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90_SB0200ham004
LRB9001780MWgcam04
1 AMENDMENT TO SENATE BILL 200
2 AMENDMENT NO. . Amend Senate Bill 200, AS AMENDED,
3 by replacing the title with the following:
4 "AN ACT concerning notice of bond issues, amending named
5 Acts."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Local Government Debt Reform Act is
9 amended by changing Section 15 as follows:
10 (30 ILCS 350/15) (from Ch. 17, par. 6915)
11 Sec. 15. Double-barrelled bonds. Whenever revenue bonds
12 have been authorized to be issued pursuant to applicable law
13 or whenever there exists for a governmental unit a revenue
14 source, the procedures set forth in this Section may be used
15 by a governing body. General obligation bonds may be issued
16 in lieu of such revenue bonds as authorized, and general
17 obligation bonds may be issued payable from any revenue
18 source. Such general obligation bonds may be referred to as
19 "alternate bonds". Alternate bonds may be issued without any
20 referendum or backdoor referendum except as provided in this
21 Section, upon the terms provided in Section 10 of this Act
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1 without reference to other provisions of law, but only upon
2 the conditions provided in this Section. Alternate bonds
3 shall not be regarded as or included in any computation of
4 indebtedness for the purpose of any statutory provision or
5 limitation except as expressly provided in this Section.
6 Such conditions are: (a) Alternate bonds shall be issued
7 for a lawful corporate purpose. If issued in lieu of revenue
8 bonds, alternate bonds shall be issued for the purposes for
9 which such revenue bonds shall have been authorized. If
10 issued payable from a revenue source in the manner
11 hereinafter provided, which revenue source is limited in its
12 purposes or applications, then the alternate bonds shall be
13 issued only for such limited purposes or applications.
14 Alternate bonds may be issued payable from either enterprise
15 revenues or revenue sources, or both.
16 (b) Alternate bonds shall be subject to backdoor
17 referendum. The provisions of Section 5 of this Act shall
18 apply to such backdoor referendum, together with the
19 provisions hereof. The authorizing ordinance shall be
20 published in a newspaper of general circulation in the
21 governmental unit. Along with or as part of the authorizing
22 ordinance, there shall be published a notice of (1) the
23 specific number of voters required to sign a petition
24 requesting that the issuance of the alternate bonds be
25 submitted to referendum, (2) the time when such petition must
26 be filed, (3) the date of the prospective referendum, and
27 (4), with respect to authorizing ordinances adopted on or
28 after January 1, 1991, a statement that identifies any
29 revenue source that will be used to pay the principal of and
30 interest on the alternate bonds. The clerk or secretary of
31 the governmental unit shall make a petition form available to
32 anyone requesting one. If no petition is filed with the
33 clerk or secretary within 30 days of publication of the
34 authorizing ordinance and notice, the alternate bonds shall
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1 be authorized to be issued. But if within this 30 days
2 period, a petition is filed with such clerk or secretary
3 signed by electors numbering the greater of (i) 7.5% of the
4 registered voters in the governmental unit or (ii) 200 of
5 those registered voters or 15% of those registered voters,
6 whichever is less, asking that the issuance of such alternate
7 bonds be submitted to referendum, the clerk or secretary
8 shall certify such question for submission at an election
9 held in accordance with the general election law. The
10 question on the ballot shall include a statement of any
11 revenue source that will be used to pay the principal of and
12 interest on the alternate bonds. The alternate bonds shall be
13 authorized to be issued if a majority of the votes cast on
14 the question at such election are in favor thereof provided
15 that notice of the bond referendum, if heretofore or
16 hereafter held, has been or shall be given in accordance with
17 the provisions of Section 12-5 of the Election Code, at least
18 10 and not more than 45 days before the date of the election,
19 notwithstanding the time for publication otherwise imposed by
20 Section 12-5. Backdoor referendum proceedings for bonds and
21 alternate bonds to be issued in lieu of such bonds may be
22 conducted at the same time.
23 (c) To the extent payable from enterprise revenues, such
24 revenues shall have been determined by the governing body to
25 be sufficient to provide for or pay in each year to final
26 maturity of such alternate bonds all of the following: (1)
27 costs of operation and maintenance of the utility or
28 enterprise, but not including depreciation, (2) debt service
29 on all outstanding revenue bonds payable from such enterprise
30 revenues, (3) all amounts required to meet any fund or
31 account requirements with respect to such outstanding revenue
32 bonds, (4) other contractual or tort liability obligations,
33 if any, payable from such enterprise revenues, and (5) in
34 each year, an amount not less than 1.25 times debt service of
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1 all (i) alternate bonds payable from such enterprise revenues
2 previously issued and outstanding and (ii) alternate bonds
3 proposed to be issued. To the extent payable from one or
4 more revenue sources, such sources shall have been determined
5 by the governing body to provide in each year, an amount not
6 less than 1.25 times debt service of all alternate bonds
7 payable from such revenue sources previously issued and
8 outstanding and alternate bonds proposed to be issued. The
9 conditions enumerated in this subsection (c) need not be met
10 for that amount of debt service provided for by the setting
11 aside of proceeds of bonds or other moneys at the time of the
12 delivery of such bonds.
13 (d) The determination of the sufficiency of enterprise
14 revenues or a revenue source, as applicable, shall be
15 supported by reference to the most recent audit of the
16 governmental unit, which shall be for a fiscal year ending
17 not earlier than 18 months previous to the time of issuance
18 of the alternate bonds. If such audit does not adequately
19 show such enterprise revenues or revenue source, as
20 applicable, or if such enterprise revenues or revenue source,
21 as applicable, are shown to be insufficient, then the
22 determination of sufficiency shall be supported by the report
23 of an independent accountant or feasibility analyst having a
24 national reputation for expertise in such matters,
25 demonstrating the sufficiency of such revenues and
26 explaining, if appropriate, by what means the revenues will
27 be greater than as shown in the audit. Whenever such
28 sufficiency is demonstrated by reference to a schedule of
29 higher rates or charges for enterprise revenues or a higher
30 tax imposition for a revenue source, such higher rates,
31 charges or taxes shall have been properly imposed by an
32 ordinance adopted prior to the time of delivery of alternate
33 bonds. The reference to and acceptance of an audit or
34 report, as the case may be, and the determination of the
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1 governing body as to sufficiency of enterprise revenues or a
2 revenue source shall be conclusive evidence that the
3 conditions of this Section have been met and that the
4 alternate bonds are valid.
5 (e) The enterprise revenues or revenue source, as
6 applicable, shall be in fact pledged to the payment of the
7 alternate bonds; and the governing body shall covenant, to
8 the extent it is empowered to do so, to provide for, collect
9 and apply such enterprise revenues or revenue source, as
10 applicable, to the payment of the alternate bonds and the
11 provision of not less than an additional .25 times debt
12 service. The pledge and establishment of rates or charges
13 for enterprise revenues, or the imposition of taxes in a
14 given rate or amount, as provided in this Section for
15 alternate bonds, shall constitute a continuing obligation of
16 the governmental unit with respect to such establishment or
17 imposition and a continuing appropriation of the amounts
18 received. All covenants relating to alternate bonds and the
19 conditions and obligations imposed by this Section are
20 enforceable by any bondholder of alternate bonds affected,
21 any taxpayer of the governmental unit, and the People of the
22 State of Illinois acting through the Attorney General or any
23 designee, and in the event that any such action results in an
24 order finding that the governmental unit has not properly set
25 rates or charges or imposed taxes to the extent it is
26 empowered to do so or collected and applied enterprise
27 revenues or any revenue source, as applicable, as required by
28 this Act, the plaintiff in any such action shall be awarded
29 reasonable attorney's fees. The intent is that such
30 enterprise revenues or revenue source, as applicable, shall
31 be sufficient and shall be applied to the payment of debt
32 service on such alternate bonds so that taxes need not be
33 levied, or if levied need not be extended, for such payment.
34 Nothing in this Section shall inhibit or restrict the
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1 authority of a governing body to determine the lien priority
2 of any bonds, including alternate bonds, which may be issued
3 with respect to any enterprise revenues or revenue source.
4 In the event that alternate bonds shall have been issued
5 and taxes, other than a designated revenue source, shall have
6 been extended pursuant to the general obligation, full faith
7 and credit promise supporting such alternate bonds, then the
8 amount of such alternate bonds then outstanding shall be
9 included in the computation of indebtedness of the
10 governmental unit for purposes of all statutory provisions or
11 limitations until such time as an audit of the governmental
12 unit shall show that the alternate bonds have been paid from
13 the enterprise revenues or revenue source, as applicable,
14 pledged thereto for a complete fiscal year.
15 Alternate bonds may be issued to refund or advance refund
16 alternate bonds without meeting any of the conditions set
17 forth in this Section, except that the term of the refunding
18 bonds shall not be longer than the term of the refunded bonds
19 and that the debt service payable in any year on the
20 refunding bonds shall not exceed the debt service payable in
21 such year on the refunded bonds.
22 Once issued, alternate bonds shall be and forever remain
23 until paid or defeased the general obligation of the
24 governmental unit, for the payment of which its full faith
25 and credit are pledged, and shall be payable from the levy of
26 taxes as is provided in this Act for general obligation
27 bonds.
28 The changes made by this amendatory Act of 1990 do not
29 affect the validity of bonds authorized before September 1,
30 1990.
31 (Source: P.A. 85-1419; 86-1179.)
32 Section 10. The Property Tax Code is amended by changing
33 Sections 18-205 and 18-210 as follows:
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1 (35 ILCS 200/18-205)
2 Sec. 18-205. Referendum to increase the extension
3 limitation. A taxing district is limited to an extension
4 increase of 5% or the percentage increase in the Consumer
5 Price Index during the 12-month calendar year preceding the
6 levy year, whichever is less. A taxing district may increase
7 its extension limitation for a current levy year if that
8 taxing district holds a referendum before the levy date at
9 which a majority of voters voting on the issue approves
10 adoption of a higher extension limitation. Referenda shall
11 be conducted at a regularly scheduled election in accordance
12 with the Election Code provided that notice of the bond
13 referendum, if heretofore or hereafter held, has been or
14 shall be given in accordance with the provisions of Section
15 12-5 of the Election Code, at least 10 and not more than 45
16 days before the date of the election, notwithstanding the
17 time for publication otherwise imposed by Section 12-5. The
18 question shall be presented in substantially the following
19 manner:
20 -------------------------------------------------------------
21 Shall the extension limitation
22 under the Property Tax Extension
23 Limitation Law for ... YES
24 (taxing district name) ... be increased
25 from ... (the lesser of 5% or the ------------------
26 increase in the Consumer Price Index over
27 the prior levy year) ...% to ... (percentage NO
28 of proposed increase) ...% for the ...
29 (levy year) ... levy year?
30 -------------------------------------------------------------
31 If a majority of voters voting on the issue approves the
32 adoption of the increase, the increase shall be applicable
33 for the levy year specified.
34 (Source: P.A. 87-17; 88-455.)
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1 (35 ILCS 200/18-210)
2 Sec. 18-210. Establishing a new levy. Except as provided
3 in Section 18-215, as it relates to a transfer of a service,
4 before a county clerk may extend taxes for funds subject to
5 the limitations of this Law, a new taxing district or a
6 taxing district with an aggregate extension base of zero
7 shall hold a referendum establishing a maximum aggregate
8 extension for the levy year. The maximum aggregate extension
9 is established for the current levy year if a taxing district
10 has held a referendum before the levy date at which the
11 majority voting on the issue approves its adoption. The
12 referendum under this Section may be held at the same time as
13 the referendum on creating a new taxing district. The
14 question shall be submitted to the voters at a regularly
15 scheduled election in accordance with the Election Code
16 provided that notice of referendum, if heretofore or
17 hereafter held, has been or shall be given in accordance with
18 the provisions of Section 12-5 of the Election Code, at least
19 10 and not more than 45 days before the date of the election,
20 notwithstanding the time for publication otherwise imposed by
21 Section 12-5. The question shall be submitted in
22 substantially the following form manner:
23 -------------------------------------------------------------
24 Under the Property Tax Extension
25 Limitation Law, may an YES
26 aggregate extension not to exceed ...
27 (aggregate extension amount) ... ---------------------
28 be made for the ... (taxing
29 district name) ... for the NO
30 ... (levy year) ... levy year?
31 -------------------------------------------------------------
32 If a majority of voters voting on the increase approves the
33 adoption of the aggregate extension, the extension shall be
34 effective for the levy year specified.
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1 (Source: P.A. 87-17; 88-455.)
2 Section 15. The Illinois Pension Code is amended by
3 changing Section 3-145 as follows:
4 (40 ILCS 5/3-145) (from Ch. 108 1/2, par. 3-145)
5 Sec. 3-145. Referendum in municipalities less than
6 5,000. This Article shall not be effective in any
7 municipality having a population of less than 5,000 unless
8 the proposition to adopt the Article is submitted to and
9 approved by the voters of the municipality in the manner
10 herein provided.
11 Whenever the electors of the municipality, equal in
12 number to 5% of the number of legal votes cast at the last
13 preceding general municipal election, petition the city,
14 village or town clerk to submit the proposition whether that
15 municipality shall adopt this Article, the officer to whom
16 the petition is addressed shall certify the proposition to
17 the proper election officials who shall submit the
18 proposition in accordance with the general election law at a
19 regular election in the municipality provided that notice of
20 the referendum, if heretofore or hereafter held, has been or
21 shall be given in accordance with the provisions of Section
22 12-5 of the Election Code, at least 10 and not more than 45
23 days before the date of the election, notwithstanding the
24 time for publication otherwise imposed by Section 12-5. If
25 the proposition is not adopted at that election, it may be
26 submitted in like manner at any regular election thereafter.
27 The proposition shall be substantially in the following form:
28 -------------------------------------------------------------
29 Shall the city (or village or
30 incorporated town) of.... adopt YES
31 Article 3 of the "Illinois Pension -----------------------
32 Code", pertaining to the creation NO
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1 of a police pension fund?
2 -------------------------------------------------------------
3 If a majority of the votes cast on the proposition is for the
4 proposition, this Article is adopted in that municipality.
5 (Source: P.A. 83-1440.)
6 Section 20. The Illinois Municipal Code is amended by
7 changing Section 8-4-1 as follows:
8 (65 ILCS 5/8-4-1) (from Ch. 24, par. 8-4-1)
9 Sec. 8-4-1. No bonds shall be issued by the corporate
10 authorities of any municipality until the question of
11 authorizing such bonds has been submitted to the electors of
12 that municipality provided that notice of the bond
13 referendum, if heretofore or hereafter held, has been or
14 shall be given in accordance with the provisions of Section
15 12-5 of the Election Code, at least 10 and not more than 45
16 days before the date of the election, notwithstanding the
17 time for publication otherwise imposed by Section 12-5, and
18 approved by a majority of the electors voting upon that
19 question. The clerk shall certify the proposition of the
20 corporate authorities to the proper election authority who
21 shall submit the question at an election in accordance with
22 the general election law, subject to the notice provisions
23 set forth in this Section.
24 Notice of any such election shall contain the amount of
25 the bond issue, purpose for which issued, and maximum rate of
26 interest.
27 However, without the submission of the question of
28 issuing bonds to the electors, the corporate authorities of
29 any municipality may authorize the issuance of any of the
30 following bonds:
31 (1) Bonds to refund any existing bonded indebtedness;
32 (2) Bonds to fund or refund any existing judgment
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1 indebtedness;
2 (3) In any municipality of less than 500,000 population,
3 bonds to anticipate the collection of installments of special
4 assessments and special taxes against property owned by the
5 municipality and to anticipate the collection of the amount
6 apportioned to the municipality as public benefits under
7 Article 9;
8 (4) Bonds issued by any municipality under Sections
9 8-4-15 through 8-4-23, 11-23-1 through 11-23-12, 11-25-1
10 through 11-26-6, 11-71-1 through 11-71-10, 11-74.4-1 through
11 11-74.4-11, 11-74.5-1 through 11-74.5-15, 11-94-1 through
12 11-94-7, 11-102-1 through 11-102-10, 11-103-11 through
13 11-103-15, 11-118-1 through 11-118-6, 11-119-1 through
14 11-119-5, 11-129-1 through 11-129-7, 11-133-1 through
15 11-133-4, 11-139-1 through 11-139-12, 11-141-1 through
16 11-141-18 of this Code or 10-801 through 10-808 of the
17 Illinois Highway Code, as amended;
18 (5) Bonds issued by the board of education of any school
19 district under the provisions of Sections 34-30 through 34-36
20 of The School Code, as amended;
21 (6) Bonds issued by any municipality under the
22 provisions of Division 6 of this Article 8; and by any
23 municipality under the provisions of Division 7 of this
24 Article 8; or under the provisions of Sections 11-121-4 and
25 11-121-5;
26 (7) Bonds to pay for the purchase of voting machines by
27 any municipality that has adopted Article 24 of The Election
28 Code, approved May 11, 1943, as amended;
29 (8) Bonds issued by any municipality under Sections 15
30 and 46 of the "Environmental Protection Act", approved June
31 29, 1970;
32 (9) Bonds issued by the corporate authorities of any
33 municipality under the provisions of Section 8-4-25 of this
34 Article 8;
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1 (10) Bonds issued under Section 8-4-26 of this Article 8
2 by any municipality having a board of election commissioners;
3 (11) Bonds issued under the provisions of "An Act to
4 provide the manner of levying or imposing taxes for the
5 provision of special services to areas within the boundaries
6 of home rule units and nonhome rule municipalities and
7 counties", approved September 21, 1973;
8 (12) Bonds issued under Section 8-5-16 of this Code;
9 (13) Bonds to finance the cost of the acquisition,
10 construction or improvement of water or wastewater treatment
11 facilities mandated by an enforceable compliance schedule
12 developed in connection with the federal Clean Water Act or a
13 compliance order issued by the United States Environmental
14 Protection Agency or the Illinois Pollution Control Board;
15 provided that such bonds are authorized by an ordinance
16 adopted by a three-fifths majority of the corporate
17 authorities of the municipality issuing the bonds which
18 ordinance shall specify that the construction or improvement
19 of such facilities is necessary to alleviate an emergency
20 condition in such municipality;
21 (14) Bonds issued by any municipality pursuant to
22 Section 11-113.1-1;
23 (15) Bonds issued under Sections 11-74.6-1 through
24 11-74.6-45, the Industrial Jobs Recovery Law of this Code.
25 (Source: P.A. 90-706, eff. 8-7-98.)
26 Section 25. The Public Library District Act of 1991 is
27 amended by changing Section 40-15 as follows:
28 (75 ILCS 16/40-15)
29 Sec. 40-15. Voter approval of bonds.
30 (a) Bonds shall not be issued, nor the special tax
31 imposed, until the proposition to issue the bonds has been
32 submitted to and approved by a majority of the voters of the
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1 district voting upon the proposition at a regular election
2 provided that notice of the bond referendum, if heretofore or
3 hereafter held, has been or shall be given in accordance with
4 the provisions of Section 12-5 of the Election Code, at least
5 10 and not more than 45 days before the date of the election,
6 notwithstanding the time for publication otherwise imposed by
7 Section 12-5. The board shall by ordinance designate the
8 election at which the proposition is to be submitted and the
9 amount of the bonds and their purpose. The board shall
10 certify the proposition to the proper election authority, who
11 shall submit the proposition in accordance with the Election
12 Code, subject to the notice provisions set forth in this
13 Section.
14 (b) The proposition to issue bonds shall be in
15 substantially the following form:
16 Shall the bonds of (name of public library
17 district), (location), Illinois, in the amount of
18 $(amount) be issued for the purpose of (state one or more
19 purposes authorized in Section 40-5)?
20 (c) When so authorized, the bonds shall be issued in the
21 name of the district, signed by the president and secretary,
22 and countersigned by the treasurer, with the seal of the
23 district affixed.
24 (Source: P.A. 87-1277.)
25 Section 30. The School Code is amended by changing
26 Section 19-3 as follows:
27 (105 ILCS 5/19-3) (from Ch. 122, par. 19-3)
28 Sec. 19-3. Boards of education. Any school district
29 governed by a board of education and having a population of
30 not more than 500,000 inhabitants, and not governed by a
31 special Act may borrow money for the purpose of building,
32 equipping, altering or repairing school buildings or
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1 purchasing or improving school sites, or acquiring and
2 equipping playgrounds, recreation grounds, athletic fields,
3 and other buildings or land used or useful for school
4 purposes or for the purpose of purchasing a site, with or
5 without a building or buildings thereon, or for the building
6 of a house or houses on such site, or for the building of a
7 house or houses on the school site of the school district,
8 for residential purposes of the superintendent, principal, or
9 teachers of the school district, and issue its negotiable
10 coupon bonds therefor signed by the president and secretary
11 of the board, in denominations of not less than $100 nor more
12 than $5,000, payable at such place and at such time or times,
13 not exceeding 20 years from date of issuance, as the board of
14 education may prescribe, and bearing interest at a rate not
15 to exceed the maximum rate authorized by the Bond
16 Authorization Act, as amended at the time of the making of
17 the contract, payable annually, semiannually or quarterly,
18 but no such bonds shall be issued unless the proposition to
19 issue them is submitted to the voters of the district at a
20 referendum held at a regularly scheduled election after the
21 board has certified the proposition to the proper election
22 authorities in accordance with the general election law, a
23 majority of all the votes cast on the proposition is in favor
24 of the proposition, and notice of such bond referendum (if
25 heretofore or hereafter held at any general election) has
26 been given either (i) in accordance with the second paragraph
27 of Section 12-1 of the Election Code irrespective of any
28 other requirements of the Election Code and irrespective of
29 whether such notice included any reference to the public
30 question as it appeared on the ballot, or (ii) for an
31 election held on or after November 1, 1998, in accordance
32 with Section 12-5 of the Election Code, or (iii) by
33 publication of and a true and legible copy of the specimen
34 ballot label containing the proposition (if heretofore or
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1 hereafter submitted to the voters of the district at any
2 general election) in the form in which it appeared or will
3 appear on the official ballot label on the day of the
4 election has been published at least 5 days before the day
5 of the election in at least one newspaper published in and
6 having a general circulation in each county in which the
7 district is located, irrespective of any other requirements
8 of Article 12 or Section 24A-18 of the Election Code, nor
9 shall any residential site be acquired unless such
10 proposition to acquire a site is submitted to the voters of
11 the district at a referendum held at a regularly scheduled
12 election after the board has certified the proposition to the
13 proper election authorities in accordance with the general
14 election law and a majority of all the votes cast on the
15 proposition is in favor of the proposition. Nothing in this
16 Act or in any other law shall be construed as to require the
17 notice of the bond referendum to be published over the name
18 or title of the election authority or the listing of maturity
19 dates of any bonds either in the notice of bond election or
20 ballot used in the bond election. Such proposition may be
21 initiated by resolution of the school board.
22 With respect to instruments for the payment of money
23 issued under this Section either before, on, or after the
24 effective date of this amendatory Act of 1989, it is and
25 always has been the intention of the General Assembly (i)
26 that the Omnibus Bond Acts are and always have been
27 supplementary grants of power to issue instruments in
28 accordance with the Omnibus Bond Acts, regardless of any
29 provision of this Act that may appear to be or to have been
30 more restrictive than those Acts, (ii) that the provisions of
31 this Section are not a limitation on the supplementary
32 authority granted by the Omnibus Bond Acts, and (iii) that
33 instruments issued under this Section within the
34 supplementary authority granted by the Omnibus Bond Acts are
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1 not invalid because of any provision of this Act that may
2 appear to be or to have been more restrictive than those
3 Acts.
4 The proceeds of any bonds issued under authority of this
5 Section shall be deposited and accounted for separately
6 within the Site and Construction/Capital Improvements Fund.
7 (Source: P.A. 89-698, eff. 1-14-97.)
8 Section 99. Effective date. This Act takes effect upon
9 becoming law.".