Illinois General Assembly - Full Text of HB3244
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Full Text of HB3244  101st General Assembly

HB3244eng 101ST GENERAL ASSEMBLY

  
  
  

 


 
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1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Innovation Development and Economy Act is
5amended by changing Section 10 as follows:
 
6    (50 ILCS 470/10)
7    Sec. 10. Definitions. As used in this Act, the following
8words and phrases shall have the following meanings unless a
9different meaning clearly appears from the context:
10    "Base year" means the calendar year immediately prior to
11the calendar year in which the STAR bond district is
12established.
13    "Commence work" means the manifest commencement of actual
14operations on the development site, such as, erecting a
15building, general on-site and off-site grading and utility
16installations, commencing design and construction
17documentation, ordering lead-time materials, excavating the
18ground to lay a foundation or a basement, or work of like
19description which a reasonable person would recognize as being
20done with the intention and purpose to continue work until the
21project is completed.
22    "County" means the county in which a proposed STAR bond
23district is located.

 

 

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1    "De minimis" means an amount less than 15% of the land area
2within a STAR bond district.
3    "Department of Revenue" means the Department of Revenue of
4the State of Illinois.
5    "Destination user" means an owner, operator, licensee,
6co-developer, subdeveloper, or tenant (i) that operates a
7business within a STAR bond district that is a retail store
8having at least 150,000 square feet of sales floor area; (ii)
9that at the time of opening does not have another Illinois
10location within a 70 mile radius; (iii) that has an annual
11average of not less than 30% of customers who travel from at
12least 75 miles away or from out-of-state, as demonstrated by
13data from a comparable existing store or stores, or, if there
14is no comparable existing store, as demonstrated by an economic
15analysis that shows that the proposed retailer will have an
16annual average of not less than 30% of customers who travel
17from at least 75 miles away or from out-of-state; and (iv) that
18makes an initial capital investment, including project costs
19and other direct costs, of not less than $30,000,000 for such
20retail store.
21    "Destination hotel" means a hotel (as that term is defined
22in Section 2 of the Hotel Operators' Occupation Tax Act)
23complex having at least 150 guest rooms and which also includes
24a venue for entertainment attractions, rides, or other
25activities oriented toward the entertainment and amusement of
26its guests and other patrons.

 

 

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1    "Developer" means any individual, corporation, trust,
2estate, partnership, limited liability partnership, limited
3liability company, or other entity. The term does not include a
4not-for-profit entity, political subdivision, or other agency
5or instrumentality of the State.
6    "Director" means the Director of Revenue, who shall consult
7with the Director of Commerce and Economic Opportunity in any
8approvals or decisions required by the Director under this Act.
9    "Economic impact study" means a study conducted by an
10independent economist to project the financial benefit of the
11proposed STAR bond project to the local, regional, and State
12economies, consider the proposed adverse impacts on similar
13projects and businesses, as well as municipalities within the
14projected market area, and draw conclusions about the net
15effect of the proposed STAR bond project on the local,
16regional, and State economies. A copy of the economic impact
17study shall be provided to the Director for review.
18    "Eligible area" means any improved or vacant area that (i)
19is contiguous and is not, in the aggregate, less than 250 acres
20nor more than 500 acres which must include only parcels of real
21property directly and substantially benefited by the proposed
22STAR bond district plan, (ii) is adjacent to a federal
23interstate highway, (iii) is within one mile of 2 State
24highways, (iv) is within one mile of an entertainment user, or
25a major or minor league sports stadium or other similar
26entertainment venue that had an initial capital investment of

 

 

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1at least $20,000,000, and (v) includes land that was previously
2surface or strip mined. The area may be bisected by streets,
3highways, roads, alleys, railways, bike paths, streams,
4rivers, and other waterways and still be deemed contiguous. In
5addition, in order to constitute an eligible area one of the
6following requirements must be satisfied and all of which are
7subject to the review and approval of the Director as provided
8in subsection (d) of Section 15:
9        (a) the governing body of the political subdivision
10    shall have determined that the area meets the requirements
11    of a "blighted area" as defined under the Tax Increment
12    Allocation Redevelopment Act; or
13        (b) the governing body of the political subdivision
14    shall have determined that the area is a blighted area as
15    determined under the provisions of Section 11-74.3-5 of the
16    Illinois Municipal Code; or
17        (c) the governing body of the political subdivision
18    shall make the following findings:
19            (i) that the vacant portions of the area have
20        remained vacant for at least one year, or that any
21        building located on a vacant portion of the property
22        was demolished within the last year and that the
23        building would have qualified under item (ii) of this
24        subsection;
25            (ii) if portions of the area are currently
26        developed, that the use, condition, and character of

 

 

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1        the buildings on the property are not consistent with
2        the purposes set forth in Section 5;
3            (iii) that the STAR bond district is expected to
4        create or retain job opportunities within the
5        political subdivision;
6            (iv) that the STAR bond district will serve to
7        further the development of adjacent areas;
8            (v) that without the availability of STAR bonds,
9        the projects described in the STAR bond district plan
10        would not be possible;
11            (vi) that the master developer meets high
12        standards of creditworthiness and financial strength
13        as demonstrated by one or more of the following: (i)
14        corporate debenture ratings of BBB or higher by
15        Standard & Poor's Corporation or Baa or higher by
16        Moody's Investors Service, Inc.; (ii) a letter from a
17        financial institution with assets of $10,000,000 or
18        more attesting to the financial strength of the master
19        developer; or (iii) specific evidence of equity
20        financing for not less than 10% of the estimated total
21        STAR bond project costs;
22            (vii) that the STAR bond district will strengthen
23        the commercial sector of the political subdivision;
24            (viii) that the STAR bond district will enhance the
25        tax base of the political subdivision; and
26            (ix) that the formation of a STAR bond district is

 

 

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1        in the best interest of the political subdivision.
2    "Entertainment user" means an owner, operator, licensee,
3co-developer, subdeveloper, or tenant that operates a business
4within a STAR bond district that has a primary use of providing
5a venue for entertainment attractions, rides, or other
6activities oriented toward the entertainment and amusement of
7its patrons, occupies at least 20 acres of land in the STAR
8bond district, and makes an initial capital investment,
9including project costs and other direct and indirect costs, of
10not less than $25,000,000 for that venue.
11    "Feasibility study" means a feasibility study as defined in
12subsection (b) of Section 20.
13    "Infrastructure" means the public improvements and private
14improvements that serve the public purposes set forth in
15Section 5 of this Act and that benefit the STAR bond district
16or any STAR bond projects, including, but not limited to,
17streets, drives and driveways, traffic and directional signs
18and signals, parking lots and parking facilities,
19interchanges, highways, sidewalks, bridges, underpasses and
20overpasses, bike and walking trails, sanitary storm sewers and
21lift stations, drainage conduits, channels, levees, canals,
22storm water detention and retention facilities, utilities and
23utility connections, water mains and extensions, and street and
24parking lot lighting and connections.
25    "Local sales taxes" means any locally imposed taxes
26received by a municipality, county, or other local governmental

 

 

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1entity arising from sales by retailers and servicemen within a
2STAR bond district, including business district sales taxes and
3STAR bond occupation taxes, and that portion of the net revenue
4realized under the Retailers' Occupation Tax Act, the Use Tax
5Act, the Service Use Tax Act, and the Service Occupation Tax
6Act from transactions at places of business located within a
7STAR bond district that is deposited into the Local Government
8Tax Fund and the County and Mass Transit District Fund. For the
9purpose of this Act, "local sales taxes" does not include (i)
10any taxes authorized pursuant to the Local Mass Transit
11District Act or the Metro-East Park and Recreation District Act
12for so long as the applicable taxing district does not impose a
13tax on real property, (ii) county school facility and resources
14occupation taxes imposed pursuant to Section 5-1006.7 of the
15Counties Code, or (iii) any taxes authorized under the Flood
16Prevention District Act.
17    "Local sales tax increment" means, with respect to local
18sales taxes administered by the Illinois Department of Revenue,
19(i) all of the local sales tax paid by destination users,
20destination hotels, and entertainment users that is in excess
21of the local sales tax paid by destination users, destination
22hotels, and entertainment users for the same month in the base
23year, as determined by the Illinois Department of Revenue, (ii)
24in the case of a municipality forming a STAR bond district that
25is wholly within the corporate boundaries of the municipality
26and in the case of a municipality and county forming a STAR

 

 

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1bond district that is only partially within such municipality,
2that portion of the local sales tax paid by taxpayers that are
3not destination users, destination hotels, or entertainment
4users that is in excess of the local sales tax paid by
5taxpayers that are not destination users, destination hotels,
6or entertainment users for the same month in the base year, as
7determined by the Illinois Department of Revenue, and (iii) in
8the case of a county in which a STAR bond district is formed
9that is wholly within a municipality, that portion of the local
10sales tax paid by taxpayers that are not destination users,
11destination hotels, or entertainment users that is in excess of
12the local sales tax paid by taxpayers that are not destination
13users, destination hotels, or entertainment users for the same
14month in the base year, as determined by the Illinois
15Department of Revenue, but only if the corporate authorities of
16the county adopts an ordinance, and files a copy with the
17Department within the same time frames as required for STAR
18bond occupation taxes under Section 31, that designates the
19taxes referenced in this clause (iii) as part of the local
20sales tax increment under this Act. "Local sales tax increment"
21means, with respect to local sales taxes administered by a
22municipality, county, or other unit of local government, that
23portion of the local sales tax that is in excess of the local
24sales tax for the same month in the base year, as determined by
25the respective municipality, county, or other unit of local
26government. If any portion of local sales taxes are, at the

 

 

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1time of formation of a STAR bond district, already subject to
2tax increment financing under the Tax Increment Allocation
3Redevelopment Act, then the local sales tax increment for such
4portion shall be frozen at the base year established in
5accordance with this Act, and all future incremental increases
6shall be included in the "local sales tax increment" under this
7Act. Any party otherwise entitled to receipt of incremental
8local sales tax revenues through an existing tax increment
9financing district shall be entitled to continue to receive
10such revenues up to the amount frozen in the base year. Nothing
11in this Act shall affect the prior qualification of existing
12redevelopment project costs incurred that are eligible for
13reimbursement under the Tax Increment Allocation Redevelopment
14Act. In such event, prior to approving a STAR bond district,
15the political subdivision forming the STAR bond district shall
16take such action as is necessary, including amending the
17existing tax increment financing district redevelopment plan,
18to carry out the provisions of this Act. The Illinois
19Department of Revenue shall allocate the local sales tax
20increment only if the local sales tax is administered by the
21Department.
22    "Market study" means a study to determine the ability of
23the proposed STAR bond project to gain market share locally and
24regionally and to remain profitable past the term of repayment
25of STAR bonds.
26    "Master developer" means a developer cooperating with a

 

 

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1political subdivision to plan, develop, and implement a STAR
2bond project plan for a STAR bond district. Subject to the
3limitations of Section 25, the master developer may work with
4and transfer certain development rights to other developers for
5the purpose of implementing STAR bond project plans and
6achieving the purposes of this Act. A master developer for a
7STAR bond district shall be appointed by a political
8subdivision in the resolution establishing the STAR bond
9district, and the master developer must, at the time of
10appointment, own or have control of, through purchase
11agreements, option contracts, or other means, not less than 50%
12of the acreage within the STAR bond district and the master
13developer or its affiliate must have ownership or control on
14June 1, 2010.
15    "Master development agreement" means an agreement between
16the master developer and the political subdivision to govern a
17STAR bond district and any STAR bond projects.
18    "Municipality" means the city, village, or incorporated
19town in which a proposed STAR bond district is located.
20    "Pledged STAR revenues" means those sales tax and revenues
21and other sources of funds pledged to pay debt service on STAR
22bonds or to pay project costs pursuant to Section 30.
23Notwithstanding any provision to the contrary, the following
24revenues shall not constitute pledged STAR revenues or be
25available to pay principal and interest on STAR bonds: any
26State sales tax increment or local sales tax increment from a

 

 

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1retail entity initiating operations in a STAR bond district
2while terminating operations at another Illinois location
3within 25 miles of the STAR bond district. For purposes of this
4paragraph, "terminating operations" means a closing of a retail
5operation that is directly related to the opening of the same
6operation or like retail entity owned or operated by more than
750% of the original ownership in a STAR bond district within
8one year before or after initiating operations in the STAR bond
9district, but it does not mean closing an operation for reasons
10beyond the control of the retail entity, as documented by the
11retail entity, subject to a reasonable finding by the
12municipality (or county if such retail operation is not located
13within a municipality) in which the terminated operations were
14located that the closed location contained inadequate space,
15had become economically obsolete, or was no longer a viable
16location for the retailer or serviceman.
17    "Political subdivision" means a municipality or county
18which undertakes to establish a STAR bond district pursuant to
19the provisions of this Act.
20    "Project costs" means and includes the sum total of all
21costs incurred or estimated to be incurred on or following the
22date of establishment of a STAR bond district that are
23reasonable or necessary to implement a STAR bond district plan
24or any STAR bond project plans, or both, including costs
25incurred for public improvements and private improvements that
26serve the public purposes set forth in Section 5 of this Act.

 

 

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1Such costs include without limitation the following:
2        (a) costs of studies, surveys, development of plans and
3    specifications, formation, implementation, and
4    administration of a STAR bond district, STAR bond district
5    plan, any STAR bond projects, or any STAR bond project
6    plans, including, but not limited to, staff and
7    professional service costs for architectural, engineering,
8    legal, financial, planning, or other services, provided
9    however that no charges for professional services may be
10    based on a percentage of the tax increment collected and no
11    contracts for professional services, excluding
12    architectural and engineering services, may be entered
13    into if the terms of the contract extend beyond a period of
14    3 years;
15        (b) property assembly costs, including, but not
16    limited to, acquisition of land and other real property or
17    rights or interests therein, located within the boundaries
18    of a STAR bond district, demolition of buildings, site
19    preparation, site improvements that serve as an engineered
20    barrier addressing ground level or below ground
21    environmental contamination, including, but not limited
22    to, parking lots and other concrete or asphalt barriers,
23    the clearing and grading of land, and importing additional
24    soil and fill materials, or removal of soil and fill
25    materials from the site;
26        (c) subject to paragraph (d), costs of buildings and

 

 

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1    other vertical improvements that are located within the
2    boundaries of a STAR bond district and owned by a political
3    subdivision or other public entity, including without
4    limitation police and fire stations, educational
5    facilities, and public restrooms and rest areas;
6        (c-1) costs of buildings and other vertical
7    improvements that are located within the boundaries of a
8    STAR bond district and owned by a destination user or
9    destination hotel; except that only 2 destination users in
10    a STAR bond district and one destination hotel are eligible
11    to include the cost of those vertical improvements as
12    project costs;
13        (c-5) costs of buildings; rides and attractions, which
14    include carousels, slides, roller coasters, displays,
15    models, towers, works of art, and similar theme and
16    amusement park improvements; and other vertical
17    improvements that are located within the boundaries of a
18    STAR bond district and owned by an entertainment user;
19    except that only one entertainment user in a STAR bond
20    district is eligible to include the cost of those vertical
21    improvements as project costs;
22        (d) costs of the design and construction of
23    infrastructure and public works located within the
24    boundaries of a STAR bond district that are reasonable or
25    necessary to implement a STAR bond district plan or any
26    STAR bond project plans, or both, except that project costs

 

 

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1    shall not include the cost of constructing a new municipal
2    public building principally used to provide offices,
3    storage space, or conference facilities or vehicle
4    storage, maintenance, or repair for administrative, public
5    safety, or public works personnel and that is not intended
6    to replace an existing public building unless the political
7    subdivision makes a reasonable determination in a STAR bond
8    district plan or any STAR bond project plans, supported by
9    information that provides the basis for that
10    determination, that the new municipal building is required
11    to meet an increase in the need for public safety purposes
12    anticipated to result from the implementation of the STAR
13    bond district plan or any STAR bond project plans;
14        (e) costs of the design and construction of the
15    following improvements located outside the boundaries of a
16    STAR bond district, provided that the costs are essential
17    to further the purpose and development of a STAR bond
18    district plan and either (i) part of and connected to
19    sewer, water, or utility service lines that physically
20    connect to the STAR bond district or (ii) significant
21    improvements for adjacent offsite highways, streets,
22    roadways, and interchanges that are approved by the
23    Illinois Department of Transportation. No other cost of
24    infrastructure and public works improvements located
25    outside the boundaries of a STAR bond district may be
26    deemed project costs;

 

 

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1        (f) costs of job training and retraining projects,
2    including the cost of "welfare to work" programs
3    implemented by businesses located within a STAR bond
4    district;
5        (g) financing costs, including, but not limited to, all
6    necessary and incidental expenses related to the issuance
7    of obligations and which may include payment of interest on
8    any obligations issued hereunder including interest
9    accruing during the estimated period of construction of any
10    improvements in a STAR bond district or any STAR bond
11    projects for which such obligations are issued and for not
12    exceeding 36 months thereafter and including reasonable
13    reserves related thereto;
14        (h) to the extent the political subdivision by written
15    agreement accepts and approves the same, all or a portion
16    of a taxing district's capital costs resulting from a STAR
17    bond district or STAR bond projects necessarily incurred or
18    to be incurred within a taxing district in furtherance of
19    the objectives of a STAR bond district plan or STAR bond
20    project plans;
21        (i) interest cost incurred by a developer for project
22    costs related to the acquisition, formation,
23    implementation, development, construction, and
24    administration of a STAR bond district, STAR bond district
25    plan, STAR bond projects, or any STAR bond project plans
26    provided that:

 

 

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1            (i) payment of such costs in any one year may not
2        exceed 30% of the annual interest costs incurred by the
3        developer with regard to the STAR bond district or any
4        STAR bond projects during that year; and
5            (ii) the total of such interest payments paid
6        pursuant to this Act may not exceed 30% of the total
7        cost paid or incurred by the developer for a STAR bond
8        district or STAR bond projects, plus project costs,
9        excluding any property assembly costs incurred by a
10        political subdivision pursuant to this Act;
11        (j) costs of common areas located within the boundaries
12    of a STAR bond district;
13        (k) costs of landscaping and plantings, retaining
14    walls and fences, man-made lakes and ponds, shelters,
15    benches, lighting, and similar amenities located within
16    the boundaries of a STAR bond district;
17        (l) costs of mounted building signs, site monument, and
18    pylon signs located within the boundaries of a STAR bond
19    district; or
20        (m) if included in the STAR bond district plan and
21    approved in writing by the Director, salaries or a portion
22    of salaries for local government employees to the extent
23    the same are directly attributable to the work of such
24    employees on the establishment and management of a STAR
25    bond district or any STAR bond projects.
26    Except as specified in items (a) through (m), "project

 

 

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1costs" shall not include:
2        (i) the cost of construction of buildings that are
3    privately owned or owned by a municipality and leased to a
4    developer or retail user for non-entertainment retail
5    uses;
6        (ii) moving expenses for employees of the businesses
7    locating within the STAR bond district;
8        (iii) property taxes for property located in the STAR
9    bond district;
10        (iv) lobbying costs; and
11        (v) general overhead or administrative costs of the
12    political subdivision that would still have been incurred
13    by the political subdivision if the political subdivision
14    had not established a STAR bond district.
15    "Project development agreement" means any one or more
16agreements, including any amendments thereto, between a master
17developer and any co-developer or subdeveloper in connection
18with a STAR bond project, which project development agreement
19may include the political subdivision as a party.
20    "Projected market area" means any area within the State in
21which a STAR bond district or STAR bond project is projected to
22have a significant fiscal or market impact as determined by the
23Director.
24    "Resolution" means a resolution, order, ordinance, or
25other appropriate form of legislative action of a political
26subdivision or other applicable public entity approved by a

 

 

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1vote of a majority of a quorum at a meeting of the governing
2body of the political subdivision or applicable public entity.
3    "STAR bond" means a sales tax and revenue bond, note, or
4other obligation payable from pledged STAR revenues and issued
5by a political subdivision, the proceeds of which shall be used
6only to pay project costs as defined in this Act.
7    "STAR bond district" means the specific area declared to be
8an eligible area as determined by the political subdivision,
9and approved by the Director, in which the political
10subdivision may develop one or more STAR bond projects.
11    "STAR bond district plan" means the preliminary or
12conceptual plan that generally identifies the proposed STAR
13bond project areas and identifies in a general manner the
14buildings, facilities, and improvements to be constructed or
15improved in each STAR bond project area.
16    "STAR bond project" means a project within a STAR bond
17district which is approved pursuant to Section 20.
18    "STAR bond project area" means the geographic area within a
19STAR bond district in which there may be one or more STAR bond
20projects.
21    "STAR bond project plan" means the written plan adopted by
22a political subdivision for the development of a STAR bond
23project in a STAR bond district; the plan may include, but is
24not limited to, (i) project costs incurred prior to the date of
25the STAR bond project plan and estimated future STAR bond
26project costs, (ii) proposed sources of funds to pay those

 

 

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1costs, (iii) the nature and estimated term of any obligations
2to be issued by the political subdivision to pay those costs,
3(iv) the most recent equalized assessed valuation of the STAR
4bond project area, (v) an estimate of the equalized assessed
5valuation of the STAR bond district or applicable project area
6after completion of a STAR bond project, (vi) a general
7description of the types of any known or proposed developers,
8users, or tenants of the STAR bond project or projects included
9in the plan, (vii) a general description of the type,
10structure, and character of the property or facilities to be
11developed or improved, (viii) a description of the general land
12uses to apply to the STAR bond project, and (ix) a general
13description or an estimate of the type, class, and number of
14employees to be employed in the operation of the STAR bond
15project.
16    "State sales tax" means all of the net revenue realized
17under the Retailers' Occupation Tax Act, the Use Tax Act, the
18Service Use Tax Act, and the Service Occupation Tax Act from
19transactions at places of business located within a STAR bond
20district, excluding that portion of the net revenue realized
21under the Retailers' Occupation Tax Act, the Use Tax Act, the
22Service Use Tax Act, and the Service Occupation Tax Act from
23transactions at places of business located within a STAR bond
24district that is deposited into the Local Government Tax Fund
25and the County and Mass Transit District Fund.
26    "State sales tax increment" means (i) 100% of that portion

 

 

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1of the State sales tax that is in excess of the State sales tax
2for the same month in the base year, as determined by the
3Department of Revenue, from transactions at up to 2 destination
4users, one destination hotel, and one entertainment user
5located within a STAR bond district, which destination users,
6destination hotel, and entertainment user shall be designated
7by the master developer and approved by the political
8subdivision and the Director in conjunction with the applicable
9STAR bond project approval, and (ii) 25% of that portion of the
10State sales tax that is in excess of the State sales tax for
11the same month in the base year, as determined by the
12Department of Revenue, from all other transactions within a
13STAR bond district. If any portion of State sales taxes are, at
14the time of formation of a STAR bond district, already subject
15to tax increment financing under the Tax Increment Allocation
16Redevelopment Act, then the State sales tax increment for such
17portion shall be frozen at the base year established in
18accordance with this Act, and all future incremental increases
19shall be included in the State sales tax increment under this
20Act. Any party otherwise entitled to receipt of incremental
21State sales tax revenues through an existing tax increment
22financing district shall be entitled to continue to receive
23such revenues up to the amount frozen in the base year. Nothing
24in this Act shall affect the prior qualification of existing
25redevelopment project costs incurred that are eligible for
26reimbursement under the Tax Increment Allocation Redevelopment

 

 

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1Act. In such event, prior to approving a STAR bond district,
2the political subdivision forming the STAR bond district shall
3take such action as is necessary, including amending the
4existing tax increment financing district redevelopment plan,
5to carry out the provisions of this Act.
6    "Substantial change" means a change wherein the proposed
7STAR bond project plan differs substantially in size, scope, or
8use from the approved STAR bond district plan or STAR bond
9project plan.
10    "Taxpayer" means an individual, partnership, corporation,
11limited liability company, trust, estate, or other entity that
12is subject to the Illinois Income Tax Act.
13    "Total development costs" means the aggregate public and
14private investment in a STAR bond district, including project
15costs and other direct and indirect costs related to the
16development of the STAR bond district.
17    "Traditional retail use" means the operation of a business
18that derives at least 90% of its annual gross revenue from
19sales at retail, as that phrase is defined by Section 1 of the
20Retailers' Occupation Tax Act, but does not include the
21operations of destination users, entertainment users,
22restaurants, hotels, retail uses within hotels, or any other
23non-retail uses.
24    "Vacant" means that portion of the land in a proposed STAR
25bond district that is not occupied by a building, facility, or
26other vertical improvement.

 

 

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1(Source: P.A. 99-642, eff. 7-28-16.)
 
2    Section 10. The Counties Code is amended by changing
3Section 5-1006.7 as follows:
 
4    (55 ILCS 5/5-1006.7)
5    Sec. 5-1006.7. School facility and resources occupation
6taxes.
7    (a) In any county, a tax shall be imposed upon all persons
8engaged in the business of selling tangible personal property,
9other than personal property titled or registered with an
10agency of this State's government, at retail in the county on
11the gross receipts from the sales made in the course of
12business to provide revenue to be used exclusively (i) for
13school facility purposes, (ii) school resource officers and
14mental health professionals, or (iii) school facility
15purposes, school resource officers, and mental health
16professionals if a proposition for the tax has been submitted
17to the electors of that county and approved by a majority of
18those voting on the question as provided in subsection (c). The
19tax under this Section shall be imposed only in one-quarter
20percent increments and may not exceed 1%.
21    This additional tax may not be imposed on tangible personal
22property taxed at the 1% rate under the Retailers' Occupation
23Tax Act. The Department of Revenue has full power to administer
24and enforce this subsection, to collect all taxes and penalties

 

 

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1due under this subsection, to dispose of taxes and penalties so
2collected in the manner provided in this subsection, and to
3determine all rights to credit memoranda arising on account of
4the erroneous payment of a tax or penalty under this
5subsection. The Department shall deposit all taxes and
6penalties collected under this subsection into a special fund
7created for that purpose.
8    In the administration of and compliance with this
9subsection, the Department and persons who are subject to this
10subsection (i) have the same rights, remedies, privileges,
11immunities, powers, and duties, (ii) are subject to the same
12conditions, restrictions, limitations, penalties, and
13definitions of terms, and (iii) shall employ the same modes of
14procedure as are set forth in Sections 1 through 1o, 2 through
152-70 (in respect to all provisions contained in those Sections
16other than the State rate of tax), 2a through 2h, 3 (except as
17to the disposition of taxes and penalties collected), 4, 5, 5a,
185b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
197, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation
20Tax Act and all provisions of the Uniform Penalty and Interest
21Act as if those provisions were set forth in this subsection.
22    The certificate of registration that is issued by the
23Department to a retailer under the Retailers' Occupation Tax
24Act permits the retailer to engage in a business that is
25taxable without registering separately with the Department
26under an ordinance or resolution under this subsection.

 

 

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1    Persons subject to any tax imposed under the authority
2granted in this subsection may reimburse themselves for their
3seller's tax liability by separately stating that tax as an
4additional charge, which may be stated in combination, in a
5single amount, with State tax that sellers are required to
6collect under the Use Tax Act, pursuant to any bracketed
7schedules set forth by the Department.
8    (b) If a tax has been imposed under subsection (a), then a
9service occupation tax must also be imposed at the same rate
10upon all persons engaged, in the county, in the business of
11making sales of service, who, as an incident to making those
12sales of service, transfer tangible personal property within
13the county as an incident to a sale of service.
14    This tax may not be imposed on tangible personal property
15taxed at the 1% rate under the Service Occupation Tax Act.
16    The tax imposed under this subsection and all civil
17penalties that may be assessed as an incident thereof shall be
18collected and enforced by the Department and deposited into a
19special fund created for that purpose. The Department has full
20power to administer and enforce this subsection, to collect all
21taxes and penalties due under this subsection, to dispose of
22taxes and penalties so collected in the manner provided in this
23subsection, and to determine all rights to credit memoranda
24arising on account of the erroneous payment of a tax or penalty
25under this subsection.
26    In the administration of and compliance with this

 

 

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1subsection, the Department and persons who are subject to this
2subsection shall (i) have the same rights, remedies,
3privileges, immunities, powers and duties, (ii) be subject to
4the same conditions, restrictions, limitations, penalties and
5definition of terms, and (iii) employ the same modes of
6procedure as are set forth in Sections 2 (except that that
7reference to State in the definition of supplier maintaining a
8place of business in this State means the county), 2a through
92d, 3 through 3-50 (in respect to all provisions contained in
10those Sections other than the State rate of tax), 4 (except
11that the reference to the State shall be to the county), 5, 7,
128 (except that the jurisdiction to which the tax is a debt to
13the extent indicated in that Section 8 is the county), 9
14(except as to the disposition of taxes and penalties
15collected), 10, 11, 12 (except the reference therein to Section
162b of the Retailers' Occupation Tax Act), 13 (except that any
17reference to the State means the county), Section 15, 16, 17,
1818, 19, and 20 of the Service Occupation Tax Act and all
19provisions of the Uniform Penalty and Interest Act, as fully as
20if those provisions were set forth herein.
21    Persons subject to any tax imposed under the authority
22granted in this subsection may reimburse themselves for their
23serviceman's tax liability by separately stating the tax as an
24additional charge, which may be stated in combination, in a
25single amount, with State tax that servicemen are authorized to
26collect under the Service Use Tax Act, pursuant to any

 

 

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1bracketed schedules set forth by the Department.
2    (c) The tax under this Section may not be imposed until the
3question of imposing the tax has been submitted to the electors
4of the county at a regular election and approved by a majority
5of the electors voting on the question. For all regular
6elections held prior to August 23, 2011 (the effective date of
7Public Act 97-542), upon a resolution by the county board or a
8resolution by school district boards that represent at least
951% of the student enrollment within the county, the county
10board must certify the question to the proper election
11authority in accordance with the Election Code.
12    For all regular elections held prior to August 23, 2011
13(the effective date of Public Act 97-542), the election
14authority must submit the question in substantially the
15following form:
16        Shall (name of county) be authorized to impose a
17    retailers' occupation tax and a service occupation tax
18    (commonly referred to as a "sales tax") at a rate of
19    (insert rate) to be used exclusively for school facility
20    purposes?
21The election authority must record the votes as "Yes" or "No".
22    If a majority of the electors voting on the question vote
23in the affirmative, then the county may, thereafter, impose the
24tax.
25    For all regular elections held on or after August 23, 2011
26(the effective date of Public Act 97-542), the regional

 

 

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1superintendent of schools for the county must, upon receipt of
2a resolution or resolutions of school district boards that
3represent more than 50% of the student enrollment within the
4county, certify the question to the proper election authority
5for submission to the electors of the county at the next
6regular election at which the question lawfully may be
7submitted to the electors, all in accordance with the Election
8Code.
9    For all regular elections held on or after August 23, 2011
10(the effective date of Public Act 97-542) and before the
11effective date of this amendatory Act of the 101st General
12Assembly, the election authority must submit the question in
13substantially the following form:
14        Shall a retailers' occupation tax and a service
15    occupation tax (commonly referred to as a "sales tax") be
16    imposed in (name of county) at a rate of (insert rate) to
17    be used exclusively for school facility purposes?
18The election authority must record the votes as "Yes" or "No".
19    If a majority of the electors voting on the question vote
20in the affirmative, then the tax shall be imposed at the rate
21set forth in the question.
22    For all regular elections held on or after the effective
23date of this amendatory Act of the 101st General Assembly, the
24election authority must submit the question as follows:
25        (1) If the referendum is to expand the use of revenues
26    from a currently imposed tax exclusively for school

 

 

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1    facility purposes to include school resource officers and
2    mental health professionals, the question shall be in
3    substantially the following form:
4            In addition to school facility purposes, shall
5        (name of county) school districts be authorized to use
6        revenues from the tax commonly referred to as the
7        school facility sales tax that is currently imposed in
8        (name of county) at a rate of (insert rate) for school
9        resource officers and mental health professionals?
10        (2) If the referendum is to increase the rate of a tax
11    currently imposed exclusively for school facility purposes
12    at less than 1% and dedicate the additional revenues for
13    school resource officers and mental health professionals,
14    the question shall be in substantially the following form:
15            Shall the tax commonly referred to as the school
16        facility sales tax that is currently imposed in (name
17        of county) at the rate of (insert rate) be increased to
18        a rate of (insert rate) with the additional revenues
19        used exclusively for school resource officers and
20        mental health professionals?
21        (3) If the referendum is to impose a tax in a county
22    that has not previously imposed a tax under this Section
23    exclusively for school facility purposes, the question
24    shall be in substantially the following form:
25            Shall a retailers' occupation tax and a service
26        occupation tax (commonly referred to as a sales tax) be

 

 

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1        imposed in (name of county) at a rate of (insert rate)
2        to be used exclusively for school facility purposes?
3        (4) If the referendum is to impose a tax in a county
4    that has not previously imposed a tax under this Section
5    exclusively for school resource officers and mental health
6    professionals, the question shall be in substantially the
7    following form:
8            Shall a retailers' occupation tax and a service
9        occupation tax (commonly referred to as a sales tax) be
10        imposed in (name of county) at a rate of (insert rate)
11        to be used exclusively for school resource officers and
12        mental health professionals?
13        (5) If the referendum is to impose a tax in a county
14    that has not previously imposed a tax under this Section
15    exclusively for school facility purposes, school resource
16    officers, and mental health professionals, the question
17    shall be in substantially the following form:
18            Shall a retailers' occupation tax and a service
19        occupation tax (commonly referred to as a sales tax) be
20        imposed in (name of county) at a rate of (insert rate)
21        to be used exclusively for school facility purposes,
22        school resource officers, and mental health
23        professionals?
24    The election authority must record the votes as "Yes" or
25"No".
26    If a majority of the electors voting on the question vote

 

 

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1in the affirmative, then the tax shall be imposed at the rate
2set forth in the question.
3    For the purposes of this subsection (c), "enrollment" means
4the head count of the students residing in the county on the
5last school day of September of each year, which must be
6reported on the Illinois State Board of Education Public School
7Fall Enrollment/Housing Report.
8    (d) The Department shall immediately pay over to the State
9Treasurer, ex officio, as trustee, all taxes and penalties
10collected under this Section to be deposited into the School
11Facility Occupation Tax Fund, which shall be an unappropriated
12trust fund held outside the State treasury.
13    On or before the 25th day of each calendar month, the
14Department shall prepare and certify to the Comptroller the
15disbursement of stated sums of money to the regional
16superintendents of schools in counties from which retailers or
17servicemen have paid taxes or penalties to the Department
18during the second preceding calendar month. The amount to be
19paid to each regional superintendent of schools and disbursed
20to him or her in accordance with Section 3-14.31 of the School
21Code, is equal to the amount (not including credit memoranda)
22collected from the county under this Section during the second
23preceding calendar month by the Department, (i) less 2% of that
24amount, which shall be deposited into the Tax Compliance and
25Administration Fund and shall be used by the Department,
26subject to appropriation, to cover the costs of the Department

 

 

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1in administering and enforcing the provisions of this Section,
2on behalf of the county, (ii) plus an amount that the
3Department determines is necessary to offset any amounts that
4were erroneously paid to a different taxing body; (iii) less an
5amount equal to the amount of refunds made during the second
6preceding calendar month by the Department on behalf of the
7county; and (iv) less any amount that the Department determines
8is necessary to offset any amounts that were payable to a
9different taxing body but were erroneously paid to the county.
10When certifying the amount of a monthly disbursement to a
11regional superintendent of schools under this Section, the
12Department shall increase or decrease the amounts by an amount
13necessary to offset any miscalculation of previous
14disbursements within the previous 6 months from the time a
15miscalculation is discovered.
16    Within 10 days after receipt by the Comptroller from the
17Department of the disbursement certification to the regional
18superintendents of the schools provided for in this Section,
19the Comptroller shall cause the orders to be drawn for the
20respective amounts in accordance with directions contained in
21the certification.
22    If the Department determines that a refund should be made
23under this Section to a claimant instead of issuing a credit
24memorandum, then the Department shall notify the Comptroller,
25who shall cause the order to be drawn for the amount specified
26and to the person named in the notification from the

 

 

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1Department. The refund shall be paid by the Treasurer out of
2the School Facility Occupation Tax Fund.
3    (e) For the purposes of determining the local governmental
4unit whose tax is applicable, a retail sale by a producer of
5coal or another mineral mined in Illinois is a sale at retail
6at the place where the coal or other mineral mined in Illinois
7is extracted from the earth. This subsection does not apply to
8coal or another mineral when it is delivered or shipped by the
9seller to the purchaser at a point outside Illinois so that the
10sale is exempt under the United States Constitution as a sale
11in interstate or foreign commerce.
12    (f) Nothing in this Section may be construed to authorize a
13tax to be imposed upon the privilege of engaging in any
14business that under the Constitution of the United States may
15not be made the subject of taxation by this State.
16    (g) If a county board imposes a tax under this Section
17pursuant to a referendum held before August 23, 2011 (the
18effective date of Public Act 97-542) at a rate below the rate
19set forth in the question approved by a majority of electors of
20that county voting on the question as provided in subsection
21(c), then the county board may, by ordinance, increase the rate
22of the tax up to the rate set forth in the question approved by
23a majority of electors of that county voting on the question as
24provided in subsection (c). If a county board imposes a tax
25under this Section pursuant to a referendum held before August
2623, 2011 (the effective date of Public Act 97-542), then the

 

 

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1board may, by ordinance, discontinue or reduce the rate of the
2tax. If a tax is imposed under this Section pursuant to a
3referendum held on or after August 23, 2011 (the effective date
4of Public Act 97-542) and before the effective date of this
5amendatory Act of the 101st General Assembly, then the county
6board may reduce or discontinue the tax, but only in accordance
7with subsection (h-5) of this Section. If a tax is imposed
8under this Section pursuant to a referendum held on or after
9the effective date of this amendatory Act of the 101st General
10Assembly, then the county board may reduce or discontinue the
11tax, but only in accordance with subsection (h-10). If,
12however, a school board issues bonds that are secured by the
13proceeds of the tax under this Section, then the county board
14may not reduce the tax rate or discontinue the tax if that rate
15reduction or discontinuance would adversely affect the school
16board's ability to pay the principal and interest on those
17bonds as they become due or necessitate the extension of
18additional property taxes to pay the principal and interest on
19those bonds. If the county board reduces the tax rate or
20discontinues the tax, then a referendum must be held in
21accordance with subsection (c) of this Section in order to
22increase the rate of the tax or to reimpose the discontinued
23tax.
24    Until January 1, 2014, the results of any election that
25imposes, reduces, or discontinues a tax under this Section must
26be certified by the election authority, and any ordinance that

 

 

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1increases or lowers the rate or discontinues the tax must be
2certified by the county clerk and, in each case, filed with the
3Illinois Department of Revenue either (i) on or before the
4first day of April, whereupon the Department shall proceed to
5administer and enforce the tax or change in the rate as of the
6first day of July next following the filing; or (ii) on or
7before the first day of October, whereupon the Department shall
8proceed to administer and enforce the tax or change in the rate
9as of the first day of January next following the filing.
10    Beginning January 1, 2014, the results of any election that
11imposes, reduces, or discontinues a tax under this Section must
12be certified by the election authority, and any ordinance that
13increases or lowers the rate or discontinues the tax must be
14certified by the county clerk and, in each case, filed with the
15Illinois Department of Revenue either (i) on or before the
16first day of May, whereupon the Department shall proceed to
17administer and enforce the tax or change in the rate as of the
18first day of July next following the filing; or (ii) on or
19before the first day of October, whereupon the Department shall
20proceed to administer and enforce the tax or change in the rate
21as of the first day of January next following the filing.
22    (h) For purposes of this Section, "school facility
23purposes" means (i) the acquisition, development,
24construction, reconstruction, rehabilitation, improvement,
25financing, architectural planning, and installation of capital
26facilities consisting of buildings, structures, and durable

 

 

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1equipment and for the acquisition and improvement of real
2property and interest in real property required, or expected to
3be required, in connection with the capital facilities and (ii)
4the payment of bonds or other obligations heretofore or
5hereafter issued, including bonds or other obligations
6heretofore or hereafter issued to refund or to continue to
7refund bonds or other obligations issued, for school facility
8purposes, provided that the taxes levied to pay those bonds are
9abated by the amount of the taxes imposed under this Section
10that are used to pay those bonds. "School-facility purposes"
11also includes fire prevention, safety, energy conservation,
12accessibility, school security, and specified repair purposes
13set forth under Section 17-2.11 of the School Code.
14    (h-5) A county board in a county where a tax has been
15imposed under this Section pursuant to a referendum held on or
16after August 23, 2011 (the effective date of Public Act 97-542)
17and before the effective date of this amendatory Act of the
18101st General Assembly may, by ordinance or resolution, submit
19to the voters of the county the question of reducing or
20discontinuing the tax. In the ordinance or resolution, the
21county board shall certify the question to the proper election
22authority in accordance with the Election Code. The election
23authority must submit the question in substantially the
24following form:
25        Shall the school facility retailers' occupation tax
26    and service occupation tax (commonly referred to as the

 

 

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1    "school facility sales tax") currently imposed in (name of
2    county) at a rate of (insert rate) be (reduced to (insert
3    rate))(discontinued)?
4If a majority of the electors voting on the question vote in
5the affirmative, then, subject to the provisions of subsection
6(g) of this Section, the tax shall be reduced or discontinued
7as set forth in the question.
8    (h-10) A county board in a county where a tax has been
9imposed under this Section pursuant to a referendum held on or
10after the effective date of this amendatory Act of the 101st
11General Assembly may, by ordinance or resolution, submit to the
12voters of the county the question of reducing or discontinuing
13the tax. In the ordinance or resolution, the county board shall
14certify the question to the proper election authority in
15accordance with the Election Code. The election authority must
16submit the question in substantially the following form:
17        Shall the school facility and resources retailers'
18    occupation tax and service occupation tax (commonly
19    referred to as the school facility and resources sales tax)
20    currently imposed in (name of county) at a rate of (insert
21    rate) be (reduced to (insert rate)) (discontinued)?
22    The election authority must record the votes as "Yes" or
23"No".
24    If a majority of the electors voting on the question vote
25in the affirmative, then, subject to the provisions of
26subsection (g) of this Section, the tax shall be reduced or

 

 

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1discontinued as set forth in the question.
2    (i) This Section does not apply to Cook County.
3    (j) This Section may be cited as the County School Facility
4and Resources Occupation Tax Law.
5(Source: P.A. 99-143, eff. 7-27-15; 99-217, eff. 7-31-15;
699-642, eff. 7-28-16; 100-1171, eff. 1-4-19.)
 
7    Section 15. The School Code is amended by changing Sections
83-14.31, 10-20.43, 10-22.36, and 17-2.11 as follows:
 
9    (105 ILCS 5/3-14.31)
10    Sec. 3-14.31. School facility and resources occupation tax
11proceeds.
12    (a) Within 30 days after receiving any proceeds of a school
13facility and resources occupation tax under Section 5-1006.7 of
14the Counties Code, each regional superintendent must disburse
15those proceeds to each school district that is located in the
16county in which the tax was collected.
17    (b) The proceeds must be disbursed on an enrollment basis
18and allocated based upon the number of each school district's
19resident pupils that reside within the county collecting the
20tax divided by the total number of resident students within the
21county.
22(Source: P.A. 95-675, eff. 10-11-07; 95-850, eff. 1-1-09.)
 
23    (105 ILCS 5/10-20.43)

 

 

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1    Sec. 10-20.43. School facility and resources occupation
2tax fund. All proceeds received by a school district from a
3distribution under Section 3-14.31 must be maintained in a
4special fund known as the school facility and resources
5occupation tax fund. The district may use moneys in that fund
6only for school facility purposes, as that term is defined
7under Section 5-1006.7 of the Counties Code.
8(Source: P.A. 97-813, eff. 7-13-12.)
 
9    (105 ILCS 5/10-22.36)  (from Ch. 122, par. 10-22.36)
10    Sec. 10-22.36. Buildings for school purposes. To build or
11purchase a building for school classroom or instructional
12purposes upon the approval of a majority of the voters upon the
13proposition at a referendum held for such purpose or in
14accordance with Section 17-2.11, 19-3.5, or 19-3.10. The board
15may initiate such referendum by resolution. The board shall
16certify the resolution and proposition to the proper election
17authority for submission in accordance with the general
18election law.
19    The questions of building one or more new buildings for
20school purposes or office facilities, and issuing bonds for the
21purpose of borrowing money to purchase one or more buildings or
22sites for such buildings or office sites, to build one or more
23new buildings for school purposes or office facilities or to
24make additions and improvements to existing school buildings,
25may be combined into one or more propositions on the ballot.

 

 

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1    Before erecting, or purchasing or remodeling such a
2building the board shall submit the plans and specifications
3respecting heating, ventilating, lighting, seating, water
4supply, toilets and safety against fire to the regional
5superintendent of schools having supervision and control over
6the district, for approval in accordance with Section 2-3.12.
7    Notwithstanding any of the foregoing, no referendum shall
8be required if the purchase, construction, or building of any
9such building (1) occurs while the building is being leased by
10the school district or (2) is paid with (A) funds derived from
11the sale or disposition of other buildings, land, or structures
12of the school district or (B) funds received (i) as a grant
13under the School Construction Law or (ii) as gifts or
14donations, provided that no funds to purchase, construct, or
15build such building, other than lease payments, are derived
16from the district's bonded indebtedness or the tax levy of the
17district.
18    Notwithstanding any of the foregoing, no referendum shall
19be required if the purchase, construction, or building of any
20such building is paid with funds received from the County
21School Facility and Resources Occupation Tax Law under Section
225-1006.7 of the Counties Code or from the proceeds of bonds or
23other debt obligations secured by revenues obtained from that
24Law.
25(Source: P.A. 96-517, eff. 8-14-09; 97-542, eff. 8-23-11.)
 

 

 

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1    (105 ILCS 5/17-2.11)  (from Ch. 122, par. 17-2.11)
2    Sec. 17-2.11. School board power to levy a tax or to borrow
3money and issue bonds for fire prevention, safety, energy
4conservation, accessibility, school security, and specified
5repair purposes.
6    (a) Whenever, as a result of any lawful order of any
7agency, other than a school board, having authority to enforce
8any school building code applicable to any facility that houses
9students, or any law or regulation for the protection and
10safety of the environment, pursuant to the Environmental
11Protection Act, any school district having a population of less
12than 500,000 inhabitants is required to alter or reconstruct
13any school building or permanent, fixed equipment; the district
14may, by proper resolution, levy a tax for the purpose of making
15such alteration or reconstruction, based on a survey report by
16an architect or engineer licensed in this State, upon all of
17the taxable property of the district at the value as assessed
18by the Department of Revenue and at a rate not to exceed 0.05%
19per year for a period sufficient to finance such alteration or
20reconstruction, upon the following conditions:
21        (1) When there are not sufficient funds available in
22    the operations and maintenance fund of the school district,
23    the school facility and resources occupation tax fund of
24    the district, or the fire prevention and safety fund of the
25    district, as determined by the district on the basis of
26    rules adopted by the State Board of Education, to make such

 

 

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1    alteration or reconstruction or to purchase and install
2    such permanent, fixed equipment so ordered or determined as
3    necessary. Appropriate school district records must be
4    made available to the State Superintendent of Education,
5    upon request, to confirm this insufficiency.
6        (2) When a certified estimate of an architect or
7    engineer licensed in this State stating the estimated
8    amount necessary to make the alteration or reconstruction
9    or to purchase and install the equipment so ordered has
10    been secured by the school district, and the estimate has
11    been approved by the regional superintendent of schools
12    having jurisdiction over the district and the State
13    Superintendent of Education. Approval must not be granted
14    for any work that has already started without the prior
15    express authorization of the State Superintendent of
16    Education. If the estimate is not approved or is denied
17    approval by the regional superintendent of schools within 3
18    months after the date on which it is submitted to him or
19    her, the school board of the district may submit the
20    estimate directly to the State Superintendent of Education
21    for approval or denial.
22    In the case of an emergency situation, where the estimated
23cost to effectuate emergency repairs is less than the amount
24specified in Section 10-20.21 of this Code, the school district
25may proceed with such repairs prior to approval by the State
26Superintendent of Education, but shall comply with the

 

 

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1provisions of subdivision (2) of this subsection (a) as soon
2thereafter as may be as well as Section 10-20.21 of this Code.
3If the estimated cost to effectuate emergency repairs is
4greater than the amount specified in Section 10-20.21 of this
5Code, then the school district shall proceed in conformity with
6Section 10-20.21 of this Code and with rules established by the
7State Board of Education to address such situations. The rules
8adopted by the State Board of Education to deal with these
9situations shall stipulate that emergency situations must be
10expedited and given priority consideration. For purposes of
11this paragraph, an emergency is a situation that presents an
12imminent and continuing threat to the health and safety of
13students or other occupants of a facility, requires complete or
14partial evacuation of a building or part of a building, or
15consumes one or more of the 5 emergency days built into the
16adopted calendar of the school or schools or would otherwise be
17expected to cause such school or schools to fall short of the
18minimum school calendar requirements.
19    (b) Whenever any such district determines that it is
20necessary for energy conservation purposes that any school
21building or permanent, fixed equipment should be altered or
22reconstructed and that such alterations or reconstruction will
23be made with funds not necessary for the completion of approved
24and recommended projects contained in any safety survey report
25or amendments thereto authorized by Section 2-3.12 of this Act;
26the district may levy a tax or issue bonds as provided in

 

 

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1subsection (a) of this Section.
2    (c) Whenever any such district determines that it is
3necessary for accessibility purposes and to comply with the
4school building code that any school building or equipment
5should be altered or reconstructed and that such alterations or
6reconstruction will be made with funds not necessary for the
7completion of approved and recommended projects contained in
8any safety survey report or amendments thereto authorized under
9Section 2-3.12 of this Act, the district may levy a tax or
10issue bonds as provided in subsection (a) of this Section.
11    (d) Whenever any such district determines that it is
12necessary for school security purposes and the related
13protection and safety of pupils and school personnel that any
14school building or property should be altered or reconstructed
15or that security systems and equipment (including but not
16limited to intercom, early detection and warning, access
17control and television monitoring systems) should be purchased
18and installed, and that such alterations, reconstruction or
19purchase and installation of equipment will be made with funds
20not necessary for the completion of approved and recommended
21projects contained in any safety survey report or amendment
22thereto authorized by Section 2-3.12 of this Act and will deter
23and prevent unauthorized entry or activities upon school
24property by unknown or dangerous persons, assure early
25detection and advance warning of any such actual or attempted
26unauthorized entry or activities and help assure the continued

 

 

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1safety of pupils and school staff if any such unauthorized
2entry or activity is attempted or occurs; the district may levy
3a tax or issue bonds as provided in subsection (a) of this
4Section.
5    If such a school district determines that it is necessary
6for school security purposes and the related protection and
7safety of pupils and school staff to hire a school resource
8officer and the district determines that it does not need funds
9for any of the other purposes set forth in this Section, then
10the district may levy a tax or issue bonds as provided in
11subsection (a).
12    (e) If a school district does not need funds for other fire
13prevention and safety projects, including the completion of
14approved and recommended projects contained in any safety
15survey report or amendments thereto authorized by Section
162-3.12 of this Act, and it is determined after a public hearing
17(which is preceded by at least one published notice (i)
18occurring at least 7 days prior to the hearing in a newspaper
19of general circulation within the school district and (ii)
20setting forth the time, date, place, and general subject matter
21of the hearing) that there is a substantial, immediate, and
22otherwise unavoidable threat to the health, safety, or welfare
23of pupils due to disrepair of school sidewalks, playgrounds,
24parking lots, or school bus turnarounds and repairs must be
25made; then the district may levy a tax or issue bonds as
26provided in subsection (a) of this Section.

 

 

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1    (f) For purposes of this Section a school district may
2replace a school building or build additions to replace
3portions of a building when it is determined that the
4effectuation of the recommendations for the existing building
5will cost more than the replacement costs. Such determination
6shall be based on a comparison of estimated costs made by an
7architect or engineer licensed in the State of Illinois. The
8new building or addition shall be equivalent in area (square
9feet) and comparable in purpose and grades served and may be on
10the same site or another site. Such replacement may only be
11done upon order of the regional superintendent of schools and
12the approval of the State Superintendent of Education.
13    (g) The filing of a certified copy of the resolution
14levying the tax when accompanied by the certificates of the
15regional superintendent of schools and State Superintendent of
16Education shall be the authority of the county clerk to extend
17such tax.
18    (h) The county clerk of the county in which any school
19district levying a tax under the authority of this Section is
20located, in reducing raised levies, shall not consider any such
21tax as a part of the general levy for school purposes and shall
22not include the same in the limitation of any other tax rate
23which may be extended.
24    Such tax shall be levied and collected in like manner as
25all other taxes of school districts, subject to the provisions
26contained in this Section.

 

 

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1    (i) The tax rate limit specified in this Section may be
2increased to .10% upon the approval of a proposition to effect
3such increase by a majority of the electors voting on that
4proposition at a regular scheduled election. Such proposition
5may be initiated by resolution of the school board and shall be
6certified by the secretary to the proper election authorities
7for submission in accordance with the general election law.
8    (j) When taxes are levied by any school district for fire
9prevention, safety, energy conservation, and school security
10purposes as specified in this Section, and the purposes for
11which the taxes have been levied are accomplished and paid in
12full, and there remain funds on hand in the Fire Prevention and
13Safety Fund from the proceeds of the taxes levied, including
14interest earnings thereon, the school board by resolution shall
15use such excess and other board restricted funds, excluding
16bond proceeds and earnings from such proceeds, as follows:
17        (1) for other authorized fire prevention, safety,
18    energy conservation, required safety inspections, school
19    security purposes, sampling for lead in drinking water in
20    schools, and for repair and mitigation due to lead levels
21    in the drinking water supply; or
22        (2) for transfer to the Operations and Maintenance Fund
23    for the purpose of abating an equal amount of operations
24    and maintenance purposes taxes.
25Notwithstanding subdivision (2) of this subsection (j) and
26subsection (k) of this Section, through June 30, 2020, the

 

 

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1school board may, by proper resolution following a public
2hearing set by the school board or the president of the school
3board (that is preceded (i) by at least one published notice
4over the name of the clerk or secretary of the board, occurring
5at least 7 days and not more than 30 days prior to the hearing,
6in a newspaper of general circulation within the school
7district and (ii) by posted notice over the name of the clerk
8or secretary of the board, at least 48 hours before the
9hearing, at the principal office of the school board or at the
10building where the hearing is to be held if a principal office
11does not exist, with both notices setting forth the time, date,
12place, and subject matter of the hearing), transfer surplus
13life safety taxes and interest earnings thereon to the
14Operations and Maintenance Fund for building repair work.
15    (k) If any transfer is made to the Operation and
16Maintenance Fund, the secretary of the school board shall
17within 30 days notify the county clerk of the amount of that
18transfer and direct the clerk to abate the taxes to be extended
19for the purposes of operations and maintenance authorized under
20Section 17-2 of this Act by an amount equal to such transfer.
21    (l) If the proceeds from the tax levy authorized by this
22Section are insufficient to complete the work approved under
23this Section, the school board is authorized to sell bonds
24without referendum under the provisions of this Section in an
25amount that, when added to the proceeds of the tax levy
26authorized by this Section, will allow completion of the

 

 

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1approved work.
2    (m) Any bonds issued pursuant to this Section shall bear
3interest at a rate not to exceed the maximum rate authorized by
4law at the time of the making of the contract, shall mature
5within 20 years from date, and shall be signed by the president
6of the school board and the treasurer of the school district.
7    (n) In order to authorize and issue such bonds, the school
8board shall adopt a resolution fixing the amount of bonds, the
9date thereof, the maturities thereof, rates of interest
10thereof, place of payment and denomination, which shall be in
11denominations of not less than $100 and not more than $5,000,
12and provide for the levy and collection of a direct annual tax
13upon all the taxable property in the school district sufficient
14to pay the principal and interest on such bonds to maturity.
15Upon the filing in the office of the county clerk of the county
16in which the school district is located of a certified copy of
17the resolution, it is the duty of the county clerk to extend
18the tax therefor in addition to and in excess of all other
19taxes heretofore or hereafter authorized to be levied by such
20school district.
21    (o) After the time such bonds are issued as provided for by
22this Section, if additional alterations or reconstructions are
23required to be made because of surveys conducted by an
24architect or engineer licensed in the State of Illinois, the
25district may levy a tax at a rate not to exceed .05% per year
26upon all the taxable property of the district or issue

 

 

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1additional bonds, whichever action shall be the most feasible.
2    (p) This Section is cumulative and constitutes complete
3authority for the issuance of bonds as provided in this Section
4notwithstanding any other statute or law to the contrary.
5    (q) With respect to instruments for the payment of money
6issued under this Section either before, on, or after the
7effective date of Public Act 86-004 (June 6, 1989), it is, and
8always has been, the intention of the General Assembly (i) that
9the Omnibus Bond Acts are, and always have been, supplementary
10grants of power to issue instruments in accordance with the
11Omnibus Bond Acts, regardless of any provision of this Act that
12may appear to be or to have been more restrictive than those
13Acts, (ii) that the provisions of this Section are not a
14limitation on the supplementary authority granted by the
15Omnibus Bond Acts, and (iii) that instruments issued under this
16Section within the supplementary authority granted by the
17Omnibus Bond Acts are not invalid because of any provision of
18this Act that may appear to be or to have been more restrictive
19than those Acts.
20    (r) When the purposes for which the bonds are issued have
21been accomplished and paid for in full and there remain funds
22on hand from the proceeds of the bond sale and interest
23earnings therefrom, the board shall, by resolution, use such
24excess funds in accordance with the provisions of Section
2510-22.14 of this Act.
26    (s) Whenever any tax is levied or bonds issued for fire

 

 

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1prevention, safety, energy conservation, and school security
2purposes, such proceeds shall be deposited and accounted for
3separately within the Fire Prevention and Safety Fund.
4(Source: P.A. 99-143, eff. 7-27-15; 99-713, eff. 8-5-16;
599-922, eff. 1-17-17; 100-465, eff. 8-31-17.)
 
6    Section 20. The School Construction Law is amended by
7changing Section 5-25 as follows:
 
8    (105 ILCS 230/5-25)
9    Sec. 5-25. Eligibility and project standards.
10    (a) The State Board of Education shall establish
11eligibility standards for school construction project grants
12and debt service grants. These standards shall include minimum
13enrollment requirements for eligibility for school
14construction project grants of 200 students for elementary
15districts, 200 students for high school districts, and 400
16students for unit districts. The total enrollment of member
17districts forming a cooperative high school in accordance with
18subsection (c) of Section 10-22.22 of the School Code shall
19meet the minimum enrollment requirements specified in this
20subsection (a). The State Board of Education shall approve a
21district's eligibility for a school construction project grant
22or a debt service grant pursuant to the established standards.
23    For purposes only of determining a Type 40 area vocational
24center's eligibility for an entity included in a school

 

 

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1construction project grant or a school maintenance project
2grant, an area vocational center shall be deemed eligible if
3one or more of its member school districts satisfy the grant
4index criteria set forth in this Law. A Type 40 area vocational
5center that makes application for school construction funds
6after August 25, 2009 (the effective date of Public Act 96-731)
7shall be placed on the respective application cycle list. Type
840 area vocational centers must be placed last on the priority
9listing of eligible entities for the applicable fiscal year.
10    (b) The Capital Development Board shall establish project
11standards for all school construction project grants provided
12pursuant to this Article. These standards shall include space
13and capacity standards as well as the determination of
14recognized project costs that shall be eligible for State
15financial assistance and enrichment costs that shall not be
16eligible for State financial assistance.
17    (c) The State Board of Education and the Capital
18Development Board shall not establish standards that
19disapprove or otherwise establish limitations that restrict
20the eligibility of (i) a school district with a population
21exceeding 500,000 for a school construction project grant based
22on the fact that any or all of the school construction project
23grant will be used to pay debt service or to make lease
24payments, as authorized by subsection (b) of Section 5-35 of
25this Law, (ii) a school district located in whole or in part in
26a county that imposes a tax for school facility or resources

 

 

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1purposes pursuant to Section 5-1006.7 of the Counties Code, or
2(iii) a school district that (1) was organized prior to 1860
3and (2) is located in part in a city originally incorporated
4prior to 1840, based on the fact that all or a part of the
5school construction project is owned by a public building
6commission and leased to the school district or the fact that
7any or all of the school construction project grant will be
8used to pay debt service or to make lease payments.
9    (d) A reorganized school district or cooperative high
10school may use a school construction application that was
11submitted by a school district that formed the reorganized
12school district or cooperative high school if that application
13has not been entitled for a project by the State Board of
14Education and any one or more of the following happen within
15the current or prior 4 fiscal years:
16        (1) a new school district is created in accordance with
17    Article 11E of the School Code;
18        (2) an existing school district annexes all of the
19    territory of one or more other school districts in
20    accordance with Article 7 of the School Code; or
21        (3) a cooperative high school is formed in accordance
22    with subsection (c) of Section 10-22.22 of the School Code.
23A new elementary district formed from a school district
24conversion, as defined in Section 11E-15 of the School Code,
25may use only the application of the dissolved district whose
26territory is now included in the new elementary district and

 

 

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1must obtain the written approval of the local school board of
2any other school district that includes territory from that
3dissolved district. A new high school district formed from a
4school district conversion, as defined in Section 11E-15 of the
5School Code, may use only the application of any dissolved
6district whose territory is now included in the new high school
7district, but only after obtaining the written approval of the
8local school board of any other school district that includes
9territory from that dissolved district. A cooperative high
10school using this Section must obtain the written approval of
11the local school board of the member school district whose
12application it is using. All other eligibility and project
13standards apply to this Section.
14(Source: P.A. 96-37, eff. 7-13-09; 96-731, eff. 8-25-09;
1596-1000, eff. 7-2-10; 96-1381, eff. 1-1-11; 96-1467, eff.
168-20-10; 97-232, eff. 7-28-11; 97-333, eff. 8-12-11.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.