Full Text of SB0835 95th General Assembly
SB0835sam001 95TH GENERAL ASSEMBLY
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Sen. Mike Jacobs
Filed: 5/23/2007
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| AMENDMENT TO SENATE BILL 835
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| AMENDMENT NO. ______. Amend Senate Bill 835 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Local Government Debt Reform Act is amended | 5 |
| by changing Section 15 as follows:
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| (30 ILCS 350/15) (from Ch. 17, par. 6915)
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| Sec. 15. Double-barrelled bonds. Whenever revenue bonds | 8 |
| have been
authorized to be issued pursuant to applicable law or | 9 |
| whenever there exists
for a governmental unit a revenue source, | 10 |
| the procedures set forth in this
Section may be used by a | 11 |
| governing body. General obligation bonds may be
issued in lieu | 12 |
| of such revenue bonds as authorized, and general obligation
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| bonds may be issued payable from any revenue source. Such | 14 |
| general
obligation bonds may be referred to as "alternate | 15 |
| bonds". Alternate bonds
may be issued without any referendum or | 16 |
| backdoor referendum except as
provided in this Section, upon |
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| the terms provided in Section 10 of this Act
without reference | 2 |
| to other provisions of law, but only upon the conditions
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| provided in this Section. Alternate bonds shall not be regarded | 4 |
| as or
included in any computation of indebtedness for the | 5 |
| purpose of any
statutory provision or limitation except as | 6 |
| expressly provided in this Section.
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| Such conditions are:
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| (a) Alternate bonds shall be issued for a lawful
corporate | 9 |
| purpose. If issued in lieu of revenue bonds, alternate bonds
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| shall be issued for the purposes for which such revenue bonds | 11 |
| shall have
been authorized. If issued payable from a revenue | 12 |
| source in the manner
hereinafter provided, which revenue source | 13 |
| is limited in its purposes or
applications, then the alternate | 14 |
| bonds shall be issued only for such
limited purposes or | 15 |
| applications. Alternate bonds may be issued payable
from either | 16 |
| enterprise revenues or revenue sources, or both.
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| (b) Alternate bonds shall be subject to backdoor | 18 |
| referendum. The
provisions of Section 5 of this Act shall apply | 19 |
| to such backdoor
referendum, together with the provisions | 20 |
| hereof. The authorizing ordinance
shall be published in a | 21 |
| newspaper of general circulation in the
governmental unit. | 22 |
| Along with or as part of the authorizing ordinance,
there shall | 23 |
| be published a notice of (1) the specific number of voters
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| required to sign a petition requesting that the issuance of the | 25 |
| alternate
bonds be submitted to referendum, (2) the time when | 26 |
| such petition must
be filed, (3) the date of the prospective |
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| referendum, and
(4), with respect to authorizing ordinances | 2 |
| adopted on or after January 1,
1991, a statement that | 3 |
| identifies any revenue source that will be used to
pay debt | 4 |
| service on the alternate bonds.
The clerk or
secretary of the | 5 |
| governmental unit shall make a petition form available to
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| anyone requesting one. If no petition is filed with the clerk | 7 |
| or secretary
within 30 days of publication of the authorizing | 8 |
| ordinance and notice, the
alternate bonds shall be authorized | 9 |
| to be issued. But if within this 30
days period, a petition is | 10 |
| filed with such clerk or secretary signed by
electors numbering | 11 |
| the greater of (i) 7.5% of the registered
voters in the | 12 |
| governmental unit or (ii) 200 of those registered voters or
15% | 13 |
| of those registered voters, whichever is less,
asking that the | 14 |
| issuance of such alternate bonds be submitted to
referendum, | 15 |
| the clerk or secretary shall certify such question for
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| submission at an election held in accordance with the general | 17 |
| election law.
The question on the ballot shall include a | 18 |
| statement of any
revenue source that will be used to pay debt | 19 |
| service on
the alternate bonds. The alternate bonds shall be | 20 |
| authorized to be issued
if a majority of the votes cast on the | 21 |
| question at such election are in
favor thereof
provided that | 22 |
| notice of the bond referendum, if held before July 1, 1999,
has | 23 |
| been given in accordance with the provisions of Section
12-5
of | 24 |
| the Election Code
in effect at the time of the bond referendum, | 25 |
| at least 10 and not more than
45 days before the date of
the | 26 |
| election, notwithstanding the time for publication otherwise |
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| imposed by
Section 12-5.
Notices required in connection with | 2 |
| the submission of public questions
on or after July 1, 1999 | 3 |
| shall be as set forth in Section 12-5 of the Election
Code.
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| Backdoor referendum proceedings for bonds and alternate
bonds | 5 |
| to be issued in lieu of such bonds may be conducted at the same | 6 |
| time.
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| (c) To the extent payable from enterprise revenues, such | 8 |
| revenues shall
have been determined by the governing body to be | 9 |
| sufficient to provide for
or pay in each year to final maturity | 10 |
| of such alternate bonds all of the
following: (1) costs of | 11 |
| operation and maintenance of the utility or
enterprise, but not | 12 |
| including depreciation, (2) debt service on all
outstanding | 13 |
| revenue bonds payable from such enterprise revenues, (3) all
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| amounts required to meet any fund or account requirements with | 15 |
| respect to
such outstanding revenue bonds, (4) other | 16 |
| contractual or tort liability
obligations, if any, payable from | 17 |
| such enterprise revenues, and (5) in each
year, an amount not | 18 |
| less than 1.25 times debt service of all (i) alternate
bonds | 19 |
| payable from such enterprise revenues previously issued and
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| outstanding and (ii) alternate bonds proposed to be issued.
To | 21 |
| the extent
payable from one or more revenue sources, such | 22 |
| sources shall have been
determined by the governing body to | 23 |
| provide in each year, an amount not
less than 1.25 times debt | 24 |
| service of all alternate bonds payable from such
revenue | 25 |
| sources previously issued and outstanding and alternate bonds
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| proposed to be issued.
The 1.25 figure in the preceding |
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| sentence shall be reduced to 1.10 if the
revenue source is a | 2 |
| governmental revenue source.
The conditions enumerated in this | 3 |
| subsection (c)
need not be met for that amount of debt service | 4 |
| provided for by the setting
aside of proceeds of bonds or other | 5 |
| moneys at the time of the delivery of
such bonds. | 6 |
| Notwithstanding any other provision of this Section, a backdoor | 7 |
| referendum is not required if the proceeds backing the debt are | 8 |
| realized from revenues obtained from the County School Facility | 9 |
| Occupation Tax Law under Section 5-1006.7 of the Counties Code.
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| (c-1) In the case of alternate bonds issued as variable | 11 |
| rate bonds
(including
refunding bonds), debt service shall be | 12 |
| projected based on the rate for the
most recent
date shown in | 13 |
| the 20 G.O. Bond Index of average municipal bond yields as
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| published in
the most recent edition of The Bond Buyer | 15 |
| published in New York, New York (or
any
successor publication | 16 |
| or index, or if such publication or index is no longer
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| published,
then any index of long-term municipal tax-exempt | 18 |
| bond yields selected by the
governmental unit), as of the date | 19 |
| of determination referred to in subsection (c) of this
Section. | 20 |
| Any interest or fees that may be payable to the provider of a | 21 |
| letter of credit, line
of credit, surety bond, bond insurance, | 22 |
| or other credit enhancement relating to such
alternate bonds | 23 |
| and any fees that may be payable to any remarketing agent need | 24 |
| not be
taken into account for purposes of such projection. If | 25 |
| the governmental unit enters into
an agreement in connection | 26 |
| with such alternate bonds at the time of issuance
thereof
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| pursuant to which the governmental unit agrees for a specified | 2 |
| period of time
to pay an
amount calculated at an agreed-upon | 3 |
| rate or index based on a notional amount
and the other party | 4 |
| agrees to pay the governmental unit an amount calculated at
an | 5 |
| agreed-upon rate or index based on such notional amount, | 6 |
| interest
shall be projected for such specified period of time | 7 |
| on the basis of the
agreed-upon rate
payable by the | 8 |
| governmental unit.
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| (d) The determination of the sufficiency of enterprise | 10 |
| revenues or a
revenue source, as applicable, shall be supported | 11 |
| by reference to the most
recent audit of the governmental unit, | 12 |
| which shall be for a fiscal year
ending not earlier than 18 | 13 |
| months previous to the time of issuance of the
alternate bonds. | 14 |
| If such audit does not adequately show such enterprise
revenues | 15 |
| or revenue source, as applicable, or if such enterprise | 16 |
| revenues
or revenue source, as applicable, are shown to be | 17 |
| insufficient, then the
determination of sufficiency shall be | 18 |
| supported by the report of an
independent accountant or | 19 |
| feasibility analyst, the latter having a national
reputation
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| for expertise in such matters, demonstrating the sufficiency of | 21 |
| such
revenues and explaining, if appropriate, by what means the | 22 |
| revenues will be
greater than as shown in the audit. Whenever | 23 |
| such sufficiency is
demonstrated by reference to a schedule of | 24 |
| higher rates or charges for
enterprise revenues or a higher tax | 25 |
| imposition for a revenue source, such
higher rates, charges or | 26 |
| taxes shall have been properly imposed by an
ordinance adopted |
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| prior to the time of delivery of alternate bonds. The
reference | 2 |
| to and acceptance of an audit or report, as the case may be, | 3 |
| and
the determination of the governing body as to sufficiency | 4 |
| of enterprise
revenues or a revenue source shall be conclusive | 5 |
| evidence that the
conditions of this Section have been met and | 6 |
| that the alternate bonds
are valid.
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| (e) The enterprise revenues or revenue source, as | 8 |
| applicable, shall be
in fact pledged to the payment of the | 9 |
| alternate bonds; and the governing
body shall covenant, to the | 10 |
| extent it is empowered to do so, to provide
for, collect and | 11 |
| apply such enterprise revenues or revenue source, as
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| applicable, to the payment of the alternate bonds and the | 13 |
| provision of
not less than an additional .25 (or .10 for | 14 |
| governmental revenue sources)
times debt service. The pledge | 15 |
| and
establishment of rates or charges for enterprise revenues, | 16 |
| or the
imposition of taxes in a given rate or amount, as | 17 |
| provided in this Section
for alternate bonds, shall constitute | 18 |
| a continuing obligation of the
governmental unit with respect | 19 |
| to such establishment or imposition and a
continuing | 20 |
| appropriation of the amounts received. All covenants relating
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| to alternate bonds and the conditions and obligations imposed | 22 |
| by this
Section are enforceable by any bondholder of alternate | 23 |
| bonds affected, any
taxpayer of the governmental unit, and the | 24 |
| People of the State of Illinois
acting through the Attorney | 25 |
| General or any designee, and in the event that
any such action | 26 |
| results in an order finding that the governmental unit has
not |
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| properly set rates or charges or imposed taxes to the extent it | 2 |
| is
empowered to do so or collected and applied enterprise | 3 |
| revenues or any
revenue source, as applicable, as required by | 4 |
| this Act, the plaintiff in
any such action shall be awarded | 5 |
| reasonable attorney's fees. The intent is
that such enterprise | 6 |
| revenues or revenue source, as applicable, shall be
sufficient | 7 |
| and shall be applied to the payment of debt service on such
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| alternate bonds so that taxes need not be levied, or if levied | 9 |
| need not be
extended, for such payment. Nothing in this Section | 10 |
| shall inhibit or
restrict the authority of a governing body to | 11 |
| determine the lien priority
of any bonds, including alternate | 12 |
| bonds, which may be issued with respect
to any enterprise | 13 |
| revenues or revenue source.
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| In the event that alternate bonds shall have been issued | 15 |
| and taxes, other
than a designated revenue source, shall have | 16 |
| been extended pursuant to the
general obligation, full faith | 17 |
| and credit promise supporting such alternate
bonds, then the | 18 |
| amount of such alternate bonds then outstanding shall be
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| included in the computation of indebtedness of the governmental | 20 |
| unit for
purposes of all statutory provisions or limitations | 21 |
| until such time as an
audit of the governmental unit shall show | 22 |
| that the alternate bonds have
been paid from the enterprise | 23 |
| revenues or revenue source, as applicable,
pledged thereto for | 24 |
| a complete fiscal year.
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| Alternate bonds may be issued to refund or advance refund | 26 |
| alternate bonds
without meeting any of the conditions set forth |
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| in this Section, except
that the term of the refunding bonds | 2 |
| shall not be longer than the term of
the refunded bonds and | 3 |
| that the debt service payable in any year on the
refunding | 4 |
| bonds shall not exceed the debt service payable in such year on
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| the refunded bonds.
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| Once issued, alternate bonds shall be and forever remain | 7 |
| until paid or
defeased the general obligation of the | 8 |
| governmental unit, for the payment
of which its full faith and | 9 |
| credit are pledged, and shall be payable from
the levy of taxes | 10 |
| as is provided in this Act for general obligation bonds.
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| The changes made by this amendatory Act of 1990 do not | 12 |
| affect the
validity of bonds authorized before September 1, | 13 |
| 1990.
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| (Source: P.A. 91-57, eff. 6-30-99; 91-493, eff.
8-13-99; | 15 |
| 91-868, eff. 6-22-00; 92-879, eff. 1-13-03.)
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| Section 10. The Counties Code is amended by adding Section | 17 |
| 5-1006.7 as follows: | 18 |
| (55 ILCS 5/5-1006.7 new) | 19 |
| Sec. 5-1006.7. School facility occupation taxes. | 20 |
| (a) The county board of any county may impose a tax upon | 21 |
| all persons engaged in the business of selling tangible | 22 |
| personal property, other than personal property titled or | 23 |
| registered with an agency of this State's government, at retail | 24 |
| in the county on the gross receipts from the sales made in the |
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| course of business to provide revenue to be used exclusively | 2 |
| for school facility purposes if a proposition for the tax has | 3 |
| been submitted to the electors of that county and approved by a | 4 |
| majority of those voting on the question as provided in | 5 |
| subsection (c). The tax under this Section may be imposed only | 6 |
| in one-quarter percent increments and may not exceed 1%. | 7 |
| This additional tax may not be imposed on the sale of food | 8 |
| for human consumption that is to be consumed off the premises | 9 |
| where it is sold (other than alcoholic beverages, soft drinks, | 10 |
| and food that has been prepared for immediate consumption) and | 11 |
| prescription and non-prescription medicines, drugs, medical | 12 |
| appliances and insulin, urine testing materials, syringes and | 13 |
| needles used by diabetics.
The Department of Revenue has full | 14 |
| power to administer and enforce this subsection, to collect all | 15 |
| taxes and penalties due under this subsection, to dispose of | 16 |
| taxes and penalties so collected in the manner provided in this | 17 |
| subsection, and to determine all rights to credit memoranda | 18 |
| arising on account of the erroneous payment of a tax or penalty | 19 |
| under this subsection. The Department shall deposit all taxes | 20 |
| and penalties collected under this subsection into a special | 21 |
| fund created for that purpose. | 22 |
| In the administration of and compliance with this | 23 |
| subsection, the Department and persons who are subject to this | 24 |
| subsection (i) have the same rights, remedies, privileges, | 25 |
| immunities, powers, and duties, (ii) are subject to the same | 26 |
| conditions, restrictions, limitations, penalties, and |
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| definitions of terms, and (iii) shall employ the same modes of | 2 |
| procedure as are set forth in Sections 1 through 1o, 2 through | 3 |
| 2-70 (in respect to all provisions contained in those Sections | 4 |
| other than the State rate of tax), 2a through 2h, 3 (except as | 5 |
| to the disposition of taxes and penalties collected), 4, 5, 5a, | 6 |
| 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, | 7 |
| 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act | 8 |
| and all provisions of the Uniform Penalty and Interest Act as | 9 |
| if those provisions were set forth in this subsection. | 10 |
| The certificate of registration that is issued by the | 11 |
| Department to a retailer under the Retailers' Occupation Tax | 12 |
| Act permits the retailer to engage in a business that is | 13 |
| taxable without registering separately with the Department | 14 |
| under an ordinance or resolution under this subsection. | 15 |
| Persons subject to any tax imposed under the authority | 16 |
| granted in this subsection may reimburse themselves for their | 17 |
| seller's tax liability by separately stating that tax as an | 18 |
| additional charge, which may be stated in combination, in a | 19 |
| single amount, with State tax that sellers are required to | 20 |
| collect under the Use Tax Act, pursuant to any bracketed | 21 |
| schedules set forth by the Department. | 22 |
| (b) If a tax has been imposed under subsection (a), then a | 23 |
| service occupation tax must also be imposed at the same rate | 24 |
| upon all persons engaged, in the county, in the business of | 25 |
| making sales of service, who, as an incident to making those | 26 |
| sales of service, transfer tangible personal property within |
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| the county as an incident to a sale of service. | 2 |
| This tax may not be imposed on sales of food for human | 3 |
| consumption that is to be consumed off the premises where it is | 4 |
| sold (other than alcoholic beverages, soft drinks, and food | 5 |
| prepared for immediate consumption) and prescription and | 6 |
| non-prescription medicines, drugs, medical appliances and | 7 |
| insulin, urine testing materials, syringes, and needles used by | 8 |
| diabetics. | 9 |
| The tax imposed under this subsection and all civil | 10 |
| penalties that may be assessed as an incident thereof shall be | 11 |
| collected and enforced by the Department and deposited into a | 12 |
| special fund created for that purpose. The Department has full | 13 |
| power to administer and enforce this subsection, to collect all | 14 |
| taxes and penalties due under this subsection, to dispose of | 15 |
| taxes and penalties so collected in the manner provided in this | 16 |
| subsection, and to determine all rights to credit memoranda | 17 |
| arising on account of the erroneous payment of a tax or penalty | 18 |
| under this subsection. | 19 |
| In the administration of and compliance with this | 20 |
| subsection, the Department and persons who are subject to this | 21 |
| subsection shall (i) have the same rights, remedies, | 22 |
| privileges, immunities, power and duties, (ii) be subject to | 23 |
| the same conditions, restrictions, limitations, penalties and | 24 |
| definition of terms, and (iii) employ the same modes of | 25 |
| procedure as are set forth in Sections 2 (except that that | 26 |
| reference to State in the definition of supplier maintaining a |
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| place of business in this State means the county), 2a through | 2 |
| 2d , 3 through 3 - 50 (in respect to all provisions contained | 3 |
| in those Sections other than the State rate of tax), 4 (except | 4 |
| that the reference to the State shall be to the county), 5, 7, | 5 |
| 8 (except that the jurisdiction to which the tax is a debt to | 6 |
| the extent indicated in that Section 8 is the county), 9 | 7 |
| (except as to the disposition of taxes and penalties | 8 |
| collected), 10, 11, 12 (except the reference therein to Section | 9 |
| 2b of the Retailers' Occupation Tax Act), 13, (except that any | 10 |
| reference to the State means the county), Section 15, 16, 17, | 11 |
| 18, 19, and 20 of the Service Occupation Tax Act and all | 12 |
| provisions of the Uniform Penalty and Interest Act, as fully as | 13 |
| if those provisions were set forth herein. | 14 |
| Persons subject to any tax imposed under the authority | 15 |
| granted in this subsection may reimburse themselves for their | 16 |
| serviceman's tax liability by separately stating the tax as an | 17 |
| additional charge, which may be stated in combination, in a | 18 |
| single amount, with State tax that servicemen are authorized to | 19 |
| collect under the Service Use Tax Act, pursuant to any | 20 |
| bracketed schedules set forth by the Department. | 21 |
| (c) The tax under this Section may not be imposed until, by | 22 |
| ordinance or resolution of the county board, the question of | 23 |
| imposing the tax has been submitted to the electors of the | 24 |
| county at a regular election and approved by a majority of the | 25 |
| electors voting on the question. Upon a resolution by the | 26 |
| county board or a resolution by school district boards that |
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| represent at least 51% of the student enrollment within the | 2 |
| county, the county board must certify the question to the | 3 |
| proper election authority in accordance with the Election Code. | 4 |
| The election authority must submit the question in | 5 |
| substantially the following form: | 6 |
| Shall (name of county) be authorized to impose a | 7 |
| retailers' occupation tax and a service occupation tax | 8 |
| (commonly referred to as a 'sales tax') at a rate of | 9 |
| (insert rate) to be used exclusively for school facility | 10 |
| purposes? | 11 |
| The election authority must record the votes as "Yes" or "No". | 12 |
| If a majority of the electors voting on the question vote | 13 |
| in the affirmative, then the county may, thereafter, impose the | 14 |
| tax. | 15 |
| For the purposes of this subsection (c), "enrollment" means | 16 |
| the head count of the students residing in the county on the | 17 |
| last school day of September of each year, which must be | 18 |
| reported on the Illinois State Board of Education Public School | 19 |
| Fall Enrollment/Housing Report.
| 20 |
| (d) The Department shall immediately pay over to the State | 21 |
| Treasurer, ex officio, as trustee, all taxes and penalties | 22 |
| collected under this Section to be deposited into the School | 23 |
| Facility Occupation Tax Fund, which shall be an unappropriated | 24 |
| trust fund held outside the State treasury. | 25 |
| On or before the 25th day of each calendar month, the | 26 |
| Department shall prepare and certify to the Comptroller the |
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| disbursement of stated sums of money to the regional | 2 |
| superintendents of schools in counties from which retailers or | 3 |
| servicemen have paid taxes or penalties to the Department | 4 |
| during the second preceding calendar month. The amount to be | 5 |
| paid to each regional superintendent of schools and disbursed | 6 |
| to him or her in accordance with 3- 14.31 of the School Code, | 7 |
| is equal to the amount (not including credit memoranda) | 8 |
| collected from the county under this Section during the second | 9 |
| preceding calendar month by the Department, (i) less 2% of that | 10 |
| amount, which shall be deposited into the Tax Compliance and | 11 |
| Administration Fund and shall be used by the Department, | 12 |
| subject to appropriation, to cover the costs of the Department | 13 |
| in administering and enforcing the provisions of this Section, | 14 |
| on behalf of the county, (ii) plus an amount that the | 15 |
| Department determines is necessary to offset any amounts that | 16 |
| were erroneously paid to a different taxing body; (iii) less an | 17 |
| amount equal to the amount of refunds made during the second | 18 |
| preceding calendar month by the Department on behalf of the | 19 |
| county; and (iv) less any amount that the Department determines | 20 |
| is necessary to offset any amounts that were payable to a | 21 |
| different taxing body but were erroneously paid to the county. | 22 |
| When certifying the amount of a monthly disbursement to a | 23 |
| regional superintendent of schools under this Section, the | 24 |
| Department shall increase or decrease the amounts by an amount | 25 |
| necessary to offset any miscalculation of previous | 26 |
| disbursements within the previous 6 months from the time a |
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| miscalculation is discovered.
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| Within 10 days after receipt by the Comptroller from the | 3 |
| Department of the disbursement certification to the regional | 4 |
| superintendents of the schools provided for in this Section, | 5 |
| the Comptroller shall cause the orders to be drawn for the | 6 |
| respective amounts in accordance with directions contained in | 7 |
| the certification. | 8 |
| If the Department determines that a refund should be made | 9 |
| under this Section to a claimant instead of issuing a credit | 10 |
| memorandum, then the Department shall notify the Comptroller, | 11 |
| who shall cause the order to be drawn for the amount specified | 12 |
| and to the person named in the notification from the | 13 |
| Department. The refund shall be paid by the Treasurer out of | 14 |
| the School Facility Occupation Tax Fund.
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| (e) For the purposes of determining the local governmental | 16 |
| unit whose tax is applicable, a retail sale by a producer of | 17 |
| coal or another mineral mined in Illinois is a sale at retail | 18 |
| at the place where the coal or other mineral mined in Illinois | 19 |
| is extracted from the earth. This subsection does not apply to | 20 |
| coal or another mineral when it is delivered or shipped by the | 21 |
| seller to the purchaser at a point outside Illinois so that the | 22 |
| sale is exempt under the United States Constitution as a sale | 23 |
| in interstate or foreign commerce. | 24 |
| (f) Nothing in this Section may be construed to authorize a | 25 |
| county board to impose a tax upon the privilege of engaging in | 26 |
| any business that under the Constitution of the United States |
|
|
|
09500SB0835sam001 |
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LRB095 05542 CMK 36724 a |
|
| 1 |
| may not be made the subject of taxation by this State. | 2 |
| (g) If a county board imposes a tax under this Section, | 3 |
| then the board may, by ordinance, discontinue or reduce the | 4 |
| rate of the tax. If, however, a school board issues bonds that | 5 |
| are backed by the proceeds of the tax under this Section, then | 6 |
| the county board may not reduce the tax rate or discontinue the | 7 |
| tax if that rate reduction or discontinuance would inhibit the | 8 |
| school board's ability to pay the principal and interest on | 9 |
| those bonds as they become due. If the county board reduces the | 10 |
| tax rate or discontinues the tax, then a referendum must be | 11 |
| held in accordance with subsection (c) of this Section in order | 12 |
| to increase the rate of the tax or to reimpose the discontinued | 13 |
| tax. | 14 |
| The results of any election that authorizes a proposition | 15 |
| to impose a tax under this Section or to change the rate of the | 16 |
| tax along with an ordinance imposing the tax, or any ordinance | 17 |
| that lowers the rate or discontinues the tax, must be certified | 18 |
| by the county clerk and filed with the Illinois Department of | 19 |
| Revenue either (i) on or before the first day of April, | 20 |
| whereupon the Department shall proceed to administer and | 21 |
| enforce the tax or change in the rate as of the first day of | 22 |
| July next following the filing; or (ii) on or before the first | 23 |
| day of October, whereupon the Department shall proceed to | 24 |
| administer and enforce the tax or change in the rate as of the | 25 |
| first day of January next following the filing. | 26 |
| (h) For purposes of this Section, "school facility |
|
|
|
09500SB0835sam001 |
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LRB095 05542 CMK 36724 a |
|
| 1 |
| purposes" means the acquisition, development, construction, | 2 |
| reconstruction, rehabilitation, improvement, financing, | 3 |
| architectural planning, and installation of capital facilities | 4 |
| consisting of buildings, structures, and durable equipment and | 5 |
| for the acquisition and improvement of real property and | 6 |
| interest in real property required, or expected to be required, | 7 |
| in connection with the capital facilities. "School-facility | 8 |
| purposes" also includes fire prevention, safety, energy | 9 |
| conservation, disabled accessibility, school security, and | 10 |
| specified repair purposes set forth under Section 17-2.11 of | 11 |
| the School Code. | 12 |
| (i) This Section does not apply to Cook County. | 13 |
| (j) This Section may be cited as the County School Facility | 14 |
| Occupation Tax Law. "; and | 15 |
| Section 15. The School Code is amended by changing Sections | 16 |
| 10-22.36 and 17-2.11 and by adding Sections 3-14.31 and | 17 |
| 10-20.40 as follows: | 18 |
| (105 ILCS 5/3-14.31 new)
| 19 |
| Sec. 3-14.31. School facility occupation tax proceeds. | 20 |
| (a) Within 30 days after receiving any proceeds of a school | 21 |
| facility occupation tax under Section 5-1006.7 of the Counties | 22 |
| Code, each regional superintendent must disburse those | 23 |
| proceeds to each school district that is located in the county | 24 |
| in which the tax was collected. |
|
|
|
09500SB0835sam001 |
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LRB095 05542 CMK 36724 a |
|
| 1 |
| (b) The proceeds must be disbursed on a an enrollment basis | 2 |
| and allocated based upon the number of each school district's | 3 |
| resident pupils that reside within the county collecting the | 4 |
| tax divided by the total number of students for all school | 5 |
| districts within the county. | 6 |
| (105 ILCS 5/10-20.40 new)
| 7 |
| Sec. 10-20.40. School facility occupation tax fund. All | 8 |
| proceeds received by a school district from a distribution | 9 |
| under 3-14.31 must be maintained in a special fund known as the | 10 |
| school facility occupation tax fund. The district may use | 11 |
| moneys in that fund only for school-facility purposes, as that | 12 |
| term is defined under Section 5-1006.7 of the Counties Code.
| 13 |
| (105 ILCS 5/10-22.36) (from Ch. 122, par. 10-22.36)
| 14 |
| Sec. 10-22.36. Buildings for school purposes. To build or | 15 |
| purchase a building for school classroom or
instructional | 16 |
| purposes upon the approval of a majority of the voters upon the
| 17 |
| proposition at a referendum held for such purpose or in | 18 |
| accordance with
Section 17-2.11. The board may initiate such | 19 |
| referendum by resolution.
The board shall certify the | 20 |
| resolution and proposition to the proper
election authority for | 21 |
| submission in accordance with the general election law.
| 22 |
| The questions of building one or more new buildings for | 23 |
| school
purposes or office facilities, and issuing bonds for the | 24 |
| purpose of
borrowing money to purchase one or more buildings or |
|
|
|
09500SB0835sam001 |
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LRB095 05542 CMK 36724 a |
|
| 1 |
| sites for such
buildings or office sites, to build one or more | 2 |
| new buildings for school
purposes or office facilities or to | 3 |
| make additions and improvements to
existing school buildings, | 4 |
| may be combined into one or more propositions
on the ballot.
| 5 |
| Before erecting, or purchasing or remodeling such a | 6 |
| building the
board shall submit the plans and specifications | 7 |
| respecting heating,
ventilating, lighting, seating, water | 8 |
| supply, toilets and safety against
fire to the regional | 9 |
| superintendent of schools having supervision and
control over | 10 |
| the district, for approval in accordance with Section 2-3.12.
| 11 |
| Notwithstanding any of the foregoing, no referendum shall | 12 |
| be required
if the purchase, construction, or building of any
| 13 |
| such
building is completed (1) while the building is being
| 14 |
| leased by the school district or (2) with the expenditure of | 15 |
| (A) funds
derived from the sale or disposition of other | 16 |
| buildings, land, or
structures of the school district or (B) | 17 |
| funds received (i) as a
grant under the
School Construction | 18 |
| Law ,
or (ii) as gifts or donations,
provided that no funds to | 19 |
| complete such building, other than lease
payments, are
derived | 20 |
| from the district's bonded indebtedness or the tax levy of
the
| 21 |
| district , or (iii) from the County School Facility Occupation | 22 |
| Tax Law under Section 5-1006.7 of the Counties Code .
| 23 |
| (Source: P.A. 92-127, eff. 1-1-02.)
| 24 |
| (105 ILCS 5/17-2.11) (from Ch. 122, par. 17-2.11)
| 25 |
| Sec. 17-2.11. School board power to levy a tax or to borrow |
|
|
|
09500SB0835sam001 |
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LRB095 05542 CMK 36724 a |
|
| 1 |
| money and
issue bonds for fire prevention, safety, energy | 2 |
| conservation, disabled
accessibility, school security, and | 3 |
| specified repair purposes.
Whenever, as a
result of any lawful | 4 |
| order of any agency,
other than a school board, having | 5 |
| authority to enforce any school building code
applicable to any | 6 |
| facility that houses students, or any law or regulation for
the | 7 |
| protection and safety of the environment, pursuant to the | 8 |
| Environmental
Protection Act, any school district having a | 9 |
| population of less than 500,000
inhabitants is required to | 10 |
| alter or reconstruct any school building or
permanent, fixed | 11 |
| equipment; or whenever any such district determines that
it is | 12 |
| necessary for energy conservation purposes that any school | 13 |
| building
or permanent, fixed equipment should be altered or | 14 |
| reconstructed and
that such alterations or reconstruction will | 15 |
| be made with funds not necessary
for the completion of approved | 16 |
| and recommended projects contained in any safety
survey report | 17 |
| or amendments thereto authorized by Section 2-3.12 of this Act;
| 18 |
| or whenever any such district determines that it is necessary | 19 |
| for disabled accessibility purposes and to comply with the | 20 |
| school building
code that any
school building or equipment | 21 |
| should be altered or reconstructed and that such
alterations or | 22 |
| reconstruction will be made with
funds not necessary for the | 23 |
| completion of approved and recommended projects
contained in | 24 |
| any safety survey report or amendments thereto authorized under
| 25 |
| Section 2-3.12 of this Act; or whenever any such district | 26 |
| determines that it is
necessary for school
security purposes |
|
|
|
09500SB0835sam001 |
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LRB095 05542 CMK 36724 a |
|
| 1 |
| and the related protection and safety of pupils and school
| 2 |
| personnel that any school building or property should be | 3 |
| altered or
reconstructed or that security systems and equipment | 4 |
| (including but not limited
to intercom, early detection and | 5 |
| warning, access control and television
monitoring systems) | 6 |
| should be purchased and installed, and that such
alterations, | 7 |
| reconstruction or purchase and installation of equipment will | 8 |
| be
made with funds not necessary for the completion of approved | 9 |
| and recommended
projects contained in any safety survey report | 10 |
| or amendment thereto authorized
by Section 2-3.12 of this Act | 11 |
| and will deter and prevent unauthorized entry or
activities | 12 |
| upon school property by unknown or dangerous persons, assure | 13 |
| early
detection and advance warning of any such actual or | 14 |
| attempted unauthorized
entry or activities and help assure the | 15 |
| continued safety of pupils and school
staff if any such | 16 |
| unauthorized entry or activity is attempted or occurs;
or if a | 17 |
| school district does not need funds for other fire prevention | 18 |
| and
safety projects, including the completion of approved and | 19 |
| recommended projects
contained in any safety survey report or | 20 |
| amendments thereto authorized by
Section 2-3.12 of this Act, | 21 |
| and it is determined after a public hearing (which
is preceded | 22 |
| by at least one published notice (i) occurring at least 7 days
| 23 |
| prior to the hearing in a newspaper of general circulation | 24 |
| within the school
district and (ii) setting forth the time, | 25 |
| date, place, and general subject
matter of the hearing) that | 26 |
| there is a
substantial, immediate, and otherwise unavoidable |
|
|
|
09500SB0835sam001 |
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LRB095 05542 CMK 36724 a |
|
| 1 |
| threat to the health, safety,
or welfare of pupils due to | 2 |
| disrepair of school sidewalks, playgrounds, parking
lots, or | 3 |
| school bus turnarounds and repairs must be made: then
in any | 4 |
| such event, such district may, by proper resolution, levy a tax | 5 |
| for the
purpose of making such alteration or reconstruction, | 6 |
| based on a survey report
by an architect or engineer licensed | 7 |
| in the State of Illinois, upon all the
taxable property of the | 8 |
| district at the value as assessed by the Department of
Revenue | 9 |
| at a rate not to exceed .05% per year for a period sufficient | 10 |
| to
finance such alterations, repairs, or reconstruction, upon | 11 |
| the following
conditions:
| 12 |
| (a) When there are not sufficient funds available in | 13 |
| either the operations
and maintenance fund of the district , | 14 |
| the school facility occupation tax fund of the district, or | 15 |
| the fire prevention and safety fund of
the district as | 16 |
| determined by the district on the basis of regulations | 17 |
| adopted
by the State Board of Education to make such | 18 |
| alterations, repairs, or
reconstruction, or to purchase | 19 |
| and install such permanent fixed equipment so
ordered or | 20 |
| determined as necessary. Appropriate school district | 21 |
| records shall
be made available to the State Superintendent | 22 |
| of Education upon request to
confirm such insufficiency.
| 23 |
| (b) When a certified estimate of an architect or | 24 |
| engineer licensed in the
State of Illinois stating the | 25 |
| estimated amount necessary to make the
alterations or | 26 |
| repairs, or to purchase and install such equipment so |
|
|
|
09500SB0835sam001 |
- 24 - |
LRB095 05542 CMK 36724 a |
|
| 1 |
| ordered
has been secured by the district, and the estimate | 2 |
| has been approved by the
regional superintendent of | 3 |
| schools, having jurisdiction of the district, and
the State | 4 |
| Superintendent of Education. Approval shall not be granted | 5 |
| for any
work that has already started without the prior | 6 |
| express authorization of the
State Superintendent of | 7 |
| Education. If such estimate is not approved or denied
| 8 |
| approval by the regional superintendent of schools within 3 | 9 |
| months after the
date on which it is submitted to him or | 10 |
| her, the school board of the district
may submit such | 11 |
| estimate directly to the State Superintendent of Education | 12 |
| for
approval or denial.
| 13 |
| For purposes of this Section a school district may replace | 14 |
| a school
building or build additions to replace portions of a | 15 |
| building when it is
determined that the effectuation of the | 16 |
| recommendations for the existing
building will cost more than | 17 |
| the replacement costs. Such determination shall
be based on a | 18 |
| comparison of estimated costs made by an architect or engineer
| 19 |
| licensed in the State of Illinois. The new building or addition | 20 |
| shall be
equivalent in area (square feet) and comparable in | 21 |
| purpose and grades served
and may be on the same site or | 22 |
| another site. Such replacement may only be done
upon order of | 23 |
| the regional superintendent of schools and the approval of the
| 24 |
| State Superintendent of Education.
| 25 |
| The filing of a certified copy of the resolution levying | 26 |
| the tax when
accompanied by the certificates of the regional |
|
|
|
09500SB0835sam001 |
- 25 - |
LRB095 05542 CMK 36724 a |
|
| 1 |
| superintendent of schools and
State Superintendent of | 2 |
| Education shall be the authority of the county clerk to
extend | 3 |
| such tax.
| 4 |
| The county clerk of the county in which any school district | 5 |
| levying a
tax under the authority of this Section is located, | 6 |
| in reducing raised
levies, shall not consider any such tax as a | 7 |
| part of the general levy
for school purposes and shall not | 8 |
| include the same in the limitation of
any other tax rate which | 9 |
| may be extended.
| 10 |
| Such tax shall be levied and collected in like manner as | 11 |
| all other
taxes of school districts, subject to the provisions | 12 |
| contained in this Section.
| 13 |
| The tax rate limit specified in this Section may be | 14 |
| increased to .10%
upon the approval of a proposition to effect | 15 |
| such increase by a majority
of the electors voting on that | 16 |
| proposition at a regular scheduled election.
Such proposition | 17 |
| may be initiated by resolution of the school board and
shall be | 18 |
| certified by the secretary to the proper election authorities | 19 |
| for
submission in accordance with the general election law.
| 20 |
| When taxes are levied by any school district for fire | 21 |
| prevention,
safety, energy conservation, and school security | 22 |
| purposes as specified in this
Section, and the purposes for | 23 |
| which the taxes have been
levied are accomplished and paid in | 24 |
| full, and there remain funds on hand in
the Fire Prevention and | 25 |
| Safety Fund from the proceeds of the taxes levied,
including | 26 |
| interest earnings thereon, the school board by resolution shall |
|
|
|
09500SB0835sam001 |
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LRB095 05542 CMK 36724 a |
|
| 1 |
| use
such excess and other board restricted funds excluding bond | 2 |
| proceeds and
earnings from such proceeds (1) for other | 3 |
| authorized fire prevention,
safety, energy conservation, and | 4 |
| school security purposes
or (2) for transfer to the Operations | 5 |
| and Maintenance Fund
for the purpose of abating an equal amount | 6 |
| of operations and maintenance
purposes taxes. If any transfer | 7 |
| is made to the Operation and Maintenance
Fund, the secretary of | 8 |
| the school board shall within 30 days notify
the county clerk | 9 |
| of the amount of that transfer and direct the clerk to
abate | 10 |
| the taxes to be extended for the purposes of operations and
| 11 |
| maintenance authorized under Section 17-2 of this Act by an | 12 |
| amount equal
to such transfer.
| 13 |
| If the proceeds from the tax levy authorized by this
| 14 |
| Section are insufficient to complete the work approved under | 15 |
| this
Section, the school board is authorized to sell bonds | 16 |
| without referendum
under the provisions of this Section in an | 17 |
| amount that, when added to the
proceeds of the tax levy | 18 |
| authorized by this Section, will allow completion
of the | 19 |
| approved work.
| 20 |
| Such bonds shall bear interest at a rate not to exceed the | 21 |
| maximum rate
authorized by law at the time of the making of the | 22 |
| contract, shall mature
within 20 years from date, and shall be | 23 |
| signed by the president of the school
board and the treasurer | 24 |
| of the school district.
| 25 |
| In order to authorize and issue such bonds, the school | 26 |
| board shall adopt
a resolution fixing the amount of bonds, the |
|
|
|
09500SB0835sam001 |
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LRB095 05542 CMK 36724 a |
|
| 1 |
| date thereof, the maturities
thereof, rates of interest | 2 |
| thereof, place of payment and denomination,
which shall be in | 3 |
| denominations of not less than $100 and not more than
$5,000, | 4 |
| and provide for the levy and collection of a direct annual tax | 5 |
| upon
all the taxable property in the school district sufficient | 6 |
| to pay the
principal and interest on such bonds to maturity. | 7 |
| Upon the filing in the
office of the county clerk of the county | 8 |
| in which the school district is
located of a certified copy of | 9 |
| the resolution, it is the duty of the
county clerk to extend | 10 |
| the tax therefor in addition to and in excess of all
other | 11 |
| taxes heretofore or hereafter authorized to be
levied by such | 12 |
| school district.
| 13 |
| After the time such bonds are issued as provided for by | 14 |
| this Section, if
additional alterations or reconstructions are | 15 |
| required to be made because
of surveys conducted by an | 16 |
| architect or engineer licensed in the State of
Illinois, the | 17 |
| district may levy a tax at a rate not to exceed .05% per year
| 18 |
| upon all the taxable property of the district or issue | 19 |
| additional bonds,
whichever action shall be the most feasible.
| 20 |
| This Section is cumulative and constitutes complete | 21 |
| authority for the
issuance of bonds as provided in this Section | 22 |
| notwithstanding any other
statute or law to the contrary.
| 23 |
| With respect to instruments for the payment of money issued | 24 |
| under this
Section either before, on, or after the effective | 25 |
| date of Public Act 86-004
(June 6, 1989), it is, and always has | 26 |
| been, the intention of the General
Assembly (i) that the |
|
|
|
09500SB0835sam001 |
- 28 - |
LRB095 05542 CMK 36724 a |
|
| 1 |
| Omnibus Bond Acts are, and always have been,
supplementary | 2 |
| grants of power to issue instruments in accordance with the
| 3 |
| Omnibus Bond Acts, regardless of any provision of this Act that | 4 |
| may appear
to be or to have been more restrictive than those | 5 |
| Acts, (ii) that the
provisions of this Section are not a | 6 |
| limitation on the supplementary
authority granted by the | 7 |
| Omnibus Bond Acts, and (iii) that instruments
issued under this | 8 |
| Section within the supplementary authority granted by the
| 9 |
| Omnibus Bond Acts are not invalid because of any provision of | 10 |
| this Act that
may appear to be or to have been more restrictive | 11 |
| than those Acts.
| 12 |
| When the purposes for which the bonds are issued have been | 13 |
| accomplished
and paid for in full and there remain funds on | 14 |
| hand from the proceeds of
the bond sale and interest earnings | 15 |
| therefrom, the board shall, by
resolution, use such excess | 16 |
| funds in accordance with the provisions of
Section 10-22.14 of | 17 |
| this Act.
| 18 |
| Whenever any tax is levied or bonds issued for fire | 19 |
| prevention, safety,
energy conservation, and school security | 20 |
| purposes, such proceeds shall be
deposited and accounted for | 21 |
| separately within the Fire Prevention and Safety
Fund.
| 22 |
| (Source: P.A. 88-251; 88-508; 88-628, eff. 9-9-94; 88-670,
eff. | 23 |
| 12-2-94; 89-235, eff. 8-4-95; 89-397, eff. 8-20-95.)
| 24 |
| Section 99. Effective date. This Act takes effect upon | 25 |
| becoming law.".
|
|