, for taxable years
24    ending prior to July 1, 1989, an amount equal to 4% of the
25    taxpayer's net income for the taxable year.
26        (7) In the case of a corporation, for taxable years

 

 

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1    beginning prior to July 1, 1989 and ending after June 30,
2    1989, an amount equal to the sum of (i) 4% of the
3    taxpayer's net income for the period prior to July 1, 1989,
4    as calculated under Section 202.3, and (ii) 4.8% of the
5    taxpayer's net income for the period after June 30, 1989,
6    as calculated under Section 202.3.
7        (8) In the case of a corporation, for taxable years
8    beginning after June 30, 1989, and ending prior to January
9    1, 2011, an amount equal to 4.8% of the taxpayer's net
10    income for the taxable year.
11        (9) In the case of a corporation, for taxable years
12    beginning prior to January 1, 2011, and ending after
13    December 31, 2010, an amount equal to the sum of (i) 4.8%
14    of the taxpayer's net income for the period prior to
15    January 1, 2011, as calculated under Section 202.5, and
16    (ii) 7% of the taxpayer's net income for the period after
17    December 31, 2010, as calculated under Section 202.5.
18        (10) In the case of a corporation, for taxable years
19    beginning on or after January 1, 2011, and ending prior to
20    January 1, 2015, an amount equal to 7% of the taxpayer's
21    net income for the taxable year.
22        (11) In the case of a corporation, for taxable years
23    beginning prior to January 1, 2015, and ending after
24    December 31, 2014, an amount equal to the sum of (i) 7% of
25    the taxpayer's net income for the period prior to January
26    1, 2015, as calculated under Section 202.5, and (ii) 5%

 

 

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1    5.25% of the taxpayer's net income for the period after
2    December 31, 2014, as calculated under Section 202.5.
3        (12) In the case of a corporation, for taxable years
4    beginning on or after January 1, 2015, and ending prior to
5    January 1, 2025, an amount equal to 5% 5.25% of the
6    taxpayer's net income for the taxable year.
7        (13) (Blank). In the case of a corporation, for taxable
8    years beginning prior to January 1, 2025, and ending after
9    December 31, 2024, an amount equal to the sum of (i) 5.25%
10    of the taxpayer's net income for the period prior to
11    January 1, 2025, as calculated under Section 202.5, and
12    (ii) 4.8% of the taxpayer's net income for the period after
13    December 31, 2024, as calculated under Section 202.5.
14        (14) (Blank). In the case of a corporation, for taxable
15    years beginning on or after January 1, 2025, an amount
16    equal to 4.8% of the taxpayer's net income for the taxable
17    year.
18    The rates under this subsection (b) are subject to the
19provisions of Section 201.5.
20    (c) Personal Property Tax Replacement Income Tax.
21Beginning on July 1, 1979 and thereafter, in addition to such
22income tax, there is also hereby imposed the Personal Property
23Tax Replacement Income Tax measured by net income on every
24corporation (including Subchapter S corporations), partnership
25and trust, for each taxable year ending after June 30, 1979.
26Such taxes are imposed on the privilege of earning or receiving

 

 

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1income in or as a resident of this State. The Personal Property
2Tax Replacement Income Tax shall be in addition to the income
3tax imposed by subsections (a) and (b) of this Section and in
4addition to all other occupation or privilege taxes imposed by
5this State or by any municipal corporation or political
6subdivision thereof.
7    (d) Additional Personal Property Tax Replacement Income
8Tax Rates. The personal property tax replacement income tax
9imposed by this subsection and subsection (c) of this Section
10in the case of a corporation, other than a Subchapter S
11corporation and except as adjusted by subsection (d-1), shall
12be an additional amount equal to 2.85% of such taxpayer's net
13income for the taxable year, except that beginning on January
141, 1981, and thereafter, the rate of 2.85% specified in this
15subsection shall be reduced to 2.5%, and in the case of a
16partnership, trust or a Subchapter S corporation shall be an
17additional amount equal to 1.5% of such taxpayer's net income
18for the taxable year.
19    (d-1) Rate reduction for certain foreign insurers. In the
20case of a foreign insurer, as defined by Section 35A-5 of the
21Illinois Insurance Code, whose state or country of domicile
22imposes on insurers domiciled in Illinois a retaliatory tax
23(excluding any insurer whose premiums from reinsurance assumed
24are 50% or more of its total insurance premiums as determined
25under paragraph (2) of subsection (b) of Section 304, except
26that for purposes of this determination premiums from

 

 

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1reinsurance do not include premiums from inter-affiliate
2reinsurance arrangements), beginning with taxable years ending
3on or after December 31, 1999, the sum of the rates of tax
4imposed by subsections (b) and (d) shall be reduced (but not
5increased) to the rate at which the total amount of tax imposed
6under this Act, net of all credits allowed under this Act,
7shall equal (i) the total amount of tax that would be imposed
8on the foreign insurer's net income allocable to Illinois for
9the taxable year by such foreign insurer's state or country of
10domicile if that net income were subject to all income taxes
11and taxes measured by net income imposed by such foreign
12insurer's state or country of domicile, net of all credits
13allowed or (ii) a rate of zero if no such tax is imposed on such
14income by the foreign insurer's state of domicile. For the
15purposes of this subsection (d-1), an inter-affiliate includes
16a mutual insurer under common management.
17        (1) For the purposes of subsection (d-1), in no event
18    shall the sum of the rates of tax imposed by subsections
19    (b) and (d) be reduced below the rate at which the sum of:
20            (A) the total amount of tax imposed on such foreign
21        insurer under this Act for a taxable year, net of all
22        credits allowed under this Act, plus
23            (B) the privilege tax imposed by Section 409 of the
24        Illinois Insurance Code, the fire insurance company
25        tax imposed by Section 12 of the Fire Investigation
26        Act, and the fire department taxes imposed under

 

 

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1        Section 11-10-1 of the Illinois Municipal Code,
2    equals 1.25% for taxable years ending prior to December 31,
3    2003, or 1.75% for taxable years ending on or after
4    December 31, 2003, of the net taxable premiums written for
5    the taxable year, as described by subsection (1) of Section
6    409 of the Illinois Insurance Code. This paragraph will in
7    no event increase the rates imposed under subsections (b)
8    and (d).
9        (2) Any reduction in the rates of tax imposed by this
10    subsection shall be applied first against the rates imposed
11    by subsection (b) and only after the tax imposed by
12    subsection (a) net of all credits allowed under this
13    Section other than the credit allowed under subsection (i)
14    has been reduced to zero, against the rates imposed by
15    subsection (d).
16    This subsection (d-1) is exempt from the provisions of
17Section 250.
18    (e) Investment credit. A taxpayer shall be allowed a credit
19against the Personal Property Tax Replacement Income Tax for
20investment in qualified property.
21        (1) A taxpayer shall be allowed a credit equal to .5%
22    of the basis of qualified property placed in service during
23    the taxable year, provided such property is placed in
24    service on or after July 1, 1984. There shall be allowed an
25    additional credit equal to .5% of the basis of qualified
26    property placed in service during the taxable year,

 

 

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1    provided such property is placed in service on or after
2    July 1, 1986, and the taxpayer's base employment within
3    Illinois has increased by 1% or more over the preceding
4    year as determined by the taxpayer's employment records
5    filed with the Illinois Department of Employment Security.
6    Taxpayers who are new to Illinois shall be deemed to have
7    met the 1% growth in base employment for the first year in
8    which they file employment records with the Illinois
9    Department of Employment Security. The provisions added to
10    this Section by Public Act 85-1200 (and restored by Public
11    Act 87-895) shall be construed as declaratory of existing
12    law and not as a new enactment. If, in any year, the
13    increase in base employment within Illinois over the
14    preceding year is less than 1%, the additional credit shall
15    be limited to that percentage times a fraction, the
16    numerator of which is .5% and the denominator of which is
17    1%, but shall not exceed .5%. The investment credit shall
18    not be allowed to the extent that it would reduce a
19    taxpayer's liability in any tax year below zero, nor may
20    any credit for qualified property be allowed for any year
21    other than the year in which the property was placed in
22    service in Illinois. For tax years ending on or after
23    December 31, 1987, and on or before December 31, 1988, the
24    credit shall be allowed for the tax year in which the
25    property is placed in service, or, if the amount of the
26    credit exceeds the tax liability for that year, whether it

 

 

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1    exceeds the original liability or the liability as later
2    amended, such excess may be carried forward and applied to
3    the tax liability of the 5 taxable years following the
4    excess credit years if the taxpayer (i) makes investments
5    which cause the creation of a minimum of 2,000 full-time
6    equivalent jobs in Illinois, (ii) is located in an
7    enterprise zone established pursuant to the Illinois
8    Enterprise Zone Act and (iii) is certified by the
9    Department of Commerce and Community Affairs (now
10    Department of Commerce and Economic Opportunity) as
11    complying with the requirements specified in clause (i) and
12    (ii) by July 1, 1986. The Department of Commerce and
13    Community Affairs (now Department of Commerce and Economic
14    Opportunity) shall notify the Department of Revenue of all
15    such certifications immediately. For tax years ending
16    after December 31, 1988, the credit shall be allowed for
17    the tax year in which the property is placed in service,
18    or, if the amount of the credit exceeds the tax liability
19    for that year, whether it exceeds the original liability or
20    the liability as later amended, such excess may be carried
21    forward and applied to the tax liability of the 5 taxable
22    years following the excess credit years. The credit shall
23    be applied to the earliest year for which there is a
24    liability. If there is credit from more than one tax year
25    that is available to offset a liability, earlier credit
26    shall be applied first.

 

 

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1        (2) The term "qualified property" means property
2    which:
3            (A) is tangible, whether new or used, including
4        buildings and structural components of buildings and
5        signs that are real property, but not including land or
6        improvements to real property that are not a structural
7        component of a building such as landscaping, sewer
8        lines, local access roads, fencing, parking lots, and
9        other appurtenances;
10            (B) is depreciable pursuant to Section 167 of the
11        Internal Revenue Code, except that "3-year property"
12        as defined in Section 168(c)(2)(A) of that Code is not
13        eligible for the credit provided by this subsection
14        (e);
15            (C) is acquired by purchase as defined in Section
16        179(d) of the Internal Revenue Code;
17            (D) is used in Illinois by a taxpayer who is
18        primarily engaged in manufacturing, or in mining coal
19        or fluorite, or in retailing, or was placed in service
20        on or after July 1, 2006 in a River Edge Redevelopment
21        Zone established pursuant to the River Edge
22        Redevelopment Zone Act; and
23            (E) has not previously been used in Illinois in
24        such a manner and by such a person as would qualify for
25        the credit provided by this subsection (e) or
26        subsection (f).

 

 

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1        (3) For purposes of this subsection (e),
2    "manufacturing" means the material staging and production
3    of tangible personal property by procedures commonly
4    regarded as manufacturing, processing, fabrication, or
5    assembling which changes some existing material into new
6    shapes, new qualities, or new combinations. For purposes of
7    this subsection (e) the term "mining" shall have the same
8    meaning as the term "mining" in Section 613(c) of the
9    Internal Revenue Code. For purposes of this subsection (e),
10    the term "retailing" means the sale of tangible personal
11    property for use or consumption and not for resale, or
12    services rendered in conjunction with the sale of tangible
13    personal property for use or consumption and not for
14    resale. For purposes of this subsection (e), "tangible
15    personal property" has the same meaning as when that term
16    is used in the Retailers' Occupation Tax Act, and, for
17    taxable years ending after December 31, 2008, does not
18    include the generation, transmission, or distribution of
19    electricity.
20        (4) The basis of qualified property shall be the basis
21    used to compute the depreciation deduction for federal
22    income tax purposes.
23        (5) If the basis of the property for federal income tax
24    depreciation purposes is increased after it has been placed
25    in service in Illinois by the taxpayer, the amount of such
26    increase shall be deemed property placed in service on the

 

 

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1    date of such increase in basis.
2        (6) The term "placed in service" shall have the same
3    meaning as under Section 46 of the Internal Revenue Code.
4        (7) If during any taxable year, any property ceases to
5    be qualified property in the hands of the taxpayer within
6    48 months after being placed in service, or the situs of
7    any qualified property is moved outside Illinois within 48
8    months after being placed in service, the Personal Property
9    Tax Replacement Income Tax for such taxable year shall be
10    increased. Such increase shall be determined by (i)
11    recomputing the investment credit which would have been
12    allowed for the year in which credit for such property was
13    originally allowed by eliminating such property from such
14    computation and, (ii) subtracting such recomputed credit
15    from the amount of credit previously allowed. For the
16    purposes of this paragraph (7), a reduction of the basis of
17    qualified property resulting from a redetermination of the
18    purchase price shall be deemed a disposition of qualified
19    property to the extent of such reduction.
20        (8) Unless the investment credit is extended by law,
21    the basis of qualified property shall not include costs
22    incurred after December 31, 2018, except for costs incurred
23    pursuant to a binding contract entered into on or before
24    December 31, 2018.
25        (9) Each taxable year ending before December 31, 2000,
26    a partnership may elect to pass through to its partners the

 

 

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1    credits to which the partnership is entitled under this
2    subsection (e) for the taxable year. A partner may use the
3    credit allocated to him or her under this paragraph only
4    against the tax imposed in subsections (c) and (d) of this
5    Section. If the partnership makes that election, those
6    credits shall be allocated among the partners in the
7    partnership in accordance with the rules set forth in
8    Section 704(b) of the Internal Revenue Code, and the rules
9    promulgated under that Section, and the allocated amount of
10    the credits shall be allowed to the partners for that
11    taxable year. The partnership shall make this election on
12    its Personal Property Tax Replacement Income Tax return for
13    that taxable year. The election to pass through the credits
14    shall be irrevocable.
15        For taxable years ending on or after December 31, 2000,
16    a partner that qualifies its partnership for a subtraction
17    under subparagraph (I) of paragraph (2) of subsection (d)
18    of Section 203 or a shareholder that qualifies a Subchapter
19    S corporation for a subtraction under subparagraph (S) of
20    paragraph (2) of subsection (b) of Section 203 shall be
21    allowed a credit under this subsection (e) equal to its
22    share of the credit earned under this subsection (e) during
23    the taxable year by the partnership or Subchapter S
24    corporation, determined in accordance with the
25    determination of income and distributive share of income
26    under Sections 702 and 704 and Subchapter S of the Internal

 

 

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1    Revenue Code. This paragraph is exempt from the provisions
2    of Section 250.
3    (f) Investment credit; Enterprise Zone; River Edge
4Redevelopment Zone.
5        (1) A taxpayer shall be allowed a credit against the
6    tax imposed by subsections (a) and (b) of this Section for
7    investment in qualified property which is placed in service
8    in an Enterprise Zone created pursuant to the Illinois
9    Enterprise Zone Act or, for property placed in service on
10    or after July 1, 2006, a River Edge Redevelopment Zone
11    established pursuant to the River Edge Redevelopment Zone
12    Act. For partners, shareholders of Subchapter S
13    corporations, and owners of limited liability companies,
14    if the liability company is treated as a partnership for
15    purposes of federal and State income taxation, there shall
16    be allowed a credit under this subsection (f) to be
17    determined in accordance with the determination of income
18    and distributive share of income under Sections 702 and 704
19    and Subchapter S of the Internal Revenue Code. The credit
20    shall be .5% of the basis for such property. The credit
21    shall be available only in the taxable year in which the
22    property is placed in service in the Enterprise Zone or
23    River Edge Redevelopment Zone and shall not be allowed to
24    the extent that it would reduce a taxpayer's liability for
25    the tax imposed by subsections (a) and (b) of this Section
26    to below zero. For tax years ending on or after December

 

 

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1    31, 1985, the credit shall be allowed for the tax year in
2    which the property is placed in service, or, if the amount
3    of the credit exceeds the tax liability for that year,
4    whether it exceeds the original liability or the liability
5    as later amended, such excess may be carried forward and
6    applied to the tax liability of the 5 taxable years
7    following the excess credit year. The credit shall be
8    applied to the earliest year for which there is a
9    liability. If there is credit from more than one tax year
10    that is available to offset a liability, the credit
11    accruing first in time shall be applied first.
12        (2) The term qualified property means property which:
13            (A) is tangible, whether new or used, including
14        buildings and structural components of buildings;
15            (B) is depreciable pursuant to Section 167 of the
16        Internal Revenue Code, except that "3-year property"
17        as defined in Section 168(c)(2)(A) of that Code is not
18        eligible for the credit provided by this subsection
19        (f);
20            (C) is acquired by purchase as defined in Section
21        179(d) of the Internal Revenue Code;
22            (D) is used in the Enterprise Zone or River Edge
23        Redevelopment Zone by the taxpayer; and
24            (E) has not been previously used in Illinois in
25        such a manner and by such a person as would qualify for
26        the credit provided by this subsection (f) or

 

 

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1        subsection (e).
2        (3) The basis of qualified property shall be the basis
3    used to compute the depreciation deduction for federal
4    income tax purposes.
5        (4) If the basis of the property for federal income tax
6    depreciation purposes is increased after it has been placed
7    in service in the Enterprise Zone or River Edge
8    Redevelopment Zone by the taxpayer, the amount of such
9    increase shall be deemed property placed in service on the
10    date of such increase in basis.
11        (5) The term "placed in service" shall have the same
12    meaning as under Section 46 of the Internal Revenue Code.
13        (6) If during any taxable year, any property ceases to
14    be qualified property in the hands of the taxpayer within
15    48 months after being placed in service, or the situs of
16    any qualified property is moved outside the Enterprise Zone
17    or River Edge Redevelopment Zone within 48 months after
18    being placed in service, the tax imposed under subsections
19    (a) and (b) of this Section for such taxable year shall be
20    increased. Such increase shall be determined by (i)
21    recomputing the investment credit which would have been
22    allowed for the year in which credit for such property was
23    originally allowed by eliminating such property from such
24    computation, and (ii) subtracting such recomputed credit
25    from the amount of credit previously allowed. For the
26    purposes of this paragraph (6), a reduction of the basis of

 

 

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1    qualified property resulting from a redetermination of the
2    purchase price shall be deemed a disposition of qualified
3    property to the extent of such reduction.
4        (7) There shall be allowed an additional credit equal
5    to 0.5% of the basis of qualified property placed in
6    service during the taxable year in a River Edge
7    Redevelopment Zone, provided such property is placed in
8    service on or after July 1, 2006, and the taxpayer's base
9    employment within Illinois has increased by 1% or more over
10    the preceding year as determined by the taxpayer's
11    employment records filed with the Illinois Department of
12    Employment Security. Taxpayers who are new to Illinois
13    shall be deemed to have met the 1% growth in base
14    employment for the first year in which they file employment
15    records with the Illinois Department of Employment
16    Security. If, in any year, the increase in base employment
17    within Illinois over the preceding year is less than 1%,
18    the additional credit shall be limited to that percentage
19    times a fraction, the numerator of which is 0.5% and the
20    denominator of which is 1%, but shall not exceed 0.5%.
21    (g) (Blank).
22    (h) Investment credit; High Impact Business.
23        (1) Subject to subsections (b) and (b-5) of Section 5.5
24    of the Illinois Enterprise Zone Act, a taxpayer shall be
25    allowed a credit against the tax imposed by subsections (a)
26    and (b) of this Section for investment in qualified

 

 

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1    property which is placed in service by a Department of
2    Commerce and Economic Opportunity designated High Impact
3    Business. The credit shall be .5% of the basis for such
4    property. The credit shall not be available (i) until the
5    minimum investments in qualified property set forth in
6    subdivision (a)(3)(A) of Section 5.5 of the Illinois
7    Enterprise Zone Act have been satisfied or (ii) until the
8    time authorized in subsection (b-5) of the Illinois
9    Enterprise Zone Act for entities designated as High Impact
10    Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
11    (a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
12    Act, and shall not be allowed to the extent that it would
13    reduce a taxpayer's liability for the tax imposed by
14    subsections (a) and (b) of this Section to below zero. The
15    credit applicable to such investments shall be taken in the
16    taxable year in which such investments have been completed.
17    The credit for additional investments beyond the minimum
18    investment by a designated high impact business authorized
19    under subdivision (a)(3)(A) of Section 5.5 of the Illinois
20    Enterprise Zone Act shall be available only in the taxable
21    year in which the property is placed in service and shall
22    not be allowed to the extent that it would reduce a
23    taxpayer's liability for the tax imposed by subsections (a)
24    and (b) of this Section to below zero. For tax years ending
25    on or after December 31, 1987, the credit shall be allowed
26    for the tax year in which the property is placed in

 

 

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1    service, or, if the amount of the credit exceeds the tax
2    liability for that year, whether it exceeds the original
3    liability or the liability as later amended, such excess
4    may be carried forward and applied to the tax liability of
5    the 5 taxable years following the excess credit year. The
6    credit shall be applied to the earliest year for which
7    there is a liability. If there is credit from more than one
8    tax year that is available to offset a liability, the
9    credit accruing first in time shall be applied first.
10        Changes made in this subdivision (h)(1) by Public Act
11    88-670 restore changes made by Public Act 85-1182 and
12    reflect existing law.
13        (2) The term qualified property means property which:
14            (A) is tangible, whether new or used, including
15        buildings and structural components of buildings;
16            (B) is depreciable pursuant to Section 167 of the
17        Internal Revenue Code, except that "3-year property"
18        as defined in Section 168(c)(2)(A) of that Code is not
19        eligible for the credit provided by this subsection
20        (h);
21            (C) is acquired by purchase as defined in Section
22        179(d) of the Internal Revenue Code; and
23            (D) is not eligible for the Enterprise Zone
24        Investment Credit provided by subsection (f) of this
25        Section.
26        (3) The basis of qualified property shall be the basis

 

 

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1    used to compute the depreciation deduction for federal
2    income tax purposes.
3        (4) If the basis of the property for federal income tax
4    depreciation purposes is increased after it has been placed
5    in service in a federally designated Foreign Trade Zone or
6    Sub-Zone located in Illinois by the taxpayer, the amount of
7    such increase shall be deemed property placed in service on
8    the date of such increase in basis.
9        (5) The term "placed in service" shall have the same
10    meaning as under Section 46 of the Internal Revenue Code.
11        (6) If during any taxable year ending on or before
12    December 31, 1996, any property ceases to be qualified
13    property in the hands of the taxpayer within 48 months
14    after being placed in service, or the situs of any
15    qualified property is moved outside Illinois within 48
16    months after being placed in service, the tax imposed under
17    subsections (a) and (b) of this Section for such taxable
18    year shall be increased. Such increase shall be determined
19    by (i) recomputing the investment credit which would have
20    been allowed for the year in which credit for such property
21    was originally allowed by eliminating such property from
22    such computation, and (ii) subtracting such recomputed
23    credit from the amount of credit previously allowed. For
24    the purposes of this paragraph (6), a reduction of the
25    basis of qualified property resulting from a
26    redetermination of the purchase price shall be deemed a

 

 

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1    disposition of qualified property to the extent of such
2    reduction.
3        (7) Beginning with tax years ending after December 31,
4    1996, if a taxpayer qualifies for the credit under this
5    subsection (h) and thereby is granted a tax abatement and
6    the taxpayer relocates its entire facility in violation of
7    the explicit terms and length of the contract under Section
8    18-183 of the Property Tax Code, the tax imposed under
9    subsections (a) and (b) of this Section shall be increased
10    for the taxable year in which the taxpayer relocated its
11    facility by an amount equal to the amount of credit
12    received by the taxpayer under this subsection (h).
13    (i) Credit for Personal Property Tax Replacement Income
14Tax. For tax years ending prior to December 31, 2003, a credit
15shall be allowed against the tax imposed by subsections (a) and
16(b) of this Section for the tax imposed by subsections (c) and
17(d) of this Section. This credit shall be computed by
18multiplying the tax imposed by subsections (c) and (d) of this
19Section by a fraction, the numerator of which is base income
20allocable to Illinois and the denominator of which is Illinois
21base income, and further multiplying the product by the tax
22rate imposed by subsections (a) and (b) of this Section.
23    Any credit earned on or after December 31, 1986 under this
24subsection which is unused in the year the credit is computed
25because it exceeds the tax liability imposed by subsections (a)
26and (b) for that year (whether it exceeds the original

 

 

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1liability or the liability as later amended) may be carried
2forward and applied to the tax liability imposed by subsections
3(a) and (b) of the 5 taxable years following the excess credit
4year, provided that no credit may be carried forward to any
5year ending on or after December 31, 2003. This credit shall be
6applied first to the earliest year for which there is a
7liability. If there is a credit under this subsection from more
8than one tax year that is available to offset a liability the
9earliest credit arising under this subsection shall be applied
10first.
11    If, during any taxable year ending on or after December 31,
121986, the tax imposed by subsections (c) and (d) of this
13Section for which a taxpayer has claimed a credit under this
14subsection (i) is reduced, the amount of credit for such tax
15shall also be reduced. Such reduction shall be determined by
16recomputing the credit to take into account the reduced tax
17imposed by subsections (c) and (d). If any portion of the
18reduced amount of credit has been carried to a different
19taxable year, an amended return shall be filed for such taxable
20year to reduce the amount of credit claimed.
21    (j) Training expense credit. Beginning with tax years
22ending on or after December 31, 1986 and prior to December 31,
232003, a taxpayer shall be allowed a credit against the tax
24imposed by subsections (a) and (b) under this Section for all
25amounts paid or accrued, on behalf of all persons employed by
26the taxpayer in Illinois or Illinois residents employed outside

 

 

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1of Illinois by a taxpayer, for educational or vocational
2training in semi-technical or technical fields or semi-skilled
3or skilled fields, which were deducted from gross income in the
4computation of taxable income. The credit against the tax
5imposed by subsections (a) and (b) shall be 1.6% of such
6training expenses. For partners, shareholders of subchapter S
7corporations, and owners of limited liability companies, if the
8liability company is treated as a partnership for purposes of
9federal and State income taxation, there shall be allowed a
10credit under this subsection (j) to be determined in accordance
11with the determination of income and distributive share of
12income under Sections 702 and 704 and subchapter S of the
13Internal Revenue Code.
14    Any credit allowed under this subsection which is unused in
15the year the credit is earned may be carried forward to each of
16the 5 taxable years following the year for which the credit is
17first computed until it is used. This credit shall be applied
18first to the earliest year for which there is a liability. If
19there is a credit under this subsection from more than one tax
20year that is available to offset a liability the earliest
21credit arising under this subsection shall be applied first. No
22carryforward credit may be claimed in any tax year ending on or
23after December 31, 2003.
24    (k) Research and development credit. For tax years ending
25after July 1, 1990 and prior to December 31, 2003, and
26beginning again for tax years ending on or after December 31,

 

 

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12004, and ending prior to January 1, 2016, a taxpayer shall be
2allowed a credit against the tax imposed by subsections (a) and
3(b) of this Section for increasing research activities in this
4State. The credit allowed against the tax imposed by
5subsections (a) and (b) shall be equal to 6 1/2% of the
6qualifying expenditures for increasing research activities in
7this State. For partners, shareholders of subchapter S
8corporations, and owners of limited liability companies, if the
9liability company is treated as a partnership for purposes of
10federal and State income taxation, there shall be allowed a
11credit under this subsection to be determined in accordance
12with the determination of income and distributive share of
13income under Sections 702 and 704 and subchapter S of the
14Internal Revenue Code.
15    For purposes of this subsection, "qualifying expenditures"
16means the qualifying expenditures as defined for the federal
17credit for increasing research activities which would be
18allowable under Section 41 of the Internal Revenue Code and
19which are conducted in this State, "qualifying expenditures for
20increasing research activities in this State" means the excess
21of qualifying expenditures for the taxable year in which
22incurred over qualifying expenditures for the base period,
23"qualifying expenditures for the base period" means the average
24of the qualifying expenditures for each year in the base
25period, and "base period" means the 3 taxable years immediately
26preceding the taxable year for which the determination is being

 

 

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1made.
2    Any credit in excess of the tax liability for the taxable
3year may be carried forward. A taxpayer may elect to have the
4unused credit shown on its final completed return carried over
5as a credit against the tax liability for the following 5
6taxable years or until it has been fully used, whichever occurs
7first; provided that no credit earned in a tax year ending
8prior to December 31, 2003 may be carried forward to any year
9ending on or after December 31, 2003.
10    If an unused credit is carried forward to a given year from
112 or more earlier years, that credit arising in the earliest
12year will be applied first against the tax liability for the
13given year. If a tax liability for the given year still
14remains, the credit from the next earliest year will then be
15applied, and so on, until all credits have been used or no tax
16liability for the given year remains. Any remaining unused
17credit or credits then will be carried forward to the next
18following year in which a tax liability is incurred, except
19that no credit can be carried forward to a year which is more
20than 5 years after the year in which the expense for which the
21credit is given was incurred.
22    No inference shall be drawn from this amendatory Act of the
2391st General Assembly in construing this Section for taxable
24years beginning before January 1, 1999.
25    (l) Environmental Remediation Tax Credit.
26        (i) For tax years ending after December 31, 1997 and on

 

 

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1    or before December 31, 2001, a taxpayer shall be allowed a
2    credit against the tax imposed by subsections (a) and (b)
3    of this Section for certain amounts paid for unreimbursed
4    eligible remediation costs, as specified in this
5    subsection. For purposes of this Section, "unreimbursed
6    eligible remediation costs" means costs approved by the
7    Illinois Environmental Protection Agency ("Agency") under
8    Section 58.14 of the Environmental Protection Act that were
9    paid in performing environmental remediation at a site for
10    which a No Further Remediation Letter was issued by the
11    Agency and recorded under Section 58.10 of the
12    Environmental Protection Act. The credit must be claimed
13    for the taxable year in which Agency approval of the
14    eligible remediation costs is granted. The credit is not
15    available to any taxpayer if the taxpayer or any related
16    party caused or contributed to, in any material respect, a
17    release of regulated substances on, in, or under the site
18    that was identified and addressed by the remedial action
19    pursuant to the Site Remediation Program of the
20    Environmental Protection Act. After the Pollution Control
21    Board rules are adopted pursuant to the Illinois
22    Administrative Procedure Act for the administration and
23    enforcement of Section 58.9 of the Environmental
24    Protection Act, determinations as to credit availability
25    for purposes of this Section shall be made consistent with
26    those rules. For purposes of this Section, "taxpayer"

 

 

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1    includes a person whose tax attributes the taxpayer has
2    succeeded to under Section 381 of the Internal Revenue Code
3    and "related party" includes the persons disallowed a
4    deduction for losses by paragraphs (b), (c), and (f)(1) of
5    Section 267 of the Internal Revenue Code by virtue of being
6    a related taxpayer, as well as any of its partners. The
7    credit allowed against the tax imposed by subsections (a)
8    and (b) shall be equal to 25% of the unreimbursed eligible
9    remediation costs in excess of $100,000 per site, except
10    that the $100,000 threshold shall not apply to any site
11    contained in an enterprise zone as determined by the
12    Department of Commerce and Community Affairs (now
13    Department of Commerce and Economic Opportunity). The
14    total credit allowed shall not exceed $40,000 per year with
15    a maximum total of $150,000 per site. For partners and
16    shareholders of subchapter S corporations, there shall be
17    allowed a credit under this subsection to be determined in
18    accordance with the determination of income and
19    distributive share of income under Sections 702 and 704 and
20    subchapter S of the Internal Revenue Code.
21        (ii) A credit allowed under this subsection that is
22    unused in the year the credit is earned may be carried
23    forward to each of the 5 taxable years following the year
24    for which the credit is first earned until it is used. The
25    term "unused credit" does not include any amounts of
26    unreimbursed eligible remediation costs in excess of the

 

 

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1    maximum credit per site authorized under paragraph (i).
2    This credit shall be applied first to the earliest year for
3    which there is a liability. If there is a credit under this
4    subsection from more than one tax year that is available to
5    offset a liability, the earliest credit arising under this
6    subsection shall be applied first. A credit allowed under
7    this subsection may be sold to a buyer as part of a sale of
8    all or part of the remediation site for which the credit
9    was granted. The purchaser of a remediation site and the
10    tax credit shall succeed to the unused credit and remaining
11    carry-forward period of the seller. To perfect the
12    transfer, the assignor shall record the transfer in the
13    chain of title for the site and provide written notice to
14    the Director of the Illinois Department of Revenue of the
15    assignor's intent to sell the remediation site and the
16    amount of the tax credit to be transferred as a portion of
17    the sale. In no event may a credit be transferred to any
18    taxpayer if the taxpayer or a related party would not be
19    eligible under the provisions of subsection (i).
20        (iii) For purposes of this Section, the term "site"
21    shall have the same meaning as under Section 58.2 of the
22    Environmental Protection Act.
23    (m) Education expense credit. Beginning with tax years
24ending after December 31, 1999, a taxpayer who is the custodian
25of one or more qualifying pupils shall be allowed a credit
26against the tax imposed by subsections (a) and (b) of this

 

 

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1Section for qualified education expenses incurred on behalf of
2the qualifying pupils. The credit shall be equal to 25% of
3qualified education expenses, but in no event may the total
4credit under this subsection claimed by a family that is the
5custodian of qualifying pupils exceed $500 for taxable years
6ending on or before December 31, 2013 and $1,000 for taxable
7years ending on or after January 1, 2014. In no event shall a
8credit under this subsection reduce the taxpayer's liability
9under this Act to less than zero. This subsection is exempt
10from the provisions of Section 250 of this Act.
11    For purposes of this subsection:
12    "Qualifying pupils" means individuals who (i) are
13residents of the State of Illinois, (ii) are under the age of
1421 at the close of the school year for which a credit is
15sought, and (iii) during the school year for which a credit is
16sought were full-time pupils enrolled in a kindergarten through
17twelfth grade education program at any school, as defined in
18this subsection.
19    "Qualified education expense" means the amount incurred on
20behalf of a qualifying pupil in excess of $250 for tuition,
21book fees, and lab fees at the school in which the pupil is
22enrolled during the regular school year.
23    "School" means any public or nonpublic elementary or
24secondary school in Illinois that is in compliance with Title
25VI of the Civil Rights Act of 1964 and attendance at which
26satisfies the requirements of Section 26-1 of the School Code,

 

 

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1except that nothing shall be construed to require a child to
2attend any particular public or nonpublic school to qualify for
3the credit under this Section.
4    "Custodian" means, with respect to qualifying pupils, an
5Illinois resident who is a parent, the parents, a legal
6guardian, or the legal guardians of the qualifying pupils.
7    (n) River Edge Redevelopment Zone site remediation tax
8credit.
9        (i) For tax years ending on or after December 31, 2006,
10    a taxpayer shall be allowed a credit against the tax
11    imposed by subsections (a) and (b) of this Section for
12    certain amounts paid for unreimbursed eligible remediation
13    costs, as specified in this subsection. For purposes of
14    this Section, "unreimbursed eligible remediation costs"
15    means costs approved by the Illinois Environmental
16    Protection Agency ("Agency") under Section 58.14a of the
17    Environmental Protection Act that were paid in performing
18    environmental remediation at a site within a River Edge
19    Redevelopment Zone for which a No Further Remediation
20    Letter was issued by the Agency and recorded under Section
21    58.10 of the Environmental Protection Act. The credit must
22    be claimed for the taxable year in which Agency approval of
23    the eligible remediation costs is granted. The credit is
24    not available to any taxpayer if the taxpayer or any
25    related party caused or contributed to, in any material
26    respect, a release of regulated substances on, in, or under

 

 

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1    the site that was identified and addressed by the remedial
2    action pursuant to the Site Remediation Program of the
3    Environmental Protection Act. Determinations as to credit
4    availability for purposes of this Section shall be made
5    consistent with rules adopted by the Pollution Control
6    Board pursuant to the Illinois Administrative Procedure
7    Act for the administration and enforcement of Section 58.9
8    of the Environmental Protection Act. For purposes of this
9    Section, "taxpayer" includes a person whose tax attributes
10    the taxpayer has succeeded to under Section 381 of the
11    Internal Revenue Code and "related party" includes the
12    persons disallowed a deduction for losses by paragraphs
13    (b), (c), and (f)(1) of Section 267 of the Internal Revenue
14    Code by virtue of being a related taxpayer, as well as any
15    of its partners. The credit allowed against the tax imposed
16    by subsections (a) and (b) shall be equal to 25% of the
17    unreimbursed eligible remediation costs in excess of
18    $100,000 per site.
19        (ii) A credit allowed under this subsection that is
20    unused in the year the credit is earned may be carried
21    forward to each of the 5 taxable years following the year
22    for which the credit is first earned until it is used. This
23    credit shall be applied first to the earliest year for
24    which there is a liability. If there is a credit under this
25    subsection from more than one tax year that is available to
26    offset a liability, the earliest credit arising under this

 

 

SB3449- 36 -LRB098 20255 HLH 55629 b

1    subsection shall be applied first. A credit allowed under
2    this subsection may be sold to a buyer as part of a sale of
3    all or part of the remediation site for which the credit
4    was granted. The purchaser of a remediation site and the
5    tax credit shall succeed to the unused credit and remaining
6    carry-forward period of the seller. To perfect the
7    transfer, the assignor shall record the transfer in the
8    chain of title for the site and provide written notice to
9    the Director of the Illinois Department of Revenue of the
10    assignor's intent to sell the remediation site and the
11    amount of the tax credit to be transferred as a portion of
12    the sale. In no event may a credit be transferred to any
13    taxpayer if the taxpayer or a related party would not be
14    eligible under the provisions of subsection (i).
15        (iii) For purposes of this Section, the term "site"
16    shall have the same meaning as under Section 58.2 of the
17    Environmental Protection Act.
18    (o) For each of taxable years during the Compassionate Use
19of Medical Cannabis Pilot Program, a surcharge is imposed on
20all taxpayers on income arising from the sale or exchange of
21capital assets, depreciable business property, real property
22used in the trade or business, and Section 197 intangibles of
23an organization registrant under the Compassionate Use of
24Medical Cannabis Pilot Program Act. The amount of the surcharge
25is equal to the amount of federal income tax liability for the
26taxable year attributable to those sales and exchanges. The

 

 

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1surcharge imposed does not apply if:
2        (1) the medical cannabis cultivation center
3    registration, medical cannabis dispensary registration, or
4    the property of a registration is transferred as a result
5    of any of the following:
6            (A) bankruptcy, a receivership, or a debt
7        adjustment initiated by or against the initial
8        registration or the substantial owners of the initial
9        registration;
10            (B) cancellation, revocation, or termination of
11        any registration by the Illinois Department of Public
12        Health;
13            (C) a determination by the Illinois Department of
14        Public Health that transfer of the registration is in
15        the best interests of Illinois qualifying patients as
16        defined by the Compassionate Use of Medical Cannabis
17        Pilot Program Act;
18            (D) the death of an owner of the equity interest in
19        a registrant;
20            (E) the acquisition of a controlling interest in
21        the stock or substantially all of the assets of a
22        publicly traded company;
23            (F) a transfer by a parent company to a wholly
24        owned subsidiary; or
25            (G) the transfer or sale to or by one person to
26        another person where both persons were initial owners

 

 

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1        of the registration when the registration was issued;
2        or
3        (2) the cannabis cultivation center registration,
4    medical cannabis dispensary registration, or the
5    controlling interest in a registrant's property is
6    transferred in a transaction to lineal descendants in which
7    no gain or loss is recognized or as a result of a
8    transaction in accordance with Section 351 of the Internal
9    Revenue Code in which no gain or loss is recognized.
10(Source: P.A. 97-2, eff. 5-6-11; 97-636, eff. 6-1-12; 97-905,
11eff. 8-7-12; 98-109, eff. 7-25-13; 98-122, eff. 1-1-14; revised
128-9-13.)
 
13    (35 ILCS 5/202.5)
14    Sec. 202.5. Net income attributable to the period beginning
15prior to January 1 of any year and ending after December 31 of
16the preceding year.
17    (a) In general. With respect to the taxable year of a
18taxpayer beginning prior to January 1 of any year and ending
19after December 31 of the preceding year, net income for the
20period after December 31 of the preceding year, is that amount
21that bears the same ratio to the taxpayer's net income for the
22entire taxable year as the number of days in that taxable year
23after December 31 bears to the total number of days in that
24taxable year, and the net income for the period prior to
25January 1 is that amount that bears the same ratio to the

 

 

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1taxpayer's net income for the entire taxable year as the number
2of days in that taxable year prior to January 1 bears to the
3total number of days in that taxable year.
4    (b) Election to attribute income and deduction items
5specifically to the respective portions of a taxable year prior
6to January 1 of any year and after December 31 of the preceding
7year. In the case of a taxpayer with a taxable year beginning
8prior to January 1 of any year and ending after December 31 of
9the preceding year, the taxpayer may elect, instead of the
10procedure established in subsection (a) of this Section, to
11determine net income on a specific accounting basis for the 2
12portions of the taxable year:
13        (1) from the beginning of the taxable year through
14    December 31; and
15        (2) from January 1 through the end of the taxable year.
16    The election provided by this subsection must be made in
17form and manner that the Department requires by rule, and must
18be made no later than the due date (including any extensions
19thereof) for the filing of the return for the taxable year, and
20is irrevocable.
21    (c) If the taxpayer elects specific accounting under
22subsection (b):
23        (1) there shall be taken into account in computing base
24    income for each of the 2 portions of the taxable year only
25    those items earned, received, paid, incurred or accrued in
26    each such period;

 

 

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1        (2) for purposes of apportioning business income of the
2    taxpayer, the provisions in Article 3 shall be applied on
3    the basis of the taxpayer's full taxable year, without
4    regard to this Section;
5        (3) the net loss carryforward deduction for the taxable
6    year under Section 207 may not exceed combined net income
7    of both portions of the taxable year, and shall be used
8    against the net income of the portion of the taxable year
9    from the beginning of the taxable year through December 31
10    before any remaining amount is used against the net income
11    of the latter portion of the taxable year.
12    (d) Under subsection (a) or (b):
13        (1) the exemptions and credits allowed under Sections
14    204, 208, and 212, respectively, for the period prior to
15    July 1, 2014, shall be equal to the total exemptions or
16    credits, as applicable, that would be allowed for the
17    taxable year under Sections 204, 208, and 212,
18    respectively, as in effect before the effective date of
19    this amendatory Act of the 98th General Assembly,
20    multiplied by the number of months in the portion of the
21    taxable year ending on or before June 30, 2014 and divided
22    by 12; and
23        (2) the exemptions and credits allowed under Sections
24    204, 208, and 212, respectively, for the period after June
25    30, 2014, through the end of the taxable year shall equal
26    to the total exemptions or credits, as applicable, allowed

 

 

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1    under Sections 204, 208, or 212, as applicable, for the
2    taxable year, multiplied by the number of months in the
3    taxable year for the period beginning on July 1, 2014 and
4    divided by 12.
5(Source: P.A. 96-1496, eff. 1-13-11.)
 
6    (35 ILCS 5/204)  (from Ch. 120, par. 2-204)
7    Sec. 204. Standard Exemption.
8    (a) Allowance of exemption. In computing net income under
9this Act, there shall be allowed as an exemption the sum of the
10amounts determined under subsections (b), (c) and (d),
11multiplied by a fraction the numerator of which is the amount
12of the taxpayer's base income allocable to this State for the
13taxable year and the denominator of which is the taxpayer's
14total base income for the taxable year.
15    (b) Basic amount. For the purpose of subsection (a) of this
16Section, except as provided by subsection (a) of Section 205
17and in this subsection, each taxpayer shall be allowed a basic
18amount of $1000, except that for corporations the basic amount
19shall be zero for tax years ending on or after December 31,
202003, and for individuals the basic amount shall be:
21        (1) for taxable years ending on or after December 31,
22    1998 and prior to December 31, 1999, $1,300;
23        (2) for taxable years ending on or after December 31,
24    1999 and prior to December 31, 2000, $1,650;
25        (3) for taxable years ending on or after December 31,

 

 

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1    2000 and prior to December 31, 2012, $2,000;
2        (4) for taxable years ending on or after December 31,
3    2012 and prior to December 31, 2013 and prior to July 1,
4    2014, $2,050;
5        (5) for taxable years ending after June 30, 2014 and
6    prior to December 31, 2015, $3,000, except that, for
7    taxable years beginning before July 1, 2014, and ending
8    after June 30, 2014, the exemption for the taxable year
9    shall be determined under subsection (d) of Section 202.5;
10    and for taxable years ending on or after December 31, 2013,
11    $2,050 plus the cost-of-living adjustment under subsection
12    (d-5).
13        (6) for taxable years ending on or after December 31,
14    2015, $3,000.
15For taxable years ending on or after December 31, 1992, a
16taxpayer whose Illinois base income exceeds the basic amount
17and who is claimed as a dependent on another person's tax
18return under the Internal Revenue Code shall not be allowed any
19basic amount under this subsection.
20    (c) Additional amount for individuals. In the case of an
21individual taxpayer, there shall be allowed for the purpose of
22subsection (a), in addition to the basic amount provided by
23subsection (b), an additional exemption equal to the basic
24amount for each exemption in excess of one allowable to such
25individual taxpayer for the taxable year under Section 151 of
26the Internal Revenue Code.

 

 

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1    (d) Additional exemptions for an individual taxpayer and
2his or her spouse. In the case of an individual taxpayer and
3his or her spouse, he or she shall each be allowed additional
4exemptions as follows:
5        (1) Additional exemption for taxpayer or spouse 65
6    years of age or older.
7            (A) For taxpayer. An additional exemption of
8        $1,000 for the taxpayer if he or she has attained the
9        age of 65 before the end of the taxable year.
10            (B) For spouse when a joint return is not filed. An
11        additional exemption of $1,000 for the spouse of the
12        taxpayer if a joint return is not made by the taxpayer
13        and his spouse, and if the spouse has attained the age
14        of 65 before the end of such taxable year, and, for the
15        calendar year in which the taxable year of the taxpayer
16        begins, has no gross income and is not the dependent of
17        another taxpayer.
18        (2) Additional exemption for blindness of taxpayer or
19    spouse.
20            (A) For taxpayer. An additional exemption of
21        $1,000 for the taxpayer if he or she is blind at the
22        end of the taxable year.
23            (B) For spouse when a joint return is not filed. An
24        additional exemption of $1,000 for the spouse of the
25        taxpayer if a separate return is made by the taxpayer,
26        and if the spouse is blind and, for the calendar year

 

 

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1        in which the taxable year of the taxpayer begins, has
2        no gross income and is not the dependent of another
3        taxpayer. For purposes of this paragraph, the
4        determination of whether the spouse is blind shall be
5        made as of the end of the taxable year of the taxpayer;
6        except that if the spouse dies during such taxable year
7        such determination shall be made as of the time of such
8        death.
9            (C) Blindness defined. For purposes of this
10        subsection, an individual is blind only if his or her
11        central visual acuity does not exceed 20/200 in the
12        better eye with correcting lenses, or if his or her
13        visual acuity is greater than 20/200 but is accompanied
14        by a limitation in the fields of vision such that the
15        widest diameter of the visual fields subtends an angle
16        no greater than 20 degrees.
17    (d-5) Cost-of-living adjustment. For purposes of item (5)
18of subsection (b), the cost-of-living adjustment for any
19calendar year and for taxable years ending prior to the end of
20the subsequent calendar year is equal to $2,050 times the
21percentage (if any) by which:
22        (1) the Consumer Price Index for the preceding calendar
23    year, exceeds
24        (2) the Consumer Price Index for the calendar year
25    2011.
26    The Consumer Price Index for any calendar year is the

 

 

SB3449- 45 -LRB098 20255 HLH 55629 b

1average of the Consumer Price Index as of the close of the
212-month period ending on August 31 of that calendar year.
3    The term "Consumer Price Index" means the last Consumer
4Price Index for All Urban Consumers published by the United
5States Department of Labor or any successor agency.
6    If any cost-of-living adjustment is not a multiple of $25,
7that adjustment shall be rounded to the next lowest multiple of
8$25.
9    (e) Cross reference. See Article 3 for the manner of
10determining base income allocable to this State.
11    (f) Application of Section 250. Section 250 does not apply
12to the amendments to this Section made by Public Act 90-613.
13(Source: P.A. 97-507, eff. 8-23-11; 97-652, eff. 6-1-12.)
 
14    (35 ILCS 5/208)  (from Ch. 120, par. 2-208)
15    Sec. 208. Tax credit for residential real property taxes.
16Beginning with tax years ending on or after December 31, 1991
17and prior to July 1, 2014, every individual taxpayer shall be
18entitled to a tax credit equal to 5% of real property taxes
19paid by such taxpayer during the taxable year on the principal
20residence of the taxpayer. In the case of multi-unit or
21multi-use structures and farm dwellings, the taxes on the
22taxpayer's principal residence shall be that portion of the
23total taxes which is attributable to such principal residence.
24    For tax years ending after June 30, 2014 and prior to
25December 31, 2015, every individual taxpayer shall be entitled

 

 

SB3449- 46 -LRB098 20255 HLH 55629 b

1to a tax credit equal to 10% of real property taxes paid by the
2taxpayer during the taxable year on the principal residence of
3the taxpayer; except that, for taxable years beginning before
4July 1, 2014, and ending after June 30, 2014, the credit for
5the taxable year shall be determined under subsection (d) of
6Section 202.5. In the case of multi-unit or multi-use
7structures, the taxes on the taxpayer's principal residence
8shall be that portion of the total taxes that is attributable
9to the principal residence.
10    For tax years ending on or after December 31, 2015, every
11individual taxpayer shall be entitled to a tax credit equal to
1210% of real property taxes paid by the taxpayer during the
13taxable year on the principal residence of the taxpayer. In the
14case of multi-unit or multi-use structures, the taxes on the
15taxpayer's principal residence shall be that portion of the
16total taxes that is attributable to the principal residence.
17    For tax years ending after June 30, 2014, the credit under
18this Section shall not exceed $1,500. For tax years thereafter,
19the $1,500 cap shall be increased by a percentage increase
20equal to the percentage increase, if any, in the Consumer Price
21Index for all Urban Consumers for the then most recently
22compiled calendar year.
23    For each taxable year ending on or after December 31, 2014,
24if the amount of the credit exceeds the income tax liability
25for the applicable tax year, then the excess credit shall be
26refunded to the taxpayer. The amount of a refund shall not be

 

 

SB3449- 47 -LRB098 20255 HLH 55629 b

1included in the taxpayer's income or resources for the purposes
2of determining eligibility or benefit level in any means-tested
3benefit program administered by a governmental entity unless
4required by federal law.
5(Source: P.A. 87-17.)
 
6    (35 ILCS 5/212)
7    Sec. 212. Earned income tax credit.
8    (a) With respect to the federal earned income tax credit
9allowed for the taxable year under Section 32 of the federal
10Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
11is entitled to a credit against the tax imposed by subsections
12(a) and (b) of Section 201 in an amount equal to (i) 5% of the
13federal tax credit for each taxable year beginning on or after
14January 1, 2000 and ending prior to December 31, 2012, (ii)
157.5% of the federal tax credit for each taxable year beginning
16on or after January 1, 2012 and ending prior to December 31,
172013, and (iii) 10% of the federal tax credit for each taxable
18year beginning on or after January 1, 2013 and beginning prior
19to January 1, 2014, and (v) 15% of the federal tax credit for
20each taxable year beginning on or after January 1, 2014.
21    For a non-resident or part-year resident, the amount of the
22credit under this Section shall be in proportion to the amount
23of income attributable to this State.
24    (b) For taxable years beginning before January 1, 2003, in
25no event shall a credit under this Section reduce the

 

 

SB3449- 48 -LRB098 20255 HLH 55629 b

1taxpayer's liability to less than zero. For each taxable year
2beginning on or after January 1, 2003, if the amount of the
3credit exceeds the income tax liability for the applicable tax
4year, then the excess credit shall be refunded to the taxpayer.
5The amount of a refund shall not be included in the taxpayer's
6income or resources for the purposes of determining eligibility
7or benefit level in any means-tested benefit program
8administered by a governmental entity unless required by
9federal law.
10    (c) This Section is exempt from the provisions of Section
11250.
12(Source: P.A. 97-652, eff. 6-1-12.)
 
13    (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
14    Sec. 901. Collection Authority.
15    (a) In general.
16    The Department shall collect the taxes imposed by this Act.
17The Department shall collect certified past due child support
18amounts under Section 2505-650 of the Department of Revenue Law
19(20 ILCS 2505/2505-650). Except as provided in subsections (c),
20(e), (f), and (g) of this Section, money collected pursuant to
21subsections (a) and (b) of Section 201 of this Act shall be
22paid into the General Revenue Fund in the State treasury; money
23collected pursuant to subsections (c) and (d) of Section 201 of
24this Act shall be paid into the Personal Property Tax
25Replacement Fund, a special fund in the State Treasury; and

 

 

SB3449- 49 -LRB098 20255 HLH 55629 b

1money collected under Section 2505-650 of the Department of
2Revenue Law (20 ILCS 2505/2505-650) shall be paid into the
3Child Support Enforcement Trust Fund, a special fund outside
4the State Treasury, or to the State Disbursement Unit
5established under Section 10-26 of the Illinois Public Aid
6Code, as directed by the Department of Healthcare and Family
7Services.
8    (b) Local Government Distributive Fund.
9    Beginning August 1, 1969, and continuing through June 30,
101994, the Treasurer shall transfer each month from the General
11Revenue Fund to a special fund in the State treasury, to be
12known as the "Local Government Distributive Fund", an amount
13equal to 1/12 of the net revenue realized from the tax imposed
14by subsections (a) and (b) of Section 201 of this Act during
15the preceding month. Beginning July 1, 1994, and continuing
16through June 30, 1995, the Treasurer shall transfer each month
17from the General Revenue Fund to the Local Government
18Distributive Fund an amount equal to 1/11 of the net revenue
19realized from the tax imposed by subsections (a) and (b) of
20Section 201 of this Act during the preceding month. Beginning
21July 1, 1995 and continuing through January 31, 2011, the
22Treasurer shall transfer each month from the General Revenue
23Fund to the Local Government Distributive Fund an amount equal
24to the net of (i) 1/10 of the net revenue realized from the tax
25imposed by subsections (a) and (b) of Section 201 of the
26Illinois Income Tax Act during the preceding month (ii) minus,

 

 

SB3449- 50 -LRB098 20255 HLH 55629 b

1beginning July 1, 2003 and ending June 30, 2004, $6,666,666,
2and beginning July 1, 2004, zero. Beginning February 1, 2011,
3and continuing through January 31, 2015, the Treasurer shall
4transfer each month from the General Revenue Fund to the Local
5Government Distributive Fund an amount equal to the sum of (i)
66% (10% of the ratio of the 3% individual income tax rate prior
7to 2011 to the 5% individual income tax rate after 2010) of the
8net revenue realized from the tax imposed by subsections (a)
9and (b) of Section 201 of this Act upon individuals, trusts,
10and estates during the preceding month and (ii) 6.86% (10% of
11the ratio of the 4.8% corporate income tax rate prior to 2011
12to the 7% corporate income tax rate after 2010) of the net
13revenue realized from the tax imposed by subsections (a) and
14(b) of Section 201 of this Act upon corporations during the
15preceding month. Beginning February 1, 2015 and continuing
16through January 31, 2025, the Treasurer shall transfer each
17month from the General Revenue Fund to the Local Government
18Distributive Fund an amount equal to the sum of (i) 8% (10% of
19the ratio of the 3% individual income tax rate prior to 2011 to
20the 3.75% individual income tax rate after 2014) of the net
21revenue realized from the tax imposed by subsections (a) and
22(b) of Section 201 of this Act upon individuals, trusts, and
23estates during the preceding month and (ii) 9.14% (10% of the
24ratio of the 4.8% corporate income tax rate prior to 2011 to
25the 5.25% corporate income tax rate after 2014) of the net
26revenue realized from the tax imposed by subsections (a) and

 

 

SB3449- 51 -LRB098 20255 HLH 55629 b

1(b) of Section 201 of this Act upon corporations during the
2preceding month. Beginning February 1, 2025, the Treasurer
3shall transfer each month from the General Revenue Fund to the
4Local Government Distributive Fund an amount equal to the sum
5of (i) 9.23% (10% of the ratio of the 3% individual income tax
6rate prior to 2011 to the 3.25% individual income tax rate
7after 2024) of the net revenue realized from the tax imposed by
8subsections (a) and (b) of Section 201 of this Act upon
9individuals, trusts, and estates during the preceding month and
10(ii) 10% of the net revenue realized from the tax imposed by
11subsections (a) and (b) of Section 201 of this Act upon
12corporations during the preceding month. Notwithstanding any
13other provision of law, beginning on August 1, 2014 and ending
14on August 1, 2015, each monthly transfer to the Local
15Government Distributive Fund shall be reduced by $20,800,000;
16that amount shall instead by transferred to the Common School
17Fund. Net revenue realized for a month shall be defined as the
18revenue from the tax imposed by subsections (a) and (b) of
19Section 201 of this Act which is deposited in the General
20Revenue Fund, the Education Assistance Fund, the Income Tax
21Surcharge Local Government Distributive Fund, the Fund for the
22Advancement of Education, and the Commitment to Human Services
23Fund during the month minus the amount paid out of the General
24Revenue Fund in State warrants during that same month as
25refunds to taxpayers for overpayment of liability under the tax
26imposed by subsections (a) and (b) of Section 201 of this Act.

 

 

SB3449- 52 -LRB098 20255 HLH 55629 b

1    (c) Deposits Into Income Tax Refund Fund.
2        (1) Beginning on January 1, 1989 and thereafter, the
3    Department shall deposit a percentage of the amounts
4    collected pursuant to subsections (a) and (b)(1), (2), and
5    (3), of Section 201 of this Act into a fund in the State
6    treasury known as the Income Tax Refund Fund. The
7    Department shall deposit 6% of such amounts during the
8    period beginning January 1, 1989 and ending on June 30,
9    1989. Beginning with State fiscal year 1990 and for each
10    fiscal year thereafter, the percentage deposited into the
11    Income Tax Refund Fund during a fiscal year shall be the
12    Annual Percentage. For fiscal years 1999 through 2001, the
13    Annual Percentage shall be 7.1%. For fiscal year 2003, the
14    Annual Percentage shall be 8%. For fiscal year 2004, the
15    Annual Percentage shall be 11.7%. Upon the effective date
16    of this amendatory Act of the 93rd General Assembly, the
17    Annual Percentage shall be 10% for fiscal year 2005. For
18    fiscal year 2006, the Annual Percentage shall be 9.75%. For
19    fiscal year 2007, the Annual Percentage shall be 9.75%. For
20    fiscal year 2008, the Annual Percentage shall be 7.75%. For
21    fiscal year 2009, the Annual Percentage shall be 9.75%. For
22    fiscal year 2010, the Annual Percentage shall be 9.75%. For
23    fiscal year 2011, the Annual Percentage shall be 8.75%. For
24    fiscal year 2012, the Annual Percentage shall be 8.75%. For
25    fiscal year 2013, the Annual Percentage shall be 9.75%. For
26    fiscal year 2014, the Annual Percentage shall be 9.5%. For

 

 

SB3449- 53 -LRB098 20255 HLH 55629 b

1    all other fiscal years, the Annual Percentage shall be
2    calculated as a fraction, the numerator of which shall be
3    the amount of refunds approved for payment by the
4    Department during the preceding fiscal year as a result of
5    overpayment of tax liability under subsections (a) and
6    (b)(1), (2), and (3) of Section 201 of this Act plus the
7    amount of such refunds remaining approved but unpaid at the
8    end of the preceding fiscal year, minus the amounts
9    transferred into the Income Tax Refund Fund from the
10    Tobacco Settlement Recovery Fund, and the denominator of
11    which shall be the amounts which will be collected pursuant
12    to subsections (a) and (b)(1), (2), and (3) of Section 201
13    of this Act during the preceding fiscal year; except that
14    in State fiscal year 2002, the Annual Percentage shall in
15    no event exceed 7.6%. The Director of Revenue shall certify
16    the Annual Percentage to the Comptroller on the last
17    business day of the fiscal year immediately preceding the
18    fiscal year for which it is to be effective.
19        (2) Beginning on January 1, 1989 and thereafter, the
20    Department shall deposit a percentage of the amounts
21    collected pursuant to subsections (a) and (b)(6), (7), and
22    (8), (c) and (d) of Section 201 of this Act into a fund in
23    the State treasury known as the Income Tax Refund Fund. The
24    Department shall deposit 18% of such amounts during the
25    period beginning January 1, 1989 and ending on June 30,
26    1989. Beginning with State fiscal year 1990 and for each

 

 

SB3449- 54 -LRB098 20255 HLH 55629 b

1    fiscal year thereafter, the percentage deposited into the
2    Income Tax Refund Fund during a fiscal year shall be the
3    Annual Percentage. For fiscal years 1999, 2000, and 2001,
4    the Annual Percentage shall be 19%. For fiscal year 2003,
5    the Annual Percentage shall be 27%. For fiscal year 2004,
6    the Annual Percentage shall be 32%. Upon the effective date
7    of this amendatory Act of the 93rd General Assembly, the
8    Annual Percentage shall be 24% for fiscal year 2005. For
9    fiscal year 2006, the Annual Percentage shall be 20%. For
10    fiscal year 2007, the Annual Percentage shall be 17.5%. For
11    fiscal year 2008, the Annual Percentage shall be 15.5%. For
12    fiscal year 2009, the Annual Percentage shall be 17.5%. For
13    fiscal year 2010, the Annual Percentage shall be 17.5%. For
14    fiscal year 2011, the Annual Percentage shall be 17.5%. For
15    fiscal year 2012, the Annual Percentage shall be 17.5%. For
16    fiscal year 2013, the Annual Percentage shall be 14%. For
17    fiscal year 2014, the Annual Percentage shall be 13.4%. For
18    all other fiscal years, the Annual Percentage shall be
19    calculated as a fraction, the numerator of which shall be
20    the amount of refunds approved for payment by the
21    Department during the preceding fiscal year as a result of
22    overpayment of tax liability under subsections (a) and
23    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
24    Act plus the amount of such refunds remaining approved but
25    unpaid at the end of the preceding fiscal year, and the
26    denominator of which shall be the amounts which will be

 

 

SB3449- 55 -LRB098 20255 HLH 55629 b

1    collected pursuant to subsections (a) and (b)(6), (7), and
2    (8), (c) and (d) of Section 201 of this Act during the
3    preceding fiscal year; except that in State fiscal year
4    2002, the Annual Percentage shall in no event exceed 23%.
5    The Director of Revenue shall certify the Annual Percentage
6    to the Comptroller on the last business day of the fiscal
7    year immediately preceding the fiscal year for which it is
8    to be effective.
9        (3) The Comptroller shall order transferred and the
10    Treasurer shall transfer from the Tobacco Settlement
11    Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
12    in January, 2001, (ii) $35,000,000 in January, 2002, and
13    (iii) $35,000,000 in January, 2003.
14    (d) Expenditures from Income Tax Refund Fund.
15        (1) Beginning January 1, 1989, money in the Income Tax
16    Refund Fund shall be expended exclusively for the purpose
17    of paying refunds resulting from overpayment of tax
18    liability under Section 201 of this Act, for paying rebates
19    under Section 208.1 in the event that the amounts in the
20    Homeowners' Tax Relief Fund are insufficient for that
21    purpose, and for making transfers pursuant to this
22    subsection (d).
23        (2) The Director shall order payment of refunds
24    resulting from overpayment of tax liability under Section
25    201 of this Act from the Income Tax Refund Fund only to the
26    extent that amounts collected pursuant to Section 201 of

 

 

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1    this Act and transfers pursuant to this subsection (d) and
2    item (3) of subsection (c) have been deposited and retained
3    in the Fund.
4        (3) As soon as possible after the end of each fiscal
5    year, the Director shall order transferred and the State
6    Treasurer and State Comptroller shall transfer from the
7    Income Tax Refund Fund to the Personal Property Tax
8    Replacement Fund an amount, certified by the Director to
9    the Comptroller, equal to the excess of the amount
10    collected pursuant to subsections (c) and (d) of Section
11    201 of this Act deposited into the Income Tax Refund Fund
12    during the fiscal year over the amount of refunds resulting
13    from overpayment of tax liability under subsections (c) and
14    (d) of Section 201 of this Act paid from the Income Tax
15    Refund Fund during the fiscal year.
16        (4) As soon as possible after the end of each fiscal
17    year, the Director shall order transferred and the State
18    Treasurer and State Comptroller shall transfer from the
19    Personal Property Tax Replacement Fund to the Income Tax
20    Refund Fund an amount, certified by the Director to the
21    Comptroller, equal to the excess of the amount of refunds
22    resulting from overpayment of tax liability under
23    subsections (c) and (d) of Section 201 of this Act paid
24    from the Income Tax Refund Fund during the fiscal year over
25    the amount collected pursuant to subsections (c) and (d) of
26    Section 201 of this Act deposited into the Income Tax

 

 

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1    Refund Fund during the fiscal year.
2        (4.5) As soon as possible after the end of fiscal year
3    1999 and of each fiscal year thereafter, the Director shall
4    order transferred and the State Treasurer and State
5    Comptroller shall transfer from the Income Tax Refund Fund
6    to the General Revenue Fund any surplus remaining in the
7    Income Tax Refund Fund as of the end of such fiscal year;
8    excluding for fiscal years 2000, 2001, and 2002 amounts
9    attributable to transfers under item (3) of subsection (c)
10    less refunds resulting from the earned income tax credit.
11        (5) This Act shall constitute an irrevocable and
12    continuing appropriation from the Income Tax Refund Fund
13    for the purpose of paying refunds upon the order of the
14    Director in accordance with the provisions of this Section.
15    (e) Deposits into the Education Assistance Fund and the
16Income Tax Surcharge Local Government Distributive Fund.
17    On July 1, 1991, and thereafter, of the amounts collected
18pursuant to subsections (a) and (b) of Section 201 of this Act,
19minus deposits into the Income Tax Refund Fund, the Department
20shall deposit 7.3% into the Education Assistance Fund in the
21State Treasury. Beginning July 1, 1991, and continuing through
22January 31, 1993, of the amounts collected pursuant to
23subsections (a) and (b) of Section 201 of the Illinois Income
24Tax Act, minus deposits into the Income Tax Refund Fund, the
25Department shall deposit 3.0% into the Income Tax Surcharge
26Local Government Distributive Fund in the State Treasury.

 

 

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1Beginning February 1, 1993 and continuing through June 30,
21993, of the amounts collected pursuant to subsections (a) and
3(b) of Section 201 of the Illinois Income Tax Act, minus
4deposits into the Income Tax Refund Fund, the Department shall
5deposit 4.4% into the Income Tax Surcharge Local Government
6Distributive Fund in the State Treasury. Beginning July 1,
71993, and continuing through June 30, 1994, of the amounts
8collected under subsections (a) and (b) of Section 201 of this
9Act, minus deposits into the Income Tax Refund Fund, the
10Department shall deposit 1.475% into the Income Tax Surcharge
11Local Government Distributive Fund in the State Treasury.
12    (f) Deposits into the Fund for the Advancement of
13Education. Beginning February 1, 2015, the Department shall
14deposit the following portions of the revenue realized from the
15tax imposed upon individuals, trusts, and estates by
16subsections (a) and (b) of Section 201 of this Act during the
17preceding month, minus deposits into the Income Tax Refund
18Fund, into the Fund for the Advancement of Education:
19        (1) beginning February 1, 2015, and prior to February
20    1, 2025, 1/30; and
21        (2) beginning February 1, 2025, 1/26.
22    If the rate of tax imposed by subsection (a) and (b) of
23Section 201 is reduced pursuant to Section 201.5 of this Act,
24the Department shall not make the deposits required by this
25subsection (f) on or after the effective date of the reduction.
26    (g) Deposits into the Commitment to Human Services Fund.

 

 

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1Beginning February 1, 2015, the Department shall deposit the
2following portions of the revenue realized from the tax imposed
3upon individuals, trusts, and estates by subsections (a) and
4(b) of Section 201 of this Act during the preceding month,
5minus deposits into the Income Tax Refund Fund, into the
6Commitment to Human Services Fund:
7        (1) beginning February 1, 2015, and prior to February
8    1, 2025, 1/30; and
9        (2) beginning February 1, 2025, 1/26.
10    If the rate of tax imposed by subsection (a) and (b) of
11Section 201 is reduced pursuant to Section 201.5 of this Act,
12the Department shall not make the deposits required by this
13subsection (g) on or after the effective date of the reduction.
14(Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24,
15eff. 6-19-13.)
 
16    Section 20. The Retailers' Occupation Tax Act is amended by
17changing Sections 1 and 2 as follows:
 
18    (35 ILCS 120/1)  (from Ch. 120, par. 440)
19    Sec. 1. Definitions. "Sale at retail" means any transfer of
20the ownership of or title to tangible personal property to a
21purchaser, for the purpose of use or consumption, and not for
22the purpose of resale in any form as tangible personal property
23to the extent not first subjected to a use for which it was
24purchased, for a valuable consideration: Provided that the

 

 

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1property purchased is deemed to be purchased for the purpose of
2resale, despite first being used, to the extent to which it is
3resold as an ingredient of an intentionally produced product or
4byproduct of manufacturing. For this purpose, slag produced as
5an incident to manufacturing pig iron or steel and sold is
6considered to be an intentionally produced byproduct of
7manufacturing. Transactions whereby the possession of the
8property is transferred but the seller retains the title as
9security for payment of the selling price shall be deemed to be
10sales.
11    "Sale at retail" shall be construed to include any transfer
12of the ownership of or title to tangible personal property to a
13purchaser, for use or consumption by any other person to whom
14such purchaser may transfer the tangible personal property
15without a valuable consideration, and to include any transfer,
16whether made for or without a valuable consideration, for
17resale in any form as tangible personal property unless made in
18compliance with Section 2c of this Act.
19    Sales of tangible personal property, which property, to the
20extent not first subjected to a use for which it was purchased,
21as an ingredient or constituent, goes into and forms a part of
22tangible personal property subsequently the subject of a "Sale
23at retail", are not sales at retail as defined in this Act:
24Provided that the property purchased is deemed to be purchased
25for the purpose of resale, despite first being used, to the
26extent to which it is resold as an ingredient of an

 

 

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1intentionally produced product or byproduct of manufacturing.
2    "Sale at retail" includes all of the following services, as
3enumerated in the North American Industry Classification
4System Manual (NAICS), 2012, prepared by the United States
5Office of Management and Budget:
6        (1) Other warehousing and storage (household and
7    specialty goods) (493190).
8        (2) Travel agent services (561510).
9        (3) Carpet and upholstery cleaning services (561740).
10        (4) Dating services (812990).
11        (5) Dry cleaning and laundry, except coin-operated
12    (81232).
13        (6) Consumer goods rental (5322).
14        (7) Health clubs, tanning parlors, reducing salons
15    (812191).
16        (8) Linen supply (812331).
17        (9) Interior design services (541410).
18        (10) Other business services, including copy shops
19    (561439).
20        (11) Bowling Centers (713950).
21        (12) Coin operated video games and pinball machines
22    (713120).
23        (13) Membership fees in private clubs (713910).
24        (14) Admission to spectator sports (excluding horse
25    tracks) (711211).
26        (15) Admission to cultural events (711110).

 

 

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1        (16) Billiard Parlors (71399).
2        (17) Scenic and sightseeing transportation (487110).
3        (18) Taxi and Limousine services (485320).
4        (19) Unscheduled chartered passenger air
5    transportation (481211).
6        (20) Motion picture theaters, except drive-in theaters
7    (512131).
8        (21) Pet grooming (812910).
9        (22) Landscaping services (including lawn care)
10    (561730).
11        (23) Income from intrastate transportation of persons
12    (485).
13        (24) Mini-storage (531130).
14        (25) Household goods storage (493110).
15        (26) Cold storage (493120).
16        (27) Marina Service (docking, storage, cleaning,
17    repair) (713930).
18        (28) Marine towing service (including tugboats)
19    (488330).
20        (29) Gift and package wrapping service (561916).
21        (30) Laundry and dry cleaning services, coin-operated
22    (812310).
23        (31) Other services to buildings and dwellings
24    (561790).
25        (32) Water softening and conditioning (561990).
26        (33) Internet Service Providers (517).

 

 

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1        (34) Short term auto rental (532111).
2        (35) Information Services (519190).
3        (36) Amusement park admission and rides (713110).
4        (37) Circuses and fairs -- admission and games (7113).
5        (38) Cable and other program distribution (515210).
6        (39) Rental of video tapes for home viewing (532230).
7    "Sale at retail" shall be construed to include any Illinois
8florist's sales transaction in which the purchase order is
9received in Illinois by a florist and the sale is for use or
10consumption, but the Illinois florist has a florist in another
11state deliver the property to the purchaser or the purchaser's
12donee in such other state.
13    Nonreusable tangible personal property that is used by
14persons engaged in the business of operating a restaurant,
15cafeteria, or drive-in is a sale for resale when it is
16transferred to customers in the ordinary course of business as
17part of the sale of food or beverages and is used to deliver,
18package, or consume food or beverages, regardless of where
19consumption of the food or beverages occurs. Examples of those
20items include, but are not limited to nonreusable, paper and
21plastic cups, plates, baskets, boxes, sleeves, buckets or other
22containers, utensils, straws, placemats, napkins, doggie bags,
23and wrapping or packaging materials that are transferred to
24customers as part of the sale of food or beverages in the
25ordinary course of business.
26    The purchase, employment and transfer of such tangible

 

 

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1personal property as newsprint and ink for the primary purpose
2of conveying news (with or without other information) is not a
3purchase, use or sale of tangible personal property.
4    A person whose activities are organized and conducted
5primarily as a not-for-profit service enterprise, and who
6engages in selling tangible personal property at retail
7(whether to the public or merely to members and their guests)
8is engaged in the business of selling tangible personal
9property at retail with respect to such transactions, excepting
10only a person organized and operated exclusively for
11charitable, religious or educational purposes either (1), to
12the extent of sales by such person to its members, students,
13patients or inmates of tangible personal property to be used
14primarily for the purposes of such person, or (2), to the
15extent of sales by such person of tangible personal property
16which is not sold or offered for sale by persons organized for
17profit. The selling of school books and school supplies by
18schools at retail to students is not "primarily for the
19purposes of" the school which does such selling. The provisions
20of this paragraph shall not apply to nor subject to taxation
21occasional dinners, socials or similar activities of a person
22organized and operated exclusively for charitable, religious
23or educational purposes, whether or not such activities are
24open to the public.
25    A person who is the recipient of a grant or contract under
26Title VII of the Older Americans Act of 1965 (P.L. 92-258) and

 

 

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1serves meals to participants in the federal Nutrition Program
2for the Elderly in return for contributions established in
3amount by the individual participant pursuant to a schedule of
4suggested fees as provided for in the federal Act is not
5engaged in the business of selling tangible personal property
6at retail with respect to such transactions.
7    "Purchaser" means anyone who, through a sale at retail,
8acquires the ownership of or title to tangible personal
9property for a valuable consideration.
10    "Reseller of motor fuel" means any person engaged in the
11business of selling or delivering or transferring title of
12motor fuel to another person other than for use or consumption.
13No person shall act as a reseller of motor fuel within this
14State without first being registered as a reseller pursuant to
15Section 2c or a retailer pursuant to Section 2a.
16    "Selling price" or the "amount of sale" means the
17consideration for a sale valued in money whether received in
18money or otherwise, including cash, credits, property, other
19than as hereinafter provided, and services, but not including
20the value of or credit given for traded-in tangible personal
21property where the item that is traded-in is of like kind and
22character as that which is being sold, and shall be determined
23without any deduction on account of the cost of the property
24sold, the cost of materials used, labor or service cost or any
25other expense whatsoever, but does not include charges that are
26added to prices by sellers on account of the seller's tax

 

 

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1liability under this Act, or on account of the seller's duty to
2collect, from the purchaser, the tax that is imposed by the Use
3Tax Act, or, except as otherwise provided with respect to any
4cigarette tax imposed by a home rule unit, on account of the
5seller's tax liability under any local occupation tax
6administered by the Department, or, except as otherwise
7provided with respect to any cigarette tax imposed by a home
8rule unit on account of the seller's duty to collect, from the
9purchasers, the tax that is imposed under any local use tax
10administered by the Department. Effective December 1, 1985,
11"selling price" shall include charges that are added to prices
12by sellers on account of the seller's tax liability under the
13Cigarette Tax Act, on account of the sellers' duty to collect,
14from the purchaser, the tax imposed under the Cigarette Use Tax
15Act, and on account of the seller's duty to collect, from the
16purchaser, any cigarette tax imposed by a home rule unit.
17    The phrase "like kind and character" shall be liberally
18construed (including but not limited to any form of motor
19vehicle for any form of motor vehicle, or any kind of farm or
20agricultural implement for any other kind of farm or
21agricultural implement), while not including a kind of item
22which, if sold at retail by that retailer, would be exempt from
23retailers' occupation tax and use tax as an isolated or
24occasional sale.
25    "Gross receipts" from the sales of tangible personal
26property at retail means the total selling price or the amount

 

 

SB3449- 67 -LRB098 20255 HLH 55629 b

1of such sales, as hereinbefore defined. In the case of charge
2and time sales, the amount thereof shall be included only as
3and when payments are received by the seller. Receipts or other
4consideration derived by a seller from the sale, transfer or
5assignment of accounts receivable to a wholly owned subsidiary
6will not be deemed payments prior to the time the purchaser
7makes payment on such accounts.
8    "Department" means the Department of Revenue.
9    "Person" means any natural individual, firm, partnership,
10association, joint stock company, joint adventure, public or
11private corporation, limited liability company, or a receiver,
12executor, trustee, guardian or other representative appointed
13by order of any court.
14    The isolated or occasional sale of tangible personal
15property at retail by a person who does not hold himself out as
16being engaged (or who does not habitually engage) in selling
17such tangible personal property at retail, or a sale through a
18bulk vending machine, does not constitute engaging in a
19business of selling such tangible personal property at retail
20within the meaning of this Act; provided that any person who is
21engaged in a business which is not subject to the tax imposed
22by this Act because of involving the sale of or a contract to
23sell real estate or a construction contract to improve real
24estate or a construction contract to engineer, install, and
25maintain an integrated system of products, but who, in the
26course of conducting such business, transfers tangible

 

 

SB3449- 68 -LRB098 20255 HLH 55629 b

1personal property to users or consumers in the finished form in
2which it was purchased, and which does not become real estate
3or was not engineered and installed, under any provision of a
4construction contract or real estate sale or real estate sales
5agreement entered into with some other person arising out of or
6because of such nontaxable business, is engaged in the business
7of selling tangible personal property at retail to the extent
8of the value of the tangible personal property so transferred.
9If, in such a transaction, a separate charge is made for the
10tangible personal property so transferred, the value of such
11property, for the purpose of this Act, shall be the amount so
12separately charged, but not less than the cost of such property
13to the transferor; if no separate charge is made, the value of
14such property, for the purposes of this Act, is the cost to the
15transferor of such tangible personal property. Construction
16contracts for the improvement of real estate consisting of
17engineering, installation, and maintenance of voice, data,
18video, security, and all telecommunication systems do not
19constitute engaging in a business of selling tangible personal
20property at retail within the meaning of this Act if they are
21sold at one specified contract price.
22    A person who holds himself or herself out as being engaged
23(or who habitually engages) in selling tangible personal
24property at retail is a person engaged in the business of
25selling tangible personal property at retail hereunder with
26respect to such sales (and not primarily in a service

 

 

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1occupation) notwithstanding the fact that such person designs
2and produces such tangible personal property on special order
3for the purchaser and in such a way as to render the property
4of value only to such purchaser, if such tangible personal
5property so produced on special order serves substantially the
6same function as stock or standard items of tangible personal
7property that are sold at retail.
8    Persons who engage in the business of transferring tangible
9personal property upon the redemption of trading stamps are
10engaged in the business of selling such property at retail and
11shall be liable for and shall pay the tax imposed by this Act
12on the basis of the retail value of the property transferred
13upon redemption of such stamps.
14    "Bulk vending machine" means a vending machine, containing
15unsorted confections, nuts, toys, or other items designed
16primarily to be used or played with by children which, when a
17coin or coins of a denomination not larger than $0.50 are
18inserted, are dispensed in equal portions, at random and
19without selection by the customer.
20(Source: P.A. 95-723, eff. 6-23-08.)
 
21    (35 ILCS 120/2)  (from Ch. 120, par. 441)
22    Sec. 2. Tax imposed. A tax is imposed upon persons engaged
23in the business of selling at retail tangible personal
24property, including computer software, and including
25photographs, negatives, and positives that are the product of

 

 

SB3449- 70 -LRB098 20255 HLH 55629 b

1photoprocessing, but not including products of photoprocessing
2produced for use in motion pictures for public commercial
3exhibition, or engaged in the business of providing services as
4set forth in in Section 1 of this Act. Beginning January 1,
52001, prepaid telephone calling arrangements shall be
6considered tangible personal property subject to the tax
7imposed under this Act regardless of the form in which those
8arrangements may be embodied, transmitted, or fixed by any
9method now known or hereafter developed. Sales of (1)
10electricity delivered to customers by wire; (2) natural or
11artificial gas that is delivered to customers through pipes,
12pipelines, or mains; and (3) water that is delivered to
13customers through pipes, pipelines, or mains are not subject to
14tax under this Act. The provisions of this amendatory Act of
15the 98th General Assembly are declaratory of existing law as to
16the meaning and scope of this Act.
17(Source: P.A. 98-583, eff. 1-1-14.)
 
18    Section 25. The School Code is amended by changing Sections
191C-2, 2-3.25c, 2-3.25d, 3-7, 10-17a, 10-22.45, 18-8.05, 19-3,
2021A-5, 21A-10, 21A-15, 21A-20, 21A-25, 21A-30, 23-3, 23-6, and
2129-5 and by adding Sections 2-3.25d-5, 2-3.160, 2-3.161,
222-3.162, 2-3.163, 2-3.164, 10-16.10, 10-17b, 10-17c, 10-17d,
2310-20.56, 17-2.11d, 21A-3, and 23-5.5 as follows:
 
24    (105 ILCS 5/1C-2)

 

 

SB3449- 71 -LRB098 20255 HLH 55629 b

1    Sec. 1C-2. Block grants.
2    (a) For fiscal year 1999, and each fiscal year thereafter,
3the State Board of Education shall award to school districts
4block grants as described in subsection (c). The State Board of
5Education may adopt rules and regulations necessary to
6implement this Section. In accordance with Section 2-3.32, all
7state block grants are subject to an audit. Therefore, block
8grant receipts and block grant expenditures shall be recorded
9to the appropriate fund code.
10    (b) (Blank).
11    (c) An Early Childhood Education Block Grant shall be
12created by combining the following programs: Preschool
13Education, Parental Training and Prevention Initiative. These
14funds shall be distributed to school districts and other
15entities on a competitive basis. Not less than 11% of this
16grant shall be used to fund programs for children ages 0-3,
17which percentage shall increase to at least 20% by Fiscal Year
182015. However, if, in a given fiscal year, the amount
19appropriated for the Early Childhood Education Block Grant is
20insufficient to increase the percentage of the grant to fund
21programs for children ages 0-3 without reducing the amount of
22the grant for existing providers of preschool education
23programs, then the percentage of the grant to fund programs for
24children ages 0-3 may be held steady instead of increased.
25    (d) For fiscal year 2015, the General Assembly shall
26appropriate no less than $380,261,400 to the Early Childhood

 

 

SB3449- 72 -LRB098 20255 HLH 55629 b

1Education Block Grant for the programs specified in subsection
2(c) of this Section.
3(Source: P.A. 95-793, eff. 1-1-09; 96-423, eff. 8-13-09.)
 
4    (105 ILCS 5/2-3.25c)  (from Ch. 122, par. 2-3.25c)
5    Sec. 2-3.25c. Financial and other awards Rewards and
6acknowledgements.
7    (a) The State Board of Education shall implement a system
8of rewards for school districts, and the schools themselves,
9whose students and schools consistently meet adequate yearly
10progress criteria for 2 or more consecutive years and a system
11to acknowledge schools and districts that meet adequate yearly
12progress criteria in a given year as specified in Section
132-3.25d of this Code.
14    (b) Financial awards shall be provided to the schools that
15the State Superintendent of Education determines have
16demonstrated the greatest improvement in achieving the
17education goals of improved student achievement and improved
18school completion, subject to appropriation by the General
19Assembly and any limitation set by the State Superintendent on
20the total amount that may be awarded to a school or school
21district; provided that such financial awards must not be used
22to enhance the compensation of staff in school districts having
23a population not exceeding 500,000.
24    (c) The State Superintendent of Education may present
25proclamations or certificates to schools and school systems

 

 

SB3449- 73 -LRB098 20255 HLH 55629 b

1determined to have met or exceeded the State's education goals
2under Section 2-3.64 of this Code.
3    (d) The Education Financial Award System Fund is created as
4a special fund in the State treasury. All money in the Fund
5shall be used, subject to appropriation, by the State Board of
6Education for the purpose of funding financial awards under
7this Section. The Fund shall consist of all moneys appropriated
8to the fund by the General Assembly and any gifts, grants,
9donations, and other moneys received by the State Board of
10Education for implementation of the awards system.
11    Any unexpended or unencumbered moneys remaining in the
12Education Financial Award System Fund at the end of a fiscal
13year shall remain in the Fund and shall not revert or be
14credited or transferred to the General Revenue Fund nor be
15transferred to any other fund. Any interest derived from the
16deposit and investment of moneys in the Education Financial
17Award System Fund shall remain in the Fund and shall not be
18credited to the General Revenue Fund. The Education Financial
19Award System Fund must be appropriated and expended only for
20the awards system. The awards are subject to audit requirements
21established by the State Board of Education.
22    (e) If a school or school district meets adequate yearly
23progress criteria for 2 consecutive school years, that school
24or district shall be exempt from review and approval of its
25improvement plan for the next 2 succeeding school years.
26(Source: P.A. 93-470, eff. 8-8-03.)
 

 

 

SB3449- 74 -LRB098 20255 HLH 55629 b

1    (105 ILCS 5/2-3.25d)  (from Ch. 122, par. 2-3.25d)
2    Sec. 2-3.25d. Academic early warning and watch status.
3    (a) Beginning with the 2005-2006 school year, unless the
4federal government formally disapproves of such policy through
5the submission and review process for the Illinois
6Accountability Workbook, those schools that do not meet
7adequate yearly progress criteria for 2 consecutive annual
8calculations in the same subject or in their participation
9rate, attendance rate, or graduation rate shall be placed on
10academic early warning status for the next school year. Schools
11on academic early warning status that do not meet adequate
12yearly progress criteria for a third annual calculation in the
13same subject or in their participation rate, attendance rate,
14or graduation rate shall remain on academic early warning
15status. Schools on academic early warning status that do not
16meet adequate yearly progress criteria for a fourth annual
17calculation in the same subject or in their participation rate,
18attendance rate, or graduation rate shall be placed on initial
19academic watch status. Schools on academic watch status that do
20not meet adequate yearly progress criteria for a fifth or
21subsequent annual calculation in the same subject or in their
22participation rate, attendance rate, or graduation rate shall
23remain on academic watch status. Schools on academic early
24warning or academic watch status that meet adequate yearly
25progress criteria for 2 consecutive calculations shall be

 

 

SB3449- 75 -LRB098 20255 HLH 55629 b

1considered as having met expectations and shall be removed from
2any status designation.
3    The school district of a school placed on either academic
4early warning status or academic watch status may appeal the
5status to the State Board of Education in accordance with
6Section 2-3.25m of this Code.
7    A school district that has one or more schools on academic
8early warning or academic watch status shall prepare a revised
9School Improvement Plan or amendments thereto setting forth the
10district's expectations for removing each school from academic
11early warning or academic watch status and for improving
12student performance in the affected school or schools.
13Districts operating under Article 34 of this Code may prepare
14the School Improvement Plan required under Section 34-2.4 of
15this Code.
16    The revised School Improvement Plan for a school that is
17initially placed on academic early warning status or that
18remains on academic early warning status after a third annual
19calculation must be approved by the school board (and by the
20school's local school council in a district operating under
21Article 34 of this Code, unless the school is on probation
22pursuant to subsection (c) of Section 34-8.3 of this Code).
23    The revised School Improvement Plan for a school that is
24initially placed on academic watch status after a fourth annual
25calculation must be approved by the school board (and by the
26school's local school council in a district operating under

 

 

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1Article 34 of this Code, unless the school is on probation
2pursuant to subsection (c) of Section 34-8.3 of this Code).
3    The revised School Improvement Plan for a school that
4remains on academic watch status after a fifth annual
5calculation must be approved by the school board (and by the
6school's local school council in a district operating under
7Article 34 of this Code, unless the school is on probation
8pursuant to subsection (c) of Section 34-8.3 of this Code). In
9addition, the district must develop a school restructuring plan
10for the school that must be approved by the school board (and
11by the school's local school council in a district operating
12under Article 34 of this Code).
13    A school on academic watch status that does not meet
14adequate yearly progress criteria for a sixth annual
15calculation shall implement its approved school restructuring
16plan beginning with the next school year, subject to the State
17interventions specified in Section 2-3.25f of this Code.
18    (b) Beginning with the 2005-2006 school year, unless the
19federal government formally disapproves of such policy through
20the submission and review process for the Illinois
21Accountability Workbook, those school districts that do not
22meet adequate yearly progress criteria for 2 consecutive annual
23calculations in the same subject or in their participation
24rate, attendance rate, or graduation rate shall be placed on
25academic early warning status for the next school year.
26Districts on academic early warning status that do not meet

 

 

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1adequate yearly progress criteria for a third annual
2calculation in the same subject or in their participation rate,
3attendance rate, or graduation rate shall remain on academic
4early warning status. Districts on academic early warning
5status that do not meet adequate yearly progress criteria for a
6fourth annual calculation in the same subject or in their
7participation rate, attendance rate, or graduation rate shall
8be placed on initial academic watch status. Districts on
9academic watch status that do not meet adequate yearly progress
10criteria for a fifth or subsequent annual calculation in the
11same subject or in their participation rate, attendance rate,
12or graduation rate shall remain on academic watch status.
13Districts on academic early warning or academic watch status
14that meet adequate yearly progress criteria for one annual
15calculation shall be considered as having met expectations and
16shall be removed from any status designation.
17    A district placed on either academic early warning status
18or academic watch status may appeal the status to the State
19Board of Education in accordance with Section 2-3.25m of this
20Code.
21    Districts on academic early warning or academic watch
22status shall prepare a District Improvement Plan or amendments
23thereto setting forth the district's expectations for removing
24the district from academic early warning or academic watch
25status and for improving student performance in the district.
26    All District Improvement Plans must be approved by the

 

 

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1school board.
2    (c) All new and revised School and District Improvement
3Plans shall be developed in collaboration with parents, staff
4in the affected school or school district, and outside experts.
5All revised School and District Improvement Plans shall be
6developed, submitted, and monitored pursuant to rules adopted
7by the State Board of Education. The revised Improvement Plan
8shall address measurable outcomes for improving student
9performance so that such performance meets adequate yearly
10progress criteria as specified by the State Board of Education
11and shall include a staff professional development plan
12developed in cooperation with staff. All school districts
13required to revise a School Improvement Plan in accordance with
14this Section shall establish a peer review process for the
15evaluation of School Improvement Plans.
16    (d) All federal requirements apply to schools and school
17districts utilizing federal funds under Title I, Part A of the
18federal Elementary and Secondary Education Act of 1965.
19    (e) The State Board of Education, from any moneys it may
20have available for this purpose, must implement and administer
21a grant program that provides 2-year grants to school districts
22on the academic watch list and other school districts that have
23the lowest achieving students, as determined by the State Board
24of Education, to be used to improve student achievement. In
25order to receive a grant under this program, a school district
26must establish an accountability program. The accountability

 

 

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1program must involve the use of statewide testing standards and
2local evaluation measures. A grant shall be automatically
3renewed when achievement goals are met. The Board may adopt any
4rules necessary to implement and administer this grant program.
5    (f) In addition to any moneys available under subsection
6(e) of this Section, a school district required to maintain
7School and District Improvement Plans under this Section,
8including a school district organized under Article 34 of this
9Code, shall annually receive from the State, subject to
10appropriation, an amount equal to $150 times the number of
11full-time certified teachers and administrators it employs for
12developing and implementing its mandatory School and District
13Improvement Plans, including its staff professional
14development plan.
15(Source: P.A. 96-734, eff. 8-25-09.)
 
16    (105 ILCS 5/2-3.25d-5 new)
17    Sec. 2-3.25d-5. Educational improvement plan.
18    (a) Except for school districts required to develop School
19and District Improvement Plans under Section 2-3.25d of this
20Code, each school district shall develop, in compliance with
21rules promulgated by the State Board of Education, an
22educational improvement plan that must include (i) measures for
23improving school district, school building, and individual
24student performance and (ii) a staff professional development
25plan developed at least in cooperation with staff or, if

 

 

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1applicable, the exclusive bargaining representatives of the
2staff. The district shall develop the educational improvement
3plan in collaboration with parents, staff, and the staff's
4exclusive bargaining representatives, if any.
 
5    (105 ILCS 5/2-3.160 new)
6    Sec. 2-3.160. The Digital Learning Technology Grant
7Program.
8    (a) As used in this Section, unless the context otherwise
9requires, "information technology education" means education
10in the development, design, use, maintenance, repair, and
11application of information technology systems or equipment,
12including, but not limited to, computers, the Internet,
13telecommunications devices and networks, and multi-media
14techniques.
15    (b) There is created the Digital Learning Technology Grant
16Program to provide money to school districts and charter
17schools to use in integrating information technology and
18scientific equipment as tools to measurably improve teaching
19and learning in grades 9 through 12 in this State's public
20schools. The State Board of Education shall administer the
21grant program through the acceptance, review, and
22recommendation of applications submitted pursuant to this
23Section.
24    (c) Grants awarded through the grant program created under
25this Section shall continue for 4 fiscal years and may be

 

 

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1renewed as provided by rule of the State Board of Education.
2Grants awarded through the program shall be paid out of any
3money appropriated or credited to the Digital Learning
4Technology Grant Fund. A school district or charter school
5shall use any moneys obtained through the grant program to
6integrate information technology education into the 9th grade
7through 12th grade curriculum. In the case of a school
8district, such integration shall be accomplished in one or more
9public schools in the district. The school district or charter
10school may contract with one or more private entities for
11assistance in integrating information technology education
12into the curriculum. In addition, school districts and charter
13schools are encouraged to partner with businesses for
14assistance in integrating information technology education
15into the curriculum.
16    (d) The State Board of Education shall adopt rules for the
17administration and implementation of the grant program created
18under this Section. Subject to appropriation, the grants shall
19be awarded through the program for the 2015-2016 school year
20and annually thereafter.
21    (e) Any school district or charter school that seeks to
22participate in the grant program created under this Section
23shall submit an application to the State Board of Education in
24the form and according to the deadlines established by rule of
25the State Board of Education. The application shall include the
26following information:

 

 

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1        (1) if the applicant is a school district, the names of
2    the schools that will receive the benefits of the grant;
3        (2) the current level of information technology
4    education integration at the recipient schools;
5        (3) the school district's or charter school's plan for
6    integrating information technology education into the 9th
7    grade through 12th grade curriculum, including any
8    specific method or program to be used, and any entities
9    with whom the school district or charter school plans to
10    contract or cooperate in achieving the integration;
11        (4) the specific, measurable goals to be achieved and
12    the actual deliverables to be produced through the
13    integration of information technology education into the
14    curriculum, a deadline for achieving those goals, and a
15    proposed method of measuring whether the goals were
16    achieved;
17        (5) any businesses with which the school district or
18    charter school has partnered to improve the availability
19    and integration of information technology education within
20    the curriculum; and
21        (6) any other information that may be specified by rule
22    of the State Board of Education.
23    (f) In recommending and awarding grants through the
24program, the State Board of Education shall consider the
25following criteria:
26        (1) the degree to which information technology

 

 

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1    education is already integrated into the curriculum of the
2    applying school district or charter school to ensure that
3    those school districts and charter schools with the least
4    degree of integration receive the grants first;
5        (2) the degree to which the applicant's proposed plan
6    for using the grant moneys will result in integration of
7    information technology tools and scientific equipment in a
8    manner that measurably improves teaching and learning;
9        (3) the validity, clarity, and measurability of the
10    goals established by the applicant and the validity of the
11    proposed methods for measuring achievement of the goals;
12        (4) the accountability system of specific measures and
13    deliverables to determine a baseline and annually assess
14    improvements in teaching and learning;
15        (5) any other financial resources available to the
16    applicant for integrating information technology education
17    into the curriculum;
18        (6) the degree to which the applicant is cooperating or
19    partnering with businesses to improve the availability and
20    integration of information technology education in the
21    curriculum; the State Board of Education shall apply this
22    criteria with the goal of encouraging such partnerships;
23        (7) the strength and capacity of the applicant to
24    collaborate with the science, technology, engineering and
25    mathematics education center network under Section 4.5 of
26    the Illinois Mathematics and Science Academy Law and to

 

 

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1    provide open source networking with other public schools in
2    this State; and
3        (8) any other criteria established by rule of the State
4    Board of Education to ensure that grants are awarded to
5    school districts and charter schools that demonstrate the
6    greatest need and the most valid, effective plan for
7    integrating information technology education into the
8    curriculum.
9    (g) In awarding grants through the grant program, the State
10Board of Education shall ensure, to the extent possible, that
11the grants are awarded to school districts and charter schools
12in all areas of this State.
13    (h) Nothing in this Section shall be construed to limit or
14otherwise affect any school district's ability to enter into an
15agreement with or receive funds from any private entity.
16    (i) Each school district and charter school that receives a
17grant through the grant program created under this Section
18shall, by August 1 of the school year for which the grant was
19awarded, submit to the State Board of Education a report
20specifying the following information:
21        (1) the manner in which the grant moneys were used;
22        (2) the progress made toward achieving the goals
23    specified in the grant recipient's application;
24        (3) any additional entities and businesses with whom
25    the grant recipient has contracted or partnered with the
26    goal of achieving greater integration of information

 

 

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1    technology education in the 9th grade through 12th grade
2    curriculum;
3        (4) the recipient school district's and charter
4    school's plan for continuing the integration of
5    information technology education into the curriculum,
6    regardless of whether the grant is renewed; and
7        (5) any other information specified by rule of the
8    State Board of Education.
9    (j) Notwithstanding subsection (i) of this Section, a
10recipient school need not submit a report for any academic year
11in which no grants are made through the grant program.
12    (k) The Digital Learning Technology Grant Fund is created
13as a special fund in the State treasury. All money in the Fund
14shall be used, subject to appropriation, by the State Board of
15Education for the purpose of funding grants under this Section.
16    (l) The State Board of Education may solicit and accept
17money in the form of gifts, contributions, and grants to be
18deposited into the Digital Learning Technology Grant Fund. The
19acceptance of federal grants for purposes of this Section does
20not commit State funds nor place an obligation upon the General
21Assembly to continue the purposes for which the federal funds
22are made available.
 
23    (105 ILCS 5/2-3.161 new)
24    Sec. 2-3.161. Best practices clearinghouse.
25    (a) Beginning July 1, 2015 and subject to appropriation,

 

 

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1the State Board of Education shall establish an online
2clearinghouse of information relating to best practices of
3campuses and school districts regarding instruction, public
4school finance, resource allocation, and business practices.
5To the extent practicable, the State Board of Education shall
6ensure that information provided through the online
7clearinghouse is specific, actionable information relating to
8the best practices of high-performing and highly efficient
9school districts rather than general guidelines relating to
10school district operation. The information must be accessible
11by school districts and interested members of the public.
12    (b) The State Board of Education shall solicit and collect
13from exemplary or recognized school districts, charter
14schools, and other institutions determined by the State Board
15of Education examples of best practices relating to
16instruction, public school finance, resource allocation, and
17business practices, including best practices relating to
18curriculum, scope and sequence, compensation and incentive
19systems, bilingual education and special language programs,
20compensatory education programs, and the effective use of
21instructional technology, including online courses.
22    (c) The State Board of Education may contract for the
23services of one or more third-party contractors to develop,
24implement, and maintain a system of collecting and evaluating
25the best practices of campuses and school districts as provided
26by this Section. In addition to any other considerations

 

 

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1required by law, the State Board of Education must consider an
2applicant's demonstrated competence and qualifications in
3analyzing school district practices in awarding a contract
4under this subsection (c).
5    (d) The State Board of Education may purchase from
6available funds curriculum and other instructional tools
7identified under this Section to provide for use by school
8districts.
 
9    (105 ILCS 5/2-3.162 new)
10    Sec. 2-3.162. The Science, Technology, Engineering, and
11Mathematics Education Center Grant Program.
12    (a) As used in this Section, unless the context otherwise
13requires:
14    "Grant program" means the science, technology,
15engineering, and mathematics education center grant program
16created in this Section.
17    "Science, technology, engineering, and mathematics
18education" or "STEM" means learning experiences that integrate
19innovative curricular, instructional, and assessment
20strategies and materials, laboratory and mentorship
21experiences, and authentic inquiry-based and problem centered
22instruction to stimulate learning in the areas of science,
23technology, engineering, and mathematics.
24    "Science, technology, engineering, and mathematics
25education innovation center" means a center operated by a

 

 

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1school district, a charter school, the Illinois Mathematics and
2Science Academy, or a joint collaborative partnership that
3provides STEM teaching and learning experiences, materials,
4laboratory and mentorship experiences, and educational
5seminars, institutes or workshops for students and teachers.
6    (b) Subject to appropriation, the Illinois Mathematics and
7Science Academy, in consultation and partnership with the State
8Board of Education, the Board of Higher Education, the business
9community, the entrepreneurial technology community, and
10professionals, including teachers, in the field of science,
11technology, engineering, and mathematics shall create a
12strategic plan for developing a whole systems approach to
13redesigning prekindergarten through grade 12 STEM education in
14this State, including, but not limited to, designing and
15creating integrative teaching and learning networks among
16science, technology, engineering, and mathematics innovation
17education centers, university and corporate research
18facilities, and established STEM laboratories, businesses, and
19the Illinois Mathematics and Science Academy.
20    (c) At a minimum, the plan shall provide direction for
21program design and development, including the following:
22        (1) continuous generation and sharing of curricular,
23    instructional, assessment, and program development
24    materials and information about STEM teaching and learning
25    throughout the network;
26        (2) identification of curricular, instructional, and

 

 

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1    assessment goals that reflect the research in cognition and
2    the development of creativity in STEM fields and the
3    systemic changes in STEM education, so as to be consistent
4    with inquiry-based and problem-centered instruction in
5    science, technology, engineering, and mathematics. Such
6    goals shall also reflect current frameworks, standards,
7    and guidelines, such as those defined by the National
8    Research Council (National Academy of Science), the
9    American Association for the Advancement of Science, the
10    National Council of Teachers of Mathematics, the National
11    Science Teachers Association, and professional
12    associations in STEM fields;
13        (3) identification of essential teacher competencies
14    and a comprehensive plan for recruiting, mentoring, and
15    retaining STEM teachers, especially those in
16    under-resourced schools and school districts; creation of
17    a community of practice among STEM center educators and
18    other teachers of science, technology, engineering, and
19    mathematics as part of a network of promising practices in
20    teaching; and the establishment of recruitment, mentoring,
21    and retention plans for Golden Apple teachers in STEM
22    fields and Illinois STEM teachers who have received
23    national board certification and are also part of the STEM
24    innovation network;
25        (4) a statement of desired competencies for STEM
26    learning by students;

 

 

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1        (5) a description of recommended courses of action to
2    improve educational experiences, programs, practices, and
3    service;
4        (6) the improvement of access and availability of STEM
5    courses, especially for rural school districts and
6    particularly to those groups which are traditionally
7    underrepresented through the Illinois Virtual High School;
8    the plan shall include goals for using telecommunications
9    facilities as recommended by a telecommunications advisory
10    commission;
11        (7) expectations and guidelines for designing and
12    developing a dynamic, creative, and engaged teaching
13    network;
14        (8) a description of the laboratory and incubator model
15    for the STEM centers;
16        (9) support for innovation and entrepreneurship in
17    curriculum, instruction, assessment, and professional
18    development; and
19        (10) cost estimates.
20    (d) The plan shall provide a framework that enables the
21teachers, school districts, and institutions of higher
22education to operate as an integrated system. The plan shall
23provide innovative mechanisms and incentives to the following:
24        (1) educational providers, as well as professional
25    associations, business and university partners, and
26    educational receivers (students and teachers) at the

 

 

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1    prekindergarten through grade 12 and postsecondary levels
2    to design and implement innovative curricula, including
3    experiences, mentorships, institutes, and seminars and to
4    develop new materials and activities for these;
5        (2) course providers and receivers for leveraging
6    distance learning technologies through the Illinois
7    Virtual High School and applying distance learning
8    instructional design techniques, taking into consideration
9    the work of a telecommunications advisory commission;
10        (3) prekindergarten through grade 12 teachers to
11    encourage them to take graduate STEM courses and degree
12    programs; such incentives may include a tuition matching
13    program;
14        (4) appropriate State agencies, federal agencies,
15    professional organizations, public television stations,
16    and businesses and industries to involve them in the
17    development of the strategic plan; and
18        (5) businesses, industries, and individuals for
19    volunteering their time and community resources.
20    (e) The plan shall provide a mechanism for incorporating
21the cost for accomplishing these goals into the ongoing
22operating budget beginning in 2015.
23    (f) There is created the Science and Technology Education
24Center Grant Program to provide development and operating
25moneys in the form of matching funds for existing or proposed
26nonprofit STEM education centers. At a minimum, each STEM

 

 

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1center that receives a grant shall not only provide STEM
2education activities to students enrolled in the school
3district or charter school and materials and educational
4workshops to teachers employed by the school district or
5charter school, but also, as part of generative and innovative
6teaching and learning network, shall share information with all
7STEM centers, the Illinois Mathematics and Science Academy, and
8partner associations or businesses.
9    (g) School districts, charter schools, the Illinois
10Mathematics and Science Academy, and joint collaborative
11partnerships may establish science and technology education
12centers or may contract with regional offices of education,
13intermediate service centers, public community colleges,
144-year institutions of higher education, non-profit or
15for-profit education providers, youth service agencies,
16community-based organizations, or other appropriate entities
17to establish science and technology education centers within
18the public school system. Districts and charter schools may
19individually operate alternative learning opportunities
20programs or may collaborate with 2 or more districts or charter
21schools or do both to create and operate science and technology
22education centers.
23    (h) Beginning with the 2015-2016 school year, the State
24Board of Education shall, subject to available appropriations,
25annually award one or more science, technology, engineering,
26and mathematics education center grants for the development and

 

 

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1operation of STEM centers.
2    A school district, a charter school, the Illinois
3Mathematics and Science Academy, or a joint collaborative
4partnership may apply for a STEM center grant pursuant to
5procedures and time lines specified by rule of the State Board
6of Education.
7    (i) The State Board of Education, in selecting one or more
8school districts, charter schools, or joint collaborative
9partnerships or the Illinois Mathematics and Science Academy
10for receipt of a grant, shall give priority to applicants that
11are geographically located farthest from other STEM centers or
12applicants that have less opportunity for science, technology,
13engineering, and mathematics resource support. The State Board
14shall also consider the following factors:
15        (1) the facility, equipment, and technology that are or
16    will be provided and the activities and range of programs
17    that are or will be offered by the STEM education center;
18        (2) the strength and capacity of the school district or
19    charter school to work as a network cooperatively with the
20    Illinois Mathematics and Science Academy, other STEM
21    centers, universities and STEM laboratories, businesses,
22    and industries; and
23        (3) recommendations of the Illinois P-20 Council and
24    the Illinois Mathematics and Science Academy.
25    (j) A STEM center grant shall be payable from moneys
26appropriated to the STEM Education Center Grant Fund.

 

 

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1    The State Board of Education shall specify the amount to be
2awarded to each school district, charter school, or joint
3collaborative partnership that is selected to receive a grant
4and to the Illinois Mathematics and Science Academy, if
5selected to receive a grant. The amount awarded to a new STEM
6center for start-up costs shall not exceed $1,000,000 for the
7first fiscal year and may not be renewed. The amount awarded to
8an operating STEM center for operating costs shall not exceed
9$500,000 for one fiscal year and shall be renewed annually for
105 consecutive years if the STEM center is meeting its
11accountability goals and its role as an active partner in a
12generative teaching and learning network.
13    (k) Each school district, charter school, or joint
14collaborative partnership that receives a grant pursuant to the
15grant program and the Illinois Mathematics and Science Academy,
16if selected to receive a grant, shall demonstrate, prior to
17receiving any actual moneys, that the center has received or
18has a written commitment for matching funds from other public
19or private sources in the amount of a dollar-for-dollar match
20with the amount of the grant. This requirement may be waived
21upon application to and approval by the State Board of
22Education based on a showing of continued need or financial
23hardship.
24    (l) The State Board of Education shall promulgate such
25rules as are required in this Section and such additional rules
26as may be required for implementation of the grant program.

 

 

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1    (m) Each school district or charter school that receives a
2grant through the grant program shall, by the close of each
3school year for which the grant was awarded, submit to the
4Illinois Mathematics and Science Academy and the State Board of
5Education a report specifying the following information:
6        (1) the manner in which the grant money was used;
7        (2) the progress made toward achieving the goals and
8    producing the deliverables specified in the grant
9    recipient's application;
10        (3) any additional entities and businesses with whom
11    the grant recipient has contracted or partnered with the
12    goal of achieving greater integration of information
13    technology education in prekindergarten through grade 12
14    curriculum;
15        (4) the recipient school district's or charter
16    school's plan for continuing the integration of
17    information technology education into the curriculum,
18    regardless of whether the grant is renewed;
19        (5) the documentation demonstrating effective digital
20    collaboration and networking, technological cooperation
21    and sharing, and personal networking via innovative,
22    entrepreneurial networks;
23        (6) a description of innovative instructional methods;
24        (7) evidence of staff training and outreach to teachers
25    beyond those working in the STEM education center; and
26        (8) any other information specified by rule of the

 

 

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1    State Board of Education.
2    (n) Notwithstanding the other provisions of this Section, a
3recipient school need not submit a report for any academic year
4in which no grants are made through the grant program.
5    (o) The STEM Education Center Grant Fund is created as a
6special fund in the State treasury. All money in the Fund shall
7be used, subject to appropriation, by the State Board of
8Education for the purpose of funding science, technology,
9engineering, and mathematics education center grants awarded
10under this Section.
11    (p) The State Board of Education may solicit and accept
12money in the form of gifts, contributions, and grants to be
13deposited in the STEM Education Center Grant Fund. The
14acceptance of federal grants for purposes of this Section does
15not commit State funds nor place an obligation upon the General
16Assembly to continue the purposes for which the federal funds
17are made available.
 
18    (105 ILCS 5/2-3.163 new)
19    Sec. 2-3.163. School Improvement Partnership Pool Fund.
20    (a) The School Improvement Partnership Pool Fund is created
21as a special fund in the State treasury. All interest earned on
22moneys in the Fund shall be deposited into the Fund. The School
23Improvement Partnership Pool Fund shall not be subject to
24sweeps, administrative charges, or charge-backs, such as, but
25not limited to, those authorized under Section 8h of the State

 

 

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1Finance Act, nor any other fiscal or budgetary maneuver that
2would in any way transfer any funds from the School Improvement
3Partnership Pool Fund into any other fund of the State.
4    (b) Beginning in Fiscal Year 2016, moneys in the School
5Improvement Partnership Pool Fund shall be used, subject to
6appropriation, by the State Board of Education for a
7competitive grant program to provide school districts with
8demonstrated academic and financial need quality, integrated
9support systems, such as training for staff, tutoring programs
10for students, small school initiatives, literacy coaching,
11proven programs such as reduced class size, extended learning
12time, and after school and summer school programs, programs to
13engage parents, and other systems as determined by the State
14Board of Education.
15    (c) School districts eligible to apply to the State Board
16of Education for a grant under subsection (b) of this Section
17shall be limited to those (i) with any school that has not met
18adequate yearly progress under the federal No Child Left Behind
19Act of 2001 for at least 2 consecutive years or (ii) that have
20been designated through the State Board of Education's School
21District Financial Profile System as on financial warning or
22financial watch status. The State Board may, by rule, establish
23any additional procedures with respect to this grant program.
 
24    (105 ILCS 5/2-3.164 new)
25    Sec. 2-3.164. Resource management service.

 

 

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1    (a) Subject to appropriation, the State Board of Education
2shall establish and maintain an Internet web-based resource
3management service for all school districts on or before July
41, 2017. If no State funds are provided to school districts
5specifically for implementation of this Section, school
6districts are relieved from implementing all requirements
7under this Section.
8    (b) The resource management service shall identify
9resource configurations that contribute to improving internal
10resources for instructional programs, provide action-oriented
11analysis and solutions, and give school districts the ability
12to explore different scenarios of resource allocation.
13    (c) Annually, by the first day of October, an Internet
14web-based preliminary resource allocation report must be
15generated for each school district and delivered via the
16Internet to each district superintendent for use by the
17management team and the exclusive bargaining agents of the
18school district's employees. This report shall identify
19potential cost savings or resource reallocation opportunities
20for the district in 5 core areas of school district spending.
21These core areas are instruction, operation and maintenance,
22transportation, food service, and central services. This
23analysis shall show district spending in detailed
24subcategories compared to demographically or operationally
25similar peer school districts. The web-based resource
26allocation reports generated under this Section constitute

 

 

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1preliminary drafts, notes, recommendations, memoranda, and
2other records in which opinions are expressed or policies or
3actions are formulated and therefore exempt from disclosure
4under subdivision (f) of subsection (1) of Section 7 of the
5Freedom of Information Act.
6    (d) Each school district shall have the ability through the
7on-line resource allocation report to test various resource
8allocation scenarios relative to pre-defined peers as well as
9geographic peers and the most efficient peers statewide. Each
10district shall have the ability to choose specific combinations
11of districts for comparison.
12    (e) The resource management service shall contain, based on
13the spending and demographic profile of the school district,
14action-oriented information, such as effective best practices
15in schools districts, diagnostic questions, and other
16management or community considerations that may be implemented
17to capture savings identified in the resource allocation
18report.
19    (f) The resource management service may be initiated and
20maintained through a contract between the State Board of
21Education and an independent third party specializing in school
22market research within this State and the United States. Any
23contract with a third party must be awarded through the State
24Board of Education's standard request for proposal procedure.
25Up to 25% of the annual appropriation may be allocated by the
26State Board of Education to hire personnel and facilitate data

 

 

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1collection. No less than 25% of the annual appropriation shall
2be utilized by the State Board of Education to deliver training
3to school district personnel in the use of the management
4service. Such training shall be delivered by certificated
5school business officials or State Board of Education trained
6personnel and may be provided through administrator academies
7and mentoring programs. The State Board of Education may
8establish contracts with other organizations to provide such
9training and mentoring.
10    In the event that a district does not employ a certificated
11school business official, if State funds are provided
12specifically for this purpose, at least one employee must be
13trained and certified in the use of the resource management
14service. In addition, a representative of the exclusive
15bargaining agents of the school district's employees shall be
16invited to be trained and certified.
17    (g) The State Board of Education shall identify the data
18required to implement the resource management service and
19develop annual data reporting instruments designed to collect
20the information from each school district.
21    The State Board of Education may provide grants to school
22districts to permit those school districts to develop and
23implement a plan for a shared services agreement in the
24following areas: operation and maintenance and central
25services.
26    (h) Annually, the certificated school business official or

 

 

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1resource management service trained employee in each school
2district shall review and certify that the resource allocation
3report has been received and reviewed by the management team
4and the exclusive bargaining agent of the district.
5Subsequently, a report must be filed with the State Board of
6Education identifying the considerations that will be studied
7as a result of such analysis. In addition, any implementation
8of strategies or reallocation of resources associated with the
9resource management service must be annually reported to the
10Board of Education, the exclusive bargaining agents of the
11school district's employees, and, subsequently, the State
12Board of Education. The State Board shall annually prepare a
13cumulative report to be posted electronically containing those
14initiatives studied and implemented on a statewide basis.
 
15    (105 ILCS 5/3-7)  (from Ch. 122, par. 3-7)
16    Sec. 3-7. Failure to prepare and forward information. If
17the trustees of schools of any township in Class II county
18school units, or any school district which forms a part of a
19Class II county school unit but which is not subject to the
20jurisdiction of the trustees of schools of any township in
21which such district is located, or any school district in any
22Class I county school units fail to prepare and forward or
23cause to be prepared and forwarded to the regional
24superintendent of schools, reports required by this Act, the
25regional superintendent of schools shall furnish such

 

 

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1information or he shall employ a person or persons to furnish
2such information, as far as practicable. Such person shall have
3access to the books, records and papers of the school district
4to enable him or them to prepare such reports, and the school
5district shall permit such person or persons to examine such
6books, records and papers at such time and such place as such
7person or persons may desire for the purpose aforesaid. For
8such services the regional superintendent of schools shall bill
9the district an amount to cover the cost of preparation of such
10reports if he employs a person to prepare such reports.
11    Each school district shall, as of June 30 of each year,
12cause an audit of its accounts to be made by a person lawfully
13qualified to practice public accounting as regulated by the
14Illinois Public Accounting Act. Such audit shall include (i)
15development of a risk assessment of district internal controls,
16(ii) an annual review and update of the risk assessment, and
17(iii) an annual management letter that analyzes significant
18risk assessment findings, recommends changes for strengthening
19controls and reducing identified risks, and specifies
20timeframes for implementation of these recommendations, as
21well as financial statements of the district applicable to the
22type of records required by other sections of this Act and in
23addition shall set forth the scope of audit and shall include
24the professional opinion signed by the auditor, or if such an
25opinion is denied by the auditor, shall set forth the reasons
26for such denial. Each school district shall on or before

 

 

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1October 15 of each year, submit an original and one copy of the
2such audit to the regional superintendent of schools in the
3educational service region having jurisdiction in which case
4the regional superintendent of schools shall be relieved of
5responsibility in regard to the accounts of the school
6district. If any school district fails to supply the regional
7superintendent of schools with a copy of such audit report on
8or before October 15, or within such time extended by the
9regional superintendent of schools from that date, not to
10exceed 60 days, then it shall be the responsibility of the
11regional superintendent of schools having jurisdiction to
12cause such audit to be made by employing an accountant licensed
13to practice in the State of Illinois to conduct such audit and
14shall bill the district for such services, or shall with the
15personnel of his office make such audit to his satisfaction and
16bill the district for such service. In the latter case, if the
17audit is made by personnel employed in the office of the
18regional superintendent of schools having jurisdiction, then
19the regional superintendent of schools shall not be relieved of
20the responsibility as to the accountability of the school
21district. The copy of the audit shall be forwarded by the
22regional superintendent to the State Board of Education on or
23before November 15 of each year and shall be filed by the State
24Board of Education. Beginning on July 1, 2015, all school
25districts shall utilize a competitive request for proposals
26process at least once every 5 years when contracting for such

 

 

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1an annual audit, provided that school districts with existing
2contracts of less than 5 years in length that are in effect on
3July 1, 2015 shall utilize a competitive request for proposals
4process when contracting for an annual audit after the
5expiration date of the existing contract.
6    Each school district that is the administrative district
7for several school districts operating under a joint agreement
8as authorized by this Act shall, as of June 30 each year, cause
9an audit of the accounts of the joint agreement to be made by a
10person lawfully qualified to practice public accounting as
11regulated by the Illinois Public Accounting Act. Such audit
12shall include (i) development of a risk assessment of district
13internal controls, (ii) an annual review and update of the risk
14assessment, and (iii) an annual management letter that analyzes
15significant risk assessment findings, recommends changes for
16strengthening controls and reducing identified risks, and
17specifies timeframes for implementation of these
18recommendations, as well as financial statements of the
19operation of the joint agreement applicable to the type of
20records required by this Act and, in addition, shall set forth
21the scope of the audit and shall include the professional
22opinion signed by the auditor, or if such an opinion is denied,
23the auditor shall set forth the reason for such denial. Each
24administrative district of a joint agreement shall on or before
25October 15 each year, submit an original and one copy of such
26audit to the regional superintendent of schools in the

 

 

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1educational service region having jurisdiction in which case
2the regional superintendent of schools shall be relieved of
3responsibility in regard to the accounts of the joint
4agreement. The copy of the audit shall be forwarded by the
5regional superintendent to the State Board of Education on or
6before November 15 of each year and shall be filed by the State
7Board of Education. The cost of such an audit shall be
8apportioned among and paid by the several districts who are
9parties to the joint agreement, in the same manner as other
10costs and expenses accruing to the districts jointly. Beginning
11on July 1, 2015, all school districts operating under a joint
12agreement shall utilize a competitive request for proposals
13process at least once every 5 years when contracting for such
14an annual audit, provided that all school districts operating
15under a joint agreement with existing contracts of less than 5
16years in length that are in effect on July 1, 2015 shall
17utilize a competitive request for proposals process when
18contracting for an annual audit after the expiration date of
19the existing contract.
20    The State Board of Education shall determine the adequacy
21of the audits. All audits shall be kept on file in the office
22of the State Board of Education.
23(Source: P.A. 86-1441; 87-473.)
 
24    (105 ILCS 5/10-16.10 new)
25    Sec. 10-16.10. Board member leadership training.

 

 

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1    (a) This Section shall apply to all school board members
2serving pursuant to Section 10-10 of this Code who have been
3elected on or after the effective date of this amendatory Act
4of the 98th General Assembly or appointed to fill a vacancy of
5at least one year's duration on or after the effective date of
6this amendatory Act of the 98th General Assembly.
7    (b) It is the policy of this State to encourage every
8voting member of a board of education of a school district
9elected or appointed for a term beginning on or after the
10effective date of this amendatory Act of the 98th General
11Assembly, within a year after the effective date of this
12amendatory Act of the 98th General Assembly or the first year
13of his or her term, to complete a minimum of 4 hours of
14professional development leadership training covering topics
15in education and labor law, financial oversight and
16accountability, and fiduciary responsibilities of a school
17board member.
18    (c) The training on financial oversight, accountability,
19and fiduciary responsibilities may be provided by an
20association established under this Code for the purpose of
21training school board members or by other qualified providers
22approved by the State Board of Education, in conjunction with
23an association so established.
 
24    (105 ILCS 5/10-17a)  (from Ch. 122, par. 10-17a)
25    Sec. 10-17a. State, school district, and school report

 

 

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1cards.
2    (1) By October 31, 2013 and October 31 of each subsequent
3school year, the State Board of Education, through the State
4Superintendent of Education, shall prepare a State report card,
5school district report cards, and school report cards, and
6shall by the most economic means provide to each school
7district in this State, including special charter districts and
8districts subject to the provisions of Article 34, the report
9cards for the school district and each of its schools.
10    (2) In addition to any information required by federal law,
11the State Superintendent shall determine the indicators and
12presentation of the school report card, which must include, at
13a minimum, the most current data possessed by the State Board
14of Education related to the following:
15        (A) school characteristics and student demographics,
16    including average class size, average teaching experience,
17    student racial/ethnic breakdown, and the percentage of
18    students classified as low-income; the percentage of
19    students classified as limited English proficiency; the
20    percentage of students who have individualized education
21    plans or 504 plans that provide for special education
22    services; the percentage of students who annually
23    transferred in or out of the school district; the per-pupil
24    operating expenditure of the school district; and the
25    per-pupil State average operating expenditure for the
26    district type (elementary, high school, or unit);

 

 

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1        (B) curriculum information, including, where
2    applicable, Advanced Placement, International
3    Baccalaureate or equivalent courses, dual enrollment
4    courses, foreign language classes, school personnel
5    resources (including Career Technical Education teachers),
6    before and after school programs, extracurricular
7    activities, subjects in which elective classes are
8    offered, health and wellness initiatives (including the
9    average number of days of Physical Education per week per
10    student), approved programs of study, awards received,
11    community partnerships, and special programs such as
12    programming for the gifted and talented, students with
13    disabilities, and work-study students;
14        (C) student outcomes, including, where applicable, the
15    percentage of students meeting as well as exceeding State
16    standards on assessments, the percentage of students in the
17    eighth grade who pass Algebra, the percentage of students
18    enrolled in post-secondary institutions (including
19    colleges, universities, community colleges,
20    trade/vocational schools, and training programs leading to
21    career certification within 2 semesters of high school
22    graduation), the percentage of students graduating from
23    high school who are college ready, the percentage of
24    students graduating from high school who are career ready,
25    and the percentage of graduates enrolled in community
26    colleges, colleges, and universities who are in one or more

 

 

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1    courses that the community college, college, or university
2    identifies as a remedial course;
3        (D) student progress, including, where applicable, the
4    percentage of students in the ninth grade who have earned 5
5    credits or more without failing more than one core class, a
6    measure of students entering kindergarten ready to learn, a
7    measure of growth, and the percentage of students who enter
8    high school on track for college and career readiness; and
9        (E) the school environment, including, where
10    applicable, the percentage of students with less than 10
11    absences in a school year, the percentage of teachers with
12    less than 10 absences in a school year for reasons other
13    than professional development, leaves taken pursuant to
14    the federal Family Medical Leave Act of 1993, long-term
15    disability, or parental leaves, the 3-year average of the
16    percentage of teachers returning to the school from the
17    previous year, the number of different principals at the
18    school in the last 6 years, 2 or more indicators from any
19    school climate survey developed by the State and
20    administered pursuant to Section 2-3.153 of this Code, and
21    the combined percentage of teachers rated as proficient or
22    excellent in their most recent evaluation.
23    The school report card shall also provide information that
24allows for comparing the current outcome, progress, and
25environment data to the State average, to the school data from
26the past 5 years, and to the outcomes, progress, and

 

 

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1environment of similar schools based on the type of school and
2enrollment of low-income, special education, and limited
3English proficiency students.
4    (3) At the discretion of the State Superintendent, the
5school district report card shall include a subset of the
6information identified in paragraphs (A) through (E) of
7subsection (2) of this Section, as well as information relating
8to the operating expense per pupil and other finances of the
9school district, and the State report card shall include a
10subset of the information identified in paragraphs (A) through
11(E) of subsection (2) of this Section.
12    (4) Notwithstanding anything to the contrary in this
13Section, in consultation with key education stakeholders, the
14State Superintendent shall at any time have the discretion to
15amend or update any and all metrics on the school, district, or
16State report card.
17    (5) Annually, no more than 30 calendar days after receipt
18of the school district and school report cards from the State
19Superintendent of Education, each school district, including
20special charter districts and districts subject to the
21provisions of Article 34, shall present such report cards at a
22regular school board meeting subject to applicable notice
23requirements, post the report cards on the school district's
24Internet web site, if the district maintains an Internet web
25site, make the report cards available to a newspaper of general
26circulation serving the district, and, upon request, send the

 

 

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1report cards home to a parent (unless the district does not
2maintain an Internet web site, in which case the report card
3shall be sent home to parents without request). If the district
4posts the report card on its Internet web site, the district
5shall send a written notice home to parents stating (i) that
6the report card is available on the web site, (ii) the address
7of the web site, (iii) that a printed copy of the report card
8will be sent to parents upon request, and (iv) the telephone
9number that parents may call to request a printed copy of the
10report card.
11    (e) The report card shall include an indicator describing
12whether the school district has improved, declined, or remained
13stable in the aggregate percentage of students making at least
14one-year's academic growth each year, subject to a statewide
15longitudinal data system being established and data being
16available.
17(Source: P.A. 97-671, eff. 1-24-12; 98-463, eff. 8-16-13.)
 
18    (105 ILCS 5/10-17b new)
19    Sec. 10-17b. Financial policies. Beginning with the second
20fiscal year after the effective date of this amendatory Act of
21the 98th General Assembly, each school board shall adopt a
22formal, written financial policy. The policy may include
23information in the following areas:
24        (1) Debt capacity, issuance, and management.
25        (2) Capital asset management.

 

 

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1        (3) Reserve or stabilization fund goals.
2        (4) Periodic budget to actual comparison reports.
3        (5) Fees and charges.
4        (6) The use of one-time revenue.
5        (7) Risk management related to internal controls.
6        (8) Purchasing.
7        (9) Vehicle acquisition and maintenance.
8The school board shall make the policy publicly available.
 
9    (105 ILCS 5/10-17c new)
10    Sec. 10-17c. Long-term financial plan. Beginning with the
11second fiscal year after the effective date of this amendatory
12Act of the 98th General Assembly, each school board shall
13develop a long-term financial plan that extends over at least a
143-year period and that is updated and approved annually. The
15plan must include multi-year forecasts of revenues,
16expenditures, and debt. The school board may make the plan
17available to the public by publishing it as a separate document
18and submitting it with the annual budget or by posting the plan
19as a document on the school district's Internet website, if
20any. The forecasts that are the foundation of the plan must be
21available to participants in the budget process before
22budgetary decisions are made. The public must be provided
23opportunities for providing dialogue with respect to the
24long-term financial planning process. Public access and review
25shall take place as part of the official budget hearing process

 

 

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1in accordance with Section 17-1 of this Code, which requires
2the posting of notice and making documents available to the
3general public at least 30 days in advance of the budget
4hearing.
 
5    (105 ILCS 5/10-17d new)
6    Sec. 10-17d. Capital improvement plan. Beginning with the
7second fiscal year after the effective date of this amendatory
8Act of the 98th General Assembly, each school board shall
9develop a 5-year capital improvement plan that is updated and
10approved annually. The plan must include a summary list of the
11description of the capital projects to be completed over the
12next 5 years, along with projected expenditures, and revenue
13sources. The school board shall make the plan available to the
14public. The school board shall hold a public hearing on the
15capital improvement plan, which hearing may be held at a
16regularly scheduled meeting of the board. This hearing shall be
17held in the same manner and subject to the same notice and
18other requirements as the public hearing required prior to
19adoption of the budget in conformity with Section 17-1 of this
20Code, which requires the posting of notice and making documents
21available to the general public at least 30 days in advance of
22the budget hearing.
 
23    (105 ILCS 5/10-20.56 new)
24    Sec. 10-20.56. School district financial accountability.

 

 

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1    (a) A school board shall annually include a user-friendly
2executive summary as part of the district's budget. The
3executive summary shall include all of the following:
4        (1) The district's major goals and objectives.
5        (2) A discussion of the major financial factors and
6    trends affecting the budget, such as changes in revenues,
7    enrollment, and debt.
8        (3) A description of the budget process.
9        (4) An overview of revenues and expenditures for all
10    funds, including at least 3 to 5 years of prior and future
11    trends, based on data from the annual financial report.
12        (5) An explanation of significant financial and
13    demographic trends.
14        (6) An explanation of the reasons for a budget deficit
15    and an explanation of how the deficit is being addressed in
16    accordance with Section 17-1 of this Code.
17        (7) A budget forecast for at least 3 to 5 years in the
18    future.
19        (8) Student enrollment trends, including a future
20    forecast.
21        (9) The number of personnel by type.
22        (10) Changes in both the long term and short term debt
23    burden.
24    (b) Beginning with the second fiscal year after the
25effective date of this amendatory Act of the 98th General
26Assembly, a school board shall annually include in the full

 

 

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1budget document the following items; any or all of the
2following items may be published as separate documents provided
3that they are explicitly referenced in the annual budget and
4attached thereto and provided that they are made publicly
5available at the same time as the tentative budget document:
6        (1) An organizational chart.
7        (2) Formal financial policies pursuant to Section
8    10-17b of this Code.
9        (3) The district's long-term financial plan pursuant
10    to Section 10-17c of this Code or a summary of the
11    long-term financial plan.
12        (4) The district's capital improvement plan pursuant
13    to Section 10-17d of this Code or a summary of the capital
14    improvement plan.
 
15    (105 ILCS 5/10-22.45)  (from Ch. 122, par. 10-22.45)
16    Sec. 10-22.45. A school board shall To establish an audit
17committee, which may include and to appoint members of the
18board, or other appropriate officers, or persons who do not
19serve on the board to the committee, to review audit reports
20and any other financial reports and documents, including
21management letters prepared by or on behalf of the board.
22Nothing in this Section prohibits a school district from
23maintaining its own internal audit function.
24(Source: P.A. 82-644.)
 

 

 

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1    (105 ILCS 5/17-2.11d new)
2    Sec. 17-2.11d. Non-referendum bonds. Upon the
3certification of an architect and subsequent approval by the
4regional superintendent of schools and the State Board of
5Education, a board of education governing a school district
6having not more than 500,000 inhabitants may issue
7non-referendum bonds for the purposes described in Section 19-3
8of this Code. Such bonds may be issued in excess of any
9statutory limitation as to debt prescribed in Article 19 of
10this Code.
 
11    (105 ILCS 5/18-8.05)
12    Sec. 18-8.05. Basis for apportionment of general State
13financial aid and supplemental general State aid to the common
14schools for the 1998-1999 and subsequent school years.
 
15(A) General Provisions.
16    (1) The provisions of this Section apply to the 1998-1999
17and subsequent school years. The system of general State
18financial aid provided for in this Section is designed to
19assure that, through a combination of State financial aid and
20required local resources, the financial support provided each
21pupil in Average Daily Attendance equals or exceeds a
22prescribed per pupil Foundation Level. This formula approach
23imputes a level of per pupil Available Local Resources and
24provides for the basis to calculate a per pupil level of

 

 

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1general State financial aid that, when added to Available Local
2Resources, equals or exceeds the Foundation Level. The amount
3of per pupil general State financial aid for school districts,
4in general, varies in inverse relation to Available Local
5Resources. Per pupil amounts are based upon each school
6district's Average Daily Attendance as that term is defined in
7this Section.
8    (2) In addition to general State financial aid, school
9districts with specified levels or concentrations of pupils
10from low income households are eligible to receive supplemental
11general State financial aid grants as provided pursuant to
12subsection (H). The supplemental State aid grants provided for
13school districts under subsection (H) shall be appropriated for
14distribution to school districts as part of the same line item
15in which the general State financial aid of school districts is
16appropriated under this Section.
17    (3) To receive financial assistance under this Section,
18school districts are required to file claims with the State
19Board of Education, subject to the following requirements:
20        (a) Any school district which fails for any given
21    school year to maintain school as required by law, or to
22    maintain a recognized school is not eligible to file for
23    such school year any claim upon the Common School Fund. In
24    case of nonrecognition of one or more attendance centers in
25    a school district otherwise operating recognized schools,
26    the claim of the district shall be reduced in the

 

 

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1    proportion which the Average Daily Attendance in the
2    attendance center or centers bear to the Average Daily
3    Attendance in the school district. A "recognized school"
4    means any public school which meets the standards as
5    established for recognition by the State Board of
6    Education. A school district or attendance center not
7    having recognition status at the end of a school term is
8    entitled to receive State aid payments due upon a legal
9    claim which was filed while it was recognized.
10        (b) School district claims filed under this Section are
11    subject to Sections 18-9 and 18-12, except as otherwise
12    provided in this Section.
13        (c) If a school district operates a full year school
14    under Section 10-19.1, the general State aid to the school
15    district shall be determined by the State Board of
16    Education in accordance with this Section as near as may be
17    applicable.
18        (d) (Blank).
19    (4) Except as provided in subsections (H) and (L), the
20board of any district receiving any of the grants provided for
21in this Section may apply those funds to any fund so received
22for which that board is authorized to make expenditures by law.
23    School districts are not required to exert a minimum
24Operating Tax Rate in order to qualify for assistance under
25this Section.
26    (5) As used in this Section the following terms, when

 

 

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1capitalized, shall have the meaning ascribed herein:
2        (a) "Average Daily Attendance": A count of pupil
3    attendance in school, averaged as provided for in
4    subsection (C) and utilized in deriving per pupil financial
5    support levels.
6        (b) "Available Local Resources": A computation of
7    local financial support, calculated on the basis of Average
8    Daily Attendance and derived as provided pursuant to
9    subsection (D).
10        (c) "Corporate Personal Property Replacement Taxes":
11    Funds paid to local school districts pursuant to "An Act in
12    relation to the abolition of ad valorem personal property
13    tax and the replacement of revenues lost thereby, and
14    amending and repealing certain Acts and parts of Acts in
15    connection therewith", certified August 14, 1979, as
16    amended (Public Act 81-1st S.S.-1).
17        (d) "Foundation Level": A prescribed level of per pupil
18    financial support as provided for in subsection (B).
19        (e) "Operating Tax Rate": All school district property
20    taxes extended for all purposes, except Bond and Interest,
21    Summer School, Rent, Capital Improvement, and Vocational
22    Education Building purposes.
 
23(B) Foundation Level.
24    (1) The Foundation Level is a figure established by the
25State representing the minimum level of per pupil financial

 

 

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1support that should be available to provide for the basic
2education of each pupil in Average Daily Attendance. As set
3forth in this Section, each school district is assumed to exert
4a sufficient local taxing effort such that, in combination with
5the aggregate of general State financial aid provided the
6district, an aggregate of State and local resources are
7available to meet the basic education needs of pupils in the
8district.
9    (2) For the 1998-1999 school year, the Foundation Level of
10support is $4,225. For the 1999-2000 school year, the
11Foundation Level of support is $4,325. For the 2000-2001 school
12year, the Foundation Level of support is $4,425. For the
132001-2002 school year and 2002-2003 school year, the Foundation
14Level of support is $4,560. For the 2003-2004 school year, the
15Foundation Level of support is $4,810. For the 2004-2005 school
16year, the Foundation Level of support is $4,964. For the
172005-2006 school year, the Foundation Level of support is
18$5,164. For the 2006-2007 school year, the Foundation Level of
19support is $5,334. For the 2007-2008 school year, the
20Foundation Level of support is $5,734. For the 2008-2009 school
21year, the Foundation Level of support is $5,959.
22    (3) For the 2009-2010 school year through the 2013-2014
23school year and each school year thereafter, the Foundation
24Level of support is $6,119 or such greater amount as may be
25established by law by the General Assembly.
26    (4) For the 2014-2015 school year, the Foundation Level of

 

 

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1support is $6,190. For each school year thereafter, the
2Foundation Level of support shall be no less than $6,190.
 
3(C) Average Daily Attendance.
4    (1) For purposes of calculating general State aid pursuant
5to subsection (E), an Average Daily Attendance figure shall be
6utilized. The Average Daily Attendance figure for formula
7calculation purposes shall be the monthly average of the actual
8number of pupils in attendance of each school district, as
9further averaged for the best 3 months of pupil attendance for
10each school district. In compiling the figures for the number
11of pupils in attendance, school districts and the State Board
12of Education shall, for purposes of general State aid funding,
13conform attendance figures to the requirements of subsection
14(F).
15    (2) The Average Daily Attendance figures utilized in
16subsection (E) shall be the requisite attendance data for the
17school year immediately preceding the school year for which
18general State aid is being calculated or the average of the
19attendance data for the 3 preceding school years, whichever is
20greater. The Average Daily Attendance figures utilized in
21subsection (H) shall be the requisite attendance data for the
22school year immediately preceding the school year for which
23general State aid is being calculated.
 
24(D) Available Local Resources.

 

 

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1    (1) For purposes of calculating general State aid pursuant
2to subsection (E), a representation of Available Local
3Resources per pupil, as that term is defined and determined in
4this subsection, shall be utilized. Available Local Resources
5per pupil shall include a calculated dollar amount representing
6local school district revenues from local property taxes and
7from Corporate Personal Property Replacement Taxes, expressed
8on the basis of pupils in Average Daily Attendance. Calculation
9of Available Local Resources shall exclude any tax amnesty
10funds received as a result of Public Act 93-26.
11    (2) In determining a school district's revenue from local
12property taxes, the State Board of Education shall utilize the
13equalized assessed valuation of all taxable property of each
14school district as of September 30 of the previous year. The
15equalized assessed valuation utilized shall be obtained and
16determined as provided in subsection (G).
17    (3) For school districts maintaining grades kindergarten
18through 12, local property tax revenues per pupil shall be
19calculated as the product of the applicable equalized assessed
20valuation for the district multiplied by 3.00%, and divided by
21the district's Average Daily Attendance figure. For school
22districts maintaining grades kindergarten through 8, local
23property tax revenues per pupil shall be calculated as the
24product of the applicable equalized assessed valuation for the
25district multiplied by 2.30%, and divided by the district's
26Average Daily Attendance figure. For school districts

 

 

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1maintaining grades 9 through 12, local property tax revenues
2per pupil shall be the applicable equalized assessed valuation
3of the district multiplied by 1.05%, and divided by the
4district's Average Daily Attendance figure.
5    For partial elementary unit districts created pursuant to
6Article 11E of this Code, local property tax revenues per pupil
7shall be calculated as the product of the equalized assessed
8valuation for property within the partial elementary unit
9district for elementary purposes, as defined in Article 11E of
10this Code, multiplied by 2.06% and divided by the district's
11Average Daily Attendance figure, plus the product of the
12equalized assessed valuation for property within the partial
13elementary unit district for high school purposes, as defined
14in Article 11E of this Code, multiplied by 0.94% and divided by
15the district's Average Daily Attendance figure.
16    (4) The Corporate Personal Property Replacement Taxes paid
17to each school district during the calendar year one year
18before the calendar year in which a school year begins, divided
19by the Average Daily Attendance figure for that district, shall
20be added to the local property tax revenues per pupil as
21derived by the application of the immediately preceding
22paragraph (3). The sum of these per pupil figures for each
23school district shall constitute Available Local Resources as
24that term is utilized in subsection (E) in the calculation of
25general State aid.
 

 

 

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1(E) Computation of General State Aid.
2    (1) For each school year, the amount of general State aid
3allotted to a school district shall be computed by the State
4Board of Education as provided in this subsection.
5    (2) For any school district for which Available Local
6Resources per pupil is less than the product of 0.93 times the
7Foundation Level, general State aid for that district shall be
8calculated as an amount equal to the Foundation Level minus
9Available Local Resources, multiplied by the Average Daily
10Attendance of the school district.
11    (3) For any school district for which Available Local
12Resources per pupil is equal to or greater than the product of
130.93 times the Foundation Level and less than the product of
141.75 times the Foundation Level, the general State aid per
15pupil shall be a decimal proportion of the Foundation Level
16derived using a linear algorithm. Under this linear algorithm,
17the calculated general State aid per pupil shall decline in
18direct linear fashion from 0.07 times the Foundation Level for
19a school district with Available Local Resources equal to the
20product of 0.93 times the Foundation Level, to 0.05 times the
21Foundation Level for a school district with Available Local
22Resources equal to the product of 1.75 times the Foundation
23Level. The allocation of general State aid for school districts
24subject to this paragraph 3 shall be the calculated general
25State aid per pupil figure multiplied by the Average Daily
26Attendance of the school district.

 

 

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1    (4) For any school district for which Available Local
2Resources per pupil equals or exceeds the product of 1.75 times
3the Foundation Level, the general State aid for the school
4district shall be calculated as the product of $218 multiplied
5by the Average Daily Attendance of the school district.
6    (5) The amount of general State aid allocated to a school
7district for the 1999-2000 school year meeting the requirements
8set forth in paragraph (4) of subsection (G) shall be increased
9by an amount equal to the general State aid that would have
10been received by the district for the 1998-1999 school year by
11utilizing the Extension Limitation Equalized Assessed
12Valuation as calculated in paragraph (4) of subsection (G) less
13the general State aid allotted for the 1998-1999 school year.
14This amount shall be deemed a one time increase, and shall not
15affect any future general State aid allocations.
 
16(F) Compilation of Average Daily Attendance.
17    (1) Each school district shall, by July 1 of each year,
18submit to the State Board of Education, on forms prescribed by
19the State Board of Education, attendance figures for the school
20year that began in the preceding calendar year. The attendance
21information so transmitted shall identify the average daily
22attendance figures for each month of the school year. Beginning
23with the general State aid claim form for the 2002-2003 school
24year, districts shall calculate Average Daily Attendance as
25provided in subdivisions (a), (b), and (c) of this paragraph

 

 

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1(1).
2        (a) In districts that do not hold year-round classes,
3    days of attendance in August shall be added to the month of
4    September and any days of attendance in June shall be added
5    to the month of May.
6        (b) In districts in which all buildings hold year-round
7    classes, days of attendance in July and August shall be
8    added to the month of September and any days of attendance
9    in June shall be added to the month of May.
10        (c) In districts in which some buildings, but not all,
11    hold year-round classes, for the non-year-round buildings,
12    days of attendance in August shall be added to the month of
13    September and any days of attendance in June shall be added
14    to the month of May. The average daily attendance for the
15    year-round buildings shall be computed as provided in
16    subdivision (b) of this paragraph (1). To calculate the
17    Average Daily Attendance for the district, the average
18    daily attendance for the year-round buildings shall be
19    multiplied by the days in session for the non-year-round
20    buildings for each month and added to the monthly
21    attendance of the non-year-round buildings.
22    Except as otherwise provided in this Section, days of
23attendance by pupils shall be counted only for sessions of not
24less than 5 clock hours of school work per day under direct
25supervision of: (i) teachers, or (ii) non-teaching personnel or
26volunteer personnel when engaging in non-teaching duties and

 

 

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1supervising in those instances specified in subsection (a) of
2Section 10-22.34 and paragraph 10 of Section 34-18, with pupils
3of legal school age and in kindergarten and grades 1 through
412.
5    Days of attendance by tuition pupils shall be accredited
6only to the districts that pay the tuition to a recognized
7school.
8    (2) Days of attendance by pupils of less than 5 clock hours
9of school shall be subject to the following provisions in the
10compilation of Average Daily Attendance.
11        (a) Pupils regularly enrolled in a public school for
12    only a part of the school day may be counted on the basis
13    of 1/6 day for every class hour of instruction of 40
14    minutes or more attended pursuant to such enrollment,
15    unless a pupil is enrolled in a block-schedule format of 80
16    minutes or more of instruction, in which case the pupil may
17    be counted on the basis of the proportion of minutes of
18    school work completed each day to the minimum number of
19    minutes that school work is required to be held that day.
20        (b) (Blank).
21        (c) A session of 4 or more clock hours may be counted
22    as a day of attendance upon certification by the regional
23    superintendent, and approved by the State Superintendent
24    of Education to the extent that the district has been
25    forced to use daily multiple sessions.
26        (d) A session of 3 or more clock hours may be counted

 

 

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1    as a day of attendance (1) when the remainder of the school
2    day or at least 2 hours in the evening of that day is
3    utilized for an in-service training program for teachers,
4    up to a maximum of 5 days per school year, provided a
5    district conducts an in-service training program for
6    teachers in accordance with Section 10-22.39 of this Code;
7    or, in lieu of 4 such days, 2 full days may be used, in
8    which event each such day may be counted as a day required
9    for a legal school calendar pursuant to Section 10-19 of
10    this Code; (1.5) when, of the 5 days allowed under item
11    (1), a maximum of 4 days are used for parent-teacher
12    conferences, or, in lieu of 4 such days, 2 full days are
13    used, in which case each such day may be counted as a
14    calendar day required under Section 10-19 of this Code,
15    provided that the full-day, parent-teacher conference
16    consists of (i) a minimum of 5 clock hours of
17    parent-teacher conferences, (ii) both a minimum of 2 clock
18    hours of parent-teacher conferences held in the evening
19    following a full day of student attendance, as specified in
20    subsection (F)(1)(c), and a minimum of 3 clock hours of
21    parent-teacher conferences held on the day immediately
22    following evening parent-teacher conferences, or (iii)
23    multiple parent-teacher conferences held in the evenings
24    following full days of student attendance, as specified in
25    subsection (F)(1)(c), in which the time used for the
26    parent-teacher conferences is equivalent to a minimum of 5

 

 

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1    clock hours; and (2) when days in addition to those
2    provided in items (1) and (1.5) are scheduled by a school
3    pursuant to its school improvement plan adopted under
4    Article 34 or its revised or amended school improvement
5    plan adopted under Article 2, provided that (i) such
6    sessions of 3 or more clock hours are scheduled to occur at
7    regular intervals, (ii) the remainder of the school days in
8    which such sessions occur are utilized for in-service
9    training programs or other staff development activities
10    for teachers, and (iii) a sufficient number of minutes of
11    school work under the direct supervision of teachers are
12    added to the school days between such regularly scheduled
13    sessions to accumulate not less than the number of minutes
14    by which such sessions of 3 or more clock hours fall short
15    of 5 clock hours. Any full days used for the purposes of
16    this paragraph shall not be considered for computing
17    average daily attendance. Days scheduled for in-service
18    training programs, staff development activities, or
19    parent-teacher conferences may be scheduled separately for
20    different grade levels and different attendance centers of
21    the district.
22        (e) A session of not less than one clock hour of
23    teaching hospitalized or homebound pupils on-site or by
24    telephone to the classroom may be counted as 1/2 day of
25    attendance, however these pupils must receive 4 or more
26    clock hours of instruction to be counted for a full day of

 

 

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1    attendance.
2        (f) A session of at least 4 clock hours may be counted
3    as a day of attendance for first grade pupils, and pupils
4    in full day kindergartens, and a session of 2 or more hours
5    may be counted as 1/2 day of attendance by pupils in
6    kindergartens which provide only 1/2 day of attendance.
7        (g) For children with disabilities who are below the
8    age of 6 years and who cannot attend 2 or more clock hours
9    because of their disability or immaturity, a session of not
10    less than one clock hour may be counted as 1/2 day of
11    attendance; however for such children whose educational
12    needs so require a session of 4 or more clock hours may be
13    counted as a full day of attendance.
14        (h) A recognized kindergarten which provides for only
15    1/2 day of attendance by each pupil shall not have more
16    than 1/2 day of attendance counted in any one day. However,
17    kindergartens may count 2 1/2 days of attendance in any 5
18    consecutive school days. When a pupil attends such a
19    kindergarten for 2 half days on any one school day, the
20    pupil shall have the following day as a day absent from
21    school, unless the school district obtains permission in
22    writing from the State Superintendent of Education.
23    Attendance at kindergartens which provide for a full day of
24    attendance by each pupil shall be counted the same as
25    attendance by first grade pupils. Only the first year of
26    attendance in one kindergarten shall be counted, except in

 

 

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1    case of children who entered the kindergarten in their
2    fifth year whose educational development requires a second
3    year of kindergarten as determined under the rules and
4    regulations of the State Board of Education.
5        (i) On the days when the Prairie State Achievement
6    Examination is administered under subsection (c) of
7    Section 2-3.64 of this Code, the day of attendance for a
8    pupil whose school day must be shortened to accommodate
9    required testing procedures may be less than 5 clock hours
10    and shall be counted towards the 176 days of actual pupil
11    attendance required under Section 10-19 of this Code,
12    provided that a sufficient number of minutes of school work
13    in excess of 5 clock hours are first completed on other
14    school days to compensate for the loss of school work on
15    the examination days.
16        (j) Pupils enrolled in a remote educational program
17    established under Section 10-29 of this Code may be counted
18    on the basis of one-fifth day of attendance for every clock
19    hour of instruction attended in the remote educational
20    program, provided that, in any month, the school district
21    may not claim for a student enrolled in a remote
22    educational program more days of attendance than the
23    maximum number of days of attendance the district can claim
24    (i) for students enrolled in a building holding year-round
25    classes if the student is classified as participating in
26    the remote educational program on a year-round schedule or

 

 

SB3449- 132 -LRB098 20255 HLH 55629 b

1    (ii) for students enrolled in a building not holding
2    year-round classes if the student is not classified as
3    participating in the remote educational program on a
4    year-round schedule.
 
5(G) Equalized Assessed Valuation Data.
6    (1) For purposes of the calculation of Available Local
7Resources required pursuant to subsection (D), the State Board
8of Education shall secure from the Department of Revenue the
9value as equalized or assessed by the Department of Revenue of
10all taxable property of every school district, together with
11(i) the applicable tax rate used in extending taxes for the
12funds of the district as of September 30 of the previous year
13and (ii) the limiting rate for all school districts subject to
14property tax extension limitations as imposed under the
15Property Tax Extension Limitation Law.
16    The Department of Revenue shall add to the equalized
17assessed value of all taxable property of each school district
18situated entirely or partially within a county that is or was
19subject to the provisions of Section 15-176 or 15-177 of the
20Property Tax Code (a) an amount equal to the total amount by
21which the homestead exemption allowed under Section 15-176 or
2215-177 of the Property Tax Code for real property situated in
23that school district exceeds the total amount that would have
24been allowed in that school district if the maximum reduction
25under Section 15-176 was (i) $4,500 in Cook County or $3,500 in

 

 

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1all other counties in tax year 2003 or (ii) $5,000 in all
2counties in tax year 2004 and thereafter and (b) an amount
3equal to the aggregate amount for the taxable year of all
4additional exemptions under Section 15-175 of the Property Tax
5Code for owners with a household income of $30,000 or less. The
6county clerk of any county that is or was subject to the
7provisions of Section 15-176 or 15-177 of the Property Tax Code
8shall annually calculate and certify to the Department of
9Revenue for each school district all homestead exemption
10amounts under Section 15-176 or 15-177 of the Property Tax Code
11and all amounts of additional exemptions under Section 15-175
12of the Property Tax Code for owners with a household income of
13$30,000 or less. It is the intent of this paragraph that if the
14general homestead exemption for a parcel of property is
15determined under Section 15-176 or 15-177 of the Property Tax
16Code rather than Section 15-175, then the calculation of
17Available Local Resources shall not be affected by the
18difference, if any, between the amount of the general homestead
19exemption allowed for that parcel of property under Section
2015-176 or 15-177 of the Property Tax Code and the amount that
21would have been allowed had the general homestead exemption for
22that parcel of property been determined under Section 15-175 of
23the Property Tax Code. It is further the intent of this
24paragraph that if additional exemptions are allowed under
25Section 15-175 of the Property Tax Code for owners with a
26household income of less than $30,000, then the calculation of

 

 

SB3449- 134 -LRB098 20255 HLH 55629 b

1Available Local Resources shall not be affected by the
2difference, if any, because of those additional exemptions.
3    This equalized assessed valuation, as adjusted further by
4the requirements of this subsection, shall be utilized in the
5calculation of Available Local Resources.
6    (2) The equalized assessed valuation in paragraph (1) shall
7be adjusted, as applicable, in the following manner:
8        (a) For the purposes of calculating State aid under
9    this Section, with respect to any part of a school district
10    within a redevelopment project area in respect to which a
11    municipality has adopted tax increment allocation
12    financing pursuant to the Tax Increment Allocation
13    Redevelopment Act, Sections 11-74.4-1 through 11-74.4-11
14    of the Illinois Municipal Code or the Industrial Jobs
15    Recovery Law, Sections 11-74.6-1 through 11-74.6-50 of the
16    Illinois Municipal Code, no part of the current equalized
17    assessed valuation of real property located in any such
18    project area which is attributable to an increase above the
19    total initial equalized assessed valuation of such
20    property shall be used as part of the equalized assessed
21    valuation of the district, until such time as all
22    redevelopment project costs have been paid, as provided in
23    Section 11-74.4-8 of the Tax Increment Allocation
24    Redevelopment Act or in Section 11-74.6-35 of the
25    Industrial Jobs Recovery Law. For the purpose of the
26    equalized assessed valuation of the district, the total

 

 

SB3449- 135 -LRB098 20255 HLH 55629 b

1    initial equalized assessed valuation or the current
2    equalized assessed valuation, whichever is lower, shall be
3    used until such time as all redevelopment project costs
4    have been paid.
5        (b) The real property equalized assessed valuation for
6    a school district shall be adjusted by subtracting from the
7    real property value as equalized or assessed by the
8    Department of Revenue for the district an amount computed
9    by dividing the amount of any abatement of taxes under
10    Section 18-170 of the Property Tax Code by 3.00% for a
11    district maintaining grades kindergarten through 12, by
12    2.30% for a district maintaining grades kindergarten
13    through 8, or by 1.05% for a district maintaining grades 9
14    through 12 and adjusted by an amount computed by dividing
15    the amount of any abatement of taxes under subsection (a)
16    of Section 18-165 of the Property Tax Code by the same
17    percentage rates for district type as specified in this
18    subparagraph (b).
19    (3) For the 1999-2000 school year and each school year
20thereafter, if a school district meets all of the criteria of
21this subsection (G)(3), the school district's Available Local
22Resources shall be calculated under subsection (D) using the
23district's Extension Limitation Equalized Assessed Valuation
24as calculated under this subsection (G)(3).
25    For purposes of this subsection (G)(3) the following terms
26shall have the following meanings:

 

 

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1        "Budget Year": The school year for which general State
2    aid is calculated and awarded under subsection (E).
3        "Base Tax Year": The property tax levy year used to
4    calculate the Budget Year allocation of general State aid.
5        "Preceding Tax Year": The property tax levy year
6    immediately preceding the Base Tax Year.
7        "Base Tax Year's Tax Extension": The product of the
8    equalized assessed valuation utilized by the County Clerk
9    in the Base Tax Year multiplied by the limiting rate as
10    calculated by the County Clerk and defined in the Property
11    Tax Extension Limitation Law.
12        "Preceding Tax Year's Tax Extension": The product of
13    the equalized assessed valuation utilized by the County
14    Clerk in the Preceding Tax Year multiplied by the Operating
15    Tax Rate as defined in subsection (A).
16        "Extension Limitation Ratio": A numerical ratio,
17    certified by the County Clerk, in which the numerator is
18    the Base Tax Year's Tax Extension and the denominator is
19    the Preceding Tax Year's Tax Extension.
20        "Operating Tax Rate": The operating tax rate as defined
21    in subsection (A).
22    If a school district is subject to property tax extension
23limitations as imposed under the Property Tax Extension
24Limitation Law, the State Board of Education shall calculate
25the Extension Limitation Equalized Assessed Valuation of that
26district. For the 1999-2000 school year, the Extension

 

 

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1Limitation Equalized Assessed Valuation of a school district as
2calculated by the State Board of Education shall be equal to
3the product of the district's 1996 Equalized Assessed Valuation
4and the district's Extension Limitation Ratio. Except as
5otherwise provided in this paragraph for a school district that
6has approved or does approve an increase in its limiting rate,
7for the 2000-2001 school year and each school year thereafter,
8the Extension Limitation Equalized Assessed Valuation of a
9school district as calculated by the State Board of Education
10shall be equal to the product of the Equalized Assessed
11Valuation last used in the calculation of general State aid and
12the district's Extension Limitation Ratio. If the Extension
13Limitation Equalized Assessed Valuation of a school district as
14calculated under this subsection (G)(3) is less than the
15district's equalized assessed valuation as calculated pursuant
16to subsections (G)(1) and (G)(2), then for purposes of
17calculating the district's general State aid for the Budget
18Year pursuant to subsection (E), that Extension Limitation
19Equalized Assessed Valuation shall be utilized to calculate the
20district's Available Local Resources under subsection (D). For
21the 2009-2010 school year and each school year thereafter, if a
22school district has approved or does approve an increase in its
23limiting rate, pursuant to Section 18-190 of the Property Tax
24Code, affecting the Base Tax Year, the Extension Limitation
25Equalized Assessed Valuation of the school district, as
26calculated by the State Board of Education, shall be equal to

 

 

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1the product of the Equalized Assessed Valuation last used in
2the calculation of general State aid times an amount equal to
3one plus the percentage increase, if any, in the Consumer Price
4Index for all Urban Consumers for all items published by the
5United States Department of Labor for the 12-month calendar
6year preceding the Base Tax Year, plus the Equalized Assessed
7Valuation of new property, annexed property, and recovered tax
8increment value and minus the Equalized Assessed Valuation of
9disconnected property. New property and recovered tax
10increment value shall have the meanings set forth in the
11Property Tax Extension Limitation Law.
12    Partial elementary unit districts created in accordance
13with Article 11E of this Code shall not be eligible for the
14adjustment in this subsection (G)(3) until the fifth year
15following the effective date of the reorganization.
16    (3.5) For the 2010-2011 school year and each school year
17thereafter, if a school district's boundaries span multiple
18counties, then the Department of Revenue shall send to the
19State Board of Education, for the purpose of calculating
20general State aid, the limiting rate and individual rates by
21purpose for the county that contains the majority of the school
22district's Equalized Assessed Valuation.
23    (4) For the purposes of calculating general State aid for
24the 1999-2000 school year only, if a school district
25experienced a triennial reassessment on the equalized assessed
26valuation used in calculating its general State financial aid

 

 

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1apportionment for the 1998-1999 school year, the State Board of
2Education shall calculate the Extension Limitation Equalized
3Assessed Valuation that would have been used to calculate the
4district's 1998-1999 general State aid. This amount shall equal
5the product of the equalized assessed valuation used to
6calculate general State aid for the 1997-1998 school year and
7the district's Extension Limitation Ratio. If the Extension
8Limitation Equalized Assessed Valuation of the school district
9as calculated under this paragraph (4) is less than the
10district's equalized assessed valuation utilized in
11calculating the district's 1998-1999 general State aid
12allocation, then for purposes of calculating the district's
13general State aid pursuant to paragraph (5) of subsection (E),
14that Extension Limitation Equalized Assessed Valuation shall
15be utilized to calculate the district's Available Local
16Resources.
17    (5) For school districts having a majority of their
18equalized assessed valuation in any county except Cook, DuPage,
19Kane, Lake, McHenry, or Will, if the amount of general State
20aid allocated to the school district for the 1999-2000 school
21year under the provisions of subsection (E), (H), and (J) of
22this Section is less than the amount of general State aid
23allocated to the district for the 1998-1999 school year under
24these subsections, then the general State aid of the district
25for the 1999-2000 school year only shall be increased by the
26difference between these amounts. The total payments made under

 

 

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1this paragraph (5) shall not exceed $14,000,000. Claims shall
2be prorated if they exceed $14,000,000.
 
3(H) Supplemental General State Aid.
4    (1) In addition to the general State aid a school district
5is allotted pursuant to subsection (E), qualifying school
6districts shall receive a grant, paid in conjunction with a
7district's payments of general State aid, for supplemental
8general State aid based upon the concentration level of
9children from low-income households within the school
10district. Supplemental State aid grants provided for school
11districts under this subsection shall be appropriated for
12distribution to school districts as part of the same line item
13in which the general State financial aid of school districts is
14appropriated under this Section.
15    (1.5) This paragraph (1.5) applies only to those school
16years preceding the 2003-2004 school year. For purposes of this
17subsection (H), the term "Low-Income Concentration Level"
18shall be the low-income eligible pupil count from the most
19recently available federal census divided by the Average Daily
20Attendance of the school district. If, however, (i) the
21percentage decrease from the 2 most recent federal censuses in
22the low-income eligible pupil count of a high school district
23with fewer than 400 students exceeds by 75% or more the
24percentage change in the total low-income eligible pupil count
25of contiguous elementary school districts, whose boundaries

 

 

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1are coterminous with the high school district, or (ii) a high
2school district within 2 counties and serving 5 elementary
3school districts, whose boundaries are coterminous with the
4high school district, has a percentage decrease from the 2 most
5recent federal censuses in the low-income eligible pupil count
6and there is a percentage increase in the total low-income
7eligible pupil count of a majority of the elementary school
8districts in excess of 50% from the 2 most recent federal
9censuses, then the high school district's low-income eligible
10pupil count from the earlier federal census shall be the number
11used as the low-income eligible pupil count for the high school
12district, for purposes of this subsection (H). The changes made
13to this paragraph (1) by Public Act 92-28 shall apply to
14supplemental general State aid grants for school years
15preceding the 2003-2004 school year that are paid in fiscal
16year 1999 or thereafter and to any State aid payments made in
17fiscal year 1994 through fiscal year 1998 pursuant to
18subsection 1(n) of Section 18-8 of this Code (which was
19repealed on July 1, 1998), and any high school district that is
20affected by Public Act 92-28 is entitled to a recomputation of
21its supplemental general State aid grant or State aid paid in
22any of those fiscal years. This recomputation shall not be
23affected by any other funding.
24    (1.10) This paragraph (1.10) applies to the 2003-2004
25school year and each school year thereafter. For purposes of
26this subsection (H), the term "Low-Income Concentration Level"

 

 

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1shall, for each fiscal year, be the low-income eligible pupil
2count as of July 1 of the immediately preceding fiscal year (as
3determined by the Department of Human Services based on the
4number of pupils who are eligible for at least one of the
5following low income programs: Medicaid, the Children's Health
6Insurance Program, TANF, or Food Stamps, excluding pupils who
7are eligible for services provided by the Department of
8Children and Family Services, averaged over the 2 immediately
9preceding fiscal years for fiscal year 2004 and over the 3
10immediately preceding fiscal years for each fiscal year
11thereafter) divided by the Average Daily Attendance of the
12school district.
13    (2) Supplemental general State aid pursuant to this
14subsection (H) shall be provided as follows for the 1998-1999,
151999-2000, and 2000-2001 school years only:
16        (a) For any school district with a Low Income
17    Concentration Level of at least 20% and less than 35%, the
18    grant for any school year shall be $800 multiplied by the
19    low income eligible pupil count.
20        (b) For any school district with a Low Income
21    Concentration Level of at least 35% and less than 50%, the
22    grant for the 1998-1999 school year shall be $1,100
23    multiplied by the low income eligible pupil count.
24        (c) For any school district with a Low Income
25    Concentration Level of at least 50% and less than 60%, the
26    grant for the 1998-99 school year shall be $1,500

 

 

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1    multiplied by the low income eligible pupil count.
2        (d) For any school district with a Low Income
3    Concentration Level of 60% or more, the grant for the
4    1998-99 school year shall be $1,900 multiplied by the low
5    income eligible pupil count.
6        (e) For the 1999-2000 school year, the per pupil amount
7    specified in subparagraphs (b), (c), and (d) immediately
8    above shall be increased to $1,243, $1,600, and $2,000,
9    respectively.
10        (f) For the 2000-2001 school year, the per pupil
11    amounts specified in subparagraphs (b), (c), and (d)
12    immediately above shall be $1,273, $1,640, and $2,050,
13    respectively.
14    (2.5) Supplemental general State aid pursuant to this
15subsection (H) shall be provided as follows for the 2002-2003
16school year:
17        (a) For any school district with a Low Income
18    Concentration Level of less than 10%, the grant for each
19    school year shall be $355 multiplied by the low income
20    eligible pupil count.
21        (b) For any school district with a Low Income
22    Concentration Level of at least 10% and less than 20%, the
23    grant for each school year shall be $675 multiplied by the
24    low income eligible pupil count.
25        (c) For any school district with a Low Income
26    Concentration Level of at least 20% and less than 35%, the

 

 

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1    grant for each school year shall be $1,330 multiplied by
2    the low income eligible pupil count.
3        (d) For any school district with a Low Income
4    Concentration Level of at least 35% and less than 50%, the
5    grant for each school year shall be $1,362 multiplied by
6    the low income eligible pupil count.
7        (e) For any school district with a Low Income
8    Concentration Level of at least 50% and less than 60%, the
9    grant for each school year shall be $1,680 multiplied by
10    the low income eligible pupil count.
11        (f) For any school district with a Low Income
12    Concentration Level of 60% or more, the grant for each
13    school year shall be $2,080 multiplied by the low income
14    eligible pupil count.
15    (2.10) Except as otherwise provided, supplemental general
16State aid pursuant to this subsection (H) shall be provided as
17follows for the 2003-2004 school year and each school year
18thereafter:
19        (a) For any school district with a Low Income
20    Concentration Level of 15% or less, the grant for each
21    school year shall be $355 multiplied by the low income
22    eligible pupil count.
23        (b) For any school district with a Low Income
24    Concentration Level greater than 15%, the grant for each
25    school year shall be $294.25 added to the product of $2,700
26    and the square of the Low Income Concentration Level, all

 

 

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1    multiplied by the low income eligible pupil count.
2    For the 2003-2004 school year and each school year
3thereafter through the 2008-2009 school year only, the grant
4shall be no less than the grant for the 2002-2003 school year.
5For the 2009-2010 school year only, the grant shall be no less
6than the grant for the 2002-2003 school year multiplied by
70.66. For the 2010-2011 school year only, the grant shall be no
8less than the grant for the 2002-2003 school year multiplied by
90.33. Notwithstanding the provisions of this paragraph to the
10contrary, if for any school year supplemental general State aid
11grants are prorated as provided in paragraph (1) of this
12subsection (H), then the grants under this paragraph shall be
13prorated.
14    For the 2003-2004 school year only, the grant shall be no
15greater than the grant received during the 2002-2003 school
16year added to the product of 0.25 multiplied by the difference
17between the grant amount calculated under subsection (a) or (b)
18of this paragraph (2.10), whichever is applicable, and the
19grant received during the 2002-2003 school year. For the
202004-2005 school year only, the grant shall be no greater than
21the grant received during the 2002-2003 school year added to
22the product of 0.50 multiplied by the difference between the
23grant amount calculated under subsection (a) or (b) of this
24paragraph (2.10), whichever is applicable, and the grant
25received during the 2002-2003 school year. For the 2005-2006
26school year only, the grant shall be no greater than the grant

 

 

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1received during the 2002-2003 school year added to the product
2of 0.75 multiplied by the difference between the grant amount
3calculated under subsection (a) or (b) of this paragraph
4(2.10), whichever is applicable, and the grant received during
5the 2002-2003 school year.
6    (3) School districts with an Average Daily Attendance of
7more than 1,000 and less than 50,000 that qualify for
8supplemental general State aid pursuant to this subsection
9shall submit a plan to the State Board of Education prior to
10October 30 of each year for the use of the funds resulting from
11this grant of supplemental general State aid for the
12improvement of instruction in which priority is given to
13meeting the education needs of disadvantaged children. Such
14plan shall be submitted in accordance with rules and
15regulations promulgated by the State Board of Education.
16    (4) School districts with an Average Daily Attendance of
1750,000 or more that qualify for supplemental general State aid
18pursuant to this subsection shall be required to distribute
19from funds available pursuant to this Section, no less than
20$261,000,000 in accordance with the following requirements:
21        (a) The required amounts shall be distributed to the
22    attendance centers within the district in proportion to the
23    number of pupils enrolled at each attendance center who are
24    eligible to receive free or reduced-price lunches or
25    breakfasts under the federal Child Nutrition Act of 1966
26    and under the National School Lunch Act during the

 

 

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1    immediately preceding school year.
2        (b) The distribution of these portions of supplemental
3    and general State aid among attendance centers according to
4    these requirements shall not be compensated for or
5    contravened by adjustments of the total of other funds
6    appropriated to any attendance centers, and the Board of
7    Education shall utilize funding from one or several sources
8    in order to fully implement this provision annually prior
9    to the opening of school.
10        (c) Each attendance center shall be provided by the
11    school district a distribution of noncategorical funds and
12    other categorical funds to which an attendance center is
13    entitled under law in order that the general State aid and
14    supplemental general State aid provided by application of
15    this subsection supplements rather than supplants the
16    noncategorical funds and other categorical funds provided
17    by the school district to the attendance centers.
18        (d) Any funds made available under this subsection that
19    by reason of the provisions of this subsection are not
20    required to be allocated and provided to attendance centers
21    may be used and appropriated by the board of the district
22    for any lawful school purpose.
23        (e) Funds received by an attendance center pursuant to
24    this subsection shall be used by the attendance center at
25    the discretion of the principal and local school council
26    for programs to improve educational opportunities at

 

 

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1    qualifying schools through the following programs and
2    services: early childhood education, reduced class size or
3    improved adult to student classroom ratio, enrichment
4    programs, remedial assistance, attendance improvement, and
5    other educationally beneficial expenditures which
6    supplement the regular and basic programs as determined by
7    the State Board of Education. Funds provided shall not be
8    expended for any political or lobbying purposes as defined
9    by board rule.
10        (f) Each district subject to the provisions of this
11    subdivision (H)(4) shall submit an acceptable plan to meet
12    the educational needs of disadvantaged children, in
13    compliance with the requirements of this paragraph, to the
14    State Board of Education prior to July 15 of each year.
15    This plan shall be consistent with the decisions of local
16    school councils concerning the school expenditure plans
17    developed in accordance with part 4 of Section 34-2.3. The
18    State Board shall approve or reject the plan within 60 days
19    after its submission. If the plan is rejected, the district
20    shall give written notice of intent to modify the plan
21    within 15 days of the notification of rejection and then
22    submit a modified plan within 30 days after the date of the
23    written notice of intent to modify. Districts may amend
24    approved plans pursuant to rules promulgated by the State
25    Board of Education.
26        Upon notification by the State Board of Education that

 

 

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1    the district has not submitted a plan prior to July 15 or a
2    modified plan within the time period specified herein, the
3    State aid funds affected by that plan or modified plan
4    shall be withheld by the State Board of Education until a
5    plan or modified plan is submitted.
6        If the district fails to distribute State aid to
7    attendance centers in accordance with an approved plan, the
8    plan for the following year shall allocate funds, in
9    addition to the funds otherwise required by this
10    subsection, to those attendance centers which were
11    underfunded during the previous year in amounts equal to
12    such underfunding.
13        For purposes of determining compliance with this
14    subsection in relation to the requirements of attendance
15    center funding, each district subject to the provisions of
16    this subsection shall submit as a separate document by
17    December 1 of each year a report of expenditure data for
18    the prior year in addition to any modification of its
19    current plan. If it is determined that there has been a
20    failure to comply with the expenditure provisions of this
21    subsection regarding contravention or supplanting, the
22    State Superintendent of Education shall, within 60 days of
23    receipt of the report, notify the district and any affected
24    local school council. The district shall within 45 days of
25    receipt of that notification inform the State
26    Superintendent of Education of the remedial or corrective

 

 

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1    action to be taken, whether by amendment of the current
2    plan, if feasible, or by adjustment in the plan for the
3    following year. Failure to provide the expenditure report
4    or the notification of remedial or corrective action in a
5    timely manner shall result in a withholding of the affected
6    funds.
7        The State Board of Education shall promulgate rules and
8    regulations to implement the provisions of this
9    subsection. No funds shall be released under this
10    subdivision (H)(4) to any district that has not submitted a
11    plan that has been approved by the State Board of
12    Education.
 
13(I) (Blank).
 
14(J) (Blank).
 
15(K) Grants to Laboratory and Alternative Schools.
16    In calculating the amount to be paid to the governing board
17of a public university that operates a laboratory school under
18this Section or to any alternative school that is operated by a
19regional superintendent of schools, the State Board of
20Education shall require by rule such reporting requirements as
21it deems necessary.
22    As used in this Section, "laboratory school" means a public
23school which is created and operated by a public university and

 

 

SB3449- 151 -LRB098 20255 HLH 55629 b

1approved by the State Board of Education. The governing board
2of a public university which receives funds from the State
3Board under this subsection (K) may not increase the number of
4students enrolled in its laboratory school from a single
5district, if that district is already sending 50 or more
6students, except under a mutual agreement between the school
7board of a student's district of residence and the university
8which operates the laboratory school. A laboratory school may
9not have more than 1,000 students, excluding students with
10disabilities in a special education program.
11    As used in this Section, "alternative school" means a
12public school which is created and operated by a Regional
13Superintendent of Schools and approved by the State Board of
14Education. Such alternative schools may offer courses of
15instruction for which credit is given in regular school
16programs, courses to prepare students for the high school
17equivalency testing program or vocational and occupational
18training. A regional superintendent of schools may contract
19with a school district or a public community college district
20to operate an alternative school. An alternative school serving
21more than one educational service region may be established by
22the regional superintendents of schools of the affected
23educational service regions. An alternative school serving
24more than one educational service region may be operated under
25such terms as the regional superintendents of schools of those
26educational service regions may agree.

 

 

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1    Each laboratory and alternative school shall file, on forms
2provided by the State Superintendent of Education, an annual
3State aid claim which states the Average Daily Attendance of
4the school's students by month. The best 3 months' Average
5Daily Attendance shall be computed for each school. The general
6State aid entitlement shall be computed by multiplying the
7applicable Average Daily Attendance by the Foundation Level as
8determined under this Section.
 
9(L) Payments, Additional Grants in Aid and Other Requirements.
10    (1) For a school district operating under the financial
11supervision of an Authority created under Article 34A, the
12general State aid otherwise payable to that district under this
13Section, but not the supplemental general State aid, shall be
14reduced by an amount equal to the budget for the operations of
15the Authority as certified by the Authority to the State Board
16of Education, and an amount equal to such reduction shall be
17paid to the Authority created for such district for its
18operating expenses in the manner provided in Section 18-11. The
19remainder of general State school aid for any such district
20shall be paid in accordance with Article 34A when that Article
21provides for a disposition other than that provided by this
22Article.
23    (2) (Blank).
24    (3) Summer school. Summer school payments shall be made as
25provided in Section 18-4.3.
 

 

 

SB3449- 153 -LRB098 20255 HLH 55629 b

1(M) Education Funding Advisory Board.
2    The Education Funding Advisory Board, hereinafter in this
3subsection (M) referred to as the "Board", is hereby created.
4The Board shall consist of 5 members who are appointed by the
5Governor, by and with the advice and consent of the Senate. The
6members appointed shall include representatives of education,
7business, and the general public. One of the members so
8appointed shall be designated by the Governor at the time the
9appointment is made as the chairperson of the Board. The
10initial members of the Board may be appointed any time after
11the effective date of this amendatory Act of 1997. The regular
12term of each member of the Board shall be for 4 years from the
13third Monday of January of the year in which the term of the
14member's appointment is to commence, except that of the 5
15initial members appointed to serve on the Board, the member who
16is appointed as the chairperson shall serve for a term that
17commences on the date of his or her appointment and expires on
18the third Monday of January, 2002, and the remaining 4 members,
19by lots drawn at the first meeting of the Board that is held
20after all 5 members are appointed, shall determine 2 of their
21number to serve for terms that commence on the date of their
22respective appointments and expire on the third Monday of
23January, 2001, and 2 of their number to serve for terms that
24commence on the date of their respective appointments and
25expire on the third Monday of January, 2000. All members

 

 

SB3449- 154 -LRB098 20255 HLH 55629 b

1appointed to serve on the Board shall serve until their
2respective successors are appointed and confirmed. Vacancies
3shall be filled in the same manner as original appointments. If
4a vacancy in membership occurs at a time when the Senate is not
5in session, the Governor shall make a temporary appointment
6until the next meeting of the Senate, when he or she shall
7appoint, by and with the advice and consent of the Senate, a
8person to fill that membership for the unexpired term. If the
9Senate is not in session when the initial appointments are
10made, those appointments shall be made as in the case of
11vacancies.
12    The Education Funding Advisory Board shall be deemed
13established, and the initial members appointed by the Governor
14to serve as members of the Board shall take office, on the date
15that the Governor makes his or her appointment of the fifth
16initial member of the Board, whether those initial members are
17then serving pursuant to appointment and confirmation or
18pursuant to temporary appointments that are made by the
19Governor as in the case of vacancies.
20    The State Board of Education shall provide such staff
21assistance to the Education Funding Advisory Board as is
22reasonably required for the proper performance by the Board of
23its responsibilities.
24    For school years after the 2000-2001 school year, the
25Education Funding Advisory Board, in consultation with the
26State Board of Education, shall make recommendations as

 

 

SB3449- 155 -LRB098 20255 HLH 55629 b

1provided in this subsection (M) to the General Assembly for the
2foundation level under subdivision (B)(3) of this Section and
3for the supplemental general State aid grant level under
4subsection (H) of this Section for districts with high
5concentrations of children from poverty. The recommended
6foundation level shall be determined based on a methodology
7which incorporates the basic education expenditures of
8low-spending schools exhibiting high academic performance. The
9Education Funding Advisory Board shall make such
10recommendations to the General Assembly on January 1 of odd
11numbered years, beginning January 1, 2001.
 
12(N) (Blank).
 
13(O) References.
14    (1) References in other laws to the various subdivisions of
15Section 18-8 as that Section existed before its repeal and
16replacement by this Section 18-8.05 shall be deemed to refer to
17the corresponding provisions of this Section 18-8.05, to the
18extent that those references remain applicable.
19    (2) References in other laws to State Chapter 1 funds shall
20be deemed to refer to the supplemental general State aid
21provided under subsection (H) of this Section.
 
22(P) Public Act 93-838 and Public Act 93-808 make inconsistent
23changes to this Section. Under Section 6 of the Statute on

 

 

SB3449- 156 -LRB098 20255 HLH 55629 b

1Statutes there is an irreconcilable conflict between Public Act
293-808 and Public Act 93-838. Public Act 93-838, being the last
3acted upon, is controlling. The text of Public Act 93-838 is
4the law regardless of the text of Public Act 93-808.
5(Source: P.A. 96-45, eff. 7-15-09; 96-152, eff. 8-7-09; 96-300,
6eff. 8-11-09; 96-328, eff. 8-11-09; 96-640, eff. 8-24-09;
796-959, eff. 7-1-10; 96-1000, eff. 7-2-10; 96-1480, eff.
811-18-10; 97-339, eff. 8-12-11; 97-351, eff. 8-12-11; 97-742,
9eff. 6-30-13; 97-813, eff. 7-13-12.)
 
10    (105 ILCS 5/19-3)  (from Ch. 122, par. 19-3)
11    Sec. 19-3. Boards of education. Any school district
12governed by a board of education and having a population of not
13more than 500,000 inhabitants, and not governed by a special
14Act may borrow money for the purpose of building, equipping,
15altering or repairing school buildings or purchasing or
16improving school sites, or acquiring and equipping
17playgrounds, recreation grounds, athletic fields, and other
18buildings or land used or useful for school purposes or for the
19purpose of purchasing a site, with or without a building or
20buildings thereon, or for the building of a house or houses on
21such site, or for the building of a house or houses on the
22school site of the school district, for residential purposes of
23the superintendent, principal, or teachers of the school
24district, and issue its negotiable coupon bonds therefor signed
25by the president and secretary of the board, in denominations

 

 

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1of not less than $100 nor more than $5,000, payable at such
2place and at such time or times, not exceeding 20 years, with
3the exception of Lockport High School not exceeding 25 years,
4from date of issuance, as the board of education may prescribe,
5and bearing interest at a rate not to exceed the maximum rate
6authorized by the Bond Authorization Act, as amended at the
7time of the making of the contract, payable annually,
8semiannually or quarterly, but, with the exception of those
9bonds described in Section 17-2.11d of this Code, no such bonds
10shall be issued unless the proposition to issue them is
11submitted to the voters of the district at a referendum held at
12a regularly scheduled election after the board has certified
13the proposition to the proper election authorities in
14accordance with the general election law, a majority of all the
15votes cast on the proposition is in favor of the proposition,
16and notice of such bond referendum has been given either (i) in
17accordance with the second paragraph of Section 12-1 of the
18Election Code irrespective of whether such notice included any
19reference to the public question as it appeared on the ballot,
20or (ii) for an election held on or after November 1, 1998, in
21accordance with Section 12-5 of the Election Code, or (iii) by
22publication of a true and legible copy of the specimen ballot
23label containing the proposition in the form in which it
24appeared or will appear on the official ballot label on the day
25of the election at least 5 days before the day of the election
26in at least one newspaper published in and having a general

 

 

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1circulation in the district, irrespective of any other
2requirements of Article 12 or Section 24A-18 of the Election
3Code, nor shall any residential site be acquired unless such
4proposition to acquire a site is submitted to the voters of the
5district at a referendum held at a regularly scheduled election
6after the board has certified the proposition to the proper
7election authorities in accordance with the general election
8law and a majority of all the votes cast on the proposition is
9in favor of the proposition. Nothing in this Act or in any
10other law shall be construed to require the notice of the bond
11referendum to be published over the name or title of the
12election authority or the listing of maturity dates of any
13bonds either in the notice of bond election or ballot used in
14the bond election. The provisions of this Section concerning
15notice of the bond referendum apply only to (i) consolidated
16primary elections held prior to January 1, 2002 and the
17consolidated election held on April 17, 2007 at which not less
18than 60% of the voters voting on the bond proposition voted in
19favor of the bond proposition, and (ii) other elections held
20before July 1, 1999; otherwise, notices required in connection
21with the submission of public questions shall be as set forth
22in Section 12-5 of the Election Code. Such proposition may be
23initiated by resolution of the school board.
24    With respect to instruments for the payment of money issued
25under this Section either before, on, or after the effective
26date of this amendatory Act of 1989, it is and always has been

 

 

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1the intention of the General Assembly (i) that the Omnibus Bond
2Acts are and always have been supplementary grants of power to
3issue instruments in accordance with the Omnibus Bond Acts,
4regardless of any provision of this Act that may appear to be
5or to have been more restrictive than those Acts, (ii) that the
6provisions of this Section are not a limitation on the
7supplementary authority granted by the Omnibus Bond Acts, and
8(iii) that instruments issued under this Section within the
9supplementary authority granted by the Omnibus Bond Acts are
10not invalid because of any provision of this Act that may
11appear to be or to have been more restrictive than those Acts.
12    The proceeds of any bonds issued under authority of this
13Section shall be deposited and accounted for separately within
14the Site and Construction/Capital Improvements Fund.
15(Source: P.A. 95-30, eff. 8-7-07; 96-787, eff. 8-28-09.)
 
16    (105 ILCS 5/21A-3 new)
17    Sec. 21A-3. Goals. The New Teacher Induction and Mentoring
18Program under this Article shall accomplish the following
19goals:
20        (1) provide an effective transition into the teaching
21    career for first year and second-year teachers in Illinois;
22        (2) improve the educational performance of pupils
23    through improved training, information, and assistance for
24    new teachers;
25        (3) ensure professional success and retention of new

 

 

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1    teachers;
2        (4) ensure that mentors provide intensive
3    individualized support and assistance to each
4    participating beginning teacher;
5        (5) ensure that an individual induction plan is in
6    place for each beginning teacher and is based on an ongoing
7    assessment of the development of the beginning teacher; and
8        (6) ensure continuous program improvement through
9    ongoing research, development and evaluation.
 
10    (105 ILCS 5/21A-5)
11    Sec. 21A-5. Definitions. In this Article:
12    "New teacher" or "beginning teacher" means the holder of an
13Initial Teaching Certificate, as set forth in Section 21-2 of
14this Code, an Alternative Teaching Certificate, or a
15Transitional Bilingual Teaching Certificate, who is employed
16by a public school and who has not previously participated in a
17new teacher induction and mentoring program required by this
18Article, except as provided in Section 21A-25 of this Code.
19    "Public school" means any school operating pursuant to the
20authority of this Code, including without limitation a school
21district, a charter school, a cooperative or joint agreement
22with a governing body or board of control, and a school
23operated by a regional office of education or State agency.
24(Source: P.A. 93-355, eff. 1-1-04.)
 

 

 

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1    (105 ILCS 5/21A-10)
2    Sec. 21A-10. Development of program required. Prior to the
32015-2016 During the 2003-2004 school year, each public school
4or 2 or more public schools acting jointly shall develop, in
5conjunction with its exclusive representative or their
6exclusive representatives, if any, a new teacher induction and
7mentoring program that meets the requirements set forth in
8Section 21A-20 of this Code to assist new teachers in
9developing the skills and strategies necessary for
10instructional excellence, provided that funding is made
11available by the State Board of Education from an appropriation
12made for this purpose. A public school that has an existing
13induction and mentoring program that does not meet the
14requirements set forth in Section 21A-20 of this Code may have
15school years 2003-2004 and 2004-2005 to develop a program that
16does meet those requirements and may receive funding as
17described in Section 21A-25 of this Code, provided that the
18funding is made available by the State Board of Education from
19an appropriation made for this purpose. A public school with
20such an existing induction and mentoring program may receive
21funding for the 2005-2006 school year for each new teacher in
22the second year of a 2-year program that does not meet the
23requirements set forth in Section 21A-20, as long as the public
24school has established the required new program by the
25beginning of that school year as described in Section 21A-15
26and provided that funding is made available by the State Board

 

 

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1of Education from an appropriation made for this purpose as
2described in Section 21A-25.
3(Source: P.A. 93-355, eff. 1-1-04.)
 
4    (105 ILCS 5/21A-15)
5    Sec. 21A-15. When program is to be established and
6implemented. Notwithstanding any other provisions of this
7Code, by the beginning of the 2015-2016 2004-2005 school year
8(or by the beginning of the 2005-2006 school year for a public
9school that has been given an extension of time to develop a
10program under Section 21A-10 of this Code), each public school
11or 2 or more public schools acting jointly shall establish and
12implement, in conjunction with its exclusive representative or
13their exclusive representatives, if any, the new teacher
14induction and mentoring program required to be developed under
15Section 21A-10 of this Code, provided that funding is made
16available by the State Board of Education, from an
17appropriation made for this purpose, as described in Section
1821A-25 of this Code. A public school may contract with an
19institution of higher education or other independent party to
20assist in implementing the program.
21(Source: P.A. 93-355, eff. 1-1-04.)
 
22    (105 ILCS 5/21A-20)
23    Sec. 21A-20. Program requirements. Each new teacher
24induction and mentoring program must be based on a plan that at

 

 

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1least does all of the following:
2        (1) Assigns a mentor teacher to each new teacher to
3    provide structured and intensive mentoring, as defined by
4    the State Board of Education, for a period of at least 2
5    school years.
6        (1.5) Ensures mentors are:
7            (A) carefully selected from experienced, exemplary
8        teachers using a clearly articulated, well-defined,
9        explicit criteria and open processes that may involve
10        key school partners;
11            (B) rigorously trained using best practices in the
12        field to ensure they are well prepared to assume their
13        responsibilities and are consistently supported in
14        their efforts to assist beginning teachers;
15            (C) provided with sufficient release time from
16        teaching to allow them to meet their responsibilities
17        as mentors, including regular contacts with their
18        beginning teachers and frequent observations of their
19        teaching practice; and
20            (D) equipped and selected to provide
21        classroom-focused and content-focused support whenever
22        possible.
23        (2) Aligns with the Illinois Professional Teaching
24    Standards, content area standards, and applicable local
25    school improvement and professional development plans, if
26    any.

 

 

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1        (3) (Blank). Addresses all of the following elements
2    and how they will be provided:
3            (A) Mentoring and support of the new teacher.
4            (B) Professional development specifically designed
5        to ensure the growth of the new teacher's knowledge and
6        skills.
7            (C) Formative assessment designed to ensure
8        feedback and reflection, which must not be used in any
9        evaluation of the new teacher.
10        (4) Describes the role of mentor teachers, the criteria
11    and process for their selection, and how they will be
12    trained, provided that each mentor teacher shall
13    demonstrate the best practices in teaching his or her
14    respective field of practice. A mentor teacher may not
15    directly or indirectly participate in the evaluation of a
16    new teacher pursuant to Article 24A of this Code or the
17    evaluation procedure of the public school, unless the
18    school district and exclusive bargaining representative of
19    its teachers negotiate and agree to it as part of an
20    alternative evaluation plan under Section 24A-5 or 24A-8 of
21    this Code.
22        (5) Provides ongoing professional development for both
23    beginning teachers and mentors.
24            (A) Beginning teachers shall participate in an
25        ongoing, formal network of novice colleagues for the
26        purpose of professional learning, problem-solving, and

 

 

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1        mutual support. These regular learning opportunities
2        shall begin with an orientation to the induction and
3        mentoring program prior to the start of the school year
4        and continue throughout the academic year. The group
5        shall address issues of pedagogy, classroom management
6        and content knowledge, beginning teachers' assessed
7        needs, and local instructional needs or priorities.
8            (B) Mentors shall participate in an ongoing
9        professional learning community that supports their
10        practice and their use of mentoring tools, protocols,
11        and formative assessment in order to tailor and deepen
12        mentoring skills and advance induction practices,
13        support program implementation, provide for mentor
14        accountability in a supportive environment, and
15        provide support to each mentor's emerging leadership.
16        (6) Provides for ongoing assessment of beginning
17    teacher practice. Beginning teachers shall be subject to a
18    system of formative assessment in which the novice and
19    mentor collaboratively collect and analyze multiple
20    sources of data and reflect upon classroom practice in an
21    ongoing process. This assessment system shall be based on
22    the Illinois Professional Teaching Standards (IPTS), the
23    IPTS Continuum of Teacher Development, or a nationally
24    recognized teaching framework, as well as evidence of
25    teacher practice, including student work. The assessment
26    information shall be used to determine the scope, focus,

 

 

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1    and content of professional development activities that
2    are the basis of the beginning teacher's individual
3    learning plan. The program shall provide time to ensure
4    that the quality of the process (such as observations, data
5    collection, and reflective conversations) is not
6    compromised.
7        (7) Identifies clear roles and responsibilities for
8    both administrators and site mentor leaders who are to work
9    collectively to ensure induction practices are integrated
10    into existing professional development initiatives and to
11    secure assignments and establish working conditions for
12    beginning teachers that maximize their chances for
13    success. Administrators and site mentor leaders must have
14    sufficient knowledge and experience to understand the
15    needs of beginning teachers and the role of principals in
16    supporting each component of the program. Site
17    administrators must take time to meet and communicate
18    concerns with beginning teachers and their mentors.
19        (8) Provides for ongoing evaluation of the New Teacher
20    Induction and Mentoring Program pursuant to Section 21A-30
21    of this Code.
22(Source: P.A. 93-355, eff. 1-1-04.)
 
23    (105 ILCS 5/21A-25)
24    Sec. 21A-25. Funding. From a separate appropriation made
25for the purposes of this Article, for each new teacher

 

 

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1participating in a new teacher induction and mentoring program
2that meets the requirements set forth in Section 21A-20 of this
3Code or in an existing program that is in the process of
4transition to a program that meets those requirements, the
5State Board of Education shall pay the public school $6,000
6$1,200 annually for each of 2 school years for the purpose of
7providing one or more of the following:
8        (1) Mentor teacher compensation.
9        (2) Mentor teacher training and other resources, or new
10    teacher training and other resources, or both.
11        (3) Release time, including costs associated with
12    replacing a mentor teacher or new teacher in his or her
13    regular classroom.
14        (4) Site-based program administration, not to exceed
15    10% of the total program cost.
16However, if a new teacher, after participating in the new
17teacher induction and mentoring program for one school year,
18becomes employed by another public school, the State Board of
19Education shall pay the teacher's new school $6,000 $1,200 for
20the second school year and the teacher shall continue to be a
21new teacher as defined in this Article. Each public school
22shall determine, in conjunction with its exclusive
23representative, if any, how the $6,000 $1,200 per school year
24for each new teacher shall be used, provided that if a mentor
25teacher receives additional release time to support a new
26teacher, the total workload of other teachers regularly

 

 

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1employed by the public school shall not increase in any
2substantial manner. If the appropriation is insufficient to
3cover the $6,000 $1,200 per school year for each new teacher,
4public schools are not required to develop or implement the
5program established by this Article. In the event of an
6insufficient appropriation, a public school or 2 or more
7schools acting jointly may submit an application for a grant
8administered by the State Board of Education and awarded on a
9competitive basis to establish a new teacher induction and
10mentoring program that meets the criteria set forth in Section
1121A-20 of this Code. The State Board of Education may retain up
12to $1,000,000 of the appropriation for new teacher induction
13and mentoring programs to train mentor teachers,
14administrators, and other personnel, to provide best practices
15information, and to conduct an evaluation of these programs'
16impact and effectiveness.
17(Source: P.A. 93-355, eff. 1-1-04.)
 
18    (105 ILCS 5/21A-30)
19    Sec. 21A-30. Evaluation of programs. The State Board of
20Education and the State Teacher Certification Board shall
21jointly contract with an independent party to conduct a
22comprehensive evaluation of new teacher induction and
23mentoring programs established pursuant to this Article. The
24first report of this evaluation shall be presented to the
25General Assembly on or before January 1, 2017 2009. Subsequent

 

 

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1evaluations shall be conducted and reports presented to the
2General Assembly on or before January 1 of every third year
3thereafter. Additionally, the State Board of Education shall
4prepare an annual program report for the General Assembly on or
5before December 31 each year. It shall summarize local program
6design, indicate the number of teachers served, and document
7rates of new teacher attrition and retention.
8(Source: P.A. 93-355, eff. 1-1-04.)
 
9    (105 ILCS 5/23-3)  (from Ch. 122, par. 23-3)
10    Sec. 23-3. Filing copy of constitution, by-laws and
11amendments. Within 30 days after the adoption by any such
12association of its constitution or by-laws or any amendment
13thereto, it shall file a copy thereof, certified by its
14president and executive director, with the Governor, the State
15Superintendent of Education, Public Instruction and the
16regional county superintendent of schools of each region county
17in which it has any membership.
18(Source: Laws 1961, p. 31.)
 
19    (105 ILCS 5/23-5.5 new)
20    Sec. 23-5.5. Professional development and training. Any
21such association shall offer professional development and
22training to school board members on topics that include, but
23are not limited to, basics of school finance, financial
24oversight and accountability, labor law and collective

 

 

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1bargaining, ethics, duties and responsibilities of a school
2board member, and board governance principles. Every school
3board member is expected to receive at least 4 hours of
4professional development and training per year.
 
5    (105 ILCS 5/23-6)  (from Ch. 122, par. 23-6)
6    Sec. 23-6. Annual report. Each association shall make an
7annual report within 60 days after the close of its fiscal year
8to the Governor, the State Board of Education and the regional
9superintendent of schools of each region in which it has
10members, setting forth the activities of the association for
11the preceding fiscal year, the institutes held, the subjects
12discussed, and the attendance, and shall furnish the Governor,
13the State Board of Education and such regional superintendents
14with copies of all publications sent to its members. The
15association shall include the board training topics offered and
16the number of school board members that availed themselves of
17professional development and training.
18(Source: P.A. 81-1508.)
 
19    (105 ILCS 5/29-5)  (from Ch. 122, par. 29-5)
20    Sec. 29-5. Reimbursement by State for transportation. Any
21school district, maintaining a school, transporting resident
22pupils to another school district's vocational program,
23offered through a joint agreement approved by the State Board
24of Education, as provided in Section 10-22.22 or transporting

 

 

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1its resident pupils to a school which meets the standards for
2recognition as established by the State Board of Education
3which provides transportation meeting the standards of safety,
4comfort, convenience, efficiency and operation prescribed by
5the State Board of Education for resident pupils in
6pre-kindergarten, kindergarten, or any of grades 1 through 12
7who: (a) reside at least 1 1/2 miles as measured by the
8customary route of travel, from the school attended; or (b)
9reside in areas where conditions are such that walking
10constitutes a hazard to the safety of the child when determined
11under Section 29-3; and (c) are transported to the school
12attended from pick-up points at the beginning of the school day
13and back again at the close of the school day or transported to
14and from their assigned attendance centers during the school
15day, shall be reimbursed by the State as hereinafter provided
16in this Section.
17    The State will pay the cost of transporting eligible pupils
18less the assessed valuation in a dual school district
19maintaining secondary grades 9 to 12 inclusive times a
20qualifying rate of .05%; in elementary school districts
21maintaining grades pre-K K to 8 times a qualifying rate of
22.06%; and in unit districts maintaining any of grades pre-K K
23to 12, including optional elementary unit districts and
24combined high school - unit districts, times a qualifying rate
25of .07%; provided that for optional elementary unit districts
26and combined high school - unit districts, assessed valuation

 

 

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1for high school purposes, as defined in Article 11E of this
2Code, must be used. To be eligible to receive reimbursement in
3excess of 4/5 of the cost to transport eligible pupils, a
4school district shall have a Transportation Fund tax rate of at
5least .12%. If a school district does not have a .12%
6Transportation Fund tax rate, the amount of its claim in excess
7of 4/5 of the cost of transporting pupils shall be reduced by
8the sum arrived at by subtracting the Transportation Fund tax
9rate from .12% and multiplying that amount by the districts
10equalized or assessed valuation, provided, that in no case
11shall said reduction result in reimbursement of less than 4/5
12of the cost to transport eligible pupils.
13    The minimum amount to be received by a district is $16
14times the number of eligible pupils transported.
15    When calculating the reimbursement for transportation
16costs, the State Board of Education may not deduct the number
17of pupils enrolled in early education programs from the number
18of pupils eligible for reimbursement if the pupils enrolled in
19the early education programs are transported at the same time
20as other eligible pupils.
21    Any such district transporting resident pupils during the
22school day to an area vocational school or another school
23district's vocational program more than 1 1/2 miles from the
24school attended, as provided in Sections 10-22.20a and
2510-22.22, shall be reimbursed by the State for 4/5 of the cost
26of transporting eligible pupils.

 

 

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1    School day means that period of time which the pupil is
2required to be in attendance for instructional purposes.
3    If a pupil is at a location within the school district
4other than his residence for child care purposes at the time
5for transportation to school, that location may be considered
6for purposes of determining the 1 1/2 miles from the school
7attended.
8    Claims for reimbursement that include children who attend
9any school other than a public school shall show the number of
10such children transported.
11    Claims for reimbursement under this Section shall not be
12paid for the transportation of pupils for whom transportation
13costs are claimed for payment under other Sections of this Act.
14    The allowable direct cost of transporting pupils for
15regular, vocational, and special education pupil
16transportation shall be limited to the sum of the cost of
17physical examinations required for employment as a school bus
18driver; the salaries of full or part-time drivers and school
19bus maintenance personnel; employee benefits excluding
20Illinois municipal retirement payments, social security
21payments, unemployment insurance payments and workers'
22compensation insurance premiums; expenditures to independent
23carriers who operate school buses; payments to other school
24districts for pupil transportation services; pre-approved
25contractual expenditures for computerized bus scheduling; the
26cost of gasoline, oil, tires, and other supplies necessary for

 

 

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1the operation of school buses; the cost of converting buses'
2gasoline engines to more fuel efficient engines or to engines
3which use alternative energy sources; the cost of travel to
4meetings and workshops conducted by the regional
5superintendent or the State Superintendent of Education
6pursuant to the standards established by the Secretary of State
7under Section 6-106 of the Illinois Vehicle Code to improve the
8driving skills of school bus drivers; the cost of maintenance
9of school buses including parts and materials used;
10expenditures for leasing transportation vehicles, except
11interest and service charges; the cost of insurance and
12licenses for transportation vehicles; expenditures for the
13rental of transportation equipment; plus a depreciation
14allowance of 20% for 5 years for school buses and vehicles
15approved for transporting pupils to and from school and a
16depreciation allowance of 10% for 10 years for other
17transportation equipment so used. Each school year, if a school
18district has made expenditures to the Regional Transportation
19Authority or any of its service boards, a mass transit
20district, or an urban transportation district under an
21intergovernmental agreement with the district to provide for
22the transportation of pupils and if the public transit carrier
23received direct payment for services or passes from a school
24district within its service area during the 2000-2001 school
25year, then the allowable direct cost of transporting pupils for
26regular, vocational, and special education pupil

 

 

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1transportation shall also include the expenditures that the
2district has made to the public transit carrier. In addition to
3the above allowable costs school districts shall also claim all
4transportation supervisory salary costs, including Illinois
5municipal retirement payments, and all transportation related
6building and building maintenance costs without limitation.
7    Special education allowable costs shall also include
8expenditures for the salaries of attendants or aides for that
9portion of the time they assist special education pupils while
10in transit and expenditures for parents and public carriers for
11transporting special education pupils when pre-approved by the
12State Superintendent of Education.
13    Indirect costs shall be included in the reimbursement claim
14for districts which own and operate their own school buses.
15Such indirect costs shall include administrative costs, or any
16costs attributable to transporting pupils from their
17attendance centers to another school building for
18instructional purposes. No school district which owns and
19operates its own school buses may claim reimbursement for
20indirect costs which exceed 5% of the total allowable direct
21costs for pupil transportation.
22    The State Board of Education shall prescribe uniform
23regulations for determining the above standards and shall
24prescribe forms of cost accounting and standards of determining
25reasonable depreciation. Such depreciation shall include the
26cost of equipping school buses with the safety features

 

 

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1required by law or by the rules, regulations and standards
2promulgated by the State Board of Education, and the Department
3of Transportation for the safety and construction of school
4buses provided, however, any equipment cost reimbursed by the
5Department of Transportation for equipping school buses with
6such safety equipment shall be deducted from the allowable cost
7in the computation of reimbursement under this Section in the
8same percentage as the cost of the equipment is depreciated.
9    On or before August 15, annually, the chief school
10administrator for the district shall certify to the State
11Superintendent of Education the district's claim for
12reimbursement for the school year ending on June 30 next
13preceding. The State Superintendent of Education shall check
14and approve the claims and prepare the vouchers showing the
15amounts due for district reimbursement claims. Each fiscal
16year, the State Superintendent of Education shall prepare and
17transmit the first 3 vouchers to the Comptroller on the 30th
18day of September, December and March, respectively, and the
19final voucher, no later than June 20.
20    If the amount appropriated for transportation
21reimbursement is insufficient to fund total claims for any
22fiscal year, the State Board of Education shall reduce each
23school district's allowable costs and flat grant amount
24proportionately to make total adjusted claims equal the total
25amount appropriated.
26    For purposes of calculating claims for reimbursement under

 

 

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1this Section for any school year beginning July 1, 1998, or
2thereafter, the equalized assessed valuation for a school
3district used to compute reimbursement shall be computed in the
4same manner as it is computed under paragraph (2) of subsection
5(G) of Section 18-8.05.
6    All reimbursements received from the State shall be
7deposited into the district's transportation fund or into the
8fund from which the allowable expenditures were made.
9    Notwithstanding any other provision of law, any school
10district receiving a payment under this Section or under
11Section 14-7.02, 14-7.02b, or 14-13.01 of this Code may
12classify all or a portion of the funds that it receives in a
13particular fiscal year or from general State aid pursuant to
14Section 18-8.05 of this Code as funds received in connection
15with any funding program for which it is entitled to receive
16funds from the State in that fiscal year (including, without
17limitation, any funding program referenced in this Section),
18regardless of the source or timing of the receipt. The district
19may not classify more funds as funds received in connection
20with the funding program than the district is entitled to
21receive in that fiscal year for that program. Any
22classification by a district must be made by a resolution of
23its board of education. The resolution must identify the amount
24of any payments or general State aid to be classified under
25this paragraph and must specify the funding program to which
26the funds are to be treated as received in connection

 

 

SB3449- 178 -LRB098 20255 HLH 55629 b

1therewith. This resolution is controlling as to the
2classification of funds referenced therein. A certified copy of
3the resolution must be sent to the State Superintendent of
4Education. The resolution shall still take effect even though a
5copy of the resolution has not been sent to the State
6Superintendent of Education in a timely manner. No
7classification under this paragraph by a district shall affect
8the total amount or timing of money the district is entitled to
9receive under this Code. No classification under this paragraph
10by a district shall in any way relieve the district from or
11affect any requirements that otherwise would apply with respect
12to that funding program, including any accounting of funds by
13source, reporting expenditures by original source and purpose,
14reporting requirements, or requirements of providing services.
15    Any school district with a population of not more than
16500,000 must deposit all funds received under this Article into
17the transportation fund and use those funds for the provision
18of transportation services.
19(Source: P.A. 95-903, eff. 8-25-08; 96-1264, eff. 1-1-11.)
 
20    (105 ILCS 5/3-6 rep.)
21    (105 ILCS 5/3-6.1 rep.)
22    Section 90. The School Code is amended by repealing
23Sections 3-6 and 3-6.1.
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.

 

 

SB3449- 179 -LRB098 20255 HLH 55629 b

1 INDEX
2 Statutes amended in order of appearance
3    15 ILCS 20/50-20was 15 ILCS 20/38.3
4    30 ILCS 105/5.855 new
5    30 ILCS 105/5.856 new
6    30 ILCS 105/5.857 new
7    30 ILCS 105/5.858 new
8    35 ILCS 5/201from Ch. 120, par. 2-201
9    35 ILCS 5/202.5
10    35 ILCS 5/204from Ch. 120, par. 2-204
11    35 ILCS 5/208from Ch. 120, par. 2-208
12    35 ILCS 5/212
13    35 ILCS 5/901from Ch. 120, par. 9-901
14    35 ILCS 120/1from Ch. 120, par. 440
15    35 ILCS 120/2from Ch. 120, par. 441
16    105 ILCS 5/1C-2
17    105 ILCS 5/2-3.25cfrom Ch. 122, par. 2-3.25c
18    105 ILCS 5/2-3.25dfrom Ch. 122, par. 2-3.25d
19    105 ILCS 5/2-3.25d-5 new
20    105 ILCS 5/2-3.160 new
21    105 ILCS 5/2-3.161 new
22    105 ILCS 5/2-3.162 new
23    105 ILCS 5/2-3.163 new
24    105 ILCS 5/2-3.164 new
25    105 ILCS 5/3-7from Ch. 122, par. 3-7

 

 

SB3449- 180 -LRB098 20255 HLH 55629 b

1    105 ILCS 5/10-16.10 new
2    105 ILCS 5/10-17afrom Ch. 122, par. 10-17a
3    105 ILCS 5/10-17b new
4    105 ILCS 5/10-17c new
5    105 ILCS 5/10-17d new
6    105 ILCS 5/10-20.56 new
7    105 ILCS 5/10-22.45from Ch. 122, par. 10-22.45
8    105 ILCS 5/17-2.11d new
9    105 ILCS 5/18-8.05
10    105 ILCS 5/19-3from Ch. 122, par. 19-3
11    105 ILCS 5/21A-3 new
12    105 ILCS 5/21A-5
13    105 ILCS 5/21A-10
14    105 ILCS 5/21A-15
15    105 ILCS 5/21A-20
16    105 ILCS 5/21A-25
17    105 ILCS 5/21A-30
18    105 ILCS 5/23-3from Ch. 122, par. 23-3
19    105 ILCS 5/23-5.5 new
20    105 ILCS 5/23-6from Ch. 122, par. 23-6
21    105 ILCS 5/29-5from Ch. 122, par. 29-5
22    105 ILCS 5/3-6 rep.
23    105 ILCS 5/3-6.1 rep.