State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Engrossed ][ House Amendment 002 ]
[ Senate Amendment 001 ][ Senate Amendment 002 ]

90_SB0645ham001

                                           LRB9002758THdvam02
 1                    AMENDMENT TO SENATE BILL 645
 2        AMENDMENT NO.     .  Amend Senate Bill 645  by  replacing
 3    the title with the following:
 4        "AN  ACT in relation to education, amending named Acts.";
 5    and
 6    by replacing everything after the enacting  clause  with  the
 7    following:
 8        "Section  5.  The  State Finance Act is amended by adding
 9    Sections 5.499 and 5.550 as follows:
10        (30 ILCS 105/5.449 new)
11        Sec. 5.449.  The Education Property Tax Relief Fund.
12        (30 ILCS 105/5.550 new)
13        Sec.  5.550.    The   School   Capital   and   Technology
14    Infrastructure Fund.
15        Section  10.  The State Revenue Sharing Act is amended by
16    adding Section 7 as follows:
17        (30 ILCS 115/7 new)
18        Sec. 7.  Education Property Tax Relief  Fund.   There  is
                            -2-            LRB9002758THdvam02
 1    hereby  created  the  Education  Property  Tax Relief Fund, a
 2    special fund in the State Treasury.
 3        For purposes of  this  Section,  "Department"  means  the
 4    Department of Revenue and "levy year" has the same meaning as
 5    "year" under Section 1-155 of the Property Tax Code.
 6        For  purposes  of  this  Section,  "allocation basis levy
 7    year" is the levy year 2  years  prior  to  the  distribution
 8    year.
 9        For  purposes  of  this Section, the "operating tax rate"
10    shall consist of all school district property taxes  extended
11    for   all  purposes,  except  community  college  educational
12    purposes for the payment of tuition under Section 6-1 of  the
13    Public  Community  College  Act,  Bond  and  Interest, Summer
14    School, Rent, Capital Improvement, and  Vocational  Education
15    Building purposes.
16        By  December  1 of each year, beginning December 1, 1997,
17    the Bureau of the Budget shall certify to the  Department  of
18    Revenue  its estimate of the funds that will be available for
19    distribution from the Education Property Tax Relief  Fund  in
20    the next calendar year.
21        The   Department   shall   determine  the  amount  to  be
22    distributed to the County Treasurer of each county  for  each
23    school district subject to the School Code in the county from
24    the  Education  Property  Tax  Relief  Fund for each calendar
25    year, beginning in 1998.  On or before January  1,  1998  and
26    each  January  1  thereafter, the Department shall certify to
27    each county clerk the  amount  to  be  distributed  for  each
28    school  district  in  the  county that year. The amount shall
29    equal the Bureau  of  the  Budget's  estimate  of  the  funds
30    available  for the Education Property Tax Relief Fund for the
31    fiscal year in effect at the beginning of the  calendar  year
32    in  which  the  funds  will  be  distributed multiplied by an
33    allocation factor for each school district.   The  allocation
34    factor  shall equal the amount extended for the operating tax
                            -3-            LRB9002758THdvam02
 1    rate of each county's portion of each school district on  the
 2    classes  of  property  eligible  for the School Tax Abatement
 3    under Section 18-162 of the Property Tax Code divided by  the
 4    sum  of the total of such extensions for all school districts
 5    in the State.  The data used in determining this factor shall
 6    be the most recent available to the Department  submitted  by
 7    the County Clerk of each county pursuant to Section 18-255 of
 8    the  Property Tax Code by October 1 prior to the Department's
 9    certification to the county clerks under this Section.
10        On February 1, 1998 and on February 1  of  each  calendar
11    year  thereafter,  the  Department shall certify to the State
12    Comptroller an amount to be paid over to the county treasurer
13    in any county with 3,000,000 or more  inhabitants,  which  is
14    required by Section 21-30 of the Property Tax Code to send an
15    estimated  property  tax  bill  by January 31 annually and an
16    actual tax bill by June 30 annually,  equal  to  50%  of  the
17    amount  certified  by the Department to be distributed to the
18    school districts in that county under this Section.   On  May
19    15,  1998 and on May 15 of each calendar year thereafter, the
20    Department shall certify to the State Comptroller  an  amount
21    to  be  paid  over  to the county treasurer in each county of
22    fewer than 3,000,000 inhabitants equal to 50% of  the  amount
23    certified  by  the Department to be distributed to the school
24    districts in each such county under this Section.  On  August
25    15,  1998, and on August 15 of each calendar year thereafter,
26    the Department shall certify  to  the  State  Comptroller  an
27    amount to be paid over to the county treasurer of each county
28    in  the  State  equal  to  50% of the amount certified by the
29    Department to be distributed to the school districts in  each
30    county  under  this  Section. The State Comptroller shall pay
31    from the Education  Property  Tax  Relief  Fund  all  amounts
32    certified to the State Comptroller under this Section.
33        The  county treasurer shall promptly distribute the funds
34    to each school district based on the amount certified to  the
                            -4-            LRB9002758THdvam02
 1    county clerk by the Department under this Section.
 2        Beginning  with  the January 1, 1999 certification by the
 3    Department to the county clerks under this Section, and  each
 4    January  1  thereafter,  the Department shall recalculate the
 5    previous year's allocation factor for  each  school  district
 6    using   the   most  recent  available  extension  information
 7    supplied under Section 18-255 of the Property  Tax  Code  for
 8    property  taxes  extended  for the allocation basis levy year
 9    applicable to the previous year's  allocation.   The  current
10    year's allocation shall be adjusted by the difference between
11    this  recalculation of the previous year's allocation and the
12    actual allocation and distribution in the previous year.
13        Section 15.  The Illinois Income Tax Act  is  amended  by
14    changing  Sections  201,  203,  804,  and  901  and by adding
15    Section 202.5 as follows:
16        (35 ILCS 5/201) (from Ch. 120, par. 2-201)
17        Sec. 201.  Tax Imposed.
18        (a)  In general. A tax measured by net income  is  hereby
19    imposed  on  every  individual, corporation, trust and estate
20    for each taxable year ending  after  July  31,  1969  on  the
21    privilege  of earning or receiving income in or as a resident
22    of this State. Such tax shall be in  addition  to  all  other
23    occupation or privilege taxes imposed by this State or by any
24    municipal corporation or political subdivision thereof.
25        (b)  Rates.  The  tax  imposed  by subsection (a) of this
26    Section shall be determined as follows:
27             (1)  In the case of an individual, trust or  estate,
28        for taxable years ending prior to July 1, 1989, an amount
29        equal  to  2  1/2%  of  the taxpayer's net income for the
30        taxable year.
31             (2)  In the case of an individual, trust or  estate,
32        for  taxable  years  beginning  prior to July 1, 1989 and
                            -5-            LRB9002758THdvam02
 1        ending after June 30, 1989, an amount equal to the sum of
 2        (i) 2 1/2% of the taxpayer's net income  for  the  period
 3        prior to July 1, 1989, as calculated under Section 202.3,
 4        and  (ii)  3% of the taxpayer's net income for the period
 5        after June 30, 1989, as calculated under Section 202.3.
 6             (3)  In the case of an individual, trust or  estate,
 7        for  taxable  years  beginning  after  June 30, 1989, and
 8        ending prior to July 1, 1997, an amount equal  to  3%  of
 9        the taxpayer's net income for the taxable year.
10             (4)  In the case of an individual, trust, or estate,
11        for  taxable  years  beginning  prior to July 1, 1997 and
12        ending after June 30, 1997, an amount equal to the sum of
13        (i) 3% of the taxpayer's net income for the period  prior
14        to  July  1, 1997, as calculated under Section 202.5, and
15        (ii) 3.75% of the taxpayer's net income  for  the  period
16        after  June  30,  1997, as calculated under Section 202.5
17        (Blank).
18             (5)  In the case of an individual, trust, or estate,
19        for taxable years  beginning  after  June  30,  1997,  an
20        amount  equal  to  3.75% of the taxpayer's net income for
21        the taxable year (Blank).
22             (6)  In the case of a corporation, for taxable years
23        ending prior to July 1, 1989, an amount equal  to  4%  of
24        the taxpayer's net income for the taxable year.
25             (7)  In the case of a corporation, for taxable years
26        beginning prior to July 1, 1989 and ending after June 30,
27        1989,  an  amount  equal  to  the  sum  of  (i) 4% of the
28        taxpayer's net income for the period  prior  to  July  1,
29        1989, as calculated under Section 202.3, and (ii) 4.8% of
30        the  taxpayer's  net income for the period after June 30,
31        1989, as calculated under Section 202.3.
32             (8)  In the case of a corporation, for taxable years
33        beginning after June 30, 1989, an amount equal to 4.8% of
34        the taxpayer's net income for the taxable year.
                            -6-            LRB9002758THdvam02
 1        (c)  Beginning  on  July  1,  1979  and  thereafter,   in
 2    addition to such income tax, there is also hereby imposed the
 3    Personal  Property Tax Replacement Income Tax measured by net
 4    income  on  every   corporation   (including   Subchapter   S
 5    corporations),  partnership  and trust, for each taxable year
 6    ending after June 30, 1979.  Such taxes are  imposed  on  the
 7    privilege  of earning or receiving income in or as a resident
 8    of this State.  The Personal Property Tax Replacement  Income
 9    Tax  shall  be  in  addition  to  the  income  tax imposed by
10    subsections (a) and (b) of this Section and  in  addition  to
11    all other occupation or privilege taxes imposed by this State
12    or  by  any  municipal  corporation  or political subdivision
13    thereof.
14        (d)  Additional Personal Property Tax Replacement  Income
15    Tax  Rates.  The personal property tax replacement income tax
16    imposed by this subsection and subsection (c) of this Section
17    in the case of a  corporation,  other  than  a  Subchapter  S
18    corporation,  shall be an additional amount equal to 2.85% of
19    such taxpayer's net income for the taxable year, except  that
20    beginning  on  January  1,  1981, and thereafter, the rate of
21    2.85% specified in this subsection shall be reduced to  2.5%,
22    and  in  the  case  of a partnership, trust or a Subchapter S
23    corporation shall be an additional amount equal  to  1.5%  of
24    such taxpayer's net income for the taxable year.
25        (e)  Investment  credit.   A  taxpayer shall be allowed a
26    credit against the Personal Property Tax  Replacement  Income
27    Tax for investment in qualified property.
28             (1)  A  taxpayer  shall be allowed a credit equal to
29        .5% of the basis of qualified property placed in  service
30        during the taxable year, provided such property is placed
31        in  service  on  or  after  July 1, 1984.  There shall be
32        allowed an additional credit equal to .5% of the basis of
33        qualified property placed in service during  the  taxable
34        year,  provided  such property is placed in service on or
                            -7-            LRB9002758THdvam02
 1        after July 1, 1986, and the  taxpayer's  base  employment
 2        within  Illinois  has  increased  by  1% or more over the
 3        preceding year as determined by the taxpayer's employment
 4        records filed with the Illinois Department of  Employment
 5        Security.   Taxpayers  who  are  new to Illinois shall be
 6        deemed to have met the 1% growth in base  employment  for
 7        the first year in which they file employment records with
 8        the  Illinois  Department  of  Employment  Security.  The
 9        provisions added to this Section by  Public  Act  85-1200
10        (and restored by Public Act 87-895) shall be construed as
11        declaratory  of  existing law and not as a new enactment.
12        If, in any year, the increase in base  employment  within
13        Illinois  over  the  preceding  year is less than 1%, the
14        additional credit shall be  limited  to  that  percentage
15        times  a  fraction, the numerator of which is .5% and the
16        denominator of which is 1%, but  shall  not  exceed  .5%.
17        The  investment credit shall not be allowed to the extent
18        that it would reduce a taxpayer's liability  in  any  tax
19        year  below  zero,  nor  may  any  credit  for  qualified
20        property  be  allowed for any year other than the year in
21        which the property was placed in service in Illinois. For
22        tax years ending on or after December 31, 1987, and on or
23        before December 31, 1988, the credit shall be allowed for
24        the tax year in which the property is placed in  service,
25        or, if the amount of the credit exceeds the tax liability
26        for  that year, whether it exceeds the original liability
27        or the liability as later amended,  such  excess  may  be
28        carried forward and applied to the tax liability of the 5
29        taxable  years  following  the excess credit years if the
30        taxpayer (i) makes investments which cause  the  creation
31        of  a  minimum  of  2,000  full-time  equivalent  jobs in
32        Illinois,  (ii)  is  located  in   an   enterprise   zone
33        established  pursuant to the Illinois Enterprise Zone Act
34        and (iii) is certified by the Department of Commerce  and
                            -8-            LRB9002758THdvam02
 1        Community  Affairs  as  complying  with  the requirements
 2        specified in clause (i) and (ii) by July  1,  1986.   The
 3        Department of Commerce and Community Affairs shall notify
 4        the  Department  of  Revenue  of  all such certifications
 5        immediately. For tax  years  ending  after  December  31,
 6        1988,  the  credit  shall  be allowed for the tax year in
 7        which the property is  placed  in  service,  or,  if  the
 8        amount  of  the credit exceeds the tax liability for that
 9        year, whether it exceeds the original  liability  or  the
10        liability  as  later  amended, such excess may be carried
11        forward and applied to the tax liability of the 5 taxable
12        years following the excess credit years. The credit shall
13        be applied to the earliest year  for  which  there  is  a
14        liability. If there is credit from more than one tax year
15        that  is  available to offset a liability, earlier credit
16        shall be applied first.
17             (2)  The term "qualified  property"  means  property
18        which:
19                  (A)  is   tangible,   whether   new   or  used,
20             including buildings  and  structural  components  of
21             buildings  and signs that are real property, but not
22             including land or improvements to real property that
23             are not a structural component of a building such as
24             landscaping,  sewer  lines,  local   access   roads,
25             fencing, parking lots, and other appurtenances;
26                  (B)  is  depreciable pursuant to Section 167 of
27             the  Internal  Revenue  Code,  except  that  "3-year
28             property" as defined in Section 168(c)(2)(A) of that
29             Code is not eligible for the credit provided by this
30             subsection (e);
31                  (C)  is acquired  by  purchase  as  defined  in
32             Section 179(d) of the Internal Revenue Code;
33                  (D)  is  used  in Illinois by a taxpayer who is
34             primarily engaged in  manufacturing,  or  in  mining
                            -9-            LRB9002758THdvam02
 1             coal or fluorite, or in retailing; and
 2                  (E)  has  not  previously been used in Illinois
 3             in such a manner and  by  such  a  person  as  would
 4             qualify  for  the credit provided by this subsection
 5             (e) or subsection (f).
 6             (3)  For   purposes   of   this   subsection    (e),
 7        "manufacturing" means the material staging and production
 8        of  tangible  personal  property  by  procedures commonly
 9        regarded as manufacturing,  processing,  fabrication,  or
10        assembling  which changes some existing material into new
11        shapes, new qualities, or new combinations.  For purposes
12        of this subsection (e) the term "mining" shall  have  the
13        same  meaning  as  the term "mining" in Section 613(c) of
14        the  Internal  Revenue  Code.   For  purposes   of   this
15        subsection  (e),  the  term "retailing" means the sale of
16        tangible  personal  property  or  services  rendered   in
17        conjunction  with  the sale of tangible consumer goods or
18        commodities.
19             (4)  The basis of qualified property  shall  be  the
20        basis  used  to  compute  the  depreciation deduction for
21        federal income tax purposes.
22             (5)  If the basis of the property for federal income
23        tax depreciation purposes is increased after it has  been
24        placed in service in Illinois by the taxpayer, the amount
25        of  such  increase  shall  be  deemed  property placed in
26        service on the date of such increase in basis.
27             (6)  The term "placed in  service"  shall  have  the
28        same  meaning as under Section 46 of the Internal Revenue
29        Code.
30             (7)  If during any taxable year, any property ceases
31        to be qualified property in the  hands  of  the  taxpayer
32        within  48  months  after being placed in service, or the
33        situs of any qualified property is moved outside Illinois
34        within 48 months  after  being  placed  in  service,  the
                            -10-           LRB9002758THdvam02
 1        Personal  Property  Tax  Replacement  Income Tax for such
 2        taxable year shall be increased.  Such increase shall  be
 3        determined by (i) recomputing the investment credit which
 4        would  have been allowed for the year in which credit for
 5        such property was originally allowed by eliminating  such
 6        property from such computation and, (ii) subtracting such
 7        recomputed  credit  from  the amount of credit previously
 8        allowed. For  the  purposes  of  this  paragraph  (7),  a
 9        reduction  of  the  basis of qualified property resulting
10        from a redetermination of the  purchase  price  shall  be
11        deemed  a disposition of qualified property to the extent
12        of such reduction.
13             (8)  Unless the investment  credit  is  extended  by
14        law,  the  basis  of qualified property shall not include
15        costs incurred after December 31, 2003, except for  costs
16        incurred  pursuant  to a binding contract entered into on
17        or before December 31, 2003.
18        (f)  Investment credit; Enterprise Zone.
19             (1)  A taxpayer shall be allowed  a  credit  against
20        the  tax  imposed  by  subsections  (a)  and  (b) of this
21        Section for investment in  qualified  property  which  is
22        placed  in service in an Enterprise Zone created pursuant
23        to the Illinois Enterprise Zone Act. For partners and for
24        shareholders of Subchapter S corporations, there shall be
25        allowed  a  credit  under  this  subsection  (f)  to   be
26        determined in accordance with the determination of income
27        and  distributive  share of income under Sections 702 and
28        704 and Subchapter S of the Internal  Revenue  Code.  The
29        credit  shall be .5% of the basis for such property.  The
30        credit shall be available only in  the  taxable  year  in
31        which the property is placed in service in the Enterprise
32        Zone and shall not be allowed to the extent that it would
33        reduce  a  taxpayer's  liability  for  the tax imposed by
34        subsections (a) and (b) of this Section  to  below  zero.
                            -11-           LRB9002758THdvam02
 1        For  tax  years ending on or after December 31, 1985, the
 2        credit shall be allowed for the tax  year  in  which  the
 3        property  is  placed in service, or, if the amount of the
 4        credit exceeds the tax liability for that  year,  whether
 5        it  exceeds  the  original  liability or the liability as
 6        later amended, such excess may  be  carried  forward  and
 7        applied  to  the  tax  liability  of  the 5 taxable years
 8        following the excess credit year.  The  credit  shall  be
 9        applied  to  the  earliest  year  for  which  there  is a
10        liability. If there is credit from more than one tax year
11        that is available  to  offset  a  liability,  the  credit
12        accruing first in time shall be applied first.
13             (2)  The  term  qualified  property  means  property
14        which:
15                  (A)  is   tangible,   whether   new   or  used,
16             including buildings  and  structural  components  of
17             buildings;
18                  (B)  is  depreciable pursuant to Section 167 of
19             the  Internal  Revenue  Code,  except  that  "3-year
20             property" as defined in Section 168(c)(2)(A) of that
21             Code is not eligible for the credit provided by this
22             subsection (f);
23                  (C)  is acquired  by  purchase  as  defined  in
24             Section 179(d) of the Internal Revenue Code;
25                  (D)  is  used  in  the  Enterprise  Zone by the
26             taxpayer; and
27                  (E)  has not been previously used  in  Illinois
28             in  such  a  manner  and  by  such a person as would
29             qualify for the credit provided by  this  subsection
30             (f) or subsection (e).
31             (3)  The  basis  of  qualified property shall be the
32        basis used to  compute  the  depreciation  deduction  for
33        federal income tax purposes.
34             (4)  If the basis of the property for federal income
                            -12-           LRB9002758THdvam02
 1        tax  depreciation purposes is increased after it has been
 2        placed in service in the Enterprise Zone by the taxpayer,
 3        the amount of such  increase  shall  be  deemed  property
 4        placed in service on the date of such increase in basis.
 5             (5)  The  term  "placed  in  service" shall have the
 6        same meaning as under Section 46 of the Internal  Revenue
 7        Code.
 8             (6)  If during any taxable year, any property ceases
 9        to  be  qualified  property  in the hands of the taxpayer
10        within 48 months after being placed in  service,  or  the
11        situs  of  any  qualified  property  is moved outside the
12        Enterprise Zone within 48 months after  being  placed  in
13        service, the tax imposed under subsections (a) and (b) of
14        this  Section  for  such taxable year shall be increased.
15        Such increase shall be determined by (i) recomputing  the
16        investment  credit  which would have been allowed for the
17        year in which credit for  such  property  was  originally
18        allowed   by   eliminating   such   property   from  such
19        computation, and (ii) subtracting such recomputed  credit
20        from  the  amount  of credit previously allowed.  For the
21        purposes of this paragraph (6), a reduction of the  basis
22        of qualified property resulting from a redetermination of
23        the  purchase  price  shall  be  deemed  a disposition of
24        qualified property to the extent of such reduction.
25             (g)  Jobs Tax Credit; Enterprise  Zone  and  Foreign
26    Trade Zone or Sub-Zone.
27             (1)  A taxpayer conducting a trade or business in an
28        enterprise  zone  or a High Impact Business designated by
29        the  Department  of  Commerce   and   Community   Affairs
30        conducting  a trade or business in a federally designated
31        Foreign Trade Zone or Sub-Zone shall be allowed a  credit
32        against  the  tax  imposed  by subsections (a) and (b) of
33        this Section in the amount of $500 per eligible  employee
34        hired to work in the zone during the taxable year.
                            -13-           LRB9002758THdvam02
 1             (2)  To qualify for the credit:
 2                  (A)  the  taxpayer must hire 5 or more eligible
 3             employees to work in an enterprise zone or federally
 4             designated Foreign Trade Zone or Sub-Zone during the
 5             taxable year;
 6                  (B)  the taxpayer's total employment within the
 7             enterprise  zone  or  federally  designated  Foreign
 8             Trade Zone or Sub-Zone must increase by  5  or  more
 9             full-time  employees  beyond  the  total employed in
10             that zone at the end of the previous  tax  year  for
11             which  a  jobs  tax  credit  under  this Section was
12             taken, or beyond the total employed by the  taxpayer
13             as of December 31, 1985, whichever is later; and
14                  (C)  the  eligible  employees  must be employed
15             180 consecutive days in order to be deemed hired for
16             purposes of this subsection.
17             (3)  An "eligible employee" means  an  employee  who
18        is:
19                  (A)  Certified  by  the  Department of Commerce
20             and Community Affairs  as  "eligible  for  services"
21             pursuant  to  regulations  promulgated in accordance
22             with Title II of the Job Training  Partnership  Act,
23             Training Services for the Disadvantaged or Title III
24             of  the Job Training Partnership Act, Employment and
25             Training Assistance for Dislocated Workers Program.
26                  (B)  Hired  after  the   enterprise   zone   or
27             federally  designated Foreign Trade Zone or Sub-Zone
28             was designated or the trade or business was  located
29             in that zone, whichever is later.
30                  (C)  Employed in the enterprise zone or Foreign
31             Trade  Zone  or Sub-Zone. An employee is employed in
32             an enterprise zone or federally  designated  Foreign
33             Trade  Zone or Sub-Zone if his services are rendered
34             there or it  is  the  base  of  operations  for  the
                            -14-           LRB9002758THdvam02
 1             services performed.
 2                  (D)  A  full-time  employee  working 30 or more
 3             hours per week.
 4             (4)  For tax years ending on or after  December  31,
 5        1985  and prior to December 31, 1988, the credit shall be
 6        allowed for the tax year in which the eligible  employees
 7        are hired.  For tax years ending on or after December 31,
 8        1988,  the  credit  shall  be  allowed  for  the tax year
 9        immediately following the tax year in which the  eligible
10        employees are hired.  If the amount of the credit exceeds
11        the  tax  liability for that year, whether it exceeds the
12        original liability or the  liability  as  later  amended,
13        such excess may be carried forward and applied to the tax
14        liability  of  the  5  taxable years following the excess
15        credit year.  The credit shall be applied to the earliest
16        year for which there is a liability. If there  is  credit
17        from more than one tax year that is available to offset a
18        liability, earlier credit shall be applied first.
19             (5)  The Department of Revenue shall promulgate such
20        rules and regulations as may be deemed necessary to carry
21        out the purposes of this subsection (g).
22             (6)  The  credit  shall  be  available  for eligible
23        employees hired on or after January 1, 1986.
24             (h)  Investment credit; High Impact Business.
25             (1)  Subject to subsection (b) of Section 5.5 of the
26        Illinois Enterprise Zone Act, a taxpayer shall be allowed
27        a credit against the tax imposed by subsections  (a)  and
28        (b)  of this Section for investment in qualified property
29        which is placed in service by a  Department  of  Commerce
30        and  Community  Affairs  designated High Impact Business.
31        The credit shall be .5% of the basis for  such  property.
32        The  credit  shall  not  be  available  until the minimum
33        investments in qualified property set  forth  in  Section
34        5.5  of  the  Illinois  Enterprise  Zone  Act  have  been
                            -15-           LRB9002758THdvam02
 1        satisfied  and shall not be allowed to the extent that it
 2        would reduce a taxpayer's liability for the  tax  imposed
 3        by subsections (a) and (b) of this Section to below zero.
 4        The  credit  applicable to such minimum investments shall
 5        be taken in  the  taxable  year  in  which  such  minimum
 6        investments   have   been   completed.   The  credit  for
 7        additional investments beyond the minimum investment by a
 8        designated high impact business shall be  available  only
 9        in  the  taxable  year in which the property is placed in
10        service and shall not be allowed to the  extent  that  it
11        would  reduce  a taxpayer's liability for the tax imposed
12        by subsections (a) and (b) of this Section to below zero.
13        For tax years ending on or after December 31,  1987,  the
14        credit  shall  be  allowed  for the tax year in which the
15        property is placed in service, or, if the amount  of  the
16        credit  exceeds  the tax liability for that year, whether
17        it exceeds the original liability  or  the  liability  as
18        later  amended,  such  excess  may be carried forward and
19        applied to the tax  liability  of  the  5  taxable  years
20        following  the  excess  credit year.  The credit shall be
21        applied to  the  earliest  year  for  which  there  is  a
22        liability.   If  there  is  credit from more than one tax
23        year that is available to offset a liability, the  credit
24        accruing first in time shall be applied first.
25             Changes  made  in  this subdivision (h)(1) by Public
26        Act 88-670 restore changes made by Public Act 85-1182 and
27        reflect existing law.
28             (2)  The  term  qualified  property  means  property
29        which:
30                  (A)  is  tangible,   whether   new   or   used,
31             including  buildings  and  structural  components of
32             buildings;
33                  (B)  is depreciable pursuant to Section 167  of
34             the  Internal  Revenue  Code,  except  that  "3-year
                            -16-           LRB9002758THdvam02
 1             property" as defined in Section 168(c)(2)(A) of that
 2             Code is not eligible for the credit provided by this
 3             subsection (h);
 4                  (C)  is  acquired  by  purchase  as  defined in
 5             Section 179(d) of the Internal Revenue Code; and
 6                  (D)  is not eligible for  the  Enterprise  Zone
 7             Investment Credit provided by subsection (f) of this
 8             Section.
 9             (3)  The  basis  of  qualified property shall be the
10        basis used to  compute  the  depreciation  deduction  for
11        federal income tax purposes.
12             (4)  If the basis of the property for federal income
13        tax  depreciation purposes is increased after it has been
14        placed in service in a federally designated Foreign Trade
15        Zone or Sub-Zone located in Illinois by the taxpayer, the
16        amount of such increase shall be deemed  property  placed
17        in service on the date of such increase in basis.
18             (5)  The  term  "placed  in  service" shall have the
19        same meaning as under Section 46 of the Internal  Revenue
20        Code.
21             (6)  If  during any taxable year ending on or before
22        December 31, 1996, any property ceases  to  be  qualified
23        property  in  the  hands of the taxpayer within 48 months
24        after being placed  in  service,  or  the  situs  of  any
25        qualified  property  is  moved outside Illinois within 48
26        months after being placed in  service,  the  tax  imposed
27        under  subsections  (a)  and (b) of this Section for such
28        taxable year shall be increased.  Such increase shall  be
29        determined by (i) recomputing the investment credit which
30        would  have been allowed for the year in which credit for
31        such property was originally allowed by eliminating  such
32        property from such computation, and (ii) subtracting such
33        recomputed  credit  from  the amount of credit previously
34        allowed.  For the  purposes  of  this  paragraph  (6),  a
                            -17-           LRB9002758THdvam02
 1        reduction  of  the  basis of qualified property resulting
 2        from a redetermination of the  purchase  price  shall  be
 3        deemed  a disposition of qualified property to the extent
 4        of such reduction.
 5             (7)  Beginning with tax years ending after  December
 6        31,  1996,  if  a taxpayer qualifies for the credit under
 7        this  subsection  (h)  and  thereby  is  granted  a   tax
 8        abatement  and the taxpayer relocates its entire facility
 9        in violation of the explicit  terms  and  length  of  the
10        contract  under  Section 18-183 of the Property Tax Code,
11        the tax imposed under subsections (a)  and  (b)  of  this
12        Section  shall be increased for the taxable year in which
13        the taxpayer relocated its facility by an amount equal to
14        the amount of credit received by the taxpayer under  this
15        subsection (h).
16        (i)  A credit shall be allowed against the tax imposed by
17    subsections  (a)  and (b) of this Section for the tax imposed
18    by subsections (c) and (d)  of  this  Section.   This  credit
19    shall   be   computed  by  multiplying  the  tax  imposed  by
20    subsections (c) and (d) of this Section by  a  fraction,  the
21    numerator  of  which is base income allocable to Illinois and
22    the denominator of which is Illinois base income, and further
23    multiplying  the  product  by  the  tax   rate   imposed   by
24    subsections (a) and (b) of this Section.
25        Any  credit  earned  on  or after December 31, 1986 under
26    this subsection which is unused in the  year  the  credit  is
27    computed  because  it  exceeds  the  tax liability imposed by
28    subsections (a) and (b) for that year (whether it exceeds the
29    original liability or the liability as later amended) may  be
30    carried  forward  and applied to the tax liability imposed by
31    subsections (a) and (b) of the 5 taxable years following  the
32    excess  credit  year.   This credit shall be applied first to
33    the earliest year for which there is a liability.   If  there
34    is a credit under this subsection from more than one tax year
                            -18-           LRB9002758THdvam02
 1    that  is  available to offset a liability the earliest credit
 2    arising under this subsection shall be applied first.
 3        If, during any taxable year ending on or  after  December
 4    31,  1986, the tax imposed by subsections (c) and (d) of this
 5    Section for which a taxpayer has claimed a credit under  this
 6    subsection  (i) is reduced, the amount of credit for such tax
 7    shall also be reduced.  Such reduction shall be determined by
 8    recomputing the credit to take into account the  reduced  tax
 9    imposed  by  subsection  (c)  and (d).  If any portion of the
10    reduced amount of credit has  been  carried  to  a  different
11    taxable  year,  an  amended  return  shall  be filed for such
12    taxable year to reduce the amount of credit claimed.
13        (j)  Training expense credit.  Beginning with  tax  years
14    ending  on  or  after  December 31, 1986, a taxpayer shall be
15    allowed a credit against the tax imposed  by  subsection  (a)
16    and  (b)  under this Section for all amounts paid or accrued,
17    on behalf of all persons employed by the taxpayer in Illinois
18    or Illinois residents  employed  outside  of  Illinois  by  a
19    taxpayer,   for   educational   or   vocational  training  in
20    semi-technical or technical fields or semi-skilled or skilled
21    fields,  which  were  deducted  from  gross  income  in   the
22    computation  of  taxable  income.  The credit against the tax
23    imposed by subsections (a) and (b)  shall  be  1.6%  of  such
24    training  expenses.   For  partners  and  for shareholders of
25    subchapter S corporations, there shall be  allowed  a  credit
26    under this subsection (j) to be determined in accordance with
27    the  determination of income and distributive share of income
28    under Sections 702 and 704 and subchapter S of  the  Internal
29    Revenue Code.
30        Any  credit allowed under this subsection which is unused
31    in the year the credit is earned may be  carried  forward  to
32    each  of the 5 taxable years following the year for which the
33    credit is first computed until it is used.  This credit shall
34    be applied first to the earliest year for which  there  is  a
                            -19-           LRB9002758THdvam02
 1    liability.   If  there is a credit under this subsection from
 2    more than  one  tax  year  that  is  available  to  offset  a
 3    liability  the  earliest credit arising under this subsection
 4    shall be applied first.
 5        (k)  Research and development credit.
 6        Beginning with tax years ending after  July  1,  1990,  a
 7    taxpayer shall be allowed a credit against the tax imposed by
 8    subsections  (a)  and  (b)  of  this  Section  for increasing
 9    research  activities  in  this  State.   The  credit  allowed
10    against the tax imposed by subsections (a) and (b)  shall  be
11    equal to 6 1/2% of the qualifying expenditures for increasing
12    research activities in this State.
13        For    purposes    of    this   subsection,   "qualifying
14    expenditures" means the qualifying  expenditures  as  defined
15    for  the  federal  credit  for increasing research activities
16    which would be allowable under Section  41  of  the  Internal
17    Revenue   Code   and  which  are  conducted  in  this  State,
18    "qualifying expenditures for increasing  research  activities
19    in  this  State"  means the excess of qualifying expenditures
20    for the  taxable  year  in  which  incurred  over  qualifying
21    expenditures  for  the  base period, "qualifying expenditures
22    for the base period" means  the  average  of  the  qualifying
23    expenditures  for  each  year  in  the base period, and "base
24    period" means the 3 taxable years immediately  preceding  the
25    taxable year for which the determination is being made.
26        Any credit in excess of the tax liability for the taxable
27    year may be carried forward. A taxpayer may elect to have the
28    unused  credit  shown  on  its final completed return carried
29    over as a credit against the tax liability for the  following
30    5  taxable  years  or until it has been fully used, whichever
31    occurs first.
32        If an unused credit is carried forward to  a  given  year
33    from  2  or  more  earlier  years, that credit arising in the
34    earliest year will be applied first against the tax liability
                            -20-           LRB9002758THdvam02
 1    for the given year.  If a tax liability for  the  given  year
 2    still  remains,  the  credit from the next earliest year will
 3    then be applied, and so on, until all credits have been  used
 4    or  no  tax  liability  for  the  given  year  remains.   Any
 5    remaining  unused  credit  or  credits  then  will be carried
 6    forward to the next following year in which a  tax  liability
 7    is  incurred, except that no credit can be carried forward to
 8    a year which is more than 5 years after the year in which the
 9    expense for which the credit is given was incurred.
10        Unless extended by law,  the  credit  shall  not  include
11    costs  incurred  after  December  31,  1999, except for costs
12    incurred pursuant to a binding contract entered  into  on  or
13    before December 31, 1999.
14    (Source:  P.A.  88-45;  88-89;  88-141; 88-547, eff. 6-30-94;
15    88-670, eff.  12-2-94;  89-235,  eff.  8-4-95;  89-519,  eff.
16    7-18-96; 89-591, eff. 8-1-96.)
17        (35 ILCS 5/203) (from Ch. 120, par. 2-203)
18        Sec. 203.  Base income defined.
19        (a)  Individuals.
20             (1)  In general.  In the case of an individual, base
21        income  means  an amount equal to the taxpayer's adjusted
22        gross  income  for  the  taxable  year  as  modified   by
23        paragraph (2).
24             (2)  Modifications.    The   adjusted  gross  income
25        referred to in paragraph (1) shall be modified by  adding
26        thereto the sum of the following amounts:
27                  (A)  An  amount  equal  to  all amounts paid or
28             accrued to the taxpayer  as  interest  or  dividends
29             during  the taxable year to the extent excluded from
30             gross income in the computation  of  adjusted  gross
31             income,  except  stock dividends of qualified public
32             utilities  described  in  Section  305(e)   of   the
33             Internal Revenue Code;
                            -21-           LRB9002758THdvam02
 1                  (B)  An  amount  equal  to  the  amount  of tax
 2             imposed by this Act  to  the  extent  deducted  from
 3             gross  income  in  the computation of adjusted gross
 4             income for the taxable year;
 5                  (C)  An amount equal  to  the  amount  received
 6             during  the  taxable year as a recovery or refund of
 7             real  property  taxes  paid  with  respect  to   the
 8             taxpayer's principal residence under the Revenue Act
 9             of  1939  and  for  which a deduction was previously
10             taken under subparagraph (L) of this  paragraph  (2)
11             prior to July 1, 1991, the retrospective application
12             date  of Article 4 of Public Act 87-17.  In the case
13             of  multi-unit  or  multi-use  structures  and  farm
14             dwellings, the taxes  on  the  taxpayer's  principal
15             residence  shall  be that portion of the total taxes
16             for the entire property  which  is  attributable  to
17             such principal residence;
18                  (D)  An  amount  equal  to  the  amount  of the
19             capital gain deduction allowable under the  Internal
20             Revenue  Code,  to  the  extent  deducted from gross
21             income in the computation of adjusted gross  income;
22             and
23                  (D-5)  An amount, to the extent not included in
24             adjusted  gross income, equal to the amount of money
25             withdrawn by the taxpayer in the taxable year from a
26             medical care savings account and the interest earned
27             on the account in the taxable year of  a  withdrawal
28             pursuant  to  subsection  (b)  of  Section 20 of the
29             Medical Care Savings Account Act;
30        and by deducting from the total so obtained  the  sum  of
31        the following amounts:
32                  (E)  Any  amount  included  in  such  total  in
33             respect  of  any  compensation  (including  but  not
34             limited  to  any  compensation  paid or accrued to a
                            -22-           LRB9002758THdvam02
 1             serviceman while a prisoner of  war  or  missing  in
 2             action)  paid  to  a  resident by reason of being on
 3             active duty in the Armed Forces of the United States
 4             and in respect of any compensation paid  or  accrued
 5             to  a  resident who as a governmental employee was a
 6             prisoner of war or missing in action, and in respect
 7             of any compensation paid to a resident  in  1971  or
 8             thereafter for annual training performed pursuant to
 9             Sections  502  and 503, Title 32, United States Code
10             as a member of the Illinois National Guard;
11                  (F)  An amount equal to all amounts included in
12             such total pursuant to the  provisions  of  Sections
13             402(a),  402(c), 403(a), 403(b), 406(a), 407(a), and
14             408 of the Internal Revenue  Code,  or  included  in
15             such  total as distributions under the provisions of
16             any retirement or disability plan for  employees  of
17             any  governmental  agency  or  unit,  or  retirement
18             payments  to  retired  partners,  which payments are
19             excluded  in  computing  net  earnings   from   self
20             employment  by  Section 1402 of the Internal Revenue
21             Code and regulations adopted pursuant thereto;
22                  (G)  The valuation limitation amount;
23                  (H)  An amount equal to the amount of  any  tax
24             imposed  by  this  Act  which  was  refunded  to the
25             taxpayer and included in such total for the  taxable
26             year;
27                  (I)  An amount equal to all amounts included in
28             such total pursuant to the provisions of Section 111
29             of  the Internal Revenue Code as a recovery of items
30             previously deducted from adjusted  gross  income  in
31             the computation of taxable income;
32                  (J)  An   amount   equal   to  those  dividends
33             included  in  such  total  which  were  paid  by   a
34             corporation which conducts business operations in an
                            -23-           LRB9002758THdvam02
 1             Enterprise  Zone or zones created under the Illinois
 2             Enterprise Zone Act, and conducts substantially  all
 3             of its operations in an Enterprise Zone or zones;
 4                  (K)  An   amount   equal   to  those  dividends
 5             included  in  such  total  that  were  paid   by   a
 6             corporation  that  conducts business operations in a
 7             federally designated Foreign Trade Zone or  Sub-Zone
 8             and  that  is  designated  a  High  Impact  Business
 9             located   in   Illinois;   provided  that  dividends
10             eligible for the deduction provided in  subparagraph
11             (J) of paragraph (2) of this subsection shall not be
12             eligible  for  the  deduction  provided  under  this
13             subparagraph (K);
14                  (L)  For  taxable  years  ending after December
15             31, 1983, an amount equal  to  all  social  security
16             benefits  and  railroad retirement benefits included
17             in such total pursuant to Sections 72(r) and  86  of
18             the Internal Revenue Code;
19                  (M)  With   the   exception   of   any  amounts
20             subtracted under subparagraph (N), an  amount  equal
21             to  the  sum of all amounts disallowed as deductions
22             by Sections 171(a) (2), and 265(2) of  the  Internal
23             Revenue  Code  of 1954, as now or hereafter amended,
24             and all amounts of expenses  allocable  to  interest
25             and   disallowed  as deductions by Section 265(1) of
26             the  Internal  Revenue  Code  of  1954,  as  now  or
27             hereafter amended;
28                  (N)  An amount equal to all amounts included in
29             such total which are exempt from  taxation  by  this
30             State   either   by   reason   of  its  statutes  or
31             Constitution  or  by  reason  of  the  Constitution,
32             treaties or statutes of the United States;  provided
33             that,  in the case of any statute of this State that
34             exempts  income  derived   from   bonds   or   other
                            -24-           LRB9002758THdvam02
 1             obligations from the tax imposed under this Act, the
 2             amount  exempted  shall  be the interest net of bond
 3             premium amortization;
 4                  (O)  An amount equal to any  contribution  made
 5             to  a  job  training project established pursuant to
 6             the Tax Increment Allocation Redevelopment Act;
 7                  (P)  An amount  equal  to  the  amount  of  the
 8             deduction  used  to  compute  the federal income tax
 9             credit for restoration of substantial  amounts  held
10             under  claim  of right for the taxable year pursuant
11             to Section 1341 of  the  Internal  Revenue  Code  of
12             1986;
13                  (Q)  An amount equal to any amounts included in
14             such   total,   received   by  the  taxpayer  as  an
15             acceleration in the payment of  life,  endowment  or
16             annuity  benefits  in advance of the time they would
17             otherwise be payable as an indemnity for a  terminal
18             illness;
19                  (R)  An  amount  equal  to  the  amount  of any
20             federal or State  bonus  paid  to  veterans  of  the
21             Persian Gulf War;
22                  (S)  An  amount,  to  the  extent  included  in
23             adjusted  gross  income,  equal  to  the amount of a
24             contribution made in the taxable year on  behalf  of
25             the  taxpayer  to  a  medical  care  savings account
26             established under the Medical Care  Savings  Account
27             Act  to  the  extent the contribution is accepted by
28             the account administrator as provided in that Act;
29                  (T)  An  amount,  to  the  extent  included  in
30             adjusted  gross  income,  equal  to  the  amount  of
31             interest earned in the taxable  year  on  a  medical
32             care  savings  account established under the Medical
33             Care Savings Account Act on behalf of the  taxpayer,
34             other  than interest added pursuant to item (D-5) of
                            -25-           LRB9002758THdvam02
 1             this paragraph (2);
 2                  (U)  For one taxable year beginning on or after
 3             January 1, 1994, an amount equal to the total amount
 4             of tax imposed and paid under  subsections  (a)  and
 5             (b)  of  Section  201  of  this Act on grant amounts
 6             received by the  taxpayer  under  the  Nursing  Home
 7             Grant  Assistance  Act during the taxpayer's taxable
 8             years 1992 and 1993; and
 9                  (V)  Beginning with  tax  years  ending  on  or
10             after  December  31,  1995 and ending with tax years
11             ending on or before December  31,  1999,  an  amount
12             equal  to  the  amount  paid  by a taxpayer who is a
13             self-employed taxpayer, a partner of a  partnership,
14             or  a  shareholder in a Subchapter S corporation for
15             health insurance or  long-term  care  insurance  for
16             that   taxpayer   or   that   taxpayer's  spouse  or
17             dependents, to the extent that the amount  paid  for
18             that  health  insurance  or long-term care insurance
19             may be deducted under Section 213  of  the  Internal
20             Revenue  Code  of 1986, has not been deducted on the
21             federal income tax return of the taxpayer, and  does
22             not  exceed  the taxable income attributable to that
23             taxpayer's  income,   self-employment   income,   or
24             Subchapter  S  corporation  income;  except  that no
25             deduction shall be allowed under this  item  (V)  if
26             the  taxpayer  is  eligible  to  participate  in any
27             health insurance or long-term care insurance plan of
28             an  employer  of  the  taxpayer  or  the  taxpayer's
29             spouse.  The amount  of  the  health  insurance  and
30             long-term  care insurance subtracted under this item
31             (V) shall be determined by multiplying total  health
32             insurance and long-term care insurance premiums paid
33             by  the  taxpayer times a number that represents the
34             fractional percentage of eligible  medical  expenses
                            -26-           LRB9002758THdvam02
 1             under  Section  213  of the Internal Revenue Code of
 2             1986 not actually deducted on the taxpayer's federal
 3             income tax return; and.
 4                  (W)  Beginning with  tax  years  ending  on  or
 5             after  December  31,  1997 and ending with tax years
 6             ending on or before December 31,  2001,  an  amount,
 7             not  to  exceed  $1,200,  equal  to 15% of the total
 8             amount of rent paid by the taxpayer during the  year
 9             for   the   principal  place  of  residence  of  the
10             taxpayer.
11        (b)  Corporations.
12             (1)  In general.  In the case of a corporation, base
13        income means an amount equal to  the  taxpayer's  taxable
14        income for the taxable year as modified by paragraph (2).
15             (2)  Modifications.   The taxable income referred to
16        in paragraph (1) shall be modified by adding thereto  the
17        sum of the following amounts:
18                  (A)  An  amount  equal  to  all amounts paid or
19             accrued  to  the  taxpayer  as  interest   and   all
20             distributions  received  from  regulated  investment
21             companies  during  the  taxable  year  to the extent
22             excluded from gross income  in  the  computation  of
23             taxable income;
24                  (B)  An  amount  equal  to  the  amount  of tax
25             imposed by this Act  to  the  extent  deducted  from
26             gross  income  in  the computation of taxable income
27             for the taxable year;
28                  (C)  In the  case  of  a  regulated  investment
29             company  or  real estate investment trust, an amount
30             equal to the excess of (i) the net long-term capital
31             gain for the taxable year, over (ii) the  amount  of
32             the  capital  gain  dividends  designated as such in
33             accordance  with  Section  852(b)(3)(C)  or  Section
34             857(b)(3)(C) of the Internal Revenue  Code  and  any
                            -27-           LRB9002758THdvam02
 1             amount  designated under Section 852(b)(3)(D) of the
 2             Internal Revenue Code, attributable to  the  taxable
 3             year.
 4        This  amendatory  Act  of 1995 is declarative of existing
 5    law and is not a new enactment.
 6                  (D)  The  amount  of  any  net  operating  loss
 7             deduction taken in arriving at taxable income, other
 8             than a net operating loss  carried  forward  from  a
 9             taxable year ending prior to December 31, 1986; and
10                  (E)  For taxable years in which a net operating
11             loss  carryback  or carryforward from a taxable year
12             ending prior to December 31, 1986 is an  element  of
13             taxable income under paragraph (1) of subsection (e)
14             or  subparagraph  (E) of paragraph (2) of subsection
15             (e), the  amount  by  which  addition  modifications
16             other  than  those provided by this subparagraph (E)
17             exceeded subtraction modifications in  such  earlier
18             taxable year, with the following limitations applied
19             in the order that they are listed:
20                       (i)  the addition modification relating to
21                  the  net operating loss carried back or forward
22                  to the  taxable  year  from  any  taxable  year
23                  ending  prior  to  December  31,  1986 shall be
24                  reduced by the amount of addition  modification
25                  under  this  subparagraph  (E) which related to
26                  that net operating loss  and  which  was  taken
27                  into  account in calculating the base income of
28                  an earlier taxable year, and
29                       (ii)  the addition  modification  relating
30                  to  the  net  operating  loss  carried  back or
31                  forward to the taxable year  from  any  taxable
32                  year  ending  prior  to December 31, 1986 shall
33                  not exceed the  amount  of  such  carryback  or
34                  carryforward;
                            -28-           LRB9002758THdvam02
 1                  For  taxable  years  in  which  there  is a net
 2             operating loss carryback or carryforward  from  more
 3             than one other taxable year ending prior to December
 4             31, 1986, the addition modification provided in this
 5             subparagraph  (E)  shall  be  the sum of the amounts
 6             computed   independently   under    the    preceding
 7             provisions  of  this  subparagraph (E) for each such
 8             taxable year,
 9        and by deducting from the total so obtained  the  sum  of
10        the following amounts:
11                  (F)  An  amount  equal to the amount of any tax
12             imposed by  this  Act  which  was  refunded  to  the
13             taxpayer  and included in such total for the taxable
14             year;
15                  (G)  An amount equal to any amount included  in
16             such  total under Section 78 of the Internal Revenue
17             Code;
18                  (H)  In the  case  of  a  regulated  investment
19             company,  an  amount  equal  to the amount of exempt
20             interest dividends as defined in subsection (b)  (5)
21             of Section 852 of the Internal Revenue Code, paid to
22             shareholders for the taxable year;
23                  (I)  With   the   exception   of   any  amounts
24             subtracted under subparagraph (J), an  amount  equal
25             to  the  sum of all amounts disallowed as deductions
26             by Sections 171(a) (2), and  265(a)(2)  and  amounts
27             disallowed  as interest expense by Section 291(a)(3)
28             of the Internal Revenue Code, as  now  or  hereafter
29             amended,  and  all  amounts of expenses allocable to
30             interest and disallowed  as  deductions  by  Section
31             265(a)(1)  of  the  Internal Revenue Code, as now or
32             hereafter amended;
33                  (J)  An amount equal to all amounts included in
34             such total which are exempt from  taxation  by  this
                            -29-           LRB9002758THdvam02
 1             State   either   by   reason   of  its  statutes  or
 2             Constitution  or  by  reason  of  the  Constitution,
 3             treaties or statutes of the United States;  provided
 4             that,  in the case of any statute of this State that
 5             exempts  income  derived   from   bonds   or   other
 6             obligations from the tax imposed under this Act, the
 7             amount  exempted  shall  be the interest net of bond
 8             premium amortization;
 9                  (K)  An  amount  equal   to   those   dividends
10             included   in  such  total  which  were  paid  by  a
11             corporation which conducts business operations in an
12             Enterprise Zone or zones created under the  Illinois
13             Enterprise  Zone  Act and conducts substantially all
14             of its operations in an Enterprise Zone or zones;
15                  (L)  An  amount  equal   to   those   dividends
16             included   in   such  total  that  were  paid  by  a
17             corporation that conducts business operations  in  a
18             federally  designated Foreign Trade Zone or Sub-Zone
19             and  that  is  designated  a  High  Impact  Business
20             located  in  Illinois;   provided   that   dividends
21             eligible  for the deduction provided in subparagraph
22             (K) of paragraph 2 of this subsection shall  not  be
23             eligible  for  the  deduction  provided  under  this
24             subparagraph (L);
25                  (M)  For  any  taxpayer  that  is  a  financial
26             organization within the meaning of Section 304(c) of
27             this  Act,  an  amount  included  in  such  total as
28             interest income from a loan or loans  made  by  such
29             taxpayer  to  a  borrower, to the extent that such a
30             loan is secured by property which  is  eligible  for
31             the  Enterprise Zone Investment Credit. To determine
32             the portion of a loan or loans that  is  secured  by
33             property  eligible  for  a Section 201(h) investment
34             credit to the borrower, the entire principal  amount
                            -30-           LRB9002758THdvam02
 1             of  the  loan  or loans between the taxpayer and the
 2             borrower should be divided into  the  basis  of  the
 3             Section  201(h)  investment  credit  property  which
 4             secures  the  loan  or loans, using for this purpose
 5             the original basis of such property on the date that
 6             it was placed in service  in  the  Enterprise  Zone.
 7             The  subtraction  modification available to taxpayer
 8             in any year under  this  subsection  shall  be  that
 9             portion  of  the total interest paid by the borrower
10             with  respect  to  such  loan  attributable  to  the
11             eligible property as calculated under  the  previous
12             sentence;
13                  (M-1)  For  any  taxpayer  that  is a financial
14             organization within the meaning of Section 304(c) of
15             this Act,  an  amount  included  in  such  total  as
16             interest  income  from  a loan or loans made by such
17             taxpayer to a borrower, to the extent  that  such  a
18             loan  is  secured  by property which is eligible for
19             the High  Impact  Business  Investment  Credit.   To
20             determine  the  portion  of  a loan or loans that is
21             secured by property eligible for  a  Section  201(i)
22             investment   credit  to  the  borrower,  the  entire
23             principal amount of the loan or  loans  between  the
24             taxpayer and the borrower should be divided into the
25             basis   of  the  Section  201(i)  investment  credit
26             property which secures the loan or loans, using  for
27             this  purpose the original basis of such property on
28             the  date  that  it  was  placed  in  service  in  a
29             federally designated Foreign Trade Zone or  Sub-Zone
30             located  in  Illinois.  No taxpayer that is eligible
31             for the deduction provided in  subparagraph  (M)  of
32             paragraph  (2)  of this subsection shall be eligible
33             for the deduction provided under  this  subparagraph
34             (M-1).   The  subtraction  modification available to
                            -31-           LRB9002758THdvam02
 1             taxpayers in any year under this subsection shall be
 2             that portion of  the  total  interest  paid  by  the
 3             borrower  with  respect to such loan attributable to
 4             the  eligible  property  as  calculated  under   the
 5             previous sentence;
 6                  (N)  Two times any contribution made during the
 7             taxable  year  to  a designated zone organization to
 8             the extent that the contribution (i) qualifies as  a
 9             charitable  contribution  under  subsection  (c)  of
10             Section  170  of  the Internal Revenue Code and (ii)
11             must, by its terms, be used for a  project  approved
12             by  the Department of Commerce and Community Affairs
13             under Section 11 of  the  Illinois  Enterprise  Zone
14             Act;
15                  (O)  An  amount  equal  to: (i) 85% for taxable
16             years ending on or before December 31, 1992,  or,  a
17             percentage  equal  to the percentage allowable under
18             Section 243(a)(1) of the Internal  Revenue  Code  of
19             1986  for  taxable  years  ending after December 31,
20             1992, of the amount by which dividends  included  in
21             taxable  income and received from a corporation that
22             is not created or organized under the  laws  of  the
23             United  States or any state or political subdivision
24             thereof, including, for taxable years ending  on  or
25             after  December  31,  1988,  dividends  received  or
26             deemed   received  or  paid  or  deemed  paid  under
27             Sections 951 through 964  of  the  Internal  Revenue
28             Code, exceed the amount of the modification provided
29             under  subparagraph  (G)  of  paragraph  (2) of this
30             subsection (b) which is related to  such  dividends;
31             plus  (ii)  100%  of  the amount by which dividends,
32             included in taxable income and received,  including,
33             for  taxable  years  ending on or after December 31,
34             1988, dividends received or deemed received or  paid
                            -32-           LRB9002758THdvam02
 1             or deemed paid under Sections 951 through 964 of the
 2             Internal  Revenue  Code,  from  any such corporation
 3             specified in clause  (i)  that  would  but  for  the
 4             provisions  of  Section 1504 (b) (3) of the Internal
 5             Revenue  Code  be  treated  as  a  member   of   the
 6             affiliated   group   which   includes  the  dividend
 7             recipient, exceed the  amount  of  the  modification
 8             provided  under subparagraph (G) of paragraph (2) of
 9             this  subsection  (b)  which  is  related  to   such
10             dividends;
11                  (P)  An  amount  equal to any contribution made
12             to a job training project  established  pursuant  to
13             the Tax Increment Allocation Redevelopment Act; and
14                  (Q)  An  amount  equal  to  the  amount  of the
15             deduction used to compute  the  federal  income  tax
16             credit  for  restoration of substantial amounts held
17             under claim of right for the taxable  year  pursuant
18             to  Section  1341  of  the  Internal Revenue Code of
19             1986.
20             (3)  Special rule.  For purposes  of  paragraph  (2)
21        (A),  "gross  income"  in  the  case  of a life insurance
22        company, for tax years ending on and after  December  31,
23        1994,  shall  mean  the  gross  investment income for the
24        taxable year.
25        (c)  Trusts and estates.
26             (1)  In general.  In the case of a trust or  estate,
27        base  income  means  an  amount  equal  to the taxpayer's
28        taxable income  for  the  taxable  year  as  modified  by
29        paragraph (2).
30             (2)  Modifications.   Subject  to  the provisions of
31        paragraph  (3),  the  taxable  income  referred   to   in
32        paragraph (1) shall be modified by adding thereto the sum
33        of the following amounts:
34                  (A)  An  amount  equal  to  all amounts paid or
                            -33-           LRB9002758THdvam02
 1             accrued to the taxpayer  as  interest  or  dividends
 2             during  the taxable year to the extent excluded from
 3             gross income in the computation of taxable income;
 4                  (B)  In the case of (i) an estate, $600; (ii) a
 5             trust which,  under  its  governing  instrument,  is
 6             required  to distribute all of its income currently,
 7             $300; and (iii) any other trust, $100, but  in  each
 8             such  case,  only  to  the  extent  such  amount was
 9             deducted in the computation of taxable income;
10                  (C)  An amount  equal  to  the  amount  of  tax
11             imposed  by  this  Act  to  the extent deducted from
12             gross income in the computation  of  taxable  income
13             for the taxable year;
14                  (D)  The  amount  of  any  net  operating  loss
15             deduction taken in arriving at taxable income, other
16             than  a  net  operating  loss carried forward from a
17             taxable year ending prior to December 31, 1986;
18                  (E)  For taxable years in which a net operating
19             loss carryback or carryforward from a  taxable  year
20             ending  prior  to December 31, 1986 is an element of
21             taxable income under paragraph (1) of subsection (e)
22             or subparagraph (E) of paragraph (2)  of  subsection
23             (e),  the  amount  by  which  addition modifications
24             other than those provided by this  subparagraph  (E)
25             exceeded  subtraction  modifications in such taxable
26             year, with the following limitations applied in  the
27             order that they are listed:
28                       (i)  the addition modification relating to
29                  the  net operating loss carried back or forward
30                  to the  taxable  year  from  any  taxable  year
31                  ending  prior  to  December  31,  1986 shall be
32                  reduced by the amount of addition  modification
33                  under  this  subparagraph  (E) which related to
34                  that net operating loss  and  which  was  taken
                            -34-           LRB9002758THdvam02
 1                  into  account in calculating the base income of
 2                  an earlier taxable year, and
 3                       (ii)  the addition  modification  relating
 4                  to  the  net  operating  loss  carried  back or
 5                  forward to the taxable year  from  any  taxable
 6                  year  ending  prior  to December 31, 1986 shall
 7                  not exceed the  amount  of  such  carryback  or
 8                  carryforward;
 9                  For  taxable  years  in  which  there  is a net
10             operating loss carryback or carryforward  from  more
11             than one other taxable year ending prior to December
12             31, 1986, the addition modification provided in this
13             subparagraph  (E)  shall  be  the sum of the amounts
14             computed   independently   under    the    preceding
15             provisions  of  this  subparagraph (E) for each such
16             taxable year;
17                  (F)  For  taxable  years  ending  on  or  after
18             January 1, 1989, an amount equal to the tax deducted
19             pursuant to Section 164 of the Internal Revenue Code
20             if the trust or estate is claiming the same tax  for
21             purposes  of  the  Illinois foreign tax credit under
22             Section 601 of this Act; and
23                  (G)  An amount  equal  to  the  amount  of  the
24             capital  gain deduction allowable under the Internal
25             Revenue Code, to  the  extent  deducted  from  gross
26             income in the computation of taxable income;
27        and  by  deducting  from the total so obtained the sum of
28        the following amounts:
29                  (H)  An amount equal to all amounts included in
30             such total pursuant to the  provisions  of  Sections
31             402(a),  402(c),  403(a), 403(b), 406(a), 407(a) and
32             408 of the Internal Revenue Code or included in such
33             total as distributions under the provisions  of  any
34             retirement  or  disability plan for employees of any
                            -35-           LRB9002758THdvam02
 1             governmental agency or unit, or retirement  payments
 2             to  retired partners, which payments are excluded in
 3             computing  net  earnings  from  self  employment  by
 4             Section  1402  of  the  Internal  Revenue  Code  and
 5             regulations adopted pursuant thereto;
 6                  (I)  The valuation limitation amount;
 7                  (J)  An amount equal to the amount of  any  tax
 8             imposed  by  this  Act  which  was  refunded  to the
 9             taxpayer and included in such total for the  taxable
10             year;
11                  (K)  An amount equal to all amounts included in
12             taxable  income  as  modified  by subparagraphs (A),
13             (B), (C), (D), (E), (F) and  (G)  which  are  exempt
14             from  taxation by this State either by reason of its
15             statutes  or  Constitution  or  by  reason  of   the
16             Constitution,  treaties  or  statutes  of the United
17             States; provided that, in the case of any statute of
18             this State that exempts income derived from bonds or
19             other obligations from the tax  imposed  under  this
20             Act,  the  amount exempted shall be the interest net
21             of bond premium amortization;
22                  (L)  With  the   exception   of   any   amounts
23             subtracted  under  subparagraph (K), an amount equal
24             to the sum of all amounts disallowed  as  deductions
25             by Sections 171(a) (2) and 265(a)(2) of the Internal
26             Revenue  Code,  as now or hereafter amended, and all
27             amounts  of  expenses  allocable  to  interest   and
28             disallowed  as  deductions  by Section 265(1) of the
29             Internal Revenue Code of 1954, as now  or  hereafter
30             amended;
31                  (M)  An   amount   equal   to  those  dividends
32             included  in  such  total  which  were  paid  by   a
33             corporation which conducts business operations in an
34             Enterprise  Zone or zones created under the Illinois
                            -36-           LRB9002758THdvam02
 1             Enterprise Zone Act and conducts  substantially  all
 2             of its operations in an Enterprise Zone or Zones;
 3                  (N)  An  amount  equal to any contribution made
 4             to a job training project  established  pursuant  to
 5             the Tax Increment Allocation Redevelopment Act;
 6                  (O)  An   amount   equal   to  those  dividends
 7             included  in  such  total  that  were  paid   by   a
 8             corporation  that  conducts business operations in a
 9             federally designated Foreign Trade Zone or  Sub-Zone
10             and  that  is  designated  a  High  Impact  Business
11             located   in   Illinois;   provided  that  dividends
12             eligible for the deduction provided in  subparagraph
13             (M) of paragraph (2) of this subsection shall not be
14             eligible  for  the  deduction  provided  under  this
15             subparagraph (O); and
16                  (P)  An  amount  equal  to  the  amount  of the
17             deduction used to compute  the  federal  income  tax
18             credit  for  restoration of substantial amounts held
19             under claim of right for the taxable  year  pursuant
20             to  Section  1341  of  the  Internal Revenue Code of
21             1986.
22             (3)  Limitation.  The  amount  of  any  modification
23        otherwise  required  under  this  subsection shall, under
24        regulations prescribed by the Department, be adjusted  by
25        any  amounts  included  therein which were properly paid,
26        credited, or required to be distributed,  or  permanently
27        set  aside  for charitable purposes pursuant  to Internal
28        Revenue Code Section 642(c) during the taxable year.
29        (d)  Partnerships.
30             (1)  In general. In the case of a partnership,  base
31        income  means  an  amount equal to the taxpayer's taxable
32        income for the taxable year as modified by paragraph (2).
33             (2)  Modifications. The taxable income  referred  to
34        in  paragraph (1) shall be modified by adding thereto the
                            -37-           LRB9002758THdvam02
 1        sum of the following amounts:
 2                  (A)  An amount equal to  all  amounts  paid  or
 3             accrued  to  the  taxpayer  as interest or dividends
 4             during the taxable year to the extent excluded  from
 5             gross income in the computation of taxable income;
 6                  (B)  An  amount  equal  to  the  amount  of tax
 7             imposed by this Act  to  the  extent  deducted  from
 8             gross income for the taxable year; and
 9                  (C)  The  amount  of  deductions allowed to the
10             partnership pursuant  to  Section  707  (c)  of  the
11             Internal  Revenue  Code  in  calculating its taxable
12             income;
13                  (D)  An amount  equal  to  the  amount  of  the
14             capital  gain deduction allowable under the Internal
15             Revenue Code, to  the  extent  deducted  from  gross
16             income in the computation of taxable income;
17        and by deducting from the total so obtained the following
18        amounts:
19                  (E)  The valuation limitation amount;
20                  (F)  An  amount  equal to the amount of any tax
21             imposed by  this  Act  which  was  refunded  to  the
22             taxpayer  and included in such total for the taxable
23             year;
24                  (G)  An amount equal to all amounts included in
25             taxable income as  modified  by  subparagraphs  (A),
26             (B),  (C)  and (D) which are exempt from taxation by
27             this State either  by  reason  of  its  statutes  or
28             Constitution  or  by  reason  of  the  Constitution,
29             treaties  or statutes of the United States; provided
30             that, in the case of any statute of this State  that
31             exempts   income   derived   from   bonds  or  other
32             obligations from the tax imposed under this Act, the
33             amount exempted shall be the interest  net  of  bond
34             premium amortization;
                            -38-           LRB9002758THdvam02
 1                  (H)  Any   income   of  the  partnership  which
 2             constitutes personal service income  as  defined  in
 3             Section  1348  (b)  (1) of the Internal Revenue Code
 4             (as in effect December 31,  1981)  or  a  reasonable
 5             allowance  for  compensation  paid  or  accrued  for
 6             services  rendered  by  partners to the partnership,
 7             whichever is greater;
 8                  (I)  An amount equal to all amounts  of  income
 9             distributable  to  an entity subject to the Personal
10             Property  Tax  Replacement  Income  Tax  imposed  by
11             subsections (c) and (d) of Section 201 of  this  Act
12             including  amounts  distributable  to  organizations
13             exempt  from federal income tax by reason of Section
14             501(a) of the Internal Revenue Code;
15                  (J)  With  the   exception   of   any   amounts
16             subtracted  under  subparagraph (G), an amount equal
17             to the sum of all amounts disallowed  as  deductions
18             by  Sections  171(a) (2), and 265(2) of the Internal
19             Revenue Code of 1954, as now or  hereafter  amended,
20             and  all  amounts  of expenses allocable to interest
21             and disallowed as deductions by  Section  265(1)  of
22             the  Internal  Revenue  Code,  as  now  or hereafter
23             amended;
24                  (K)  An  amount  equal   to   those   dividends
25             included   in  such  total  which  were  paid  by  a
26             corporation which conducts business operations in an
27             Enterprise Zone or zones created under the  Illinois
28             Enterprise  Zone  Act,  enacted  by the 82nd General
29             Assembly, and which does not conduct such operations
30             other than in an Enterprise Zone or Zones;
31                  (L)  An amount equal to any  contribution  made
32             to  a  job  training project established pursuant to
33             the   Real   Property   Tax   Increment   Allocation
34             Redevelopment Act;
                            -39-           LRB9002758THdvam02
 1                  (M)  An  amount  equal   to   those   dividends
 2             included   in   such  total  that  were  paid  by  a
 3             corporation that conducts business operations  in  a
 4             federally  designated Foreign Trade Zone or Sub-Zone
 5             and  that  is  designated  a  High  Impact  Business
 6             located  in  Illinois;   provided   that   dividends
 7             eligible  for the deduction provided in subparagraph
 8             (K) of paragraph (2) of this subsection shall not be
 9             eligible  for  the  deduction  provided  under  this
10             subparagraph (M); and
11                  (N)  An amount  equal  to  the  amount  of  the
12             deduction  used  to  compute  the federal income tax
13             credit for restoration of substantial  amounts  held
14             under  claim  of right for the taxable year pursuant
15             to Section 1341 of  the  Internal  Revenue  Code  of
16             1986.
17        (e)  Gross income; adjusted gross income; taxable income.
18             (1)  In  general.   Subject  to  the  provisions  of
19        paragraph  (2)  and  subsection  (b) (3), for purposes of
20        this Section  and  Section  803(e),  a  taxpayer's  gross
21        income,  adjusted gross income, or taxable income for the
22        taxable year shall  mean  the  amount  of  gross  income,
23        adjusted   gross   income   or  taxable  income  properly
24        reportable  for  federal  income  tax  purposes  for  the
25        taxable year under the provisions of the Internal Revenue
26        Code. Taxable income may be less than zero. However,  for
27        taxable  years  ending on or after December 31, 1986, net
28        operating loss carryforwards from  taxable  years  ending
29        prior  to  December  31,  1986, may not exceed the sum of
30        federal taxable income for the taxable  year  before  net
31        operating  loss  deduction,  plus  the excess of addition
32        modifications  over  subtraction  modifications  for  the
33        taxable year.  For taxable years ending prior to December
34        31, 1986, taxable income may never be an amount in excess
                            -40-           LRB9002758THdvam02
 1        of the net operating loss for the taxable year as defined
 2        in subsections (c) and (d) of Section 172 of the Internal
 3        Revenue Code, provided that  when  taxable  income  of  a
 4        corporation  (other  than  a  Subchapter  S corporation),
 5        trust,  or  estate  is  less  than  zero   and   addition
 6        modifications,  other than those provided by subparagraph
 7        (E) of paragraph (2) of subsection (b)  for  corporations
 8        or  subparagraph  (E)  of paragraph (2) of subsection (c)
 9        for trusts and estates, exceed subtraction modifications,
10        an  addition  modification  must  be  made  under   those
11        subparagraphs  for  any  other  taxable year to which the
12        taxable income less than zero  (net  operating  loss)  is
13        applied under Section 172 of the Internal Revenue Code or
14        under   subparagraph   (E)   of  paragraph  (2)  of  this
15        subsection (e) applied in conjunction with Section 172 of
16        the Internal Revenue Code.
17             (2)  Special rule.  For purposes of paragraph (1) of
18        this subsection, the taxable income  properly  reportable
19        for federal income tax purposes shall mean:
20                  (A)  Certain  life insurance companies.  In the
21             case of a life insurance company subject to the  tax
22             imposed by Section 801 of the Internal Revenue Code,
23             life  insurance  company  taxable  income,  plus the
24             amount of distribution  from  pre-1984  policyholder
25             surplus accounts as calculated under Section 815a of
26             the Internal Revenue Code;
27                  (B)  Certain other insurance companies.  In the
28             case  of  mutual  insurance companies subject to the
29             tax imposed by Section 831 of the  Internal  Revenue
30             Code, insurance company taxable income;
31                  (C)  Regulated  investment  companies.   In the
32             case of a regulated investment  company  subject  to
33             the  tax  imposed  by  Section  852  of the Internal
34             Revenue Code, investment company taxable income;
                            -41-           LRB9002758THdvam02
 1                  (D)  Real estate  investment  trusts.   In  the
 2             case  of  a  real estate investment trust subject to
 3             the tax imposed  by  Section  857  of  the  Internal
 4             Revenue  Code,  real estate investment trust taxable
 5             income;
 6                  (E)  Consolidated corporations.  In the case of
 7             a corporation which is a  member  of  an  affiliated
 8             group  of  corporations filing a consolidated income
 9             tax return for the taxable year for  federal  income
10             tax  purposes,  taxable income determined as if such
11             corporation had filed a separate return for  federal
12             income  tax  purposes  for the taxable year and each
13             preceding taxable year for which it was a member  of
14             an   affiliated   group.   For   purposes   of  this
15             subparagraph, the taxpayer's separate taxable income
16             shall be determined as if the election  provided  by
17             Section  243(b) (2) of the Internal Revenue Code had
18             been in effect for all such years;
19                  (F)  Cooperatives.    In   the   case   of    a
20             cooperative  corporation or association, the taxable
21             income of such organization determined in accordance
22             with the provisions of Section 1381 through 1388  of
23             the Internal Revenue Code;
24                  (G)  Subchapter  S  corporations.   In the case
25             of: (i) a Subchapter S corporation for  which  there
26             is  in effect an election for the taxable year under
27             Section 1362  of  the  Internal  Revenue  Code,  the
28             taxable  income  of  such  corporation determined in
29             accordance with  Section  1363(b)  of  the  Internal
30             Revenue  Code, except that taxable income shall take
31             into account  those  items  which  are  required  by
32             Section  1363(b)(1)  of the Internal Revenue Code to
33             be  separately  stated;  and  (ii)  a  Subchapter  S
34             corporation for which there is in effect  a  federal
                            -42-           LRB9002758THdvam02
 1             election  to  opt  out  of  the  provisions  of  the
 2             Subchapter  S  Revision Act of 1982 and have applied
 3             instead the prior federal Subchapter S rules  as  in
 4             effect  on  July 1, 1982, the taxable income of such
 5             corporation  determined  in  accordance   with   the
 6             federal  Subchapter  S rules as in effect on July 1,
 7             1982; and
 8                  (H)  Partnerships.    In   the   case   of    a
 9             partnership, taxable income determined in accordance
10             with  Section  703  of  the  Internal  Revenue Code,
11             except that taxable income shall take  into  account
12             those  items which are required by Section 703(a)(1)
13             to be separately stated but  which  would  be  taken
14             into  account  by  an  individual in calculating his
15             taxable income.
16        (f)  Valuation limitation amount.
17             (1)  In general.  The  valuation  limitation  amount
18        referred  to  in subsections (a) (2) (G), (c) (2) (I) and
19        (d)(2) (E) is an amount equal to:
20                  (A)  The  sum  of  the   pre-August   1,   1969
21             appreciation  amounts  (to  the extent consisting of
22             gain reportable under the provisions of Section 1245
23             or 1250  of  the  Internal  Revenue  Code)  for  all
24             property  in respect of which such gain was reported
25             for the taxable year; plus
26                  (B)  The  lesser  of  (i)  the   sum   of   the
27             pre-August  1,  1969  appreciation  amounts  (to the
28             extent consisting of capital gain) for all  property
29             in  respect  of  which  such  gain  was reported for
30             federal income tax purposes for the taxable year, or
31             (ii) the net capital  gain  for  the  taxable  year,
32             reduced  in  either  case by any amount of such gain
33             included in the amount determined  under  subsection
34             (a) (2) (F) or (c) (2) (H).
                            -43-           LRB9002758THdvam02
 1        (2)  Pre-August 1, 1969 appreciation amount.
 2                  (A)  If  the  fair  market  value  of  property
 3             referred   to   in   paragraph   (1)   was   readily
 4             ascertainable  on  August 1, 1969, the pre-August 1,
 5             1969 appreciation amount for such  property  is  the
 6             lesser  of  (i) the excess of such fair market value
 7             over the taxpayer's basis (for determining gain) for
 8             such property on that  date  (determined  under  the
 9             Internal Revenue Code as in effect on that date), or
10             (ii)  the  total  gain  realized  and reportable for
11             federal income tax purposes in respect of the  sale,
12             exchange or other disposition of such property.
13                  (B)  If  the  fair  market  value  of  property
14             referred   to  in  paragraph  (1)  was  not  readily
15             ascertainable on August 1, 1969, the  pre-August  1,
16             1969  appreciation  amount for such property is that
17             amount which bears the same ratio to the total  gain
18             reported  in  respect  of  the  property for federal
19             income tax purposes for the  taxable  year,  as  the
20             number  of  full calendar months in that part of the
21             taxpayer's holding period for  the  property  ending
22             July  31,  1969 bears to the number of full calendar
23             months in the taxpayer's entire holding  period  for
24             the property.
25                  (C)  The   Department   shall   prescribe  such
26             regulations as may be necessary  to  carry  out  the
27             purposes of this paragraph.
28        (g)  Double  deductions.   Unless  specifically  provided
29    otherwise, nothing in this Section shall permit the same item
30    to be deducted more than once.
31        (h)  Legislative intention.  Except as expressly provided
32    by   this   Section   there  shall  be  no  modifications  or
33    limitations on the amounts of income, gain, loss or deduction
34    taken into account  in  determining  gross  income,  adjusted
                            -44-           LRB9002758THdvam02
 1    gross  income  or  taxable  income  for  federal  income  tax
 2    purposes for the taxable year, or in the amount of such items
 3    entering  into  the computation of base income and net income
 4    under this Act for such taxable year, whether in  respect  of
 5    property values as of August 1, 1969 or otherwise.
 6    (Source:  P.A.  88-195;  88-648,  eff.  9-16-94; 88-669, eff.
 7    11-29-94; 88-670, eff. 12-2-94; 89-89, eff. 6-30-95;  89-235,
 8    eff.  8-4-95;  89-418,  eff.  11-15-95; 89-460, eff. 5-24-96;
 9    89-626, eff. 8-9-96.)
10        (35 ILCS 5/202.5 new)
11        Sec. 202.5.  Net income attributable to the period  prior
12    to  July  1,  1997  and net income attributable to the period
13    after June 30, 1997.
14        (a)  In general.  With respect to the taxable year  of  a
15    taxpayer  beginning  prior  to  July 1, 1997 and ending after
16    June 30, 1997, net income for the period after June 30,  1997
17    shall  be  that  amount  which  bears  the  same ratio to the
18    taxpayer's net income for the  entire  taxable  year  as  the
19    number  of days in such year after June 30, 1997 bears to the
20    total number of days in such year, and the net income for the
21    period prior to July 1, 1997 shall be that amount which bears
22    the same ratio to the taxpayer's net income  for  the  entire
23    taxable year as the number of days in such year prior to July
24    1, 1997 bears to the total number of days in such year.
25        (b)  Election  to  attribute  income  and deduction items
26    specifically to the respective portions  of  a  taxable  year
27    prior to July 1, 1997 and after June 30, 1997. In the case of
28    a  taxpayer  with  a  taxable year beginning prior to July 1,
29    1997 and ending after June 30, 1997, the taxpayer may  elect,
30    in  lieu  of  the  procedure established in subsection (a) of
31    this  Section,  to  determine  net  income  on   a   specific
32    accounting basis for the 2 portions of his taxable year:
33             (i)  from  the beginning of the taxable year through
                            -45-           LRB9002758THdvam02
 1        June 30, 1997, and
 2             (ii)  from July 1,  1997  through  the  end  of  the
 3        taxable year.
 4        If  the  taxpayer  elects  specific accounting under this
 5    subsection, there shall be taken into  account  in  computing
 6    base  income  for  each of the 2 portions of the taxable year
 7    only those items earned, received, paid, incurred, or accrued
 8    in each such period.   The  standard  exemption  provided  by
 9    Section  204  shall be divided between the respective periods
10    in amounts which bear the same ratio to the  total  exemption
11    allowable  under  Section  204  (determined without regard to
12    this Section) as the total number of days in each such period
13    bears to the total number of days in the taxable  year.   The
14    election  provided  by  this subsection shall be made in such
15    manner and at such time as the Department  may  by  forms  or
16    regulations  prescribe,  but shall be made not later than the
17    due date (including any extensions thereof) for the filing of
18    the return for the taxable year, and shall be irrevocable.
19        (35 ILCS 5/804) (from Ch. 120, par. 8-804)
20        Sec. 804.  Failure to Pay Estimated Tax.
21        (a)  In general. In case of any underpayment of estimated
22    tax by a taxpayer, except as provided in  subsection  (d)  or
23    (e),  the  taxpayer shall be liable to a penalty in an amount
24    determined at the rate  prescribed  by  Section  3-3  of  the
25    Uniform  Penalty  and  Interest  Act  upon  the amount of the
26    underpayment  (determined  under  subsection  (b))  for  each
27    required installment.
28        (b)  Amount of underpayment. For purposes  of  subsection
29    (a), the amount of the underpayment shall be the excess of:
30             (1)  the  amount  of  the installment which would be
31        required to be paid under subsection (c), over
32             (2)  the amount, if any, of the installment paid  on
33        or before the last date prescribed for payment.
                            -46-           LRB9002758THdvam02
 1        (c)  Amount of Required Installments.
 2             (1)  Amount.
 3                  (A)  In   General.    Except   as  provided  in
 4             paragraph  (2),   the   amount   of   any   required
 5             installment  shall  be  25%  of  the required annual
 6             payment.
 7                  (B)  Required Annual Payment.  For purposes  of
 8             subparagraph (A), the term "required annual payment"
 9             means the lesser of
10                       (i)  90%  of  the  tax shown on the return
11                  for the taxable year, or if no return is filed,
12                  90% of the tax for such year, or
13                       (ii)  100% of the tax shown on the  return
14                  of  the taxpayer for the preceding taxable year
15                  if a return showing a  liability  for  tax  was
16                  filed by the taxpayer for the preceding taxable
17                  year and such preceding year was a taxable year
18                  of 12 months.
19             (2)  Lower  Required  Installment  where  Annualized
20        Income  Installment  is Less Than Amount Determined Under
21        Paragraph (1).
22                  (A)  In General.  In the case of  any  required
23             installment  if  a  taxpayer  establishes  that  the
24             annualized  income  installment  is  less  than  the
25             amount determined under paragraph (1),
26                       (i)  the    amount    of   such   required
27                  installment  shall  be  the  annualized  income
28                  installment, and
29                       (ii)  any   reduction   in   a    required
30                  installment  resulting  from the application of
31                  this  subparagraph  shall  be   recaptured   by
32                  increasing  the  amount  of  the  next required
33                  installment determined under paragraph  (1)  by
34                  the amount of such reduction, and by increasing
                            -47-           LRB9002758THdvam02
 1                  subsequent  required installments to the extent
 2                  that the  reduction  has  not  previously  been
 3                  recaptured under this clause.
 4                  (B)  Determination    of    Annualized   Income
 5             Installment.   In   the   case   of   any   required
 6             installment,  the  annualized  income installment is
 7             the excess, if any, of
 8                       (i)  an amount  equal  to  the  applicable
 9                  percentage  of  the  tax  for  the taxable year
10                  computed by placing on an annualized basis  the
11                  net  income  for  months  in  the  taxable year
12                  ending before the due date for the installment,
13                  over
14                       (ii)  the aggregate amount  of  any  prior
15                  required installments for the taxable year.
16                  (C)  Applicable Percentage.
17             In the case of the following          The applicable
18             required installments:                percentage is:
19             1st ...............................            22.5%
20             2nd ...............................              45%
21             3rd ...............................            67.5%
22             4th ...............................              90%
23                  (D)  Annualized  Net  Income; Individuals.  For
24             individuals,  net  income  shall  be  placed  on  an
25             annualized basis by:
26                       (i)  multiplying by 12, or in the case  of
27                  a  taxable  year of less than 12 months, by the
28                  number of months in the taxable year,  the  net
29                  income  computed without regard to the standard
30                  exemption for the months in  the  taxable  year
31                  ending   before   the   month   in   which  the
32                  installment is required to be paid;
33                       (ii)  dividing the resulting amount by the
34                  number of months in  the  taxable  year  ending
                            -48-           LRB9002758THdvam02
 1                  before the month in which such installment date
 2                  falls; and
 3                       (iii)  deducting   from  such  amount  the
 4                  standard exemption allowable  for  the  taxable
 5                  year,  such standard exemption being determined
 6                  as of the last date prescribed for  payment  of
 7                  the installment.
 8                  (E)  Annualized  Net Income; Corporations.  For
 9             corporations, net  income  shall  be  placed  on  an
10             annualized  basis  by  multiplying by 12 the taxable
11             income
12                       (i)  for the first 3 months of the taxable
13                  year, in the case of the  installment  required
14                  to be paid in the 4th month,
15                       (ii)  for  the  first  3 months or for the
16                  first 5 months of the taxable year, in the case
17                  of the installment required to be paid  in  the
18                  6th month,
19                       (iii)  for  the  first 6 months or for the
20                  first 8 months of the taxable year, in the case
21                  of the installment required to be paid  in  the
22                  9th month, and
23                       (iv)  for  the  first  9 months or for the
24                  first 11 months of the  taxable  year,  in  the
25                  case  of the installment required to be paid in
26                  the 12th month of the taxable year,
27             then dividing the resulting amount by the number  of
28             months  in the taxable year (3, 5, 6, 8, 9, or 11 as
29             the case may be).
30        (d)  Exceptions. Notwithstanding the  provisions  of  the
31    preceding  subsections, the penalty imposed by subsection (a)
32    shall not be imposed if the taxpayer was not required to file
33    an Illinois income tax return for the preceding taxable year,
34    or if the taxpayer has underpaid taxes solely because of  the
                            -49-           LRB9002758THdvam02
 1    increased  rate in effect during the period from July 1, 1997
 2    1989 through December 1997 1989, or, for individuals, if  the
 3    taxpayer  had no tax liability for the preceding taxable year
 4    and such year was a taxable year of 12 months.
 5        (e)  The penalty imposed for  underpayment  of  estimated
 6    tax by subsection (a) of this Section shall not be imposed to
 7    the  extent  that the Department or his designate determines,
 8    pursuant to Section 3-8 of the Uniform Penalty  and  Interest
 9    Act that the penalty should not be imposed.
10        (f)  Definition  of  tax. For purposes of subsections (b)
11    and (c), the term "tax" means the excess of the  tax  imposed
12    under  Article  2  of  this  Act,  over  the amounts credited
13    against such tax under Sections 601(b) (3) and (4).
14        (g)  Application of Section in case of  tax  withheld  on
15    compensation.  For  purposes  of applying this Section in the
16    case of an individual, tax withheld under Article 7  for  the
17    taxable  year shall be deemed a payment of estimated tax, and
18    an equal part of such amount shall be  deemed  paid  on  each
19    installment  date  for such taxable year, unless the taxpayer
20    establishes the dates on  which  all  amounts  were  actually
21    withheld,  in  which  case  the  amounts so withheld shall be
22    deemed payments of estimated tax on the dates on  which  such
23    amounts were actually withheld.
24        (i)  Short  taxable year. The application of this Section
25    to  taxable  years  of  less  than  12  months  shall  be  in
26    accordance with regulations prescribed by the Department.
27        The changes in this Section made  by  Public  Act  84-127
28    shall  apply  to  taxable years ending on or after January 1,
29    1986.
30    (Source: P.A. 86-678; 86-953; 86-1028; 87-205.)
31        (35 ILCS 5/901) (from Ch. 120, par. 9-901)
32        Sec. 901.  Collection Authority.
33        (a)  In general.
                            -50-           LRB9002758THdvam02
 1        The Department shall collect the taxes  imposed  by  this
 2    Act.   The  Department shall collect certified past due child
 3    support  amounts   under   Section   39b52   of   the   Civil
 4    Administrative  Code  of  Illinois.   Except  as  provided in
 5    subsections (c) and (e)  of  this  Section,  money  collected
 6    pursuant  to  subsections  (a) and (b) of Section 201 of this
 7    Act shall be paid into the General Revenue Fund in the  State
 8    treasury; money collected pursuant to subsections (c) and (d)
 9    of  Section  201  of this Act shall be paid into the Personal
10    Property Tax Replacement Fund, a special fund  in  the  State
11    Treasury;  and  money  collected  under  Section 39b52 of the
12    Civil Administrative Code of Illinois shall be paid into  the
13    Child  Support Enforcement Trust Fund, a special fund outside
14    the State Treasury.
15        (b)  Local Governmental Distributive Fund.
16        Beginning August 1, 1969, and continuing through June 30,
17    1994, the  Treasurer  shall  transfer  each  month  from  the
18    General Revenue Fund to a special fund in the State treasury,
19    to  be  known as the "Local Government Distributive Fund", an
20    amount equal to 1/12 of the net revenue realized from the tax
21    imposed by subsections (a) and (b) of Section 201 of this Act
22    during the preceding  month.  Beginning  July  1,  1994,  and
23    continuing   through  June  30,  1995,  the  Treasurer  shall
24    transfer each month from the  General  Revenue  Fund  to  the
25    Local Government Distributive Fund an amount equal to 1/11 of
26    the  net revenue realized from the tax imposed by subsections
27    (a) and (b) of Section 201 of this Act during  the  preceding
28    month.   Beginning July 1, 1995, the Treasurer shall transfer
29    each month  from  the  General  Revenue  Fund  to  the  Local
30    Government  Distributive  Fund an amount equal to 1/10 of the
31    net revenue realized from the tax imposed by subsections  (a)
32    and  (b) of Section 201 of the Illinois Income Tax Act during
33    the preceding month. Net revenue realized for a  month  shall
34    be defined as the revenue from the tax imposed by subsections
                            -51-           LRB9002758THdvam02
 1    (a)  and (b) of Section 201 of this Act which is deposited in
 2    the General Revenue Fund, the Educational Assistance Fund and
 3    the Income Tax Surcharge Local Government  Distributive  Fund
 4    during  the  month (but not including revenue attributable to
 5    the increase in tax rates imposed under this  amendatory  Act
 6    of  1997)  minus  the  amount paid out of the General Revenue
 7    Fund in State warrants during that same month as  refunds  to
 8    taxpayers  for overpayment of liability under the tax imposed
 9    by subsections (a) and (b) of Section 201 of this Act.
10        (c)  Deposits Into Income Tax Refund Fund.
11             (1)  Beginning on January 1,  1989  and  thereafter,
12        the  Department shall deposit a percentage of the amounts
13        collected pursuant to subsections (a)  and  (b)(1),  (2),
14        and  (3),  (4), and (5) of Section 201 of this Act into a
15        fund in the State treasury known as the Income Tax Refund
16        Fund.  The Department shall deposit 6%  of  such  amounts
17        during the period beginning January 1, 1989 and ending on
18        June 30, 1989.  Beginning with State fiscal year 1990 and
19        for each fiscal year thereafter, the percentage deposited
20        into  the  Income  Tax  Refund  Fund during a fiscal year
21        shall be the Annual Percentage.   The  Annual  Percentage
22        shall be calculated as a fraction, the numerator of which
23        shall  be  the  amount of refunds approved for payment by
24        the Department during the  preceding  fiscal  year  as  a
25        result  of overpayment of tax liability under subsections
26        (a) and (b)(1), (2), and (3), (4), and (5) of Section 201
27        of this Act plus the amount  of  such  refunds  remaining
28        approved  but  unpaid  at the end of the preceding fiscal
29        year minus any surplus which remains on  deposit  in  the
30        Income  Tax Refund Fund at the end of the preceding year,
31        the denominator of which shall be the amounts which  will
32        be collected pursuant to subsections (a) and (b)(1), (2),
33        and  (3),  (4), and (5) of Section 201 of this Act during
34        the preceding fiscal year.  The Director of Revenue shall
                            -52-           LRB9002758THdvam02
 1        certify the Annual Percentage to the Comptroller  on  the
 2        last   business   day  of  the  fiscal  year  immediately
 3        preceding  the  fiscal  year  for  which  is  it  to   be
 4        effective.
 5             (2)  Beginning  on  January  1, 1989 and thereafter,
 6        the Department shall deposit a percentage of the  amounts
 7        collected  pursuant  to  subsections (a) and (b)(6), (7),
 8        and (8), (c) and (d) of Section 201 of this  Act  into  a
 9        fund in the State treasury known as the Income Tax Refund
10        Fund.   The  Department shall deposit 18% of such amounts
11        during the period beginning January 1, 1989 and ending on
12        June 30, 1989.  Beginning with State fiscal year 1990 and
13        for each fiscal year thereafter, the percentage deposited
14        into the Income Tax Refund  Fund  during  a  fiscal  year
15        shall  be  the  Annual Percentage.  The Annual Percentage
16        shall be calculated as a fraction, the numerator of which
17        shall be the amount of refunds approved  for  payment  by
18        the  Department  during  the  preceding  fiscal year as a
19        result of overpayment of tax liability under  subsections
20        (a)  and (b)(6), (7), and (8), (c) and (d) of Section 201
21        of this Act plus the amount  of  such  refunds  remaining
22        approved  but  unpaid  at the end of the preceding fiscal
23        year, the denominator of which shall be the amounts which
24        will be collected pursuant to subsections (a) and (b)(6),
25        (7), and (8), (c) and (d) of  Section  201  of  this  Act
26        during  the  preceding  fiscal  year.   The  Director  of
27        Revenue  shall  certify  the  Annual  Percentage  to  the
28        Comptroller  on  the last business day of the fiscal year
29        immediately preceding the fiscal year for which it is  to
30        be effective.
31        (d)  Expenditures from Income Tax Refund Fund.
32             (1)  Beginning  January 1, 1989, money in the Income
33        Tax Refund Fund shall be  expended  exclusively  for  the
34        purpose  of  paying refunds resulting from overpayment of
                            -53-           LRB9002758THdvam02
 1        tax liability under Section  201  of  this  Act  and  for
 2        making transfers pursuant to this subsection (d).
 3             (2)  The  Director  shall  order  payment of refunds
 4        resulting from overpayment of tax liability under Section
 5        201 of this Act from the Income Tax Refund Fund  only  to
 6        the extent that amounts collected pursuant to Section 201
 7        of this Act and transfers pursuant to this subsection (d)
 8        have been deposited and retained in the Fund.
 9             (3)  On  the  last business day of each fiscal year,
10        the  Director  shall  order  transferred  and  the  State
11        Treasurer and State Comptroller shall transfer  from  the
12        Income  Tax  Refund  Fund  to  the  Personal Property Tax
13        Replacement Fund an amount, certified by the Director  to
14        the  Comptroller,  equal  to  the  excess  of  the amount
15        collected pursuant to subsections (c) and (d) of  Section
16        201 of this Act deposited into the Income Tax Refund Fund
17        during  the  fiscal  year  over  the  amount  of  refunds
18        resulting   from   overpayment  of  tax  liability  under
19        subsections (c) and (d) of Section 201 of this  Act  paid
20        from the Income Tax Refund Fund during the fiscal year.
21             (4)  On  the  last business day of each fiscal year,
22        the  Director  shall  order  transferred  and  the  State
23        Treasurer and State Comptroller shall transfer  from  the
24        Personal  Property Tax Replacement Fund to the Income Tax
25        Refund Fund an amount, certified by the Director  to  the
26        Comptroller, equal to the excess of the amount of refunds
27        resulting   from   overpayment  of  tax  liability  under
28        subsections (c) and (d) of Section 201 of this  Act  paid
29        from  the  Income  Tax Refund Fund during the fiscal year
30        over the amount collected pursuant to subsections (c) and
31        (d) of Section 201 of this Act deposited into the  Income
32        Tax Refund Fund during the fiscal year.
33             (5)  This  Act  shall  constitute an irrevocable and
34        continuing appropriation from the Income Tax Refund  Fund
                            -54-           LRB9002758THdvam02
 1        for  the  purpose of paying refunds upon the order of the
 2        Director  in  accordance  with  the  provisions  of  this
 3        Section.
 4        (e)  Deposits into the Education Assistance Fund and  the
 5    Income Tax Surcharge Local Government Distributive Fund.
 6        On  July 1, 1991, and thereafter until August 1, 1997, of
 7    the amounts collected pursuant to subsections (a) and (b)  of
 8    Section  201  of this Act, minus deposits into the Income Tax
 9    Refund Fund, the  Department  shall  deposit  7.3%  into  the
10    Education Assistance Fund in the State Treasury. On August 1,
11    1997  and  thereafter,  of  the amounts collected pursuant to
12    subsections (a) and (b) of Section 201  of  this  Act,  minus
13    deposits  into  the  Income  Tax  Refund Fund, the Department
14    shall deposit 5.84% into the Education Assistance Fund in the
15    State Treasury.
16        Beginning July 1, 1991, and  continuing  through  January
17    31,  1993,  of  the amounts collected pursuant to subsections
18    (a) and (b) of Section 201 of the Illinois  Income  Tax  Act,
19    minus   deposits   into  the  Income  Tax  Refund  Fund,  the
20    Department shall deposit 3.0% into the Income  Tax  Surcharge
21    Local  Government  Distributive  Fund  in the State Treasury.
22    Beginning February 1, 1993 and continuing  through  June  30,
23    1993,  of  the  amounts collected pursuant to subsections (a)
24    and (b) of Section 201 of the Illinois Income Tax Act,  minus
25    deposits  into  the  Income  Tax  Refund Fund, the Department
26    shall deposit  4.4%  into  the  Income  Tax  Surcharge  Local
27    Government Distributive Fund in the State Treasury. Beginning
28    July  1,  1993,  and continuing through June 30, 1994, of the
29    amounts collected under subsections (a) and  (b)  of  Section
30    201  of  this  Act, minus deposits into the Income Tax Refund
31    Fund, the Department shall deposit 1.475% into the Income Tax
32    Surcharge Local Government Distributive  Fund  in  the  State
33    Treasury.
34        (f)  Deposits  into  the  Education  Property  Tax Relief
                            -55-           LRB9002758THdvam02
 1    Fund.
 2        On  August  1,  1997  and  thereafter,  of  the   amounts
 3    collected pursuant to subsections (a), (b)(4)(ii), and (b)(5)
 4    of  Section  201  of this Act, minus deposits into the Income
 5    Tax Refund Fund, the Department shall deposit 12.00% into the
 6    Education Property Tax Relief Fund.
 7        (g)  Deposits into the Common School Fund.
 8        On  August  1,  1997  and  thereafter,  of  the   amounts
 9    collected pursuant to subsections (a), (b)(4)(ii), and (b)(5)
10    of  Section  201  of this Act, minus deposits into the Income
11    Tax Refund Fund, the Department shall deposit 8.00% into  the
12    Common School Fund.
13        (h)  Deposits  into  the  School  Capital  and Technology
14    Infrastructure Fund.
15        On  August  1,  1997  and  thereafter,  of  the   amounts
16    collected pursuant to subsections (a), (b)(4)(ii), and (b)(5)
17    of  Section  201  of this Act, minus deposits into the Income
18    Tax Refund Fund, the Department shall deposit 1.33% into  the
19    School Capital and Technology Infrastructure Fund.
20    (Source: P.A. 88-89; 89-6, eff. 12-31-95.)
21        Section 20.  The Property Tax Code is amended by changing
22    Sections  18-249, 18-255, 20-15, and 21-30 and adding Section
23    18-162 as follows:
24        (35 ILCS 200/18-162 new)
25        Section 18-162.  School  Tax  Abatement.  Beginning  with
26    taxes levied for 1997 and extended in 1998, after determining
27    the  final extension for a parcel or that portion of a parcel
28    that is eligible for the General  Homestead  Exemption  under
29    Section  15-175,  or  for  that  parcel  or that portion of a
30    parcel or farm improvement that is eligible for assessment as
31    a farm under Sections 10-110 through 10-140, the county clerk
32    shall abate part of that extension for each  school  district
                            -56-           LRB9002758THdvam02
 1    subject  to the School Code in which the parcel or portion of
 2    a parcel or farm improvement is located.  The rate  for  this
 3    abatement shall be calculated by the county clerk by dividing
 4    the amount certified by the Department under Section 7 of the
 5    State   Revenue  Sharing  Act  to  be  distributed  from  the
 6    Education Property Tax Relief Fund for the  county's  portion
 7    of  the  school  district  divided  by the equalized assessed
 8    valuation used in calculating tax rates under  Section  18-45
 9    in  the  school  district  in  the county of those parcels or
10    portions  of  parcels  or  farm  improvements  eligible   for
11    abatement under this Section.
12        (35 ILCS 200/18-249)
13        Sec. 18-249.  Miscellaneous provisions.
14        (a)  Certification  of  new  property.  For the 1994 levy
15    year, the chief county assessment officer  shall  certify  to
16    the county clerk, after all changes by the board of review or
17    board  of  appeals, as the case may be, the assessed value of
18    new property by taxing district for the 1994 levy year  under
19    rules promulgated by the Department.
20        (b)  (Blank). School Code.  A school district's State aid
21    shall  not be reduced under the computation under subsections
22    5(a) through 5(h) of Part A of Section  18-8  of  the  School
23    Code  due  to  the  operating tax rate falling from above the
24    minimum requirement of that Section of  the  School  Code  to
25    below  the  minimum requirement of that Section of the School
26    Code due to the operation of this Law.
27        (c)  Rules.  The Department  shall  make  and  promulgate
28    reasonable  rules  relating  to  the  administration  of  the
29    purposes  and provisions of Sections 18-246 through 18-249 as
30    may be necessary or appropriate.
31    (Source: P.A. 89-1, eff. 2-12-95.)
32        (35 ILCS 200/18-255)
                            -57-           LRB9002758THdvam02
 1        Sec. 18-255.  Abstract  of  assessments  and  extensions.
 2    Within  30  days of completing the When the collector's books
 3    are  completed,  the  county  clerk  shall  make  a  complete
 4    statement of the assessment and extensions, in conformity  to
 5    the  instructions of the Department.  The clerk shall certify
 6    the statement to the Department. Beginning with the 1996 levy
 7    year, the Department shall require the statement to include a
 8    separate listing  of  the  extensions  subject  to  abatement
 9    pursuant to Section 18-162.  If the county clerk is unable to
10    complete  the  statement  for  the  1996  levy  year prior to
11    September 1,  1997,  the  county  clerk  shall  provide  such
12    separate listing for the 1995 levy year by September 1, 1997.
13    (Source: Laws 1943, vol. 1, p. 1136; P.A. 88-455.)
14        (35 ILCS 200/20-15)
15        Sec.  20-15.   Information on bill or separate statement.
16    The amount of tax  due  and  rates  shown  on  the  tax  bill
17    pursuant  to this Section shall be net of any abatement under
18    Section 18-162 of the Property  Tax  Code.   There  shall  be
19    printed  on  each  bill, or on a separate slip which shall be
20    mailed with the bill:
21             (a)  a statement itemizing the rate at  which  taxes
22        have  been  extended  for each of the taxing districts in
23        the county in whose district the property is located, and
24        in those counties utilizing  electronic  data  processing
25        equipment  the  dollar  amount of tax due from the person
26        assessed allocable to each  of  those  taxing  districts,
27        including  a  separate  statement of the dollar amount of
28        tax due which is allocable to  a  tax  levied  under  the
29        Illinois  Local Library Act or to any other tax levied by
30        a municipality or township for public library purposes,
31             (b)  a separate statement for  each  of  the  taxing
32        districts  of  the  dollar  amount  of  tax  due which is
33        allocable to a tax levied under the Illinois Pension Code
                            -58-           LRB9002758THdvam02
 1        or to any other tax levied by a municipality or  township
 2        for public pension or retirement purposes,
 3             (c)  the total tax rate,
 4             (d)  the total amount of tax due, and
 5             (e)  the  amount  by which the total tax and the tax
 6        allocable  to  each  taxing  district  differs  from  the
 7        taxpayer's last prior tax bill, and.
 8             (f)  the amount of tax abated under  Section  18-162
 9        labeled "Your School Tax Refund".
10        The  county treasurer shall ensure that only those taxing
11    districts in which a parcel of property is located  shall  be
12    listed on the bill for that property.
13        In all counties the statement shall also provide:
14             (1)  the  property  index  number  or other suitable
15        description,
16             (2)  the assessment of the property,
17             (3)  the equalization factors imposed by the  county
18        and by the Department, and
19             (4)  the  equalized  assessment  resulting  from the
20        application of the  equalization  factors  to  the  basic
21        assessment.
22        In  all  counties  which  do  not  classify  property for
23    purposes of taxation, for property on which a  single  family
24    residence  is  situated  the  statement  shall also include a
25    statement to reflect the fair cash value determined  for  the
26    property.   In  all  counties  which  classify  property  for
27    purposes of taxation in accordance with Section 4 of  Article
28    IX  of  the Illinois Constitution, for parcels of residential
29    property  in  the  lowest   assessment   classification   the
30    statement  shall also include a statement to reflect the fair
31    cash value determined for the property.
32        In  counties  which  use  the  estimated  or  accelerated
33    billing methods, these statements shall only be provided with
34    the final installment of taxes due, except that the statement
                            -59-           LRB9002758THdvam02
 1    under item (f) shall be included with  both  installments  in
 2    those   counties   under  estimated  or  accelerated  billing
 3    methods, the first billing showing the amount  deducted  from
 4    the  first  installment,  and  the  final billing showing the
 5    total tax abated for the levy year under Section 18-162.  The
 6    provisions of this Section create a mandatory statutory duty.
 7    They  are  not merely directory or discretionary. The failure
 8    or neglect of the collector to mail the bill, or the  failure
 9    of  the  taxpayer  to  receive the bill, shall not affect the
10    validity of any tax, or the liability for the payment of  any
11    tax.
12    (Source:  P.A.  87-818;  88-455; incorporates 88-262; 88-670,
13    eff. 12-2-94.)
14        (35 ILCS 200/21-30)
15        Sec. 21-30.  Accelerated billing.  Except as provided  in
16    this Section and Section 21-40, in counties with 3,000,000 or
17    more inhabitants, by January 31 annually, estimated tax bills
18    setting  out  the first installment of property taxes for the
19    preceding year, payable in that year, shall be  prepared  and
20    mailed.   The first installment of taxes on the estimated tax
21    bills shall be computed at 50% of the total of each tax  bill
22    before  the  abatement  of taxes under Section 18-162 for the
23    preceding year, less an estimate of half of  the  School  Tax
24    Abatement  for  the  current  year  for  eligible parcels and
25    portions of parcels and farm improvements  based  on  a  rate
26    calculated  by the county clerk by dividing 50% of the amount
27    certified by the Department under  Section  7  of  the  State
28    Revenue  Sharing  Act  to  be  distributed from the Education
29    Property Tax Relief Fund for  the  county's  portion  of  the
30    school  district  by the equalized assessed valuation used in
31    calculating tax rates for the preceding  year  under  Section
32    18-45  in  the school district in the county of those parcels
33    or portions of parcels or farm improvements eligible  for  an
                            -60-           LRB9002758THdvam02
 1    abatement  under  this  Section.  By June 30 annually, actual
 2    tax bills shall be prepared and mailed. These bills shall set
 3    out total taxes due and the amount of estimated taxes  billed
 4    in  the  first  installment,  and  shall state the balance of
 5    taxes due for that year as represented  by  the  sum  derived
 6    from subtracting the amount of the first installment from the
 7    total taxes due for that year.
 8        The  county  board  may provide by ordinance, in counties
 9    with 3,000,000 or more inhabitants, for taxes to be paid in 4
10    installments.  For the levy year for which the  ordinance  is
11    first effective and each subsequent year, estimated tax bills
12    setting out the first, second, and third installment of taxes
13    for  the  preceding  year,  payable  in  that  year, shall be
14    prepared and mailed not later  than  the  date  specified  by
15    ordinance.   Each installment on estimated tax bills shall be
16    computed at 25% of  the  total  of  each  tax  bill  for  the
17    preceding  year.    By  the  date specified in the ordinance,
18    actual tax bills shall be prepared and mailed.   These  bills
19    shall  set  out  total  taxes due and the amount of estimated
20    taxes billed in the first, second, and third installments and
21    shall state the  balance  of  taxes  due  for  that  year  as
22    represented by the sum derived from subtracting the amount of
23    the  estimated installments from the total taxes due for that
24    year.
25        The county board of any county with less  than  3,000,000
26    inhabitants   may,  by  ordinance  or  resolution,  adopt  an
27    accelerated method of  tax  billing.  The  county  board  may
28    subsequently  rescind  the ordinance or resolution and revert
29    to the method otherwise provided for in this Code.
30        Taxes levied on homestead property in which a  member  of
31    the  National  Guard  or  reserves of the armed forces of the
32    United States who was called  to  active  duty  on  or  after
33    August  1,  1990, and who has an ownership interest shall not
34    be deemed delinquent and  no  interest  shall  accrue  or  be
                            -61-           LRB9002758THdvam02
 1    charged as a penalty on such taxes due and payable in 1991 or
 2    1992  until  one  year  after that member returns to civilian
 3    status.
 4    (Source: P.A. 87-17; 87-340; 87-895; 88-455.)
 5        (35 ILCS 200/18-200 rep.)
 6        Section  21.   The  Property  Tax  Code  is  amended   by
 7    repealing Section 18-200.
 8        Section  30.   The  Illinois  Pension  Code is amended by
 9    changing Sections 17-108, 17-127, and 17-129 as follows:
10        (40 ILCS 5/17-108) (from Ch. 108 1/2, par. 17-108)
11        Sec. 17-108. Fiscal year and school year.
12        "Fiscal year" and "school year": Beginning July 1,  1999,
13    the  period beginning on the 1st day of July September of one
14    calendar year and ending on the 30th 31st day of June  August
15    of  the next calendar year.  Each fiscal year and each school
16    year shall be designated for convenience with the same number
17    as the calendar year in which that fiscal year or school year
18    ends.  The fiscal year that begins September  1,  1998  shall
19    end June 30, 1999.
20    (Source: P.A. 83-792.)
21        (40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)
22        Sec. 17-127. Financing; revenues for the Fund.
23        (a)  The  revenues  for  the  Fund  shall consist of: (1)
24    amounts paid into the Fund by contributors thereto  and  from
25    employer    contributions,    including   taxes   and   State
26    appropriations in accordance with this Article;  (2)  amounts
27    contributed  to  the Fund pursuant to any law now in force or
28    hereafter to be enacted; (3)  contributions  from  any  other
29    source; and (4) the earnings on investments.
30        (b)  The  State  shall  make contributions to the Fund by
                            -62-           LRB9002758THdvam02
 1    means of appropriations from the Common School Fund and other
 2    State funds of amounts which, together  with  other  employer
 3    contributions, employee contributions, investment income, and
 4    other  income,  will  be  sufficient  to  meet  the  cost  of
 5    maintaining  and administering the Fund on a 90% funded basis
 6    in accordance with actuarial recommendations.  The  Board  of
 7    Trustees shall determine the total base amount for each State
 8    fiscal year beginning in State fiscal year 1999, on the basis
 9    of  the actuarial tables and other assumptions adopted by the
10    Board of Trustees and the  recommendations  of  the  actuary,
11    using the formula in subsection (c) of this Section.
12        Beginning  in  State fiscal year 2007, the State shall be
13    responsible for and shall contribute 100% of the  total  base
14    amount determined under subsection (c), minus amounts paid by
15    the Board of Education with federal program contributions, as
16    determined and certified by the Board of Trustees.  In fiscal
17    years  1999  through 2006, the State shall be responsible for
18    and shall contribute the following specified  percentages  of
19    the  amount  determined  by  subtracting  from the total base
20    amount, the amounts to be paid by the Board of Education with
21    federal program contributions, as determined and certified by
22    the Board of Trustees:
23             Fiscal Year 1999:  77%
24             Fiscal Year 2000:  81%
25             Fiscal Year 2001:  84%
26             Fiscal Year 2002:  87%
27             Fiscal Year 2003:  90%
28             Fiscal Year 2004:  93%
29             Fiscal Year 2005:  95%
30             Fiscal Year 2006:  98%
31        (c)  For State fiscal years 2011 through 2045, the  total
32    base amount in each fiscal year shall be an amount determined
33    by the Fund to be sufficient to bring the total assets of the
34    Fund up to 90% of the total actuarial liabilities of the Fund
                            -63-           LRB9002758THdvam02
 1    by   the   end   of   fiscal  year  2045.   In  making  these
 2    determinations, the total base  amount  shall  be  calculated
 3    each  year  as  a  level percentage of payroll over the years
 4    remaining to and including fiscal  year  2045  and  shall  be
 5    determined  under  the  projected  unit credit actuarial cost
 6    method.
 7        For State fiscal years 1999 through 2010, the total  base
 8    amount,  as  a percentage of the applicable employee payroll,
 9    shall be increased in equal  annual  increments  so  that  by
10    State  fiscal  year 2011, the total base amount is the amount
11    then required under this subsection.
12        Beginning in State  fiscal  year  2046,  the  total  base
13    amount  for each State fiscal year shall be the amount needed
14    to maintain the total assets of the Fund at 90% of the  total
15    actuarial liabilities of the Fund.
16        The  Board of Trustees shall determine (i) the total base
17    amount for each fiscal year on the  basis  of  the  actuarial
18    tables  and  other  assumptions  adopted by the Board and the
19    recommendations of the actuary,  (ii)  the  portion  of  that
20    total  base  amount  that  is the responsibility of the State
21    under this Section, and (iii) the portion of that total  base
22    amount  that  will  be  paid  by  the Board of Education with
23    federal  program  contributions.   Annually,  on  or   before
24    November  15,  the  Board  of  Trustees  shall certify to the
25    Governor the amounts so  determined  for  the  coming  fiscal
26    year.    The  certification  shall  include  a  copy  of  the
27    actuarial recommendations upon which it is based.
28        (d)  Beginning in State fiscal year 1999, on the 15th day
29    of each month, or as soon thereafter as may  be  practicable,
30    the  Board  of  Trustees shall submit vouchers for payment of
31    State contributions to the Fund, in a total monthly amount of
32    one-twelfth  of  the  required  annual   State   contribution
33    certified  under  this Section.  These vouchers shall be paid
34    by the State Comptroller and Treasurer by warrants  drawn  on
                            -64-           LRB9002758THdvam02
 1    the funds appropriated to the Fund for that fiscal year.
 2        If  in any month the amount remaining unexpended from all
 3    other appropriations to the Fund  for  the  applicable  State
 4    fiscal  year is less than the amount lawfully vouchered under
 5    this subsection, the difference shall be paid from the Common
 6    School Fund  under  the  continuing  appropriation  authority
 7    provided in Section 1.1 of the State Pension Funds Continuing
 8    Appropriation Act.
 9        (e)  Payment  of  pensions,  retirement  annuities, death
10    benefits,  refunds,  and  other  benefits  granted  under  or
11    assumed by this Fund, and of expenses in connection with  the
12    administration and operation of the Fund, are not obligations
13    or liabilities of the State.
14    The  General Assembly finds that for many years the State has
15    contributed to the Fund an annual amount that is between  20%
16    and 30% of the amount of the annual State contribution to the
17    Article  16  retirement  system,  and  the  General  Assembly
18    declares  that  it is its goal and intention to continue this
19    level of contribution to the Fund in the future.
20    (Source: P.A. 88-593, eff. 8-22-94.)
21        (40 ILCS 5/17-129) (from Ch. 108 1/2, par. 17-129)
22        Sec. 17-129. Employer contributions; deficiency in Fund.
23        (a)  If in any fiscal year  of  the  Board  of  Education
24    ending  prior to 1998 the total amounts paid to the Fund from
25    the Board of Education (other than under this subsection, and
26    other  than  amounts  used  for  making   or   "picking   up"
27    contributions  on  behalf  of teachers) and from the State do
28    not equal the total contributions made by or on behalf of the
29    teachers for such year, or if the total income of the Fund in
30    any fiscal year of the Board of Education from all sources is
31    less than the total expenditures by the Fund for  such  year,
32    the Board of Education shall, in the next succeeding year, in
33    addition  to  any  other  payment  to  the Fund set apart and
                            -65-           LRB9002758THdvam02
 1    appropriate from moneys from its  tax  levy  for  educational
 2    purposes,  a  sum  sufficient  to  remove  such deficiency or
 3    deficiencies, and promptly pay such  sum  into  the  Fund  in
 4    order  to  restore  any  of the reserves of the Fund that may
 5    have been so temporarily applied.
 6        (b)  Blank. For  fiscal  years  2011  through  2045,  the
 7    minimum  contribution  to the Fund to be made by the board of
 8    education in each fiscal year shall be an  amount  determined
 9    by the Fund to be sufficient to bring the total assets of the
10    Fund up to 90% of the total actuarial liabilities of the Fund
11    by   the   end   of   fiscal  year  2045.   In  making  these
12    determinations, the required board of education  contribution
13    shall  be  calculated  each  year  as  a  level percentage of
14    payroll over the years remaining to and including fiscal year
15    2045 and shall be determined under the projected unit  credit
16    actuarial cost method.
17        For   fiscal  years  1999  through  2010,  the  board  of
18    education's contribution to the Fund, as a percentage of  the
19    applicable  employee  payroll,  shall  be  increased in equal
20    annual increments so that by fiscal year 2011, the  board  of
21    education  is  contributing  at  the rate required under this
22    subsection.
23        Beginning in fiscal  year  2046,  the  minimum  board  of
24    education  contribution  for  each  fiscal  year shall be the
25    amount needed to maintain the total assets of the Fund at 90%
26    of the total actuarial liabilities of the Fund.
27        (c)  The Board of Trustees shall determine the amount  of
28    board  of  education  contributions  required for each fiscal
29    year  on  the  basis  of  the  actuarial  tables  and   other
30    assumptions  adopted  by the Board and the recommendations of
31    the actuary,  in  order  to  meet  the  minimum  contribution
32    requirements  of  subsections  (a)  and (b).  Annually, on or
33    before November 15, the Board shall certify to the  Board  of
34    Education  the  amount  of  the  required  board of education
                            -66-           LRB9002758THdvam02
 1    contribution for the coming fiscal year.   The  certification
 2    shall  include  a  copy of the actuarial recommendations upon
 3    which it is based.
 4    (Source: P.A. 89-15, eff. 5-30-95.)
 5        Section  35.   The   State   Pension   Funds   Continuing
 6    Appropriation  Act  is  amended  by  changing  Section 1.1 as
 7    follows:
 8        (40 ILCS 15/1.1)
 9        Sec. 1.1. Appropriations to certain retirement systems.
10        (a)  There  is  hereby  appropriated  from  the   General
11    Revenue  Fund to the General Assembly Retirement System, on a
12    continuing monthly basis, the amount, if any,  by  which  the
13    total  available  amount  of all other appropriations to that
14    retirement system for the payment of State  contributions  is
15    less than the total amount of the vouchers for required State
16    contributions lawfully submitted by the retirement system for
17    that month under Section 2-134 of the Illinois Pension Code.
18        (b)  There   is  hereby  appropriated  from  the  General
19    Revenue Fund to the State Universities Retirement System,  on
20    a  continuing monthly basis, the amount, if any, by which the
21    total available amount of all other  appropriations  to  that
22    retirement  system  for the payment of State contributions is
23    less than the total amount of the vouchers for required State
24    contributions lawfully submitted by the retirement system for
25    that month under Section 15-165 of the Illinois Pension Code.
26        (c)  There is hereby appropriated from the Common  School
27    Fund  to  the  Teachers'  Retirement  System  of the State of
28    Illinois, on a continuing monthly basis, the amount, if  any,
29    by   which   the   total   available   amount  of  all  other
30    appropriations to that retirement system for the  payment  of
31    State  contributions  is  less  than  the total amount of the
32    vouchers for required State contributions lawfully  submitted
                            -67-           LRB9002758THdvam02
 1    by  the retirement system for that month under Section 16-158
 2    of the Illinois Pension Code.
 3        (d)  There  is  hereby  appropriated  from  the   General
 4    Revenue  Fund to the Judges Retirement System of Illinois, on
 5    a continuing monthly basis, the amount, if any, by which  the
 6    total  available  amount  of all other appropriations to that
 7    retirement system for the payment of State  contributions  is
 8    less than the total amount of the vouchers for required State
 9    contributions lawfully submitted by the retirement system for
10    that month under Section 18-140 of the Illinois Pension Code.
11        (e)  There  is hereby appropriated from the Common School
12    Fund of the State of Illinois to the Public School  Teachers'
13    Pension  and  Retirement  Fund  of  Chicago,  on a continuing
14    monthly basis,  the  amount,  if  any,  by  which  the  total
15    available   amount   of  all  other  appropriations  to  that
16    retirement system for the payment of State  contributions  is
17    less than the total amount of the vouchers for required State
18    contributions lawfully submitted by the retirement system for
19    that month under Section 17-127 of the Illinois Pension Code.
20        (f)  The   continuing  appropriations  provided  by  this
21    Section shall first be available in State fiscal  year  1996,
22    except  that the appropriations provided under subsection (e)
23    shall first be available in State fiscal year 1999.
24    (Source: P.A. 88-593, eff. 8-22-94.)
25        Section 40.  The  School  Code  is  amended  by  changing
26    Sections  1A-2,  1C-2,  1D-1,  10-22.6,  10-22.23, 10-22.23a,
27    10-23.5, 10-23.8, 10-23.8a, 18-7, 18-8, 18-8.2, 21-1a,  21-2,
28    21-2.1, 21-2a, 21-3, 21-4, 21-5, 21-5a, 21-5b, 21-7.1, 21-10,
29    21-11.1, 21-11.3, 21-11.4, 21-14, 24-11, 24-12, and 34-84 and
30    adding  Sections 2-3.120, 2-3.121, 2-3.122, 21-0.01, 21-0.02,
31    21-0.03, 21-5c, and 21-5d as follows:
32        (105 ILCS 5/1A-2) (from Ch. 122, par. 1A-2)
                            -68-           LRB9002758THdvam02
 1        Sec. 1A-2.  Qualifications.  The  members  of  the  State
 2    Board of Education shall be citizens of the United States and
 3    residents  of  the State of Illinois and shall be selected as
 4    far as may be practicable on the basis of their knowledge of,
 5    or interest and experience in, problems of public  education.
 6    No  member of the State Board of Education shall be gainfully
 7    employed  or  administratively  connected  with  any   school
 8    system,  nor  have  any  interest  in  or  benefit from funds
 9    provided by the State Board of Education to an or institution
10    of higher learning, public or private, within  Illinois,  nor
11    shall  they  be  members of a school board or board of school
12    trustees of a public or nonpublic school, college, university
13    or technical institution within Illinois.   No  member  shall
14    be appointed to more than 2 six year terms.  Members shall be
15    reimbursed  for  all ordinary and necessary expenses incurred
16    in performing their duties as members of the Board.  Expenses
17    shall be approved by the Board and  be  consistent  with  the
18    laws,  policies,  and  requirements  of the State of Illinois
19    regarding such expenditures, plus any member may  include  in
20    his claim for expenses $50 per day for meeting days.
21    (Source: P.A. 80-1513.)
22        (105 ILCS 5/1C-2)
23        Sec. 1C-2.  Block grants.
24        (a)  For   fiscal   year   1998,  and  each  fiscal  year
25    thereafter, the State  Board  of  Education  shall  award  to
26    school  districts  block  grants  as described in subsections
27    (b), (c), and (d). The State Board  of  Education  may  adopt
28    rules and regulations necessary to implement this Section.
29        (b)  A School Improvement Block Grant shall be created by
30    combining  the  following  programs:   the  School Safety and
31    Improvement  Block  Grant,  K-6  Arts  Planning,   Scientific
32    Literacy,    Substance   Abuse/Violence   Prevention,   Urban
33    Education Partnership, Report Cards, and  Background  Checks.
                            -69-           LRB9002758THdvam02
 1    The  State  Board  of  Education may make grants to community
 2    organizations, institutions of  higher  learning,  and  other
 3    entities  on a competitive basis.  The remainder of the funds
 4    shall be distributed to school  districts  based  on  average
 5    daily attendance.
 6        (c)  A  Professional  Development  Block  Grant  shall be
 7    created by combining the existing  School  Improvement  Block
 8    Grant,  the  REI  Initiative,  and the Leadership Development
 9    Institute.  The State Board of Education may make  grants  to
10    community organizations, institutions of higher learning, and
11    other  entities on a competitive basis.  The remainder of the
12    funds shall be distributed to school districts based  on  the
13    number  of  instructional and related services staff employed
14    in the district.
15        (d)  An Early Childhood Education Block  Grant  shall  be
16    created   by  combining  the  following  programs:  Preschool
17    Education,  Parental  Training  and  Prevention   Initiative.
18    These  funds  shall  be  distributed  to school districts and
19    other entities on a competitive basis.  Six percent  of  this
20    grant  shall  be used to fund programs for children ages 0-3.
21    From appropriations made for block grant purposes, the  State
22    Board  of  Education is authorized to award funds to eligible
23    recipients upon application.  Semiannual installment payments
24    shall be made and semiannual  expenditure  reports  shall  be
25    required.
26    (Source: P.A. 88-555, eff. 7-27-94; 89-397, eff. 8-20-95.)
27        (105 ILCS 5/1D-1)
28        Sec. 1D-1.  Block grant funding.
29        (a)  For   fiscal   year   1996   and  each  fiscal  year
30    thereafter, the State Board of Education  shall  award  to  a
31    school   district   having  a  population  exceeding  500,000
32    inhabitants  a  general  education   block   grant   and   an
33    educational  services  block grant, determined as provided in
                            -70-           LRB9002758THdvam02
 1    this  Section,  in  lieu  of  distributing  to  the  district
 2    separate  State  funding  for  the  programs   described   in
 3    subsections  (b)  and  (c).   The provisions of this Section,
 4    however, do not apply to any federal funds that the  district
 5    is entitled to receive.
 6        (b)  The  general education block grant shall include the
 7    following  programs:  School  Safety  and  Improvement  Block
 8    Grant,  the  REI  Initiative,  the   Leadership   Development
 9    Institute,   K-6   Comprehensive   Arts,  School  Improvement
10    Support,  Urban  Education,  Scientific  Literacy,  Substance
11    Abuse   Prevention,   Second   Language    Planning,    Staff
12    Development,    Outcomes    and   Assessment,   K-6   Reading
13    Improvement, Truants' Optional Education, Hispanic  Programs,
14    Agriculture  Education, Gifted Education, Parental Education,
15    Prevention Initiative, Report Cards, and Criminal  Background
16    Investigations.   Notwithstanding any other provision of law,
17    all amounts paid under the general education block grant from
18    State appropriations to a school district in a city having  a
19    population    exceeding    500,000   inhabitants   shall   be
20    appropriated and expended by the board of that  district  for
21    any of the programs included in the block grant or any of the
22    board's lawful purposes.
23        (c)  The  educational  services block grant shall include
24    the following programs:  Bilingual,  Regular  and  Vocational
25    Transportation,  State  Lunch  and  Free  Breakfast  Program,
26    Preschool    At    Risk,    Special   Education   (Personnel,
27    Extraordinary, Transportation, Orphanage,  Private  Tuition),
28    Summer    School,    Educational    Service    Centers,   and
29    Administrator's  Academy.   This  subsection  (c)  does   not
30    relieve  the  district  of  its  obligation  to  provide  the
31    services required under a program that is included within the
32    educational services block grant.  It is the intention of the
33    General   Assembly   in   enacting  the  provisions  of  this
34    subsection (c) to relieve the district of the  administrative
                            -71-           LRB9002758THdvam02
 1    burdens  that  impede efficiency and accompany single-program
 2    funding.  The General Assembly encourages the board to pursue
 3    mandate waivers pursuant to Section 2-3.25g.
 4        (d)  For fiscal year  1998  1996  and  each  fiscal  year
 5    thereafter,  the  amount of the district's block grants shall
 6    be determined as follows: (i) with respect  to  each  program
 7    that  is included within each block grant, the district shall
 8    receive an amount equal to the same percentage of the current
 9    fiscal year  appropriation  made  for  that  program  as  the
10    percentage of the appropriation received by the district from
11    the  1997  1995  fiscal  year  appropriation  made  for  that
12    program,  and  (ii) the total amount that is due the district
13    under the block grant shall be the aggregate of  the  amounts
14    that  the district is entitled to receive for the fiscal year
15    with respect to each program  that  is  included  within  the
16    block grant that the State Board of Education shall award the
17    district under this Section for that fiscal year.
18        (e)  The district is not required to file any application
19    or  other claim in order to receive the block grants to which
20    it is entitled under  this  Section.    The  State  Board  of
21    Education  shall make payments to the district of amounts due
22    under the district's block grants on a schedule determined by
23    the State Board of Education.
24        (f)  A school district  to  which  this  Section  applies
25    shall  report  to  the State Board of Education on its use of
26    the block grants in such form and detail as the  State  Board
27    of Education may specify.
28    (Source: P.A. 89-15, eff. 5-30-95; 89-698, eff. 1-14-97.)
29        (105 ILCS 5/2-3.120 new)
30        Sec.  2-3.120.  Task  force  on  block grants.  The State
31    Board of Education shall appoint the members of and convene a
32    task force, to consist of no more than 9  members,  to  study
33    the State's largest categorical programs of special eduction,
                            -72-           LRB9002758THdvam02
 1    bilingual  education,  transportation,  vocational education,
 2    and pre-kindergarten and  to  determine  the  best  means  of
 3    improving  educational  results  and  the  efficiency  in the
 4    delivery of services.   The  task  force  may  form  advisory
 5    groups  to consider the individual programs if the task force
 6    deems such groups necessary.  The task force shall conduct  a
 7    full  financial review of program costs (both State and local
 8    funds) and shall review and make recommendations for changes,
 9    program contents  (including  approaches),  service  delivery
10    mechanisms,  mandates, regulations, and overall effectiveness
11    with respect to student results and school accountability.
12        The  task  force  shall  include   representatives   from
13    education,  business,  and  the  general  public and shall be
14    established by appointments made no later than 60 days  after
15    the effective date of this amendatory Act of 1997.  The State
16    Board  of  Education shall forward the recommendations of the
17    task force to the General Assembly no later than December 31,
18    1998.  The recommendations shall  include  a  review  of  the
19    current  cost  of  the  programs  as  well as a review of the
20    current regulations and mandates (including those of  federal
21    laws  that  apply in these areas).  The recommendations shall
22    also include suggestions for improvements  in  the  programs,
23    including   the   service  delivery  mechanisms  and  overall
24    effectiveness.
25        (105 ILCS 5/2-3.121 new)
26        Sec.    2-3.121.  School    Capital    and     Technology
27    Infrastructure Fund and Program.
28        (a)  The  State  Board  of Education shall make quarterly
29    grants from the School Capital and Technology  Infrastructure
30    Fund  to  school  districts for school capital and technology
31    infrastructure purposes.  School districts may use the grants
32    to finance, acquire,  construct,  reconstruct,  rehabilitate,
33    improve,  develop,  and install capital facilities consisting
                            -73-           LRB9002758THdvam02
 1    of   buildings,   structures,    durable    equipment,    and
 2    instructional  technology  including  computer  hardware  and
 3    network infrastructure.
 4        (b)  Beginning  November  1,  1997,  school districts are
 5    eligible to receive quarterly State grants  from  the  School
 6    Capital  and  Technology  Infrastructure Fund, a special fund
 7    that is hereby created in  the  State  treasury.   The  State
 8    Board  of  Education  shall distribute to school districts in
 9    the form of grants under this Section, on the  first  day  of
10    the  second  calendar month following the end of each quarter
11    of the State fiscal year, an aggregate amount  equal  to  the
12    amount  that  was  deposited  into  the  School  Capital  and
13    Technology Infrastructure Fund in that quarter.
14        (c)  The aggregate amount of the quarterly grant shall be
15    divided  among  the  school  districts  by the State Board of
16    Education on  the  basis  of  the  districts'  Average  Daily
17    Attendance for general State aid purposes.
18        (d)  For  each  grant  to  a  school  district under this
19    Section, the school district shall provide a local  match  at
20    least  equal  to 50% of the amount of that State grant.   The
21    school district may count toward the match required  for  the
22    State  grants received in any year all amounts that have been
23    or will be expended from bond proceeds by  the  district  for
24    capital projects (or expended by a public building commission
25    for  projects for lease to the school district) in that year,
26    or in any of the 5 previous school years to the  extent  that
27    those  amounts  have  not  already been used as a match under
28    this Section.   The  matching  amounts  need  not  have  been
29    expended  on  projects that were supported in part by a grant
30    under this Section.  The State Board of Education  may  waive
31    or reduce the match requirement in cases of hardship.
32        (e)  A  school district must report annually to the State
33    Board of Education regarding the actual use of the grants and
34    the required match.
                            -74-           LRB9002758THdvam02
 1        (f)  The State Board of Education shall adopt  rules  for
 2    the  administration  of  the  School  Capital  and Technology
 3    Infrastructure Program, including rules defining the types of
 4    instructional equipment and capital projects that qualify for
 5    funding, the contents  of  spending  reports,  the  types  of
 6    acceptable  local match, and the waiver or reduction of local
 7    match.
 8        (g)  For the purpose of making grants under this Section,
 9    there is hereby appropriated  from  the  School  Capital  and
10    Technology   Infrastructure   Fund  to  the  State  Board  of
11    Education, on a continuing basis  in  each  quarter  of  each
12    State  fiscal  year,  an amount equal to the amount deposited
13    into the School Capital and  Technology  Infrastructure  Fund
14    during the previous quarter.  The appropriations made by this
15    subsection (g) shall begin in State fiscal year 1998.
16        (105 ILCS 5/2-3.122 new)
17        Sec.  2-3.122.   Career Development and Preparation Block
18    Grant Program.  The Career Development and Preparation  Block
19    Grant  Program  is  hereby  created.  Under that program, the
20    following programs shall be combined for block grant  funding
21    purposes:   Career   Awareness  and  Development,  Vocational
22    Education - State, Vocational Education - Staff  Development,
23    Student   Apprentice  Program,  Tech  Prep,  and  Partnership
24    Academies.  Block grants under the program shall be available
25    pursuant to appropriation and distributed  as  determined  by
26    the  State  Board of Education.  The State Board of Education
27    may require school districts to file applications in order to
28    receive their block grant under this Section.
29        (105 ILCS 5/10-22.6) (from Ch. 122, par. 10-22.6)
30        (Text of Section before amendment by P.A. 89-507)
31        Sec. 10-22.6. Suspension or expulsion of  pupils;  school
32    searches.
                            -75-           LRB9002758THdvam02
 1        (a)  To  expel  pupils  guilty  of  gross disobedience or
 2    misconduct, and no action shall lie  against  them  for  such
 3    expulsion.  Expulsion shall take place only after the parents
 4    have been requested to appear at a meeting of the  board,  or
 5    with  a  hearing  officer  appointed  by it, to discuss their
 6    child's behavior. Such request shall be made by registered or
 7    certified mail and shall state the time, place and purpose of
 8    the meeting. The board, or a hearing officer appointed by it,
 9    at such meeting shall state the reasons for dismissal and the
10    date on which the expulsion is  to  become  effective.  If  a
11    hearing  officer is appointed by the board he shall report to
12    the board a written summary of  the  evidence  heard  at  the
13    meeting  and  the  board  may  take such action thereon as it
14    finds appropriate.
15        (b)  To  suspend  or  by  regulation  to  authorize   the
16    superintendent  of  the  district or the principal, assistant
17    principal, or dean of  students  of  any  school  to  suspend
18    pupils  guilty  of  gross  disobedience  or misconduct, or to
19    suspend pupils guilty of gross disobedience or misconduct  on
20    the  school  bus  from  riding  the school bus, and no action
21    shall lie against them for such suspension. The board may  by
22    regulation  authorize  the  superintendent of the district or
23    the principal, assistant principal, or dean  of  students  of
24    any school to suspend pupils guilty of such acts for a period
25    not  to exceed 10 school days. If a pupil is suspended due to
26    gross disobedience or misconduct on a school bus,  the  board
27    may  suspend the pupil in excess of 10 school days for safety
28    reasons.  Any suspension shall be reported immediately to the
29    parents or guardian of such pupil along with a full statement
30    of the reasons for such suspension  and  a  notice  of  their
31    right  to  a  review,  a  copy of which shall be given to the
32    school board. Upon request of the  parents  or  guardian  the
33    school  board  or  a  hearing  officer  appointed by it shall
34    review  such  action  of  the  superintendent  or  principal,
                            -76-           LRB9002758THdvam02
 1    assistant principal, or dean of students.  At such review the
 2    parents or guardian of the pupil may appear and  discuss  the
 3    suspension  with  the  board  or  its  hearing  officer. If a
 4    hearing officer is appointed by the board he shall report  to
 5    the  board  a  written  summary  of the evidence heard at the
 6    meeting. After its hearing or upon  receipt  of  the  written
 7    report of its hearing officer, the board may take such action
 8    as it finds appropriate.
 9        (c)  The  Department  of  Mental Health and Developmental
10    Disabilities shall be invited to  send  a  representative  to
11    consult  with  the  board  at  such meeting whenever there is
12    evidence that mental illness may be the cause  for  expulsion
13    or suspension.
14        (d)  The  board may expel a student for a definite period
15    of time not to exceed 2 calendar years, as  determined  on  a
16    case  by  case  basis.   A  student who is determined to have
17    brought a weapon to school, any school-sponsored activity  or
18    event,  or  any  activity  or  event which bears a reasonable
19    relationship to school shall be expelled for a period of  not
20    less  than  one year, except that the expulsion period may be
21    modified by the board on a case by case basis.  For  purposes
22    of  this  Section,  the  term "weapon" means possession, use,
23    control or transfer of any object which may be used to  cause
24    bodily harm, including but not limited to a weapon as defined
25    by  Section  921  of Title 18, United States Code, firearm as
26    defined in Section 1.1 of the Firearm  Owners  Identification
27    Act, use of weapon as defined in Section 24-1 of the Criminal
28    Code,   knives,   guns,  firearms,  rifles,  shotguns,  brass
29    knuckles, billy clubs, or "look-alikes" thereof.  Such  items
30    as baseball bats, pipes, bottles, locks, sticks, pencils, and
31    pens  may  be  considered  weapons if used or attempted to be
32    used to cause bodily harm.  Expulsion or suspension shall  be
33    construed in a manner consistent with the Federal Individuals
34    with  Disabilities Education Act. A student who is subject to
                            -77-           LRB9002758THdvam02
 1    suspension or expulsion as provided in this  Section  may  be
 2    eligible  for  a transfer to an alternative school program in
 3    accordance  with  Article  13A  of  the  School  Code.    The
 4    provisions  of  this  subsection  (d)  apply  in  all  school
 5    districts,  including special charter districts and districts
 6    organized under Article 34.
 7        (e)  To maintain  order  and  security  in  the  schools,
 8    school  authorities  may  inspect and search places and areas
 9    such as  lockers,  desks,  parking  lots,  and  other  school
10    property  and equipment owned or controlled by the school, as
11    well as personal effects left in those places  and  areas  by
12    students,  without  notice  to or the consent of the student,
13    and without a search warrant.  As a matter of public  policy,
14    the  General  Assembly finds that students have no reasonable
15    expectation of privacy in these places and areas or in  their
16    personal  effects  left  in  these  places and areas.  School
17    authorities may request the  assistance  of  law  enforcement
18    officials  for  the  purpose  of  conducting  inspections and
19    searches of lockers, desks, parking lots,  and  other  school
20    property  and equipment owned or controlled by the school for
21    illegal  drugs,  weapons,  or  other  illegal  or   dangerous
22    substances or materials, including searches conducted through
23    the  use of specially trained dogs.  If a search conducted in
24    accordance with  this  Section  produces  evidence  that  the
25    student  has  violated  or is violating either the law, local
26    ordinance, or the school's policies or rules,  such  evidence
27    may  be seized by school authorities, and disciplinary action
28    may be taken.  School authorities may  also  turn  over  such
29    evidence  to  law enforcement authorities.  The provisions of
30    this subsection (e) apply in all school districts,  including
31    special  charter  districts  and  districts  organized  under
32    Article 34.
33        (f)  Suspension  or  expulsion  may include suspension or
34    expulsion  from  school  and  all  school  activities  and  a
                            -78-           LRB9002758THdvam02
 1    prohibition from being present on school grounds.
 2    (Source: P.A.  89-371,  eff.  1-1-96;  89-610,  eff.  8-6-96;
 3    revised 9-9-96.)
 4        (Text of Section after amendment by P.A. 89-507)
 5        Sec.  10-22.6.  Suspension or expulsion of pupils; school
 6    searches.
 7        (a)  To expel pupils  guilty  of  gross  disobedience  or
 8    misconduct,  and  no  action  shall lie against them for such
 9    expulsion. Expulsion shall take place only after the  parents
10    have  been  requested to appear at a meeting of the board, or
11    with a hearing officer appointed  by  it,  to  discuss  their
12    child's behavior. Such request shall be made by registered or
13    certified mail and shall state the time, place and purpose of
14    the meeting. The board, or a hearing officer appointed by it,
15    at such meeting shall state the reasons for dismissal and the
16    date  on  which  the  expulsion  is to become effective. If a
17    hearing officer is appointed by the board he shall report  to
18    the  board  a  written  summary  of the evidence heard at the
19    meeting and the board may take  such  action  thereon  as  it
20    finds appropriate.
21        (b)  To   suspend  or  by  regulation  to  authorize  the
22    superintendent of the district or  the  principal,  assistant
23    principal,  or  dean  of  students  of  any school to suspend
24    pupils guilty of gross  disobedience  or  misconduct,  or  to
25    suspend  pupils guilty of gross disobedience or misconduct on
26    the school bus from riding the  school  bus,  and  no  action
27    shall  lie against them for such suspension. The board may by
28    regulation authorize the superintendent of  the  district  or
29    the  principal,  assistant  principal, or dean of students of
30    any school to suspend pupils guilty of such acts for a period
31    not to exceed 10 school days. If a pupil is suspended due  to
32    gross  disobedience  or misconduct on a school bus, the board
33    may suspend the pupil in excess of 10 school days for  safety
34    reasons.  Any suspension shall be reported immediately to the
                            -79-           LRB9002758THdvam02
 1    parents or guardian of such pupil along with a full statement
 2    of  the  reasons  for  such  suspension and a notice of their
 3    right to a review, a copy of which  shall  be  given  to  the
 4    school  board.  Upon  request  of the parents or guardian the
 5    school board or a  hearing  officer  appointed  by  it  shall
 6    review  such  action  of  the  superintendent  or  principal,
 7    assistant principal, or dean of students.  At such review the
 8    parents  or  guardian of the pupil may appear and discuss the
 9    suspension with the  board  or  its  hearing  officer.  If  a
10    hearing  officer is appointed by the board he shall report to
11    the board a written summary of  the  evidence  heard  at  the
12    meeting.  After  its  hearing  or upon receipt of the written
13    report of its hearing officer, the board may take such action
14    as it finds appropriate.
15        (c)  The Department of Human Services shall be invited to
16    send a representative to  consult  with  the  board  at  such
17    meeting whenever there is evidence that mental illness may be
18    the cause for expulsion or suspension.
19        (d)  The  board may expel a student for a definite period
20    of time not to exceed 2 calendar years, as  determined  on  a
21    case  by  case  basis.    A student who is determined to have
22    brought a weapon to school, any school-sponsored activity  or
23    event,  or  any  activity  or  event which bears a reasonable
24    relationship to school shall be expelled for a period of  not
25    less  than  one year, except that the expulsion period may be
26    modified by the board on a case by case basis.  For  purposes
27    of  this  Section,  the  term "weapon" means possession, use,
28    control or transfer of any object which may be used to  cause
29    bodily harm, including but not limited to a weapon as defined
30    by  Section  921  of Title 18, United States Code, firearm as
31    defined in Section 1.1 of the Firearm  Owners  Identification
32    Act, use of weapon as defined in Section 24-1 of the Criminal
33    Code,   knives,   guns,  firearms,  rifles,  shotguns,  brass
34    knuckles, billy clubs, or "look-alikes" thereof.  Such  items
                            -80-           LRB9002758THdvam02
 1    as baseball bats, pipes, bottles, locks, sticks, pencils, and
 2    pens  may  be  considered  weapons if used or attempted to be
 3    used to cause bodily harm.  Expulsion or suspension shall  be
 4    construed in a manner consistent with the Federal Individuals
 5    with  Disabilities Education Act. A student who is subject to
 6    suspension or expulsion as provided in this  Section  may  be
 7    eligible  for  a transfer to an alternative school program in
 8    accordance  with  Article  13A  of  the  School  Code.    The
 9    provisions  of  this  subsection  (d)  apply  in  all  school
10    districts,  including special charter districts and districts
11    organized under Article 34.
12        (e)  To maintain  order  and  security  in  the  schools,
13    school  authorities  may  inspect and search places and areas
14    such as  lockers,  desks,  parking  lots,  and  other  school
15    property  and equipment owned or controlled by the school, as
16    well as personal effects left in those places  and  areas  by
17    students,  without  notice  to or the consent of the student,
18    and without a search warrant.  As a matter of public  policy,
19    the  General  Assembly finds that students have no reasonable
20    expectation of privacy in these places and areas or in  their
21    personal  effects  left  in  these  places and areas.  School
22    authorities may request the  assistance  of  law  enforcement
23    officials  for  the  purpose  of  conducting  inspections and
24    searches of lockers, desks, parking lots,  and  other  school
25    property  and equipment owned or controlled by the school for
26    illegal  drugs,  weapons,  or  other  illegal  or   dangerous
27    substances or materials, including searches conducted through
28    the  use of specially trained dogs.  If a search conducted in
29    accordance with  this  Section  produces  evidence  that  the
30    student  has  violated  or is violating either the law, local
31    ordinance, or the school's policies or rules,  such  evidence
32    may  be seized by school authorities, and disciplinary action
33    may be taken.  School authorities may  also  turn  over  such
34    evidence  to  law enforcement authorities.  The provisions of
                            -81-           LRB9002758THdvam02
 1    this subsection (e) apply in all school districts,  including
 2    special  charter  districts  and  districts  organized  under
 3    Article 34.
 4        (f)  Suspension  or  expulsion  may include suspension or
 5    expulsion  from  school  and  all  school  activities  and  a
 6    prohibition from being present on school grounds.
 7    (Source: P.A.  89-371,  eff.  1-1-96;  89-507,  eff.  7-1-97;
 8    89-610, eff. 8-6-96; revised 9-9-96.)
 9        (105 ILCS 5/10-22.23) (from Ch. 122, par. 10-22.23)
10        Sec.  10-22.23.   School  Nurse.   To employ a registered
11    professional nurse and define the duties of the school  nurse
12    within the guidelines of rules and regulations promulgated by
13    the State Board of Education.  Any nurse first employed on or
14    after  July  1, 1976 must be certificated under Section 21-25
15    of this Act. Effective July  1,  1997,  a  school  board  may
16    employ  non-certificated  registered  professional  nurses to
17    perform the following duties of a school nurse:  (i)  nursing
18    evaluation  and  care  of  the  ill,  injured,  or  infirmed,
19    including  first  aid  care;  (ii)  screening for deficits in
20    vision, hearing, growth and development, immunization  status
21    and   other   physical   defects;   (iii)  administering  and
22    monitoring medication and treatment given in the school; (iv)
23    collecting  and  analyzing  health-related  data;   and   (v)
24    maintaining  accurate  school health records.  A school board
25    may not employ non-certificated nurses to perform  any  other
26    duties of a school nurse.  The provisions of this Section and
27    any  rules or regulations promulgated related to this Section
28    are not subject  to  waiver  or  modification  under  Section
29    2-3.25 g of the School Code.
30    (Source: P.A. 81-1508.)
31        (105 ILCS 5/10-22.23a) (from Ch. 122, par. 10-22.23a)
32        Sec.  10-22.23a.   Chief  school  business  official.  To
                            -82-           LRB9002758THdvam02
 1    employ a chief school business official and define the duties
 2    of the chief school business  official.    Any  chief  school
 3    business  official  first  employed  on or after July 1, 1977
 4    shall be certificated under either Section 21-7.1 or  Section
 5    21-5d.    For  the  purposes of this Section, experience as a
 6    school  business  official  in  an  Illinois  public   school
 7    district prior to July 1, 1977 shall be deemed the equivalent
 8    of certification.
 9    (Source: P.A. 82-387.)
10        (105 ILCS 5/10-23.5) (from Ch. 122, par. 10-23.5)
11        Sec.  10-23.5.   Educational support personnel employees.
12    To employ such educational support personnel employees as  it
13    deems  advisable  and  to  define  their  employment  duties;
14    provided  that residency within any school district shall not
15    be  considered  in  determining   the   employment   or   the
16    compensation  of  any  such  employee,  or whether to retain,
17    promote, assign or transfer such employee.  If an educational
18    support personnel employee  is  removed  or  dismissed  as  a
19    result  of  a  decision  of  the school board to decrease the
20    number of educational support personnel employees employed by
21    the  board  or  to  discontinue  some  particular   type   of
22    educational  support  service, written notice shall be mailed
23    to the  employee  and  also  given  the  employee  either  by
24    certified mail, return receipt requested or personal delivery
25    with receipt at least 45 60 days before the end of the school
26    term,  together  with  a statement of honorable dismissal and
27    the reason therefor.  The employee with the shorter length of
28    continuing service with the district, within  the  respective
29    category  of  position,  shall  be  dismissed first unless an
30    alternative method of determining the sequence  of  dismissal
31    is  established  in  a  collective  bargaining  agreement  or
32    contract between the board and any exclusive bargaining agent
33    and except that this provision shall not impair the operation
                            -83-           LRB9002758THdvam02
 1    of any affirmative action program in the district, regardless
 2    of whether it exists by operation of law or is conducted on a
 3    voluntary basis by the board.  If the board has any vacancies
 4    for  the  following  school  term or within one calendar year
 5    from  the  beginning  of  the  following  school  term,   the
 6    positions   thereby  becoming  available  within  a  specific
 7    category of position shall be tendered to  the  employees  so
 8    removed  or  dismissed from that category of position, so far
 9    as they are qualified to hold  such  positions.   Each  board
10    shall,   in   consultation   with   any   exclusive  employee
11    representative or bargaining agent,  each  year  establish  a
12    list,   categorized  by  positions,  showing  the  length  of
13    continuing service of  each  full  time  educational  support
14    personnel   employee  who  is  qualified  to  hold  any  such
15    positions, unless an  alternative  method  of  determining  a
16    sequence  of dismissal is established as provided for in this
17    Section, in which case a list shall  be  made  in  accordance
18    with  the  alternative  method.   Copies of the list shall be
19    distributed  to  the  exclusive  employee  representative  or
20    bargaining agent on or before February 1 of each year.  Where
21    an educational support personnel employee is dismissed by the
22    board as a result of a decrease in the number of employees or
23    the discontinuance of the employee's job, the employee  shall
24    be  paid  all  earned  compensation  on  or  before the third
25    business day following his or her last day of employment.
26        The provisions of this amendatory Act of 1986 relating to
27    residency within any  school  district  shall  not  apply  to
28    cities having a population exceeding 500,000 inhabitants.
29    (Source: P.A. 89-618, eff. 8-9-96.)
30        (105 ILCS 5/10-23.8) (from Ch. 122, par. 10-23.8)
31        Sec.  10-23.8.  Superintendent under multi-year contract.
32    To employ a superintendent under a multi-year contract for  a
33    period  not exceeding 5 years.  A multi-year contract No such
                            -84-           LRB9002758THdvam02
 1    contract can be offered or accepted for  less  than  or  more
 2    than   three   years,   except   for   a  person  serving  as
 3    superintendent for the first time in Illinois.  In such case,
 4    the initial contract shall be for a two  year  period.   Such
 5    contract  may be discontinued at any time by mutual agreement
 6    of the contracting parties and, or may  be  extended  for  an
 7    additional 3 years at the end of any year.
 8        The  contract  year  is July 1 through the following June
 9    30, unless the contract specifically provides otherwise.
10        Multi-year contracts may contain components that tie  the
11    superintendent's  compensation  to  improvements  in  student
12    performance  or  other  measures that may be specified in the
13    contract.  Notice of intent not to renew the contract must be
14    given by the board or by the superintendent by April 1 of the
15    year in which  the  contract  expires,  unless  the  contract
16    specifically  provides  otherwise.   Failure  to  do  so will
17    automatically extend the contract for 1 additional year.  The
18    provisions  of  this  paragraph shall not apply to a district
19    under a Financial Oversight Panel pursuant  to  Section  1A-8
20    for violating a financial plan.
21        Notice  of intent not to renew a contract when given by a
22    board  must  be  in  writing,  stating  the  specific  reason
23    therefor.  Within 10 days after receipt  of  such  notice  of
24    intent  not  to  renew  a  contract,  the  superintendent may
25    request a closed session hearing on the  dismissal.   At  the
26    hearing  the  superintendent  has the privilege of presenting
27    evidence,  witnesses  and  defenses  on   the   grounds   for
28    dismissal.   The provisions of this paragraph shall not apply
29    to a district under a Financial Oversight Panel  pursuant  to
30    Section 1A-8 for violating a financial plan.
31        By  accepting  the  terms  of  a multi-year contract, the
32    superintendent waives all rights granted  him  or  her  under
33    Sections  24-11 through 24-16 of this Act for the duration of
34    his or her employment as superintendent in the district.
                            -85-           LRB9002758THdvam02
 1    (Source: P.A. 89-572, eff. 7-30-96.)
 2        (105 ILCS 5/10-23.8a) (from Ch. 122, par. 10-23.8a)
 3        Sec. 10-23.8a.  Principal and other administrators  under
 4    multi-year  contract.   To  employ  a  principal or any other
 5    administrator under a multi-year contract for a period not to
 6    exceed 5 years.  A multi-year No such contract can be offered
 7    or accepted for less than or more than 3 years, except for  a
 8    person  serving  as principal for the first time in Illinois.
 9    In such case, the initial contract shall  be  for  a  2  year
10    period.   Such  contract  may  be discontinued at any time by
11    mutual agreement of the contracting parties and,  or  may  be
12    extended for an additional 3 years at the end of any year.
13        The  contract  year  is July 1 through the following June
14    30, unless  the  contract  specifically  provides  otherwise.
15    Notice  of  intent not to renew the contract must be given by
16    the board or by the principal at least  90  days  before  the
17    contract expires.  Failure to do so will automatically extend
18    the  contract  for 1 additional year.  If offered by a school
19    board, each individual principal shall  have  the  option  to
20    accept  or  refuse  a multi-year contract.  The provisions of
21    this  paragraph  shall  not  apply  to  a  district  under  a
22    Financial  Oversight  Panel  pursuant  to  Section  1A-8  for
23    violating a financial plan.
24        By accepting the terms  of  a  multi-year  contract,  the
25    principal  or  administrator waives all rights granted him or
26    her under Sections 24-11 through 24-16 of this  Act  for  the
27    duration   of   his   or   her  employment  as  principal  or
28    administrator in the district.
29    (Source: P.A. 89-572, eff. 7-30-96.)
30        (105 ILCS 5/18-7) (from Ch. 122, par. 18-7)
31        Sec. 18-7. Payments for  benefit  of  teacher  retirement
32    systems.
                            -86-           LRB9002758THdvam02
 1        (a)  In  each  fiscal  year  until  fiscal year 1999, the
 2    State Board of  Education  shall  distribute  to  the  Public
 3    School  Teachers'  Pension and Retirement Fund of Chicago the
 4    sum, if any, appropriated  for  that  fiscal  year  from  the
 5    Common School Fund for the benefit of the Retirement Fund, in
 6    the  manner  provided  in  this Section, the Illinois Pension
 7    Code, the State Finance Act, and other applicable  provisions
 8    of  law.   In  making  this  distribution, the State Board of
 9    Education shall present vouchers to the State Comptroller  on
10    the  10th  and  20th  days of each month beginning in August.
11    Each  payment  shall  equal  1/24  of   the   annual   amount
12    appropriated  in the months of August through May and 1/12 of
13    the annual amount appropriated in June.
14        Vouchers submitted under this subsection shall be paid by
15    the State Comptroller and  Treasurer  by  warrants  drawn  on
16    funds  appropriated  to the State Board of Education for that
17    purpose.
18        (b)  The State Board of Education shall, in State  fiscal
19    year  1995,  pay  to  the  Teachers' Retirement System of the
20    State of Illinois the amount appropriated  for  the  required
21    State  contribution  to the System for that fiscal year.  The
22    State Board of Education shall present vouchers to the  State
23    Comptroller  for  this  purpose  on the 10th and 20th days of
24    each month of the fiscal year, other than the month of  July.
25    Each  payment in the months of August through May shall equal
26    1/24 of the amount appropriated for that  fiscal  year;  each
27    payment  in  the month of June shall equal 1/12 of the amount
28    appropriated for that fiscal year.
29        Vouchers submitted under this subsection shall be paid by
30    the State Comptroller and  Treasurer  by  warrants  drawn  on
31    funds  appropriated  to the State Board of Education for that
32    purpose.
33        (c)  Beginning in State fiscal year  1996,  the  required
34    State contributions to the Teachers' Retirement System of the
                            -87-           LRB9002758THdvam02
 1    State  of  Illinois  shall  be  appropriated  directly to the
 2    System and  paid  on  vouchers  submitted  by  the  board  of
 3    trustees  of  the  retirement  system, as provided in Section
 4    16-158 of the Illinois Pension Code.  These vouchers shall be
 5    paid by the State Comptroller and Treasurer by warrants drawn
 6    on funds appropriated  to  the  retirement  system  for  that
 7    purpose.
 8        (d)  Beginning  in  State  fiscal year 1999, the required
 9    State contributions to the Public  School  Teachers'  Pension
10    and Retirement Fund of Chicago shall be appropriated directly
11    to  the  Fund  and paid on vouchers submitted by the Board of
12    Trustees of the Fund, as provided in Section  17-127  of  the
13    Illinois  Pension  Code.  These vouchers shall be paid by the
14    State Comptroller and Treasurer by warrants  drawn  on  funds
15    appropriated   to  the  retirement  fund  for  that  purpose.
16    (Source: P.A. 88-593, eff. 8-22-94.)
17        (105 ILCS 5/18-8) (from Ch. 122, par. 18-8)
18        Sec. 18-8.  Basis  for  apportionment  of  general  State
19    financial  aid  and  supplemental  general  State  aid to the
20    common schools.
21    (A)  General Provisions.
22        (1)  The system of general State financial  aid  provided
23    for  in  this  Section  is designed to assure that, through a
24    combination  of  State  financial  aid  and  required   local
25    resources,  the  financial  support  provided  each  pupil in
26    Average Daily Attendance equals or exceeds a  prescribed  per
27    pupil  Foundation  Level.   This  formula  approach imputes a
28    level of per pupil Available Local Resources and provides for
29    the basis to calculate a per pupil  level  of  general  State
30    financial  aid that, when added to Available Local Resources,
31    equals or exceeds the Foundation Level.  The  amount  of  per
32    pupil  general  State  financial aid for school districts, in
33    general,  varies  in  inverse  relation  to  Available  Local
                            -88-           LRB9002758THdvam02
 1    Resources.  Per pupil amounts  are  based  upon  each  school
 2    district's  Average  Daily Attendance as that term is defined
 3    in this Section.
 4        (2)  In addition to general State financial  aid,  school
 5    districts  with  specified levels or concentrations of pupils
 6    from  low  income  households   are   eligible   to   receive
 7    supplemental  general  State financial aid grants as provided
 8    pursuant to subsection (H). The supplemental State aid grants
 9    provided for school districts under subsection (H)  shall  be
10    appropriated  for distribution to school districts as part of
11    the same line item in which the general State  financial  aid
12    of school districts is appropriated under this Section.
13        (3)  To  receive financial assistance under this Section,
14    school districts are required to file claims with  the  State
15    Board of Education, subject to the following requirements:
16             (a)  Any  school  district which fails for any given
17        school year to maintain school as required by law, or  to
18        maintain  a recognized school is not eligible to file for
19        such school year any claim upon the Common  School  Fund.
20        In  case  of  nonrecognition  of  one  or more attendance
21        centers  in  a  school   district   otherwise   operating
22        recognized  schools,  the  claim of the district shall be
23        reduced  in  the  proportion  which  the  Average   Daily
24        Attendance  in  the  attendance center or centers bear to
25        the Average Daily Attendance in the school  district.   A
26        "recognized  school"  means any public school which meets
27        the standards as established for recognition by the State
28        Board of Education.   A  school  district  or  attendance
29        center  not  having  recognition  status  at the end of a
30        school term is entitled to receive State aid payments due
31        upon  a  legal  claim  which  was  filed  while  it   was
32        recognized.
33             (b)  School district claims filed under this Section
34        are subject to Sections 18-9, 18-10, and 18-12, except as
                            -89-           LRB9002758THdvam02
 1        otherwise provided in this Section.
 2             (c)  If  a  school  district  operates  a  full year
 3        school under Section 10-19.1, the general  State  aid  to
 4        the  school  district  shall  be  determined by the State
 5        Board of Education in accordance  with  this  Section  as
 6        near as may be applicable.
 7             (d)  Claims  for  financial  assistance  under  this
 8        Section  shall  not  be  recomputed  except  as expressly
 9        provided under this Section.
10        (4)  Except as provided in subsections (H) and  (L),  the
11    board  of  any  district receiving any of the grants provided
12    for in this Section may apply those  funds  to  any  fund  so
13    received   for   which  that  board  is  authorized  to  make
14    expenditures by law.
15        School districts are not  required  to  exert  a  minimum
16    Operating  Tax  Rate in order to qualify for assistance under
17    this Section.
18        (5)  As used in this Section the  following  terms,  when
19    capitalized, shall have the meaning ascribed herein:
20             (a)  "Average  Daily  Attendance":  A count of pupil
21        attendance  in  school,  averaged  as  provided  for   in
22        subsection   (C)  and  utilized  in  deriving  per  pupil
23        financial support levels.
24             (b)  "Available Local Resources":  A computation  of
25        local  financial support, calculated on the basis Average
26        Daily Attendance and  derived  as  provided  pursuant  to
27        subsection (D).
28             (c)  "Corporate    Personal   Property   Replacement
29        Taxes":  Funds paid to local school districts pursuant to
30        "An Act in  relation  to  the  abolition  of  ad  valorem
31        personal  property  tax  and  the replacement of revenues
32        lost thereby, and amending and repealing certain Acts and
33        parts of Acts in connection therewith", certified  August
34        14, 1979, as amended (Public Act 81-1st S.S.-1).
                            -90-           LRB9002758THdvam02
 1             (d)  "Foundation  Level":  A prescribed level of per
 2        pupil financial support as  provided  for  in  subsection
 3        (B).
 4             (e)  "Operating  Tax  Rate":   All  school  district
 5        property   taxes   extended   for  all  purposes,  except
 6        community college educational purposes for the payment of
 7        tuition under Section 6-1 of the Public Community College
 8        Act, Bond and  Interest,  Summer  School,  Rent,  Capital
 9        Improvement, and Vocational Education Building purposes.
10    (B)  Foundation Level.
11        (1)  The  Foundation Level is a figure established by the
12    State representing the minimum level of per  pupil  financial
13    support  that  should  be  available to provide for the basic
14    education of each pupil in Average Daily Attendance.  As  set
15    forth  in  this  Section,  each school district is assumed to
16    exert  a  sufficient  local  taxing  effort  such  that,   in
17    combination with the aggregate of general State financial aid
18    provided  the  district,  an  aggregate  of  State  and local
19    resources are available to meet the basic education needs  of
20    pupils in the district.
21        (2)  For  the 1997-1998 school year, the Foundation Level
22    of support is $4,200.  For the  1998-1999  school  year,  the
23    Foundation  Level  of  support  is $4,300.  For the 1999-2000
24    school year, the Foundation Level of support is $4,400.   For
25    the 2000-2001 school year, the Foundation Level of support is
26    $4,500.
27        (3)  For  the  2001-2002 school year and each school year
28    thereafter, the Foundation Level of support is $4,500 or such
29    greater amount as may be established by law  by  the  General
30    Assembly.
31    (C)  Average Daily Attendance.
32        (1)  For   purposes  of  calculating  general  State  aid
33    pursuant to  subsection  (E),  an  Average  Daily  Attendance
                            -91-           LRB9002758THdvam02
 1    figure  shall  be  utilized.   The  Average  Daily Attendance
 2    figure for formula calculation purposes shall be the  monthly
 3    average  of the actual number of pupils in attendance of each
 4    school district, as further averaged for the best 3 months of
 5    pupil attendance for each school district.  In compiling  the
 6    figures  for  the  number  of  pupils  in  attendance, school
 7    districts  and  the  State  Board  of  Education  shall,  for
 8    purposes of general State  aid  funding,  conform  attendance
 9    figures to the requirements of subsection (F).
10        (2)  The  Average  Daily  Attendance  figures utilized in
11    subsection (E) shall be the requisite attendance data for the
12    school year immediately preceding the school year  for  which
13    general State aid is being calculated, except that a district
14    with  a  best  3 months Average Daily Attendance figure lower
15    than that of  the  same  Average  Daily  Attendance  for  the
16    preceding school year, when such preceding year Average Daily
17    Attendance  is  calculated  on  an unweighted basis, shall be
18    entitled to  have  its  general  State  aid  based  upon  the
19    unweighted best 3 months Average Daily Attendance figure that
20    is  an  average  of the 3 school years preceding the year for
21    which general State aid is being calculated, if that produces
22    a greater amount.
23    (D)  Available Local Resources.
24        (1)  For  purposes  of  calculating  general  State   aid
25    pursuant  to  subsection  (E),  a representation of Available
26    Local Resources per  pupil,  as  that  term  is  defined  and
27    determined  in this subsection, shall be utilized.  Available
28    Local Resources per pupil shall include a  calculated  dollar
29    amount representing local school district revenues from local
30    property   taxes   and   from   Corporate  Personal  Property
31    Replacement Taxes,  expressed  on  the  basis  of  pupils  in
32    Average Daily Attendance.
33        (2)  In  determining  a  school  district's  revenue from
34    local property taxes, the  State  Board  of  Education  shall
                            -92-           LRB9002758THdvam02
 1    utilize  the  equalized  assessed  valuation  of  all taxable
 2    property of each school district as of September  30  of  the
 3    previous  year.   The  equalized  assessed valuation utilized
 4    shall be obtained and determined as  provided  in  subsection
 5    (G).
 6        (3)  For school districts maintaining grades kindergarten
 7    through  12,  local  property tax revenues per pupil shall be
 8    calculated  as  the  product  of  the  applicable   equalized
 9    assessed  valuation for the district multiplied by 3.00%, and
10    divided by the district's Average  Daily  Attendance  figure.
11    For  school districts maintaining grades kindergarten through
12    8, local property tax revenues per pupil shall be  calculated
13    as the product of the applicable equalized assessed valuation
14    for  the  district  multiplied  by  2.20%, and divided by the
15    district's  Average  Daily  Attendance  figure.   For  school
16    districts maintaining grades 9 through 12, local property tax
17    revenues per pupil shall be the applicable equalized assessed
18    valuation of the district multiplied by 1.10%, and divided by
19    the district's Average Daily Attendance figure.
20        (4)  The Corporate Personal  Property  Replacement  Taxes
21    paid to each school district during the calendar year 2 years
22    before  the  calendar  year  in  which  a school year begins,
23    divided by the  Average  Daily  Attendance  figure  for  that
24    district,  shall  be added to the local property tax revenues
25    per pupil as derived by the application  of  the  immediately
26    preceding  paragraph (3).  The sum of these per pupil figures
27    for each school district  shall  constitute  Available  Local
28    Resources  as  that term is utilized in subsection (E) in the
29    calculation of general State aid.
30    (E)  Computation of General State Aid.
31        (1)  For each school year, the amount  of  general  State
32    aid  allotted  to  a school district shall be computed by the
33    State Board of Education as provided in this subsection.
34        (2)  For any school district for  which  Available  Local
                            -93-           LRB9002758THdvam02
 1    Resources  per  pupil  is less than the product of 0.93 times
 2    the Foundation Level, general State  aid  for  that  district
 3    shall  be  calculated  as  an  amount equal to the Foundation
 4    Level minus Available  Local  Resources,  multiplied  by  the
 5    Average Daily Attendance of the school district.
 6        (3)  For  any  school  district for which Available Local
 7    Resources per pupil is equal to or greater than  the  product
 8    of  0.93 times the Foundation Level and less than the product
 9    of 1.75 times the Foundation Level, the general State aid per
10    pupil shall be a decimal proportion of the  Foundation  Level
11    derived   using   a  linear  algorithm.   Under  this  linear
12    algorithm, the calculated general State aid per  pupil  shall
13    decline   in  direct  linear  fashion  from  0.07  times  the
14    Foundation Level for a school district with  Available  Local
15    Resources  equal  to the product of 0.93 times the Foundation
16    Level, to 0.05  times  the  Foundation  Level  for  a  school
17    district  with Available Local Resources equal to the product
18    of 1.75  times  the  Foundation  Level.   The  allocation  of
19    general  State  aid  for  school  districts  subject  to this
20    paragraph 3 shall be the calculated  general  State  aid  per
21    pupil  figure  multiplied  by the Average Daily Attendance of
22    the school district.
23        (4)  For any school district for  which  Available  Local
24    Resources  per  pupil  equals  or exceeds the product of 1.75
25    times the Foundation Level, the general  State  aid  for  the
26    school  district  shall  be calculated as the product of $214
27    multiplied by the Average  Daily  Attendance  of  the  school
28    district.
29    (F)  Compilation of Average Daily Attendance.
30        (1)  Each  school district shall, by July 1 of each year,
31    submit to the State Board of Education, on  forms  prescribed
32    by  the  State Board of Education, attendance figures for the
33    school year that began in the preceding calendar  year.   The
34    attendance  information  so  transmitted  shall  identify the
                            -94-           LRB9002758THdvam02
 1    average daily attendance figures for each month of the school
 2    year, except that any days of attendance in August  shall  be
 3    added to the month of September and any days of attendance in
 4    June shall be added to the month of May.
 5        Except  as  otherwise  provided  in this Section, days of
 6    attendance by pupils shall be counted only  for  sessions  of
 7    not  less  than  5  clock  hours of school work per day under
 8    direct supervision of: (i)  teachers,  or  (ii)  non-teaching
 9    personnel   or   volunteer   personnel   when   engaging   in
10    non-teaching   duties  and  supervising  in  those  instances
11    specified in subsection (a) of Section 10-22.34 and paragraph
12    10 of Section 34-18, with pupils of legal school age  and  in
13    kindergarten and grades 1 through 12.
14        Days  of attendance by tuition pupils shall be accredited
15    only to the districts that pay the tuition  to  a  recognized
16    school.
17        (2)  Days  of  attendance  by pupils of less than 5 clock
18    hours of school shall be subject to the following  provisions
19    in the compilation of Average Daily Attendance.
20             (a)  Pupils  regularly  enrolled  in a public school
21        for only a part of the school day may be counted  on  the
22        basis  of  1/6 day for every class hour of instruction of
23        40 minutes or more attended pursuant to such enrollment.
24             (b)  Days of attendance may be  less  than  5  clock
25        hours  on the opening and closing of the school term, and
26        upon the first day of pupil attendance, if preceded by  a
27        day  or  days  utilized  as  an  institute  or  teachers'
28        workshop.
29             (c)  A  session  of  4  or  more  clock hours may be
30        counted as a day of attendance upon certification by  the
31        regional   superintendent,  and  approved  by  the  State
32        Superintendent  of  Education  to  the  extent  that  the
33        district has been forced to use daily multiple sessions.
34             (d)  A session of 3  or  more  clock  hours  may  be
                            -95-           LRB9002758THdvam02
 1        counted  as a day of attendance (1) when the remainder of
 2        the school day or at least 2 hours in the evening of that
 3        day is utilized for an in-service  training  program  for
 4        teachers,  up  to  a maximum of 5 days per school year of
 5        which a maximum of 4 days of such 5 days may be used  for
 6        parent-teacher  conferences, provided a district conducts
 7        an in-service training program  for  teachers  which  has
 8        been  approved  by the State Superintendent of Education;
 9        or, in lieu of 4 such days, 2 full days may be  used,  in
10        which  event  each  such  day  may be counted as a day of
11        attendance; and  (2)  when  days  in  addition  to  those
12        provided  in  item (1) are scheduled by a school pursuant
13        to its school improvement plan adopted under  Article  34
14        or its revised or amended school improvement plan adopted
15        under  Article 2, provided that (i) such sessions of 3 or
16        more clock  hours  are  scheduled  to  occur  at  regular
17        intervals, (ii) the remainder of the school days in which
18        such  sessions occur are utilized for in-service training
19        programs  or  other  staff  development  activities   for
20        teachers,  and  (iii)  a  sufficient number of minutes of
21        school work under the direct supervision of teachers  are
22        added to the school days between such regularly scheduled
23        sessions  to  accumulate  not  less  than  the  number of
24        minutes by which such sessions of 3 or more  clock  hours
25        fall  short  of 5 clock hours. Any full days used for the
26        purposes of this paragraph shall not  be  considered  for
27        computing  average  daily attendance.  Days scheduled for
28        in-service   training   programs,    staff    development
29        activities,   or   parent-teacher   conferences   may  be
30        scheduled  separately  for  different  grade  levels  and
31        different attendance centers of the district.
32             (e)  A session of  not  less  than  one  clock  hour
33        teaching  of  hospitalized or homebound pupils on-site or
34        by telephone to the classroom may be counted as  1/2  day
                            -96-           LRB9002758THdvam02
 1        of  attendance,  however  these  pupils must receive 4 or
 2        more clock hours of instruction to be counted for a  full
 3        day of attendance.
 4             (f)  A  session  of  at  least  4 clock hours may be
 5        counted as a day of attendance for  first  grade  pupils,
 6        and  pupils in full day kindergartens, and a session of 2
 7        or more hours may be counted as 1/2 day of attendance  by
 8        pupils  in  kindergartens  which  provide only 1/2 day of
 9        attendance.
10             (g)  For children with disabilities  who  are  below
11        the  age of 6 years and who cannot attend 2 or more clock
12        hours  because  of  their  disability  or  immaturity,  a
13        session of not less than one clock hour may be counted as
14        1/2 day of attendance; however for  such  children  whose
15        educational needs so require a session of 4 or more clock
16        hours may be counted as a full day of attendance.
17             (h)  A  recognized  kindergarten  which provides for
18        only 1/2 day of attendance by each pupil shall  not  have
19        more  than  1/2  day  of attendance counted in any 1 day.
20        However, kindergartens may count 2 1/2 days of attendance
21        in any 5 consecutive school days.  When a  pupil  attends
22        such  a  kindergarten  for  2 half days on any one school
23        day, the pupil shall have the  following  day  as  a  day
24        absent  from  school,  unless the school district obtains
25        permission in writing from the  State  Superintendent  of
26        Education.  Attendance at kindergartens which provide for
27        a  full  day of attendance by each pupil shall be counted
28        the same as attendance by first grade pupils.   Only  the
29        first  year  of  attendance  in one kindergarten shall be
30        counted, except in  case  of  children  who  entered  the
31        kindergarten   in  their  fifth  year  whose  educational
32        development requires a second  year  of  kindergarten  as
33        determined  under  the rules and regulations of the State
34        Board of Education.
                            -97-           LRB9002758THdvam02
 1    (G)  Equalized Assessed Valuation Data.
 2        (1)  For purposes of the calculation of  Available  Local
 3    Resources  required  pursuant  to  subsection  (D), the State
 4    Board of  Education  shall  secure  from  the  Department  of
 5    Revenue  the value as equalized or assessed by the Department
 6    of Revenue of all taxable property of every  school  district
 7    together with the applicable tax rate used in extending taxes
 8    for  the  funds  of  the  district  as of September 30 of the
 9    previous year.
10        This equalized assessed valuation, as adjusted further by
11    the requirements of this subsection, shall be utilized in the
12    calculation of Available Local Resources.
13        (2)  The equalized assessed valuation  in  paragraph  (1)
14    shall be adjusted, as applicable, in the following manner:
15             (a)  The  Department  of  Revenue  shall  add to the
16        equalized assessed value of all taxable property of  each
17        school  district  situated entirely or partially within a
18        county with 3,000,000 or more inhabitants an amount equal
19        to the total amount by  which  the  homestead  exemptions
20        allowed  under Sections 15-170 and 15-175 of the Property
21        Tax Code  for  real  property  situated  in  that  school
22        district  exceeds  the  total amount that would have been
23        allowed in that school district as  homestead  exemptions
24        under  those  Sections  if  the  maximum  reduction under
25        Section 15-170 of the Property Tax Code  was  $2,500  and
26        the   maximum  reduction  under  Section  15-175  of  the
27        Property Tax Code was $4,500.  The county  clerk  of  any
28        county  with 3,000,000 or more inhabitants shall annually
29        calculate and certify to the Department for  each  school
30        district  all  homestead  exemption  amounts  required by
31        Public Act 87-894.  In a new district which has  not  had
32        any  tax  rates  yet determined for extension of taxes, a
33        leveled uniform rate shall be computed  from  the  latest
34        amount  of  the  fund taxes extended on the several areas
                            -98-           LRB9002758THdvam02
 1        within the new district.
 2             (b)  For the purposes of calculating State aid under
 3        this Section, with  respect  to  any  part  of  a  school
 4        district  within  a redevelopment project area in respect
 5        to  which  a  municipality  has  adopted  tax   increment
 6        allocation   financing  pursuant  to  the  Tax  Increment
 7        Allocation Redevelopment Act, Sections 11-74.4-1  through
 8        11-74.4-11   of   the  Illinois  Municipal  Code  or  the
 9        Industrial Jobs Recovery Law, Sections 11-74.6-1  through
10        11-74.6-50 of the Illinois Municipal Code, no part of the
11        current  equalized  assessed  valuation  of real property
12        located in any such project area which is attributable to
13        an increase above the total  initial  equalized  assessed
14        valuation  of  such property shall be used as part of the
15        equalized assessed valuation of the district, until  such
16        time  as  all redevelopment project costs have been paid,
17        as provided in Section 11-74.4-8  of  the  Tax  Increment
18        Allocation  Redevelopment Act or in Section 11-74.6-35 of
19        the Industrial Jobs Recovery Law.  For the purpose of the
20        equalized assessed valuation of the district,  the  total
21        initial  equalized  assessed  valuation  or  the  current
22        equalized  assessed  valuation, whichever is lower, shall
23        be used until such  time  as  all  redevelopment  project
24        costs have been paid.
25             (c)  The  real property equalized assessed valuation
26        for a school district shall be  adjusted  by  subtracting
27        from  the real property value as equalized or assessed by
28        the Department of Revenue  for  the  district  an  amount
29        computed by dividing the amount of any abatement of taxes
30        under  Section  18-170  of the Property Tax Code by 3.00%
31        for a district maintaining grades kindergarten through 12
32        or  by  2.20%   for   a   district   maintaining   grades
33        kindergarten  through  8,  or  by  1.10%  for  a district
34        maintaining grades 9 through 12 and adjusted by an amount
                            -99-           LRB9002758THdvam02
 1        computed by dividing the amount of any abatement of taxes
 2        under subsection (a) of Section 18-165  of  the  Property
 3        Tax  Code  by the same percentage rates for district type
 4        as specified in this subparagraph (c).
 5    (H)  Supplemental General State Aid.
 6        (1)  In addition  to  the  general  State  aid  a  school
 7    district  is  allotted pursuant to subsection (E), qualifying
 8    school districts shall receive a grant, paid  in  conjunction
 9    with   a  district's  payments  of  general  State  aid,  for
10    supplemental general State aid based upon  the  concentration
11    level  of  children  from  low-income  households  within the
12    school district. Supplemental State aid grants  provided  for
13    school  districts under this subsection shall be appropriated
14    for distribution to school districts as part of the same line
15    item in which the  general  State  financial  aid  of  school
16    districts is appropriated under this Section. For purposes of
17    this  subsection,  the  term "Low-Income Concentration Level"
18    shall be the low-income eligible pupil count  from  the  most
19    recently  available  federal  census  divided  by the Average
20    Daily Attendance of the school district.
21        (2)  Supplemental general  State  aid  pursuant  to  this
22    subsection shall be provided as follows:
23             (a)  For  any  school  district  with  a  Low Income
24        Concentration Level of at least 20% and  less  than  35%,
25        the grant for any school year shall be $800 multiplied by
26        the low income eligible pupil count.
27             (b)  For  any  school  district  with  a  Low Income
28        Concentration Level of at least 35% and  less  than  50%,
29        the  grant  for the 1997-1998 school year shall be $1,100
30        multiplied by the low income eligible pupil count.
31             (c)  For any  school  district  with  a  Low  Income
32        Concentration  Level  of  at least 50% and less than 60%,
33        the grant for the 1997-98 school  year  shall  be  $1,500
34        multiplied by the low income eligible pupil count.
                            -100-          LRB9002758THdvam02
 1             (d)  For  any  school  district  with  a  Low Income
 2        Concentration Level of 60% or more,  the  grant  for  the
 3        1997-98 school year shall be $1,900 multiplied by the low
 4        income eligible pupil count.
 5             (e)  For  the  1998-1999  school year, the per pupil
 6        amount specified in  subparagraphs  (b),  (c),  and  (d),
 7        immediately  above  shall be increased by $100 to $1,200,
 8        $1,600, and $2,000, respectively.
 9             (f)  For each school year after the 1998-1999 school
10        year, the per pupil amounts specified in subparagraph (e)
11        immediately  above  shall  be  increased  by   the   same
12        percentage  as  the  percentage  increase, if any, in the
13        Foundation Level as provided under subsection (B).
14        (3)  School districts with an Average Daily Attendance of
15    more than  1,000  and  less  than  50,000  that  qualify  for
16    supplemental  general  State  aid pursuant to this subsection
17    shall submit a plan to the State Board of Education prior  to
18    October  30  of  each year for the use of the funds resulting
19    from this grant of supplemental general  State  aid  for  the
20    improvement  of  instruction  in  which  priority is given to
21    meeting the education needs of disadvantaged children.   Such
22    plan   shall  be  submitted  in  accordance  with  rules  and
23    regulations promulgated by the State Board of Education.
24        (4)  School districts with an Average Daily Attendance of
25    50,000 or more that qualify for  supplemental  general  State
26    aid   pursuant  to  this  subsection  shall  be  required  to
27    distribute from funds available pursuant to this Section,  no
28    less  than  $261,000,000  in  accordance  with  the following
29    requirements:
30             (a)  The required amounts shall  be  distributed  to
31        the  attendance centers within the district in proportion
32        to the number  of  pupils  enrolled  at  each  attendance
33        center  who are eligible to receive free or reduced-price
34        lunches or breakfasts under the federal  Child  Nutrition
                            -101-          LRB9002758THdvam02
 1        Act  of  1966  and  under  the  National School Lunch Act
 2        during the immediately preceding school year.
 3             (b)  The   distribution   of   these   portions   of
 4        supplemental  and  general  State  aid  among  attendance
 5        centers according to  these  requirements  shall  not  be
 6        compensated  for  or  contravened  by  adjustments of the
 7        total of  other  funds  appropriated  to  any  attendance
 8        centers, and the Board of Education shall utilize funding
 9        from  one  or several sources in order to fully implement
10        this provision annually prior to the opening of school.
11             (c)  Each attendance center shall be provided by the
12        school district a distribution  of  noncategorical  funds
13        and other categorical funds to which an attendance center
14        is entitled under law in order that the general State aid
15        and   supplemental   general   State   aid   provided  by
16        application of this subsection  supplements  rather  than
17        supplants  the noncategorical funds and other categorical
18        funds provided by the school district to  the  attendance
19        centers.
20             (d)  Any  funds made available under this subsection
21        that by reason of the provisions of this  subsection  are
22        not  required  to be allocated and provided to attendance
23        centers may be used and appropriated by the board of  the
24        district for any lawful school purpose.
25             (e)  Funds received by an attendance center pursuant
26        to this subsection shall be used by the attendance center
27        at  the  discretion  of  the  principal  and local school
28        council for programs to improve educational opportunities
29        at qualifying schools through the following programs  and
30        services:  early  childhood education, reduced class size
31        or improved adult to student classroom ratio,  enrichment
32        programs, remedial assistance, attendance improvement and
33        other   educationally   beneficial   expenditures   which
34        supplement  the  regular and basic programs as determined
                            -102-          LRB9002758THdvam02
 1        by the State Board of Education.   Funds  provided  shall
 2        not be expended for any political or lobbying purposes as
 3        defined by board rule.
 4             (f)  Each district subject to the provisions of this
 5        subdivision  (H)(4)  shall  submit  an acceptable plan to
 6        meet the educational needs of disadvantaged children,  in
 7        compliance  with  the  requirements of this paragraph, to
 8        the State Board of Education prior to  July  15  of  each
 9        year. This plan shall be consistent with the decisions of
10        local  school  councils concerning the school expenditure
11        plans developed in accordance  with  part  4  of  Section
12        34-2.3.  The State Board shall approve or reject the plan
13        within  60  days  after  its  submission.  If the plan is
14        rejected, the  district  shall  give  written  notice  of
15        intent   to  modify  the  plan  within  15  days  of  the
16        notification of rejection and then submit a modified plan
17        within 30 days after the date of the  written  notice  of
18        intent  to  modify.    Districts may amend approved plans
19        pursuant to rules  promulgated  by  the  State  Board  of
20        Education.
21             Upon  notification  by  the State Board of Education
22        that the district has not submitted a plan prior to  July
23        15  or  a  modified plan within the time period specified
24        herein, the State aid funds  affected  by  that  plan  or
25        modified  plan  shall  be  withheld by the State Board of
26        Education until a plan or modified plan is submitted.
27             If the district fails to  distribute  State  aid  to
28        attendance  centers  in accordance with an approved plan,
29        the plan for the following year shall allocate funds,  in
30        addition   to   the  funds  otherwise  required  by  this
31        subsection,  to  those  attendance  centers  which   were
32        underfunded  during the previous year in amounts equal to
33        such underfunding.
34             For purposes of  determining  compliance  with  this
                            -103-          LRB9002758THdvam02
 1        subsection  in relation to the requirements of attendance
 2        center funding, each district subject to  the  provisions
 3        of this subsection shall submit as a separate document by
 4        December  1 of each year a report of expenditure data for
 5        the prior year in addition to  any  modification  of  its
 6        current  plan.  If it is determined that there has been a
 7        failure to comply with the expenditure provisions of this
 8        subsection regarding contravention  or  supplanting,  the
 9        State  Superintendent  of Education shall, within 60 days
10        of receipt of the report, notify  the  district  and  any
11        affected local school council.  The district shall within
12        45  days of receipt of that notification inform the State
13        Superintendent of Education of the remedial or corrective
14        action to be taken, whether  by amendment of the  current
15        plan,  if  feasible, or by adjustment in the plan for the
16        following  year.   Failure  to  provide  the  expenditure
17        report or the  notification  of  remedial  or  corrective
18        action  in  a timely manner shall result in a withholding
19        of the affected funds.
20             The State Board of Education shall promulgate  rules
21        and  regulations  to  implement  the  provisions  of this
22        subsection.   No  funds  shall  be  released  under  this
23        subdivision (H)(4) to any district that has not submitted
24        a plan that has been  approved  by  the  State  Board  of
25        Education.
26    (I)  General State Aid for Newly Configured School Districts.
27        (1)  For  a  new  school  district  formed  by  combining
28    property   included  totally  within  2  or  more  previously
29    existing school districts, for its first  year  of  existence
30    the  general  State  aid  and  supplemental general State aid
31    calculated under this Section shall be computed for  the  new
32    district  and for the previously existing districts for which
33    property is totally included within the new district.  If the
34    computation on the basis of the previously existing districts
                            -104-          LRB9002758THdvam02
 1    is greater, a supplementary payment equal to  the  difference
 2    shall  be  made for the first 4 years of existence of the new
 3    district.
 4        (2)  For a school  district  which  annexes  all  of  the
 5    territory  of  one or more entire other school districts, for
 6    the  first  year  during  which  the  change  of   boundaries
 7    attributable  to  such  annexation  becomes effective for all
 8    purposes as determined under Section 7-9 or 7A-8, the general
 9    State aid and supplemental general State aid calculated under
10    this Section shall be computed for the annexing  district  as
11    constituted  after  the  annexation  and for the annexing and
12    each annexed district as constituted prior to the annexation;
13    and if the computation on  the  basis  of  the  annexing  and
14    annexed  districts  as constituted prior to the annexation is
15    greater, a supplementary  payment  equal  to  the  difference
16    shall  be  made  for  the  first  4 years of existence of the
17    annexing school district as constituted upon such annexation.
18        (3)  For 2 or more school districts which  annex  all  of
19    the  territory  of one or more entire other school districts,
20    and for 2 or more community unit districts which result  upon
21    the  division  (pursuant  to petition under Section 11A-2) of
22    one or more other unit school districts into 2 or more  parts
23    and  which  together include all of the parts into which such
24    other unit school district or districts are so  divided,  for
25    the   first  year  during  which  the  change  of  boundaries
26    attributable to such annexation or division becomes effective
27    for all purposes as determined under Section 7-9  or  11A-10,
28    as  the  case  may be, the general State aid and supplemental
29    general State aid calculated  under  this  Section  shall  be
30    computed   for   each   annexing  or  resulting  district  as
31    constituted after the annexation or  division  and  for  each
32    annexing  and  annexed  district,  or  for each resulting and
33    divided district, as constituted prior to the  annexation  or
34    division;  and  if the aggregate of the general State aid and
                            -105-          LRB9002758THdvam02
 1    supplemental  general  State  aid  as  so  computed  for  the
 2    annexing or resulting  districts  as  constituted  after  the
 3    annexation  or  division  is  less  than the aggregate of the
 4    general State aid and supplemental general State  aid  as  so
 5    computed  for  the annexing and annexed districts, or for the
 6    resulting and divided districts, as constituted prior to  the
 7    annexation or division, then a supplementary payment equal to
 8    the  difference  shall be made and allocated between or among
 9    the annexing or resulting districts, as constituted upon such
10    annexation or division,  for  the  first  4  years  of  their
11    existence.   The  total difference payment shall be allocated
12    between or among the annexing or resulting districts  in  the
13    same  ratio  as the pupil enrollment from that portion of the
14    annexed or divided district or districts which is annexed  to
15    or included in each such annexing or resulting district bears
16    to  the  total  pupil  enrollment  from the entire annexed or
17    divided district or districts, as such  pupil  enrollment  is
18    determined  for the school year last ending prior to the date
19    when the change of boundaries attributable to the  annexation
20    or  division  becomes effective for all purposes.  The amount
21    of the total difference payment and the amount thereof to  be
22    allocated  to  the  annexing  or resulting districts shall be
23    computed by the State Board of  Education  on  the  basis  of
24    pupil  enrollment  and other data which shall be certified to
25    the State Board of Education, on forms which it shall provide
26    for that purpose, by the regional superintendent  of  schools
27    for each educational service region in which the annexing and
28    annexed  districts,  or  resulting  and divided districts are
29    located.
30        (4)  Any supplementary payment made under this subsection
31    (I) shall be treated as separate from all other payments made
32    pursuant to this Section.
33    (J)  Supplementary Grants in Aid.
34        (1)  Notwithstanding  any  other   provisions   of   this
                            -106-          LRB9002758THdvam02
 1    Section,  the  amount  of  the aggregate general State aid in
 2    combination with supplemental general State  aid  under  this
 3    Section,  as  revised  under this amendatory Act of 1997, for
 4    which each school district  is  eligible  for  the  1997-1998
 5    school year shall be no less than the amount of the aggregate
 6    general  State  aid  entitlement  that  was  received  by the
 7    district under this Section  for  the  1996-97  school  year,
 8    pursuant  to the provisions of this Section as it was then in
 9    effect.  If  a  school  district  qualifies  to   receive   a
10    supplementary  payment made under this subsection (J) for the
11    1997-1998 school year, the amount of  the  aggregate  general
12    State  aid in combination with supplemental general State aid
13    under this Section, as revised under this amendatory  Act  of
14    1997,  which  that  district  is eligible to receive for each
15    school year subsequent to the 1997-1998 school year shall  be
16    no  less  than  the amount of the aggregate general State aid
17    entitlement that was received  by  the  district  under  this
18    Section  for  the  1996-1997  school  year,  pursuant  to the
19    provisions of this Section as it was then in effect.
20        (2)  If, as provided in paragraph (1) of this  subsection
21    (J),  a school district is to receive aggregate general State
22    aid in combination with supplemental general State aid  under
23    this  Section for the 1997-98 school year, or for the 1997-98
24    school year and any subsequent school year, that in any  such
25    school  year is less than the amount of the aggregate general
26    State aid entitlement that  the  district  received  for  the
27    1996-97  school year, the school district shall also receive,
28    from a separate  appropriation  made  for  purposes  of  this
29    subsection  (J), a supplementary payment that is equal to the
30    amount of the difference in the aggregate State  aid  figures
31    as described in paragraph (1).
32        (3)  If   the   amount   appropriated  for  supplementary
33    payments to school districts under  this  subsection  (J)  is
34    insufficient  for  that  purpose,  the supplementary payments
                            -107-          LRB9002758THdvam02
 1    that districts are to receive under this subsection shall  be
 2    prorated   according   to   the   aggregate   amount  of  the
 3    appropriation made for purposes of this subsection.
 4    (K)  Grants to Laboratory and Alternative Schools.
 5        In calculating the amount to be  paid  to  the  governing
 6    board  of  a  public  university  that  operates a laboratory
 7    school under this Section or to any alternative  school  that
 8    is  operated by a regional superintendent, the State Board of
 9    Education shall require by rule such  reporting  requirements
10    as it deems necessary.
11        As  used  in  this  Section,  "laboratory school" means a
12    public school which is  created  and  operated  by  a  public
13    university and approved by the State Board of Education.  The
14    governing  board  of a public university which receives funds
15    from the State  Board  under  this  subsection  (K)  may  not
16    increase  the  number  of students enrolled in its laboratory
17    school from a single district, if that  district  is  already
18    sending  50 or more students, except under a mutual agreement
19    between the school board of a student's district of residence
20    and the university which operates the laboratory  school.   A
21    laboratory  school  may  not  have  more than 1,000 students,
22    excluding students with disabilities in a  special  education
23    program.
24        As  used  in  this  Section, "alternative school" means a
25    public school which is created and  operated  by  a  Regional
26    Superintendent  of Schools and approved by the State Board of
27    Education. Such alternative  schools  may  offer  courses  of
28    instruction  for  which  credit  is  given  in regular school
29    programs, courses to prepare students  for  the  high  school
30    equivalency  testing  program  or vocational and occupational
31    training.
32        Each laboratory and alternative  school  shall  file,  on
33    forms  provided  by the State Superintendent of Education, an
34    annual  State  aid  claim  which  states  the  Average  Daily
                            -108-          LRB9002758THdvam02
 1    Attendance of the school's students by  month.   The  best  3
 2    months'  Average  Daily Attendance shall be computed for each
 3    school.  The Average Daily Attendance shall be  computed  and
 4    the unweighted Average Daily Attendance for the school's most
 5    recent  3-year  average  shall be compared to the most recent
 6    Average Daily Attendance, and the greater of the 2  shall  be
 7    used  for  the  calculation  under  this subsection (K).  The
 8    general  State  aid  entitlement   shall   be   computed   by
 9    multiplying  the  applicable  Average Daily Attendance by the
10    Foundation Level as determined under this Section.
11    (L)  Payments,   Additional   Grants   in   Aid   and   Other
12    Requirements.
13        (1)  For a school district operating under the  financial
14    supervision  of  an  Authority created under Article 34A, the
15    general State aid otherwise payable to  that  district  under
16    this  Section,  but  not  the supplemental general State aid,
17    shall be reduced by an amount equal to  the  budget  for  the
18    operations  of the Authority as certified by the Authority to
19    the State Board of Education, and an  amount  equal  to  such
20    reduction  shall  be  paid  to the Authority created for such
21    district for its operating expenses in the manner provided in
22    Section 18-11.  The remainder of general State school aid for
23    any such district shall be paid in  accordance  with  Article
24    34A  when  that Article provides for a disposition other than
25    that provided by this Article.
26        (2)  Impaction.  Impaction  payments  shall  be  made  as
27    provided for in Section 18-4.2.
28        (3)  Summer school.  Summer school payments shall be made
29    as provided in Section 18-4.3.
30    (M)  Education Funding Advisory Board.
31        The Education Funding Advisory Board, hereinafter in this
32    subsection (M) referred to as the "Board", is hereby created.
33    The Board shall consist of 5 members who are appointed by the
                            -109-          LRB9002758THdvam02
 1    Governor,  by  and with the advice and consent of the Senate.
 2    The  members  appointed  shall  include  representatives   of
 3    education,  business,  and  the  general  public.  One of the
 4    members so appointed shall be designated by the  Governor  at
 5    the  time  the  appointment is made as the chairperson of the
 6    Board. The initial members of the Board may be appointed  any
 7    time after the effective date of this amendatory Act of 1997.
 8    The  regular  term of each member of the Board shall be for 4
 9    years from the third Monday of January of the year  in  which
10    the  term  of the member's appointment is to commence, except
11    that of the 5 initial  members  appointed  to  serve  on  the
12    Board,  the  member who is appointed as the chairperson shall
13    serve for a term that commences on the date  of  his  or  her
14    appointment and expires on the third Monday of January, 2002,
15    and  the  remaining  4  members,  by  lots drawn at the first
16    meeting of the Board that is held after  all  5  members  are
17    appointed,  shall  determine  2  of their number to serve for
18    terms  that  commence  on  the  date  of   their   respective
19    appointments and expire on the third Monday of January, 2001,
20    and 2 of their number to serve for terms that commence on the
21    date of their respective appointments and expire on the third
22    Monday  of  January, 2000.  All members appointed to serve on
23    the Board shall serve until their respective  successors  are
24    appointed  and  confirmed.   Vacancies shall be filled in the
25    same manner  as  original  appointments.   If  a  vacancy  in
26    membership  occurs  at  a  time  when  the  Senate  is not in
27    session, the Governor  shall  make  a  temporary  appointment
28    until  the  next  meeting of the Senate, when he or she shall
29    appoint, by and with the advice and consent of the Senate,  a
30    person  to  fill  that membership for the unexpired term.  If
31    the Senate is not in session when  the  initial  appointments
32    are  made, those appointments shall be made as in the case of
33    vacancies.
34        The Education Funding  Advisory  Board  shall  be  deemed
                            -110-          LRB9002758THdvam02
 1    established,   and  the  initial  members  appointed  by  the
 2    Governor to serve as members of the Board shall take  office,
 3    on the date that the Governor makes his or her appointment of
 4    the  fifth initial member of the Board, whether those initial
 5    members  are  then  serving  pursuant  to   appointment   and
 6    confirmation  or  pursuant to temporary appointments that are
 7    made by the Governor as in the case of vacancies.
 8        The State Board of Education  shall  provide  such  staff
 9    assistance  to  the  Education  Funding  Advisory Board as is
10    reasonably required for the proper performance by  the  Board
11    of its responsibilities.
12        For school years subsequent to the 2000-2001 school year,
13    the  Education  Funding  Advisory Board, in consultation with
14    the State Board of Education, shall make  recommendations  as
15    provided  in  this subsection (M) to the General Assembly for
16    the foundation level under subdivision (B)(3) of this Section
17    and for the supplemental general State aid grant level  under
18    subsection  (H)  of  this  Section  for  districts  with high
19    concentrations of children  from  poverty.   The  recommended
20    foundation  level  shall be determined based on a methodology
21    which  incorporates  the  basic  education  expenditures   of
22    low-spending  schools  exhibiting  high academic performance.
23    The  Education  Funding  Advisory  Board  shall   make   such
24    recommendations  to the General Assembly on January 1 of even
25    numbered years, beginning January 1, 2000.
26    (N)  General State Aid Adjustment Grant.
27        (1)  Any  school  district  subject   to   property   tax
28    extension  limitations as imposed under the provisions of the
29    Property Tax Extension Limitation Law shall  be  entitled  to
30    receive,  subject  to  the qualifications and requirements of
31    this  subsection,  a  general  State  aid  adjustment  grant.
32    Eligibility for this grant shall be determined on  an  annual
33    basis  and claims for grant payments shall be paid subject to
34    appropriations  made  specific  to  this   subsection.    For
                            -111-          LRB9002758THdvam02
 1    purposes  of  this  subsection the following terms shall have
 2    the following meanings:
 3        "Budget Year":  The school year for which  general  State
 4    aid is calculated and awarded under subsection (E).
 5        "Current  Year":   The  school year immediately preceding
 6    the Budget Year.
 7        "Base Tax Year":  The property  tax  levy  year  used  to
 8    calculate the Budget Year allocation of general State aid.
 9        "Preceding   Tax  Year":   The  property  tax  levy  year
10    immediately preceding the Base Tax Year.
11        "Extension  Limitation   Ratio":   A   numerical   ratio,
12    certified  by  a school district's County Clerk, in which the
13    numerator  is  the  Base  Tax  Year's  tax  extension  amount
14    resulting from the Operating Tax Rate and the denominator  is
15    the  Preceding Tax Year's tax extension amount resulting from
16    the Operating Tax Rate.
17        "Operating Tax Rate": The operating tax rate  as  defined
18    in subsection (A).
19        (2)  To qualify for a general State aid adjustment grant,
20    a  school district must meet all of the following eligibility
21    criteria for each Budget Year for which a grant is claimed:
22             (a)  The Operating Tax Rate of the  school  district
23        in  the Preceding Tax Year was at least 3.00% in the case
24        of a  school  district  maintaining  grades  kindergarten
25        through  12,  at  least  2.20%  in  the  case of a school
26        district maintaining grades kindergarten through 8, or at
27        least 1.41% in the case of a school district  maintaining
28        grades 9 through 12.
29             (b)  The  Operating  Tax Rate of the school district
30        for the Base Tax Year was reduced by  the  Clerk  of  the
31        County  as  a  result of the requirements of the Property
32        Tax Extension Limitation Law.
33             (c)  The Available Local Resources per pupil of  the
34        school  district as calculated pursuant to subsection (D)
                            -112-          LRB9002758THdvam02
 1        using the Base Tax Year are less than the product of 1.75
 2        times the Foundation Level for the Budget Year.
 3             (d)  The school district  has  filed  a  proper  and
 4        timely  claim for a general State aid adjustment grant as
 5        required under this subsection.
 6        (3)  A claim for grant assistance under  this  subsection
 7    shall be filed with the State Board of Education on or before
 8    January  1  of  the  Current  Year for a grant for the Budget
 9    Year.  The claim shall be made on  forms  prescribed  by  the
10    State Board of Education and must be accompanied by a written
11    statement from the Clerk of the County, certifying:
12             (a)  That  the school district has its extension for
13        the Base Tax Year reduced as a result of the Property Tax
14        Extension Limitation Law.
15             (b)  That the  Operating  Tax  Rate  of  the  school
16        district  for  the  Preceding  Tax  Year met the tax rate
17        requirements of subdivision (N)(2) of this Section.
18             (c)  The Extension Limitation Ratio as that term  is
19        defined in this subsection.
20        (4)  On  or  before August 1 of the Budget Year the State
21    Board of Education shall calculate, for all school  districts
22    meeting the other requirements of this subsection, the amount
23    of  the  general State aid adjustment grant, if any, that the
24    school districts are eligible to receive in the Budget  Year.
25    The amount of the general State aid adjustment grant shall be
26    calculated as follows:
27             (a)  Determine  the  school district's general State
28        aid grant for the Budget Year as provided  in  accordance
29        with the provisions of subsection (E).
30             (b)  Determine  the school district's adjusted level
31        of general State aid by utilizing in the  calculation  of
32        Available Local Resources an equalized assessed valuation
33        that is the equalized assessed valuation of the Preceding
34        Tax Year multiplied by the Extension Limitation Ratio.
                            -113-          LRB9002758THdvam02
 1             (c)  Subtract  the  sum  derived in subparagraph (a)
 2        from the sum derived in subparagraph (b).  If the  result
 3        is  a  positive  number, that amount shall be the general
 4        State aid adjustment grant that the district is  eligible
 5        to receive.
 6        (5)  The  State  Board  of Education shall in the Current
 7    Year, based upon claims filed in the Current Year,  recommend
 8    to  the  General  Assembly  an  appropriation  amount for the
 9    general State aid adjustment grants to be made in the  Budget
10    Year.
11        (6)  Claims for general State aid adjustment grants shall
12    be  paid  in  a lump sum on or before January 1 of the Budget
13    Year only from appropriations made by  the  General  Assembly
14    expressly  for  claims under this subsection.  No such claims
15    may be paid from amounts appropriated for any  other  purpose
16    provided  for  under  this  Section.   In  the event that the
17    appropriation   for   claims   under   this   subsection   is
18    insufficient to meet all Budget Year  claims  for  a  general
19    State aid adjustment grant, the appropriation available shall
20    be  proportionately  prorated by the State Board of Education
21    amongst all districts filing for and entitled to payments.
22        (7)  The State Board of Education  shall  promulgate  the
23    required  claim  forms  and  rules necessary to implement the
24    provisions of this subsection.
25    (O)  References.
26        (1)  References in other laws to the various subdivisions
27    of this Section as it existed before  its  reorganization  by
28    this  amendatory  Act of 1997 shall be deemed to refer to the
29    corresponding provisions  of  this  Section  as  amended  and
30    reorganized  by  this  amendatory  Act of 1997, to the extent
31    that those references remain applicable.
32        (2)  References in other laws to State  Chapter  1  funds
33    shall  be  deemed  to refer to the supplemental general State
34    aid provided under subsection (H) of this Section.
                            -114-          LRB9002758THdvam02
 1        Basis for apportionment to districts, laboratory  schools
 2    and alternative schools.
 3        A.  The amounts to be apportioned shall be determined for
 4    each  educational  service  region  by  school  districts, as
 5    follows:
 6        1.  General Provisions.
 7        (a)  In the computation of the amounts to be apportioned,
 8    the average daily  attendance  of  all  pupils  in  grades  9
 9    through  12  shall  be multiplied by 1.25.  The average daily
10    attendance  of  all  pupils  in  grades  7  and  8  shall  be
11    multiplied by 1.05.
12        (b)  The  actual  number  of  pupils  in  average   daily
13    attendance shall be computed in a one-teacher school district
14    by  dividing  the total aggregate days of pupil attendance by
15    the actual number of days school is in session but  not  more
16    than  30  such  pupils  shall  be accredited for such type of
17    district; and in districts of  2  or  more  teachers,  or  in
18    districts  where  records  of  attendance are kept by session
19    teachers, by taking the sum of the respective averages of the
20    units composing the group.
21        (c)  Pupils in average daily attendance shall be computed
22    upon the average of the best 3 months of pupils attendance of
23    the current school year except  as  district  claims  may  be
24    later  amended  as  provided  hereinafter  in  this  Section.
25    However,   for   any   school   district  maintaining  grades
26    kindergarten through 12, the "average daily attendance" shall
27    be computed on the average of the best  3  months  of  pupils
28    attendance of the current year in grades kindergarten through
29    8,  added  together  with the average of the best 3 months of
30    pupils attendance of the current year in grades 9 through 12,
31    except as district claims may be later amended as provided in
32    this Section.  Days of attendance shall be  kept  by  regular
33    calendar  months,  except  any  days  of attendance in August
34    shall be added to the month of  September  and  any  days  of
                            -115-          LRB9002758THdvam02
 1    attendance  in  June  shall  be  added  to  the month of May.
 2    Except  as  otherwise  provided  in  this  Section,  days  of
 3    attendance by pupils shall be counted only  for  sessions  of
 4    not  less  than  5  clock  hours of school work per day under
 5    direct supervision of: (i)  teachers,  or  (ii)  non-teaching
 6    personnel   or   volunteer   personnel   when   engaging   in
 7    non-teaching   duties  and  supervising  in  those  instances
 8    specified in subsection (a) of Section 10-22.34 and paragraph
 9    10 of Section 34-18, with pupils of legal school age  and  in
10    kindergarten and grades 1 through 12.
11        (d)  Pupils  regularly  enrolled  in  a public school for
12    only a part of the school day may be counted on the basis  of
13    1/6  day for every class hour of instruction of 40 minutes or
14    more attended pursuant to such enrollment.
15        (e)  Days of attendance may be less than 5 clock hours on
16    the opening and closing of the  school  term,  and  upon  the
17    first  day  of pupil attendance, if preceded by a day or days
18    utilized as an institute or teachers' workshop.
19        (f)  A session of 4 or more clock hours may be counted as
20    a day  of  attendance  upon  certification  by  the  regional
21    superintendent,  and  approved by the State Superintendent of
22    Education to the extent that the district has been forced  to
23    use daily multiple sessions.
24        (g)  A session of 3 or more clock hours may be counted as
25    a  day of attendance (1) when the remainder of the school day
26    or at least 2 hours in the evening of that  day  is  utilized
27    for  an  in-service  training  program  for teachers, up to a
28    maximum of 5 days per school year of which  a  maximum  of  4
29    days   of   such  5  days  may  be  used  for  parent-teacher
30    conferences,  provided  a  district  conducts  an  in-service
31    training program for teachers which has been approved by  the
32    State  Superintendent  of  Education;  or,  in lieu of 4 such
33    days, 2 full days may be used, in which event each  such  day
34    may  be  counted as a day of attendance; and (2) when days in
                            -116-          LRB9002758THdvam02
 1    addition to those provided in item (1)  are  scheduled  by  a
 2    school  pursuant to its school improvement plan adopted under
 3    Article 34 or its revised or amended school improvement  plan
 4    adopted under Article 2, provided that (i) such sessions of 3
 5    or  more  clock  hours  are  scheduled  to  occur  at regular
 6    intervals, (ii) the remainder of the  school  days  in  which
 7    such  sessions  occur  are  utilized  for in-service training
 8    programs or other staff development activities for  teachers,
 9    and (iii) a sufficient number of minutes of school work under
10    the  direct  supervision  of teachers are added to the school
11    days between such regularly scheduled sessions to  accumulate
12    not less than the number of minutes by which such sessions of
13    3  or  more clock hours fall short of 5 clock hours. Any full
14    days used for the purposes of this  paragraph  shall  not  be
15    considered  for  computing  average  daily  attendance.  Days
16    scheduled for in-service training programs, staff development
17    activities, or parent-teacher conferences  may  be  scheduled
18    separately   for   different   grade   levels  and  different
19    attendance centers of the district.
20        (h)  A session of not less than one clock  hour  teaching
21    of  hospitalized  or homebound pupils on-site or by telephone
22    to the classroom may be counted as  1/2  day  of  attendance,
23    however  these  pupils  must receive 4 or more clock hours of
24    instruction to be counted for a full day of attendance.
25        (i)  A session of at least 4 clock hours may  be  counted
26    as  a day of attendance for first grade pupils, and pupils in
27    full day kindergartens, and a session of 2 or more hours  may
28    be   counted   as   1/2   day  of  attendance  by  pupils  in
29    kindergartens which provide only 1/2 day of attendance.
30        (j)  For children with disabilities who are below the age
31    of 6 years and who cannot attend  two  or  more  clock  hours
32    because  of  their disability or immaturity, a session of not
33    less than one clock  hour  may  be  counted  as  1/2  day  of
34    attendance; however for such children whose educational needs
                            -117-          LRB9002758THdvam02
 1    so  require a session of 4 or more clock hours may be counted
 2    as a full day of attendance.
 3        (k)  A recognized kindergarten which  provides  for  only
 4    1/2  day of attendance by each pupil shall not have more than
 5    1/2 day  of  attendance  counted  in  any  1  day.   However,
 6    kindergartens  may  count  2  1/2 days of attendance in any 5
 7    consecutive school  days.   Where  a  pupil  attends  such  a
 8    kindergarten  for  2  half  days  on any one school day, such
 9    pupil shall have the following  day  as  a  day  absent  from
10    school,  unless  the  school  district  obtains permission in
11    writing  from  the   State   Superintendent   of   Education.
12    Attendance  at  kindergartens which provide for a full day of
13    attendance by  each  pupil  shall  be  counted  the  same  as
14    attendance  by  first  grade  pupils.  Only the first year of
15    attendance in one kindergarten shall  be  counted  except  in
16    case  of children who entered the kindergarten in their fifth
17    year whose educational development requires a second year  of
18    kindergarten as determined under the rules and regulations of
19    the State Board of Education.
20        (l)  Days  of  attendance  by  tuition  pupils  shall  be
21    accredited  only  to  the districts that pay the tuition to a
22    recognized school.
23        (m)  The greater  of  the  immediately  preceding  year's
24    weighted  average  daily  attendance  or  the  average of the
25    weighted  average  daily  attendance   of   the   immediately
26    preceding year and the previous 2 years shall be used.
27        For any school year beginning July 1, 1986 or thereafter,
28    if  the  weighted  average  daily attendance in either grades
29    kindergarten through 8 or grades 9 through 12 of  a  district
30    as  computed  for  the  first  calendar  month of the current
31    school year exceeds by more than 5%, but  not  less  than  25
32    pupils,  the district's weighted average daily attendance for
33    the first calendar month of the  immediately  preceding  year
34    in,  respectively,  grades kindergarten through 8 or grades 9
                            -118-          LRB9002758THdvam02
 1    through 12, a supplementary payment  shall  be  made  to  the
 2    district  equal  to  the  difference in the amount of aid the
 3    district would be paid under this Section using the  weighted
 4    average  daily attendance in the district as computed for the
 5    first calendar month of  the  current  school  year  and  the
 6    amount  of  aid the district would be paid using the weighted
 7    average daily  attendance  in  the  district  for  the  first
 8    calendar  month  of  the  immediately  preceding  year.  Such
 9    supplementary State aid payment shall be paid to the district
10    as provided  in  Section  18-8.4  and  shall  be  treated  as
11    separate  from  all  other  payments  made  pursuant  to this
12    Section 18-8.
13        (n)  The number  of  low  income  eligible  pupils  in  a
14    district  shall result in an increase in the weighted average
15    daily attendance calculated as follows:  The  number  of  low
16    income pupils shall increase the weighted ADA by .53 for each
17    student  adjusted  by  dividing  the  percent  of  low income
18    eligible pupils in the district by the ratio of eligible  low
19    income  pupils  in  the  State to the best 3 months' weighted
20    average daily attendance in the State.  In no  case  may  the
21    adjustment under this paragraph result in a greater weighting
22    than  .625  for each eligible low income student.  The number
23    of low income eligible pupils in  a  district  shall  be  the
24    low-income  eligible  count  from the most recently available
25    federal census and  the  weighted  average  daily  attendance
26    shall  be  calculated in accordance with the other provisions
27    of this paragraph.
28        (o)  Any school district which fails for any given school
29    year to maintain school as required by law, or to maintain  a
30    recognized  school  is  not  eligible to file for such school
31    year any claim upon the  Common  School  Fund.   In  case  of
32    nonrecognition  of one or more attendance centers in a school
33    district otherwise operating recognized schools, the claim of
34    the district shall be reduced in  the  proportion  which  the
                            -119-          LRB9002758THdvam02
 1    average  daily attendance in the attendance center or centers
 2    bear to the average daily attendance in the school  district.
 3    A "recognized school" means any public school which meets the
 4    standards  as  established for recognition by the State Board
 5    of Education.  A school district  or  attendance  center  not
 6    having  recognition  status  at  the  end of a school term is
 7    entitled to receive State aid payments due upon a legal claim
 8    which was filed while it was recognized.
 9        (p)  School district claims filed under this Section  are
10    subject  to  Sections 18-9, 18-10 and 18-12, except as herein
11    otherwise provided.
12        (q)  The State Board of Education shall secure  from  the
13    Department  of  Revenue the value as equalized or assessed by
14    the Department of Revenue of all taxable  property  of  every
15    school district together with the applicable tax rate used in
16    extending taxes for the funds of the district as of September
17    30 of the previous year.  The Department of Revenue shall add
18    to  the  equalized  assessed value of all taxable property of
19    each school district situated entirely or partially within  a
20    county  with 2,000,000 or more inhabitants an amount equal to
21    the total amount by which the  homestead  exemptions  allowed
22    under Sections 15-170 and 15-175 of the Property Tax Code for
23    real  property  situated  in that school district exceeds the
24    total amount that would have  been  allowed  in  that  school
25    district  as homestead exemptions under those Sections if the
26    maximum reduction under Section 15-170 of  the  Property  Tax
27    Code  was  $2,000  and  the  maximum  reduction under Section
28    15-175 of the Property Tax Code was $3,500.  The county clerk
29    of any  county  with  2,000,000  or  more  inhabitants  shall
30    annually  calculate  and  certify  to the Department for each
31    school district all homestead exemption amounts  required  by
32    this amendatory Act of 1992.  In a new district which has not
33    had  any  tax  rates yet determined for extension of taxes, a
34    leveled uniform rate shall be computed from the latest amount
                            -120-          LRB9002758THdvam02
 1    of the fund taxes extended on the several areas  within  such
 2    new district.
 3        (r)  If  a  school  district  operates a full year school
 4    under Section 10-19.1, the general state aid  to  the  school
 5    district  shall be determined by the State Board of Education
 6    in accordance with this Section as near as may be applicable.
 7        2.  New  or  recomputed  claim.  The  general  State  aid
 8    entitlement for a newly created school district or a district
 9    which has annexed an entire school district shall be computed
10    using  attendance,  compensatory  pupil   counts,   equalized
11    assessed  valuation,  and tax rate data which would have been
12    used had the district been in existence for 3 years.  General
13    State  aid  entitlements  shall  not  be recomputed except as
14    permitted herein.
15        3.  Impaction.   Impaction  payments  shall  be  made  as
16    provided for in Section 18-4.2.
17        4.  Summer school.  Summer school payments shall be  made
18    as provided in Section 18-4.3.
19        5.  Computation  of  State aid.  The State grant shall be
20    determined as follows:
21        (a)  The State shall guarantee the amount of money that a
22    district's operating tax rate as limited in other Sections of
23    this Act would produce if every district  maintaining  grades
24    kindergarten  through  12 had an equalized assessed valuation
25    equal to $74,791  per  weighted  ADA  pupil;  every  district
26    maintaining  grades  kindergarten  through 8 had an equalized
27    assessed valuation of $108,644 per weighted  ADA  pupil;  and
28    every  district  maintaining  grades  9  through  12  had  an
29    equalized  assessed  valuation  of  $187,657 per weighted ADA
30    pupil.  The  State  Board  of  Education  shall  adjust   the
31    equalized   assessed   valuation   amounts   stated  in  this
32    paragraph, if necessary, to conform  to  the  amount  of  the
33    appropriation approved for any fiscal year.
34        (b)  The  operating  tax rate to be used shall consist of
                            -121-          LRB9002758THdvam02
 1    all district taxes extended for all purposes except community
 2    college educational purposes for the payment of tuition under
 3    Section 6-1 of the Public Community  College  Act,  Bond  and
 4    Interest,   Summer  School,  Rent,  Capital  Improvement  and
 5    Vocational Education Building.  Any  district  may  elect  to
 6    exclude  Transportation from the calculation of its operating
 7    tax rate.  Districts  may  include  taxes  extended  for  the
 8    payment  of  principal and interest on bonds issued under the
 9    provisions of Sections 17-2.11a and 20-2 at a  rate  of  .05%
10    per  year  for  each  purpose  or  the  actual rate extended,
11    whichever is less.
12        (c)  For calculation of aid under  this  Act  a  district
13    shall  use the combined authorized tax rates of all funds not
14    exempt in (b) above, not to exceed 2.76% of the value of  all
15    its   taxable  property  as  equalized  or  assessed  by  the
16    Department  of  Revenue  for  districts  maintaining   grades
17    kindergarten  through  12;  1.90%  of  the  value  of all its
18    taxable property as equalized or assessed by  the  Department
19    of  Revenue  for  districts  maintaining  grades kindergarten
20    through 8 only;  1.10%  of  the  value  of  all  its  taxable
21    property  as  equalized  or  assessed  by  the  Department of
22    Revenue for districts maintaining grades 9 through  12  only.
23    A  district may, however, as provided in Article 17, increase
24    its operating tax rate above the  maximum  rate  provided  in
25    this  subsection without affecting the amount of State aid to
26    which it is entitled under this Act.
27        (d) (1)  For districts  maintaining  grades  kindergarten
28    through  12  with  an  operating  tax  rate  as  described in
29    subsections 5(b) and (c) of less than  2.18%,  and  districts
30    maintaining  grades  kindergarten through 8 with an operating
31    tax rate of less than 1.28%, State aid shall be  computed  by
32    multiplying  the  difference between the guaranteed equalized
33    assessed valuation per weighted ADA pupil in subsection  5(a)
34    and  the  equalized assessed valuation per weighted ADA pupil
                            -122-          LRB9002758THdvam02
 1    in the district by the operating tax rate, multiplied by  the
 2    weighted  average daily attendance of the district; provided,
 3    however, that for the 1989-1990 school year  only,  a  school
 4    district  maintaining  grades  kindergarten  through  8 whose
 5    operating tax rate with reference to which its general  State
 6    aid  for the 1989-1990 school year is determined is less than
 7    1.28% and more than 1.090%, and which had  an  operating  tax
 8    rate  of  1.28% or more for the previous year, shall have its
 9    general State aid computed according  to  the  provisions  of
10    subsection 5(d)(2).
11        (2)  For   districts   maintaining   grades  kindergarten
12    through 12  with  an  operating  tax  rate  as  described  in
13    subsection  5(b)  and  (c)  of 2.18% and above, the State aid
14    shall be computed as provided in subsection (d)  (1)  but  as
15    though  the  district  had an operating tax rate of 2.76%; in
16    K-8 districts with an operating tax rate of 1.28% and  above,
17    the State aid shall be computed as provided in subsection (d)
18    (1)  but  as though the district had an operating tax rate of
19    1.90%; and in 9-12 districts, the State aid shall be computed
20    by  multiplying  the  difference   between   the   guaranteed
21    equalized  assessed  valuation  per  weighted  average  daily
22    attendance   pupil  in  subsection  5(a)  and  the  equalized
23    assessed valuation  per  weighted  average  daily  attendance
24    pupil  in  the  district  by  the  operating tax rate, not to
25    exceed  1.10%,  multiplied  by  the  weighted  average  daily
26    attendance of the district.  State  aid  computed  under  the
27    provisions  of  this  subsection  (d) (2) shall be treated as
28    separate from  all  other  payments  made  pursuant  to  this
29    Section.   The  State  Comptroller  and State Treasurer shall
30    transfer from the General Revenue Fund to the  Common  School
31    Fund  the amounts necessary to permit these claims to be paid
32    in equal installments along with  other  State  aid  payments
33    remaining to be made for the 1983-1984 school year under this
34    Section.
                            -123-          LRB9002758THdvam02
 1        (3)  For   any   school  district  whose  1995  equalized
 2    assessed  valuation  is  at  least  6%  less  than  its  1994
 3    equalized assessed valuation as the result of a reduction  in
 4    the  equalized  assessed  valuation  of  the taxable property
 5    within such  district  of  any  one  taxpayer  whose  taxable
 6    property  within  the  district has a 1994 equalized assessed
 7    valuation constituting at least 20%  of  the  1994  equalized
 8    assessed   valuation  of  all  taxable  property  within  the
 9    district, the 1996-97 State aid of  such  district  shall  be
10    computed using its 1995 equalized assessed valuation.
11        (4)  For   any   school  district  whose  1988  equalized
12    assessed valuation is 55%  or  less  of  its  1981  equalized
13    assessed  valuation,  the  1990-91 State aid of such district
14    shall be computed by multiplying the 1988 equalized  assessed
15    valuation  by a factor of .8.  Any such school district which
16    is reorganized effective for the 1991-92  school  year  shall
17    use the formula provided in this subparagraph for purposes of
18    the  calculation  made  pursuant  to  subsection  (m) of this
19    Section.
20        (e)  The amount of State aid shall be computed under  the
21    provisions  of  subsections  5(a)  through  5(d) provided the
22    equalized assessed valuation per weighted ADA pupil  is  less
23    than  .87 of the amounts in subsection 5(a). If the equalized
24    assessed valuation per weighted ADA  pupil  is  equal  to  or
25    greater than .87 of the amounts in subsection 5(a), the State
26    aid  shall  be  computed  under  the provisions of subsection
27    5(f).
28        (f)  If the equalized assessed valuation per weighted ADA
29    pupil is equal to or greater  than  .87  of  the  amounts  in
30    subsection  5(a),  the State aid per weighted ADA pupil shall
31    be computed by multiplying  the  product  of  .13  times  the
32    maximum  per  pupil  amount  computed under the provisions of
33    subsections 5(a) through 5(d)  by  an  amount  equal  to  the
34    quotient  of  .87  times the equalized assessed valuation per
                            -124-          LRB9002758THdvam02
 1    weighted ADA pupil  in  subsection  5(a)  for  that  type  of
 2    district  divided  by  the  district  equalized valuation per
 3    weighted ADA pupil except  in  no  case  shall  the  district
 4    receive  State  aid  per  weighted ADA pupil of less than .07
 5    times  the  maximum  per  pupil  amount  computed  under  the
 6    provisions of subsections 5(a) through 5(d).
 7        (g)  In addition  to  the  above  grants,  summer  school
 8    grants  shall  be made based upon the calculation as provided
 9    in subsection 4 of this Section.
10        (h)  The board of  any  district  receiving  any  of  the
11    grants  provided for in this Section may apply those funds to
12    any fund so received for which that board  is  authorized  to
13    make expenditures by law.
14        (i) (1) (a)  In  school  districts  with an average daily
15    attendance of 50,000 or more, the amount  which  is  provided
16    under subsection 1(n) of this Section by the application of a
17    base  Chapter 1 weighting factor of .375 shall be distributed
18    to the attendance centers within the district  in  proportion
19    to  the  number  of pupils enrolled at each attendance center
20    who are eligible to receive free or reduced-price lunches  or
21    breakfasts  under the federal Child Nutrition Act of 1966 and
22    under the National School Lunch Act  during  the  immediately
23    preceding  school  year.   The  amount  of State aid provided
24    under subsection 1(n) of this Section by the  application  of
25    the  Chapter  1  weighting  factor in excess of .375 shall be
26    distributed to the attendance centers within the district  in
27    proportion to the total enrollment at each attendance center.
28    Beginning  with  school  year  1989-90,  and each school year
29    thereafter, all funds provided under subsection 1 (n) of this
30    Section by the application of the Chapter 1 weighting  factor
31    which  are  in  excess of the level of non-targeted Chapter 1
32    funds  in  school  year  1988-89  shall  be  distributed   to
33    attendance  centers,  and  only to attendance centers, within
34    the district in proportion to the number of  pupils  enrolled
                            -125-          LRB9002758THdvam02
 1    at each attendance center who are eligible to receive free or
 2    reduced  price  lunches or breakfasts under the Federal Child
 3    Nutrition Act and under the National School Lunch Act  during
 4    the  immediately  preceding school year.  Beginning in school
 5    year 1989-90, 25% of the previously  non-targeted  Chapter  1
 6    funds  as  established  for school year 1988-89 shall also be
 7    distributed to the attendance centers, and only to attendance
 8    centers, in the district  in  proportion  to  the  number  of
 9    pupils enrolled at each attendance center who are eligible to
10    receive free or reduced price lunches or breakfasts under the
11    Federal  Child  Nutrition  Act  and under the National School
12    Lunch Act during the immediately preceding  school  year;  in
13    school  year  1990-91,  50%  of  the  previously non-targeted
14    Chapter 1 funds as established for school year 1988-89  shall
15    be  distributed to attendance centers, and only to attendance
16    centers, in the district  in  proportion  to  the  number  of
17    pupils enrolled at each attendance center who are eligible to
18    receive  such  free  or  reduced  price lunches or breakfasts
19    during the immediately preceding school year; in school  year
20    1991-92,  75%  of the previously non-targeted Chapter 1 funds
21    as established for school year 1988-89 shall  be  distributed
22    to attendance centers, and only to attendance centers, in the
23    district  in  proportion  to the number of pupils enrolled at
24    each attendance center who are eligible to receive such  free
25    or reduced price lunches or breakfasts during the immediately
26    preceding school year; in school year 1992-93 and thereafter,
27    all  funds provided under subsection 1 (n) of this Section by
28    the application of the Chapter 1 weighting  factor  shall  be
29    distributed  to  attendance  centers,  and only to attendance
30    centers, in the district  in  proportion  to  the  number  of
31    pupils enrolled at each attendance center who are eligible to
32    receive free or reduced price lunches or breakfasts under the
33    Federal  Child  Nutrition  Act  and under the National School
34    Lunch Act  during  the  immediately  preceding  school  year;
                            -126-          LRB9002758THdvam02
 1    provided,  however,  that  the distribution formula in effect
 2    beginning with school year 1989-90 shall not be applicable to
 3    such portion of State aid provided under subsection 1 (n)  of
 4    this  Section  by  the application of the Chapter 1 weighting
 5    formula as is  set  aside  and  appropriated  by  the  school
 6    district  for the purpose of providing desegregation programs
 7    and related transportation to students (which  portion  shall
 8    not  exceed  5%  of  the  total  amount of State aid which is
 9    provided  under  subsection  1  (n)  of   this   Section   by
10    application  of  the  Chapter  1  weighting formula), and the
11    relevant  percentages  shall  be  applied  to  the  remaining
12    portion  of  such  State  aid.   The  distribution  of  these
13    portions  of  general  State  aid  among  attendance  centers
14    according to these requirements shall not be compensated  for
15    or  contravened  by  adjustments  of the total of other funds
16    appropriated to any attendance centers.   (b)  The  Board  of
17    Education  shall  utilize funding from one or several sources
18    in order to fully implement this provision annually prior  to
19    the  opening  of  school.  The Board of Education shall apply
20    savings from  reduced  administrative  costs  required  under
21    Section  34-43.1  and growth in non-Chapter 1 State and local
22    funds to assure that all attendance centers  receive  funding
23    to replace losses due to redistribution of Chapter 1 funding.
24    The distribution formula and funding to replace losses due to
25    the  distribution formula shall occur, in full, using any and
26    all sources available, including, if necessary, revenue  from
27    administrative  reductions  beyond  those required in Section
28    34-43.1, in order to provide the necessary funds.   (c)  Each
29    attendance  center shall be provided by the school district a
30    distribution of noncategorical funds  and  other  categorical
31    funds  to which an attendance center is entitled under law in
32    order that the State  aid  provided  by  application  of  the
33    Chapter  1  weighting  factor  and required to be distributed
34    among attendance centers according  to  the  requirements  of
                            -127-          LRB9002758THdvam02
 1    this   paragraph   supplements   rather  than  supplants  the
 2    noncategorical funds and other categorical funds provided  by
 3    the    school    district    to   the   attendance   centers.
 4    Notwithstanding the foregoing provisions of  this  subsection
 5    5(i)(1)  or any other law to the contrary, beginning with the
 6    1995-1996 school year and for each  school  year  thereafter,
 7    the  board  of  a  school district to which the provisions of
 8    this subsection  apply  shall  be  required  to  allocate  or
 9    provide  to  attendance  centers  of the district in any such
10    school year, from the State aid  provided  for  the  district
11    under  this Section by application of the Chapter 1 weighting
12    factor, an aggregate amount of not less than $261,000,000  of
13    State  Chapter  1  funds.  Any  State Chapter 1 funds that by
14    reason of the provisions of this paragraph are  not  required
15    to  be  allocated  and  provided to attendance centers may be
16    used and appropriated by the board of the  district  for  any
17    lawful  school  purpose.    Chapter  1  funds  received by an
18    attendance  center  (except  those  funds   set   aside   for
19    desegregation   programs   and   related   transportation  to
20    students) shall be used on the schedule cited in this Section
21    at the attendance center at the discretion of  the  principal
22    and  local school council for programs to improve educational
23    opportunities at qualifying  schools  through  the  following
24    programs  and  services:  early  childhood education, reduced
25    class size or improved  adult  to  student  classroom  ratio,
26    enrichment    programs,   remedial   assistance,   attendance
27    improvement and other educationally  beneficial  expenditures
28    which supplement the regular and basic programs as determined
29    by  the  State Board of Education.  Chapter 1 funds shall not
30    be expended for any political or lobbying purposes as defined
31    by board rule. (d) Each district subject to the provisions of
32    this paragraph shall submit an acceptable plan  to  meet  the
33    educational  needs  of  disadvantaged children, in compliance
34    with the requirements of this paragraph, to the  State  Board
                            -128-          LRB9002758THdvam02
 1    of  Education  prior to July 15 of each year. This plan shall
 2    be consistent with the decisions  of  local  school  councils
 3    concerning   the   school   expenditure  plans  developed  in
 4    accordance with part 4 of Section 34-2.3.   The  State  Board
 5    shall  approve  or  reject  the plan within 60 days after its
 6    submission.  If the plan is rejected the district shall  give
 7    written notice of intent to modify the plan within 15 days of
 8    the notification of rejection and then submit a modified plan
 9    within 30 days after the date of the written notice of intent
10    to  modify.    Districts may amend approved plans pursuant to
11    rules promulgated by the State Board of Education.
12        Upon notification by the State Board  of  Education  that
13    the  district  has not submitted a plan prior to July 15 or a
14    modified plan within the time period  specified  herein,  the
15    State  aid funds affected by said plan or modified plan shall
16    be withheld by the State Board of Education until a  plan  or
17    modified plan is submitted.
18        If   the  district  fails  to  distribute  State  aid  to
19    attendance centers in accordance with an approved  plan,  the
20    plan for the following year shall allocate funds, in addition
21    to  the  funds  otherwise  required  by this subparagraph, to
22    those attendance centers which were  underfunded  during  the
23    previous year in amounts equal to such underfunding.
24        For   purposes   of   determining  compliance  with  this
25    subsection  in  relation  to  Chapter  1  expenditures,  each
26    district subject to the provisions of this  subsection  shall
27    submit  as  a  separate document by December 1 of each year a
28    report of Chapter 1 expenditure data for the  prior  year  in
29    addition  to  any modification of its current plan.  If it is
30    determined that there has been a failure to comply  with  the
31    expenditure   provisions   of   this   subsection   regarding
32    contravention  or  supplanting,  the  State Superintendent of
33    Education shall, within 60 days of  receipt  of  the  report,
34    notify  the  district  and any affected local school council.
                            -129-          LRB9002758THdvam02
 1    The  district  shall  within  45  days  of  receipt  of  that
 2    notification inform the State Superintendent of Education  of
 3    the  remedial  or  corrective action to be taken, whether  by
 4    amendment of the current plan, if feasible, or by  adjustment
 5    in  the  plan for the following year.  Failure to provide the
 6    expenditure  report  or  the  notification  of  remedial   or
 7    corrective  action  in  a  timely  manner  shall  result in a
 8    withholding of the affected funds.
 9        The State Board of Education shall promulgate  rules  and
10    regulations  to  implement  the provisions of this subsection
11    5(i)(1).  No funds shall be released under subsection 1(n) of
12    this Section or under this subsection 5(i)(1) to any district
13    which has not submitted a plan which has been approved by the
14    State Board of Education.
15        (2)  School districts with an average daily attendance of
16    more than 1,000 and less than 50,000 and having a low  income
17    pupil  weighting  factor in excess of .53 shall submit a plan
18    to the State Board of Education prior to October 30  of  each
19    year  for the use of the funds resulting from the application
20    of subsection 1(n) of this Section  for  the  improvement  of
21    instruction  in  which  priority  is  given  to  meeting  the
22    education  needs  of disadvantaged children.  Such plan shall
23    be  submitted  in  accordance  with  rules  and   regulations
24    promulgated by the State Board of Education.
25        (j)  For the purposes of calculating State aid under this
26    Section, with respect to any part of a school district within
27    a   redevelopment   project   area  in  respect  to  which  a
28    municipality has adopted tax increment  allocation  financing
29    pursuant  to  the Tax Increment Allocation Redevelopment Act,
30    Sections  11-74.4-1  through  11-74.4-11  of   the   Illinois
31    Municipal  Code or the Industrial Jobs Recovery Law, Sections
32    11-74.6-1 through 11-74.6-50 of the Illinois Municipal  Code,
33    no  part  of the current equalized assessed valuation of real
34    property  located  in  any  such  project   area   which   is
                            -130-          LRB9002758THdvam02
 1    attributable to an increase above the total initial equalized
 2    assessed   valuation  of  such  property  shall  be  used  in
 3    computing the equalized assessed valuation per  weighted  ADA
 4    pupil  in  the district, until such time as all redevelopment
 5    project  costs  have  been  paid,  as  provided  in   Section
 6    11-74.4-8  of  the Tax Increment Allocation Redevelopment Act
 7    or in Section 11-74.6-35 of the Industrial Jobs Recovery Law.
 8    For the purpose of computing the equalized assessed valuation
 9    per weighted ADA pupil in  the  district  the  total  initial
10    equalized   assessed   valuation  or  the  current  equalized
11    assessed valuation, whichever is lower, shall be  used  until
12    such time as all redevelopment project costs have been paid.
13        (k)  For  a school district operating under the financial
14    supervision of an Authority created under  Article  34A,  the
15    State  aid  otherwise  payable  to  that  district under this
16    Section, other than  State  aid  attributable  to  Chapter  1
17    students,  shall  be reduced by an amount equal to the budget
18    for the operations of  the  Authority  as  certified  by  the
19    Authority  to  the  State  Board  of Education, and an amount
20    equal to such  reduction  shall  be  paid  to  the  Authority
21    created  for  such district for its operating expenses in the
22    manner provided in Section 18-11.   The  remainder  of  State
23    school  aid for any such district shall be paid in accordance
24    with Article 34A when that Article provides for a disposition
25    other than that provided by this Article.
26        (l)  For purposes of calculating  State  aid  under  this
27    Section,  the  equalized  assessed  valuation  for  a  school
28    district  used  to  compute  State aid shall be determined by
29    adding to the real property equalized assessed valuation  for
30    the  district  an  amount  computed by dividing the amount of
31    money received by the district under the  provisions  of  "An
32    Act  in  relation  to  the  abolition  of ad valorem personal
33    property tax and the replacement of revenues  lost  thereby",
34    certified  August  14,  1979,  by  the total tax rate for the
                            -131-          LRB9002758THdvam02
 1    district. For purposes of  this  subsection  1976  tax  rates
 2    shall  be used for school districts in the county of Cook and
 3    1977 tax rates shall be used  for  school  districts  in  all
 4    other counties.
 5        (m) (1)  For  a  new  school district formed by combining
 6    property  included  totally  within  2  or  more   previously
 7    existing school districts, for its first year of existence or
 8    if  the  new  district  was formed after October 31, 1982 and
 9    prior  to  September  23,  1985,  for  the  year  immediately
10    following September 23, 1985, the State aid calculated  under
11    this  Section  shall be computed for the new district and for
12    the previously  existing  districts  for  which  property  is
13    totally included within the new district.  If the computation
14    on the basis of the previously existing districts is greater,
15    a supplementary payment equal to the difference shall be made
16    for  the first 3 years of existence of the new district or if
17    the new district was formed after October 31, 1982 and  prior
18    to  September 23, 1985, for the 3 years immediately following
19    September 23, 1985.
20        (2)  For a school  district  which  annexes  all  of  the
21    territory  of  one or more entire other school districts, for
22    the  first  year  during  which  the  change  of   boundaries
23    attributable  to  such  annexation  becomes effective for all
24    purposes as determined under Section 7-9 or 7A-8,  the  State
25    aid  calculated  under this Section shall be computed for the
26    annexing district as constituted after the annexation and for
27    the annexing and each annexed district as  constituted  prior
28    to the annexation; and if the computation on the basis of the
29    annexing  and  annexed  districts as constituted prior to the
30    annexation is greater, a supplementary payment equal  to  the
31    difference  shall  be made for the first 3 years of existence
32    of the annexing school  district  as  constituted  upon  such
33    annexation.
34        (3)  For  2  or  more school districts which annex all of
                            -132-          LRB9002758THdvam02
 1    the territory of one or more entire other  school  districts,
 2    and  for 2 or more community unit districts which result upon
 3    the division (pursuant to petition under  Section  11A-2)  of
 4    one  or more other unit school districts into 2 or more parts
 5    and which together include all of the parts into  which  such
 6    other  unit  school district or districts are so divided, for
 7    the  first  year  during  which  the  change  of   boundaries
 8    attributable to such annexation or division becomes effective
 9    for  all  purposes as determined under Section 7-9 or 11A-10,
10    as the case may be,  the  State  aid  calculated  under  this
11    Section  shall  be  computed  for  each annexing or resulting
12    district as constituted after the annexation or division  and
13    for each annexing and annexed district, or for each resulting
14    and  divided district, as constituted prior to the annexation
15    or division; and if the aggregate of  the  State  aid  as  so
16    computed   for   the   annexing  or  resulting  districts  as
17    constituted after the annexation or division is less than the
18    aggregate of the State aid as so computed  for  the  annexing
19    and  annexed  districts,  or  for  the  resulting and divided
20    districts,  as  constituted  prior  to  the   annexation   or
21    division,   then   a   supplementary  payment  equal  to  the
22    difference shall be made and allocated between or  among  the
23    annexing  or  resulting  districts,  as constituted upon such
24    annexation or division,  for  the  first  3  years  of  their
25    existence.   The  total difference payment shall be allocated
26    between or among the annexing or resulting districts  in  the
27    same  ratio  as the pupil enrollment from that portion of the
28    annexed or divided district or districts which is annexed  to
29    or included in each such annexing or resulting district bears
30    to  the  total  pupil  enrollment  from the entire annexed or
31    divided district or districts, as such  pupil  enrollment  is
32    determined  for the school year last ending prior to the date
33    when the change of boundaries attributable to the  annexation
34    or  division  becomes effective for all purposes.  The amount
                            -133-          LRB9002758THdvam02
 1    of the total difference payment and the amount thereof to  be
 2    allocated  to  the  annexing  or resulting districts shall be
 3    computed by the State Board of  Education  on  the  basis  of
 4    pupil  enrollment  and other data which shall be certified to
 5    the State Board of Education, on forms which it shall provide
 6    for that purpose, by the regional superintendent  of  schools
 7    for each educational service region in which the annexing and
 8    annexed  districts,  or  resulting  and divided districts are
 9    located.
10        (4)  If a unit school district annexes all the  territory
11    of  another  unit  school district effective for all purposes
12    pursuant to Section 7-9 on July 1, 1988, and if part  of  the
13    annexed  territory  is  detached within 90 days after July 1,
14    1988, then the detachment shall be disregarded  in  computing
15    the supplementary State aid payments under this paragraph (m)
16    for  the entire 3 year period and the supplementary State aid
17    payments shall not be diminished because of the detachment.
18        (5)  Any supplementary State aid payment made under  this
19    paragraph  (m)  shall  be  treated as separate from all other
20    payments made pursuant to this Section.
21        (n)  For the purposes of calculating State aid under this
22    Section, the real property equalized assessed valuation for a
23    school district used to compute State aid shall be determined
24    by subtracting from the real property value as  equalized  or
25    assessed  by  the  Department  of Revenue for the district an
26    amount computed by dividing the amount of  any  abatement  of
27    taxes  under  Section  18-170 of the Property Tax Code by the
28    maximum operating tax rates specified in subsection  5(c)  of
29    this Section and an amount computed by dividing the amount of
30    any abatement of taxes under subsection (a) of Section 18-165
31    of  the  Property Tax Code by the maximum operating tax rates
32    specified in subsection 5(c) of this Section.
33        (o)  Notwithstanding  any  other   provisions   of   this
34    Section,  for  the  1996-1997  school  year the amount of the
                            -134-          LRB9002758THdvam02
 1    aggregate general State  aid  entitlement  that  is  received
 2    under  this  Section  by each school district for that school
 3    year shall be not less  than  the  amount  of  the  aggregate
 4    general  State  aid  entitlement  that  was  received  by the
 5    district under this Section for the 1995-1996 school year. If
 6    a school district is to receive an  aggregate  general  State
 7    aid  entitlement  under this Section for the 1996-1997 school
 8    year that is less than the amount of  the  aggregate  general
 9    State  aid  entitlement that the district received under this
10    Section for the 1995-1996 school year,  the  school  district
11    shall  also  receive,  from a separate appropriation made for
12    purposes of this paragraph (o), a supplementary payment  that
13    is  equal  to  the  amount  by  which  the  general State aid
14    entitlement received by the district under this  Section  for
15    the  1995-1996  school  year  exceeds  the  general State aid
16    entitlement that  the  district  is  to  receive  under  this
17    Section  for  the  1996-1997  school  year.   If  the  amount
18    appropriated  for  supplementary payments to school districts
19    under this paragraph (o) is insufficient  for  that  purpose,
20    the  supplementary  payments  that  districts  are to receive
21    under this paragraph  shall  be  prorated  according  to  the
22    aggregate  amount  of  the appropriation made for purposes of
23    this paragraph.
24        B.  In calculating the amount to be paid to the governing
25    board of a  public  university  that  operates  a  laboratory
26    school  under  this Section or to any alternative school that
27    is operated by a regional superintendent, the State Board  of
28    Education  shall  require by rule such reporting requirements
29    as it deems necessary.
30        As used in this  Section,  "laboratory  school"  means  a
31    public  school  which  is  created  and  operated by a public
32    university and approved by the State Board of Education.  The
33    governing board of a public university which  receives  funds
34    from the State Board under this subsection B may not increase
                            -135-          LRB9002758THdvam02
 1    the number of students enrolled in its laboratory school from
 2    a  single district, if that district is already sending 50 or
 3    more students, except under a mutual  agreement  between  the
 4    school  board  of  a  student's district of residence and the
 5    university  which  operates   the   laboratory   school.    A
 6    laboratory  school  may  not  have  more than 1,000 students,
 7    excluding students with disabilities in a  special  education
 8    program.
 9        As  used  in  this  Section, "alternative school" means a
10    public school which is created and  operated  by  a  Regional
11    Superintendent  of Schools and approved by the State Board of
12    Education. Such alternative  schools  may  offer  courses  of
13    instruction  for  which  credit  is  given  in regular school
14    programs, courses to prepare students  for  the  high  school
15    equivalency  testing  program  or vocational and occupational
16    training.
17        Each laboratory and alternative  school  shall  file,  on
18    forms  provided  by the State Superintendent of Education, an
19    annual  State  aid  claim  which  states  the  average  daily
20    attendance of the school's students by  month.   The  best  3
21    months'  average  daily attendance shall be computed for each
22    school.  The  weighted  average  daily  attendance  shall  be
23    computed  and  the  weighted average daily attendance for the
24    school's most recent 3 year average shall be compared to  the
25    most  recent  weighted  average  daily  attendance,  and  the
26    greater of the 2 shall be used for the calculation under this
27    subsection  B.   The  general  State aid entitlement shall be
28    computed by multiplying the school's  student  count  by  the
29    foundation level as determined under this Section.
30    (Source: P.A.  88-9;  88-45;  88-89;  88-386; 88-511; 88-537;
31    88-555; 88-641; 88-670, eff. 12-2-94;  89-15,  eff.  5-30-95;
32    89-235,  eff.  8-4-95;  89-397,  eff.  8-20-95;  89-610, eff.
33    8-6-96; 89-618, eff. 8-9-96;  89-626,  eff.  8-9-96;  89-679,
34    eff. 8-16-96; revised 9-10-96.)
                            -136-          LRB9002758THdvam02
 1        (105 ILCS 5/18-8.2) (from Ch. 122, par. 18-8.2)
 2        Sec.  18-8.2.   Supplementary  State  aid for new and for
 3    certain annexing districts.
 4        (a) After the formation of a new district, a  computation
 5    shall  be  made  to  determine  the  difference  between  the
 6    salaries   effective  in  each  of  the  previously  existing
 7    districts on June 30,  prior  to  the  creation  of  the  new
 8    district.  For the first 4 3 years after the formation of the
 9    new  district or if the new district was formed after October
10    31, 1982 and prior to the effective date of  this  amendatory
11    Act  of  1985,  for  the  3  years immediately following such
12    effective date, a supplementary State aid reimbursement shall
13    be paid to the new district equal to the  difference  between
14    the  sum  of  the salaries earned by each of the certificated
15    members of the new district while  employed  in  one  of  the
16    previously  existing  districts  during  the year immediately
17    preceding the formation of the new district and  the  sum  of
18    the  salaries those certificated members would have been paid
19    during the year immediately prior to the formation of the new
20    district if placed on the salary schedule of  the  previously
21    existing district with the highest salary schedule.
22        (b)  After  the territory of one or more school districts
23    is annexed by one or more other school  districts,  or  after
24    the  division (pursuant to petition under Section 11A-2) of a
25    unit school district or districts into 2 or more parts  which
26    all  are included in 2 or more other community unit districts
27    resulting upon that division, a computation shall be made  to
28    determine  the  difference  between the salaries effective in
29    each such annexed or divided district and in the annexing  or
30    resulting district or districts as they each were constituted
31    on  June  30 preceding the date when the change of boundaries
32    attributable to such annexation or division became  effective
33    for  all  purposes  as  determined under Section 7-9, 7A-8 or
34    11A-10.  For the first 4 3 years after any such annexation or
                            -137-          LRB9002758THdvam02
 1    division, a supplementary State aid  reimbursement  shall  be
 2    paid  to  each  annexing or resulting district as constituted
 3    after the annexation or  division  equal  to  the  difference
 4    between  the  sum  of  the  salaries  earned  by  each of the
 5    certificated members of such annexing or  resulting  district
 6    as   constituted  after  the  annexation  or  division  while
 7    employed in an annexed or annexing district, or in a  divided
 8    or  resulting district, during the year immediately preceding
 9    the annexation or division, and the sum of the salaries those
10    certificated  members  would  have  been  paid  during   such
11    immediately  preceding  year if placed on the salary schedule
12    of whichever  of  such  annexing  or  annexed  districts,  or
13    resulting  or  divided  districts,  had  the  highest  salary
14    schedule during such immediately preceding year.
15        (c)  Such  supplementary State aid reimbursement shall be
16    treated as separate from all other payments made pursuant  to
17    Section 18-8. In the case of the formation of a new district,
18    reimbursement  shall begin during the first year of operation
19    of the new district; and in the case of an annexation of  the
20    territory  of  one  or  more  school districts by one or more
21    other school districts, or the division (pursuant to petition
22    under Section 11A-2) of a unit school district  or  districts
23    into  2  or  more  parts  which all are included in 2 or more
24    other community unit districts resulting upon that  division,
25    reimbursement  shall  begin  during  the  first year when the
26    change in  boundaries  attributable  to  such  annexation  or
27    division  becomes  effective  for  all purposes as determined
28    pursuant to Section 7-9, 7A-8 or 11A-10.  Each year any  such
29    new,  annexing  or resulting district, as the case may be, is
30    entitled to receive reimbursement,  the  number  of  eligible
31    certified  members  who are employed on October 1 in any such
32    district shall be certified to the State Board  of  Education
33    on  prescribed  forms by October 15 and payment shall be made
34    on or before November 15 of that year.
                            -138-          LRB9002758THdvam02
 1        (d)  If a unit school district annexes all the  territory
 2    of  another  unit  school district effective for all purposes
 3    pursuant to Section 7-9 on July 1, 1988, and if part  of  the
 4    annexed  territory  is  detached within 90 days after July 1,
 5    1988, then the detachment shall be disregarded  in  computing
 6    the supplementary State aid reimbursements under this Section
 7    for  the entire 3 year period and the supplementary State aid
 8    reimbursements  shall  not  be  diminished  because  of   the
 9    detachment.
10        (e)  The  changes made by this amendatory Act of 1989 are
11    intended to be retroactive and applicable to  any  annexation
12    taking effect after August 1, 1987.
13    (Source: P.A. 86-13; 86-1334.)
14        (105 ILCS 5/21-0.01 new)
15        Sec. 21-0.01.  Professional Teacher Standards Board.
16        (a)  The  Professional  Teacher Standards Board is hereby
17    created and shall consist of 15 members who are appointed  by
18    the  Governor,  by  and  with  the  advice and consent of the
19    Senate.  One of the members so appointed shall be  designated
20    by  the  Governor  at the time the appointment is made as the
21    chairperson of the Professional Teacher Standards  Board.  At
22    the  time  appointments  are made to the Professional Teacher
23    Standards  Board,  7  of  the  appointed  members  shall   be
24    classroom  teachers  employed  in  the  public schools of the
25    State,  one  shall  be   a   certified,   non-administrative,
26    non-teaching   public   school  employee,  one  shall  be  an
27    administrative or faculty member  of  a  private  college  or
28    university   located   in   the   State,   one  shall  be  an
29    administrative or  faculty  member  of  a  public  university
30    located  in  the  State, one shall be a school superintendent
31    employed in the public schools of the State, one shall  be  a
32    principal  employed in the public schools of the State, and 3
33    shall be  representatives  of  the  business  community.  The
                            -139-          LRB9002758THdvam02
 1    initial  members  of the Professional Teacher Standards Board
 2    may be appointed any time after the effective  date  of  this
 3    amendatory  Act  of 1997.  The regular term of each member of
 4    the Professional Teacher Standards Board shall be for 4 years
 5    from the third Monday of January of the  year  in  which  the
 6    term  of the member's appointment is to commence, except that
 7    of  the  15  initial  members  appointed  to  serve  on   the
 8    Professional  Teacher  Standards  Board,  the  member  who is
 9    appointed as the chairperson shall  serve  for  a  term  that
10    commences  on  the date of his or her appointment and expires
11    on the third Monday of January, 2002, and  the  remaining  14
12    members,   by   lots  drawn  at  the  first  meeting  of  the
13    Professional Teacher Standards Board that is held  after  all
14    15  members  are appointed, shall determine 4 of their number
15    to serve for  terms  that  commence  on  the  date  of  their
16    respective  appointments  and  expire  on the third Monday of
17    January, 2002, 5 of their number  to  serve  for  terms  that
18    commence  on  the  date  of their respective appointments and
19    expire on the third Monday of January, 2001, and 5  of  their
20    number  to serve for terms that commence on the date of their
21    respective appointments and expire on  the  third  Monday  of
22    January,  2000.   All  members  appointed  to  serve  on  the
23    Professional  Teacher Standards Board shall serve until their
24    respective successors are appointed and confirmed.  Vacancies
25    shall be filled in the same manner as original  appointments.
26    If  a  vacancy in membership occurs at a time when the Senate
27    is not in  session,  the  Governor  shall  make  a  temporary
28    appointment  until the next meeting of the Senate, when he or
29    she shall appoint, by and with the advice and consent of  the
30    Senate,  a  person  to fill that membership for the unexpired
31    term.  If the Senate is  not  in  session  when  the  initial
32    appointments are made, those appointments shall be made as in
33    the case of vacancies.
34        (b)  The  Professional  Teacher  Standards Board shall be
                            -140-          LRB9002758THdvam02
 1    deemed established on the date that the  Governor  makes  his
 2    appointment  of  the  15th initial member of the Professional
 3    Teacher Standards Board, whether those  initial  members  are
 4    then  serving  pursuant  to  appointment  and confirmation or
 5    pursuant to temporary  appointments  that  are  made  by  the
 6    Governor as in the case of vacancies.  Upon the establishment
 7    of  the  Professional  Teacher  Standards Board and until the
 8    State Teacher Certification Board is abolished as provided in
 9    subsection (c),  the  Professional  Teacher  Standards  Board
10    shall  have  the  power  and  authority  to  prepare  for the
11    implementation  and  administration  of  the  new  system  of
12    teacher certification and the  other  changes  made  to  this
13    Article  by  this  amendatory  Act  of  1997.  That power and
14    authority shall include the  authority  (i)  to  prepare  and
15    propose rules and regulations to take effect on July 1, 1998,
16    and  (ii)  to  design  and  develop  systems  and  procedures
17    necessary  to enable the Professional Teacher Standards Board
18    to prepare for the immediate and efficient  exercise  of  its
19    powers  and  authority under subsection (c) beginning on July
20    1, 1998.
21        (c)  On July 1, 1998, the Professional Teacher  Standards
22    Board  shall  succeed to, exercise, and assume all powers and
23    duties of the  State  Teacher  Certification  Board  and  all
24    powers and duties that, prior to July 1, 1998, were delegated
25    to  or  exercised  by the State Board of Education under this
26    Article, and the State Teacher Certification Board  shall  be
27    abolished and the terms of all of its members shall terminate
28    at  midnight on June 30, 1998.  Beginning on July 1, 1998 and
29    thereafter, the Professional Teacher  Standards  Board  shall
30    have the power and authority to do all of the following:
31             (1)  set  standards  for  teaching,  supervising, or
32        holding  other  certificated  employment  in  the  public
33        schools,  and  administer  the   certification   process,
34        including  but not limited to the issuance and renewal of
                            -141-          LRB9002758THdvam02
 1        certificates, as provided in this Article;
 2             (2)  approve and evaluate teacher and  administrator
 3        preparation programs;
 4             (3)  revoke  and  suspend  certificates  issued  for
 5        teaching,  supervising,  or  holding  other  certificated
 6        employment in the public schools;
 7             (4)  enter   into   agreements   with  other  states
 8        relative  to   reciprocal   approval   of   teacher   and
 9        administrator preparation programs;
10             (5)  establish  standards  for  the  issuance of new
11        types of certificates; and
12             (6)  take  such  other  action   relating   to   the
13        improvement  of instruction in the public schools through
14        teacher education and professional development  and  that
15        attracts   qualified  candidates  into  teacher  training
16        programs as is appropriate and consistent with applicable
17        laws.
18        (d)  Notwithstanding any other provisions of this Section
19    or Article, the  power  and  authority  of  the  Professional
20    Teacher   Standards   Board   to  establish,  implement,  and
21    administer  standards   for   administrative   certification,
22    issuance  and  renewal  of  administrative  certificates  and
23    endorsements,  and  evaluation  and approval of administrator
24    preparation programs and to promulgate rules and  regulations
25    relating  to those matters shall be exercised with the advice
26    and consultation, and subject to the consent and approval, of
27    the School Administrator Standards Board.
28        (e)  Beginning with the date on  which  the  Professional
29    Teacher   Standards  Board  is  established  as  provided  in
30    subsection (c), and at all times thereafter, the Professional
31    Teacher Standards Board is authorized to employ an  Executive
32    Director  and such other staff as it deems necessary to carry
33    out its duties.
34        (f)  The Professional Teacher Standards Board, as a State
                            -142-          LRB9002758THdvam02
 1    agency that is eligible for appropriations, shall comply with
 2    the provisions of the Bureau of the Budget Act applicable  to
 3    State agencies.
 4        (g)  Members  of the Professional Teacher Standards Board
 5    shall be reimbursed for all ordinary and  necessary  expenses
 6    incurred in performing their duties as members of the Board.
 7        (h)  The  Professional Teacher Standards Board may create
 8    standing committees and establish advisory committees  if  it
 9    deems that action to be advisable.
10        (105 ILCS 5/21-0.02 new)
11        Sec. 21-0.02.  School Administrator Standards Board.
12        (a)  The  School  Administrator Standards Board is hereby
13    created and shall consist of 5 members who are  appointed  by
14    the  Governor,  by  and  with  the  advice and consent of the
15    Senate.  One of the members so appointed shall be  designated
16    by  the  Governor  at the time the appointment is made as the
17    chairperson of the School Administrator Standards Board.  All
18    persons appointed to the School Administrator Standards Board
19    shall  be  currently employed as school administrators in the
20    public schools of  this  State,  and  at  least  3  of  those
21    appointed  members  shall  be  employed as superintendents of
22    public school districts located in this  State.  The  initial
23    members  of  the  School Administrator Standards Board may be
24    appointed  any  time  after  the  effective  date   of   this
25    amendatory  Act  of 1997.  The regular term of each member of
26    the School Administrator Standards Board shall be for 4 years
27    from the third Monday of January of the  year  in  which  the
28    term  of the member's appointment is to commence, except that
29    of the 5 initial members appointed to  serve  on  the  School
30    Administrator Standards Board, the member who is appointed as
31    the  chairperson shall serve for a term that commences on the
32    date of his or her  appointment  and  expires  on  the  third
33    Monday of January, 2002, and the remaining 4 members, by lots
                            -143-          LRB9002758THdvam02
 1    drawn  at  the  first  meeting  of  the  School Administrator
 2    Standards  Board  that  is  held  after  all  5  members  are
 3    appointed, shall determine one of their number to serve for a
 4    term that commences on the date of his or her appointment and
 5    expires on the third Monday of  January,  2002,  2  of  their
 6    number  to serve for terms that commence on the date of their
 7    respective appointments and expire on  the  third  Monday  of
 8    January,  2001,  and  one of their number to serve for a term
 9    that commences on the date of  his  or  her  appointment  and
10    expires  on  the  third Monday of January, 2000.  All members
11    appointed to serve  on  the  School  Administrator  Standards
12    Board  shall  serve  until  their  respective  successors are
13    appointed and confirmed.  Vacancies shall be  filled  in  the
14    same  manner  as  original  appointments.   If  a  vacancy in
15    membership occurs at  a  time  when  the  Senate  is  not  in
16    session,  the  Governor  shall  make  a temporary appointment
17    until the next meeting of the Senate, when he  or  she  shall
18    appoint,  by and with the advice and consent of the Senate, a
19    person to fill that membership for the  unexpired  term.   If
20    the  Senate  is  not in session when the initial appointments
21    are made, those appointments shall be made as in the case  of
22    vacancies.
23        (b)  The  School  Administrator  Standards Board shall be
24    deemed established on the date that the  Governor  makes  his
25    appointment   of   the  5th  initial  member  of  the  School
26    Administrator Standards Board, whether those initial  members
27    are  then serving pursuant to appointment and confirmation or
28    pursuant to temporary  appointments  that  are  made  by  the
29    Governor as in the case of vacancies.  Upon the establishment
30    of  the  School  Administrator  Standards Board and until the
31    State Teacher Certification Board is abolished as provided in
32    subsection (c) of Section 21-0.01, the  School  Administrator
33    Standards  Board shall have the power and authority to design
34    and prepare for the establishment of a  new  system  for  the
                            -144-          LRB9002758THdvam02
 1    issuance  and  renewal  of  administrative  certificates  and
 2    endorsements  under  this  Article.  That power and authority
 3    shall  include  the  authority,  in  consultation  with   the
 4    Professional  Teacher Standards Board, to prepare and propose
 5    rules and  regulations  to  take  effect  on  July  1,  1998,
 6    relating  to  the  issuance  and  renewal  of  administrative
 7    certificates and endorsements under this Article.
 8        (c)  On   July   1,   1998  and  thereafter,  the  School
 9    Administrator Standards Board shall advise and  consult  with
10    the  Professional  Teacher  Standards  Board  relative to the
11    exercise by the Professional Teacher Standards Board of  such
12    of  that  Board's  powers  and  duties  under  this  Article,
13    including  those  set  forth  in  subsection  (c)  of Section
14    21-0.01, as relate to the establishment, implementation,  and
15    administration    of   (i)   standards   for   administrative
16    certification, (ii) issuance and  renewal  of  administrative
17    certificates  and endorsements, (iii) evaluation and approval
18    of administrator preparation programs,  and  (iv)  rules  and
19    regulations  relating  to the matters described in items (i),
20    (ii), and (iii) of this subsection.  The powers and duties of
21    the Professional Teacher Standards Board as  they  relate  to
22    the  matters described in items (i), (ii), (iii), and (iv) of
23    this subsection are exercisable only  with  the  consent  and
24    approval of the School Administrator Standards Board.
25        (d)  Beginning   with   the  date  on  which  the  School
26    Administrator Standards Board is established as  provided  in
27    subsection  (b)  of this Section, and until July 1, 1998, the
28    State  Board  of   Education   shall   provide   the   School
29    Administrator   Standards   Board   with  such  staff  as  is
30    reasonably  necessary  to  enable  the  School  Administrator
31    Standards Board to perform its duties.  On July 1,  1998  and
32    thereafter,  the  Professional  Teacher Standards Board shall
33    provide to the  School  Administrator  Standards  Board  such
34    staff as shall be agreed upon by those 2 boards.
                            -145-          LRB9002758THdvam02
 1        (e)  Members  of the Professional Teacher Standards Board
 2    shall be reimbursed for all ordinary and  necessary  expenses
 3    incurred in performing their duties as members of the Board.
 4        (f)  As  used  in this Section, the terms "administrative
 5    certification"   and   "administrative    certificates    and
 6    endorsements" refer to certificates and endorsements that are
 7    issued  and  renewed  on  or  after July 1, 1998 and that are
 8    required for supervisors, curriculum  directors,  principals,
 9    assistant principals, assistant or associate superintendents,
10    junior   college  deans,  chief  school  business  officials,
11    superintendents or a general superintendent of  schools,  and
12    such  related  or  similar positions as are determined by the
13    State Superintendent of Education in  consultation  with  the
14    School  Administrator  Standards  Board  and the Professional
15    Teacher Standards Board.
16        (105 ILCS 5/21-0.03 new)
17        Sec. 21-0.03.  Terminology.  Upon the  abolition  of  the
18    State  Teacher  Certification Board as provided in subsection
19    (c) of Section 21-0.01, any reference in this Article  or  in
20    any  other provision of this Code or law of this State to the
21    State Teacher Certification Board shall be deemed to mean and
22    refer to the Professional  Teacher  Standards  Board  created
23    under Section 21-0.01.
24        Until  the State Teacher Certification Board is abolished
25    as provided in subsection (c) of Section 21-0.01, "Board"  as
26    used in this Article shall be deemed to mean and refer to the
27    State  Teacher  Certification Board.  From and after the date
28    on which the State Teacher Certification Board is  abolished,
29    "Board"  as  used in this Article shall be deemed to mean and
30    refer to the Professional Teacher Standards Board.
31        (105 ILCS 5/21-1a) (from Ch. 122, par. 21-1a)
32        Sec. 21-1a. Tests required for certification.
                            -146-          LRB9002758THdvam02
 1        (a)  After  July  1,  1988,  in  addition  to  all  other
 2    requirements,  early  childhood,  elementary,  special,  high
 3    school, school service personnel, or, except as  provided  in
 4    Section  34-6, administrative certificates shall be issued to
 5    persons who have satisfactorily passed a test of basic skills
 6    and subject matter knowledge.  The tests of basic skills  and
 7    subject  matter  knowledge shall be the tests which from time
 8    to time are designated by the State  Board  of  Education  in
 9    consultation  with  the State Teacher Certification Board and
10    may be tests prepared by an educational testing  organization
11    or  tests  designed  by  the  State  Board  of  Education  in
12    consultation with the State Teacher Certification Board.  The
13    areas to be covered by the test of basic skills shall include
14    the   basic   skills   of   reading,   writing,  grammar  and
15    mathematics.  The test  of  subject  matter  knowledge  shall
16    assess  content  knowledge in the specific subject field. The
17    tests shall be designed to be racially neutral to assure that
18    no person  in  taking  the  tests  is  thereby  discriminated
19    against on the basis of race, color, national origin or other
20    factors  unrelated  to  the  person's ability to perform as a
21    certificated employee.  The score required to pass the  tests
22    of  basic  skills and subject matter knowledge shall be fixed
23    by the State Board of  Education  in  consultation  with  the
24    State  Teacher  Certification Board.  The tests shall be held
25    not fewer than 3 times a year at such time and place  as  may
26    be designated by the State Board of Education in consultation
27    with the State Teacher Certification Board.
28        (b)  Except  as  provided in Section 34-6, the provisions
29    of subsection (a) of this Section shall apply equally in  any
30    school  district  subject  to  Article  34, provided that the
31    State Board of Education shall determine  which  certificates
32    issued  under Sections 34-8.1 and 34-83 prior to July 1, 1988
33    are comparable to any early childhood certificate, elementary
34    school  certificate,   special   certificate,   high   school
                            -147-          LRB9002758THdvam02
 1    certificate,   school   service   personnel   certificate  or
 2    administrative certificate issued under this  Article  as  of
 3    July 1, 1988.
 4        (c)  A  person  who holds an early childhood, elementary,
 5    special, high school or school service personnel  certificate
 6    issued  under  this  Article on or at any time before July 1,
 7    1988, including  a  person  who  has  been  issued  any  such
 8    certificate  pursuant to Section 21-11.1 or in exchange for a
 9    comparable  certificate  theretofore  issued  under   Section
10    34-8.1  or  Section  34-83,  shall not be required to take or
11    pass the tests in order to thereafter have  such  certificate
12    renewed.
13        (d)  The  State  Board  of Education in consultation with
14    the State Teacher Certification Board shall conduct  a  pilot
15    administration  of  the  tests  by  administering the test to
16    students completing teacher education programs in the 1986-87
17    school year for the purpose of  determining  the  effect  and
18    impact of testing candidates for certification.
19        (e)  The rules and regulations developed to implement the
20    required  test  of  basic skills and subject matter knowledge
21    shall include the requirements of subsections (a),  (b),  and
22    (c)  and  shall  include  specific regulations to govern test
23    selection; test validation and  determination  of  a  passing
24    score;    administration   of   the   tests;   frequency   of
25    administration;  applicant  fees;  frequency  of  applicants'
26    taking the tests; the years for which a score is valid;  and,
27    waiving  certain additional tests for additional certificates
28    to individuals who have satisfactorily  passed  the  test  of
29    basic  skills  and  subject  matter  knowledge as required in
30    subsection (a). The State Board of Education  shall  provide,
31    by  rule,  specific  policies  that  assure uniformity in the
32    difficulty level of each form of the basic  skills  test  and
33    each  subject  matter  knowledge  test  from test-to-test and
34    year-to-year.  The State Board of Education shall also set  a
                            -148-          LRB9002758THdvam02
 1    passing score for the tests.
 2        (f)  The  State  Teacher  Certification Board may issue a
 3    nonrenewable temporary certificate between July 1,  1988  and
 4    August  31,  1988  to individuals who have taken the tests of
 5    basic skills and subject matter knowledge prescribed by  this
 6    Section  but have not received such test scores by August 31,
 7    1988.  Such temporary certificates shall expire  on  December
 8    31, 1988.
 9        (g)  Beginning  July  1,  1998,  the Professional Teacher
10    Standards Board shall implement and administer a  new  system
11    of certification for teachers and administrators in the State
12    of  Illinois.  The Professional Teacher Standards Board shall
13    design and implement a system of examinations which shall  be
14    required   prior   to   the   issuance  of  Initial  Teaching
15    Certificates  and  Standard  Teaching  Certificates.    These
16    examinations shall be based on national professional teaching
17    standards,  such as the standards developed by the Interstate
18    New Teacher Assessment and Support Consortium,  the  National
19    Board  for  Professional  Teaching  Standards,  the  National
20    Council  for  Accreditation of Teacher Education, and similar
21    organizations, as  determined  by  the  Professional  Teacher
22    Standards Board. The Professional Teacher Standards Board may
23    adopt  any  and  all  regulations  necessary to implement and
24    administer  this  Section.   Notwithstanding  the   foregoing
25    provisions   of   this   Section,   the   implementation  and
26    administration   of   the   system   for   certification   of
27    administrators shall  be  accomplished  by  the  Professional
28    Teacher  Standards  Board  in  consultation  with  the School
29    Administrator Standards Board,  and  the  implementation  and
30    administration by the Professional Teacher Standards Board of
31    that  system as it relates to administrators shall be subject
32    to the consent  and  approval  of  the  School  Administrator
33    Standards  Board,  as  provided  in subsection (d) of Section
34    21-0.01 and subsection (c) of Section 21-0.02.
                            -149-          LRB9002758THdvam02
 1        (h)  The  Professional  Teacher  Standards  Board   shall
 2    report to the Illinois General Assembly and the Governor with
 3    recommendations  for  further changes and improvements to the
 4    teacher certification system no later than March 1, 1998  and
 5    on an annual basis until March 1, 2000.
 6    (Source:  P.A.  86-361;  86-734;  86-1028;  86-1471; 86-1488;
 7    87-242.)
 8        (105 ILCS 5/21-2) (from Ch. 122, par. 21-2)
 9        Sec. 21-2.  Grades of certificates.
10        (a)  Until July 1, 1998, all  certificates  issued  under
11    this  Article  shall  be  State certificates valid, except as
12    limited in Section 21-1,  in  every  school  district  coming
13    under the provisions of this Act and shall be limited in time
14    and    designated    as   follows:   Provisional   vocational
15    certificate, temporary  provisional  vocational  certificate,
16    early  childhood  certificate, elementary school certificate,
17    special certificate, high school certificate, school  service
18    personnel     certificate,     administrative    certificate,
19    provisional certificate,  and  substitute  certificate.   The
20    requirement  of  student  teaching  under close and competent
21    supervision for  obtaining  a  teaching  certificate  may  be
22    waived   by   the  State  Teacher  Certification  Board  upon
23    presentation to the Board by the teacher  of  evidence  of  5
24    years  successful  teaching experience on a valid certificate
25    and  graduation  from  a  recognized  institution  of  higher
26    learning with a bachelor's degree  with  not  less  than  120
27    semester  hours  and  a  minimum  of  16  semester  hours  in
28    professional education.
29        (b)  Initial  Teaching  Certificate.   Beginning  July 1,
30    1998, persons who (1)  have  completed  an  approved  teacher
31    preparation  program,  (2)  are  recommended  by  an approved
32    teacher preparation program, (3) have successfully  completed
33    the  Initial  Teaching Certification examinations required by
                            -150-          LRB9002758THdvam02
 1    the Professional Teacher Standards Board, and  (4)  have  met
 2    all   other  requirements  established  by  the  Professional
 3    Teacher Standards Board, shall be issued an Initial  Teaching
 4    Certificate valid for 4 years.  Initial Teaching Certificates
 5    shall   be   issued  for  the  following  categories:   Early
 6    Childhood   Education,   Elementary   Education,    Secondary
 7    Education,   and   Special   (including   Special  Education,
 8    Bilingual, Music, Art, Physical Education,  Reading,  Foreign
 9    Language,  and  other  areas  designated  by the Professional
10    Teacher Standards Board).
11        (c)  Standard  Certificate.   Beginning  July  1,   1998,
12    persons  who  (1)  have completed 4 years of teaching with an
13    Initial Certificate,  (2)  have  successfully  completed  the
14    Standard  Teaching  Certificate  examinations required by the
15    Professional Teacher Standards Board, and (3)  have  met  all
16    other   criteria  established  by  the  Professional  Teacher
17    Standards Board shall be issued a Standard Certificate  valid
18    for  5  years,  which may be renewed thereafter every 5 years
19    based on  compliance  with  requirements  set  forth  by  the
20    Professional  Teacher Standards Board.  Such requirements may
21    include  proof  of  continuing  education   or   professional
22    development,  and  other requirements.  Standard Certificates
23    shall  be  issued  for  the  following   categories:    Early
24    Childhood    Education,   Elementary   Education,   Secondary
25    Education,  and   Special   (including   Special   Education,
26    Bilingual,  Music,  Art, Physical Education, Reading, Foreign
27    Language, and other  areas  designated  by  the  Professional
28    Teacher Standards Board).
29        (d)  Master Certificate.  Beginning July 1, 1998, persons
30    who  have  successfully achieved National Board certification
31    through  the  National  Board   for   Professional   Teaching
32    Standards  shall  be issued a Master Certificate, valid for 7
33    years  and  renewable  thereafter  every  7   years   through
34    compliance  with  requirements  set forth by the Professional
                            -151-          LRB9002758THdvam02
 1    Teacher Standards Board.  Teachers with a Master  Certificate
 2    shall  receive  an  annual  $2,000  stipend from the State of
 3    Illinois.
 4    (Source: P.A. 88-92.)
 5        (105 ILCS 5/21-2.1) (from Ch. 122, par. 21-2.1)
 6        Sec. 21-2.1.  Early childhood certificate.
 7        (a)  An early childhood certificate shall be valid for  4
 8    years  for  teaching children up to 6 years of age, exclusive
 9    of children enrolled in kindergarten, in facilities  approved
10    by  the State Superintendent of Education.  Beginning July 1,
11    1988, such  certificate  shall  be  valid  for  4  years  for
12    Teaching  children  through grade 3 in facilities approved by
13    the  State  Superintendent  of  Education.   Subject  to  the
14    provisions of Section 21-1a, it shall be  issued  to  persons
15    who  have  graduated  from a recognized institution of higher
16    learning with a bachelor's degree and with not fewer than 120
17    semester hours  including  professional  education  or  human
18    development or, until July 1, 1992, to persons who have early
19    childhood  education  instruction  and  practical  experience
20    involving  supervised work with children under 6 years of age
21    or with children through  grade  3.  Such  persons  shall  be
22    recommended   for   the  early  childhood  certificate  by  a
23    recognized  institution  as  having  completed  an   approved
24    program of preparation which includes the requisite hours and
25    academic  and  professional  courses and practical experience
26    approved  by  the  State  Superintendent  of   Education   in
27    consultation with the State Teacher Certification Board.
28        (b)  Beginning  July  1, 1998, Initial and Standard Early
29    Childhood Education Certificates shall be issued  to  persons
30    who meet the criteria established by the Professional Teacher
31    Standards Board.
32    (Source: P.A. 85-1389.)
                            -152-          LRB9002758THdvam02
 1        (105 ILCS 5/21-2a) (from Ch. 122, par. 21-2a)
 2        Sec.  21-2a.  Required curriculum for all teachers. After
 3    September 1, 1981 and until July 1, 1998, in addition to  all
 4    other  requirements, the successful completion of course work
 5    which  includes  instruction  on  the   psychology   of   the
 6    exceptional  child,  the  identification  of  the exceptional
 7    child, including, but not limited to  the  learning  disabled
 8    and   methods  of  instruction  for  the  exceptional  child,
 9    including, but not limited to the learning disabled shall  be
10    a  prerequisite  to  a  person receiving any of the following
11    certificates:; early childhood, elementary, special and  high
12    school.
13    (Source: P.A. 81-1082.)
14        (105 ILCS 5/21-3) (from Ch. 122, par. 21-3)
15        Sec. 21-3.  Elementary certificate.
16        (a)  An  elementary school certificate shall be valid for
17    4 years for teaching in the kindergarten and lower  9  grades
18    of  the common schools.  Subject to the provisions of Section
19    21-1a, it shall be issued to persons who have graduated  from
20    a recognized institution of higher learning with a bachelor's
21    degree  and with not fewer than 120 semester hours and with a
22    minimum of  16  semester  hours  in  professional  education,
23    including   5   semester  hours  in  student  teaching  under
24    competent  and  close  supervision.  Such  persons  shall  be
25    recommended for the elementary certificate  by  a  recognized
26    institution  as  having  completed  an  approved  program  of
27    preparation  which  includes intensive preservice training in
28    the  humanities,  natural  sciences,  mathematics   and   the
29    academic  and  professional  courses  approved  by  the State
30    Superintendent of Education in consultation  with  the  State
31    Teacher Certification Board.
32        (b)  Beginning   July   1,  1998,  Initial  and  Standard
33    Elementary Certificates shall be issued to persons  who  meet
                            -153-          LRB9002758THdvam02
 1    all  of  the criteria established by the Professional Teacher
 2    Standards Board.
 3    (Source: P.A. 84-126.)
 4        (105 ILCS 5/21-4) (from Ch. 122, par. 21-4)
 5        Sec. 21-4.  Special certificate.
 6        (a)  A special certificate shall be valid for 4 years for
 7    teaching the special subjects named therein in all grades  of
 8    the  common  schools.  Subject  to  the provisions of Section
 9    21-1a, it shall be issued to persons who have graduated  from
10    a recognized institution of higher learning with a bachelor's
11    degree and with not fewer than 120 semester hours including a
12    minimum  of 16 semester hours in professional education, 5 of
13    which shall be in student teaching under competent and  close
14    supervision. When the holder of such certificate has earned a
15    master's  degree,  including eight semester hours of graduate
16    professional  education  from  a  recognized  institution  of
17    higher learning and with two years' teaching  experience,  it
18    may be endorsed for supervision.
19        Such   persons  shall  be  recommended  for  the  special
20    certificate by a recognized institution as  having  completed
21    an  approved  program  of preparation which includes academic
22    and professional courses approved by the State Superintendent
23    of  Education  in  consultation  with   the   State   Teacher
24    Certification Board.
25        (b)  Beginning July 1, 1998, Initial and Standard Special
26    Certificates  shall  be  issued  for  the special subjects of
27    Special Education, Bilingual, Music, Art, Physical Education,
28    Reading, Foreign Language, and other areas designated by  the
29    State  Board  of  Education,  to  persons who meet all of the
30    criteria established by the  Professional  Teacher  Standards
31    Board.
32    (Source: P.A. 84-126.)
                            -154-          LRB9002758THdvam02
 1        (105 ILCS 5/21-5) (from Ch. 122, par. 21-5)
 2        Sec. 21-5.  High school certificate.
 3        (a)  A high school certificate shall be valid for 4 years
 4    for  teaching  in  grades  6  to  12  inclusive of the common
 5    schools. Subject to the provisions of Section 21-1a, it shall
 6    be issued to persons who have  graduated  from  a  recognized
 7    institution  of  higher learning with a bachelor's degree and
 8    with not fewer than 120 semester hours including 16  semester
 9    hours  in  professional  education,  5  of  which shall be in
10    student teaching under competent and  close  supervision  and
11    with  one  or  more  teaching  fields.  Such persons shall be
12    recommended for the high school certificate by  a  recognized
13    institution  as  having  completed  an  approved  program  of
14    preparation  which  includes  the  academic  and professional
15    courses approved by the State Superintendent of Education  in
16    consultation with the State Teacher Certification Board.
17        (b)  Beginning   July   1,  1998,  Initial  and  Standard
18    Secondary Certificates shall be issued to  persons  who  meet
19    all  of  the criteria established by the Professional Teacher
20    Standards Board.
21    (Source: P.A. 84-126.)
22        (105 ILCS 5/21-5a) (from Ch. 122, par. 21-5a)
23        Sec. 21-5a.  Alternative math-science certification.  The
24    State Board of Education,  in  consultation  with  the  State
25    Teacher Certification Board, shall establish and implement an
26    alternative  certification  program  under  which persons who
27    qualify for admission to, and who successfully  complete  the
28    program  and  meet the additional requirements established by
29    this Section shall be issued an initial alternative  teaching
30    certificate  for teaching mathematics, science or mathematics
31    and science in grades 9 through 12 of the common schools.  In
32    establishing an alternative certification program under  this
33    Section,  the  State  Board  of  Education shall designate an
                            -155-          LRB9002758THdvam02
 1    appropriate area within the State where the program shall  be
 2    offered and made available to persons qualified for admission
 3    to  the  program.  In addition, the State Board of Education,
 4    in cooperation with one or more  recognized  institutions  of
 5    higher  learning,  shall  develop  a  comprehensive course of
 6    study that persons admitted to the program must  successfully
 7    complete in order to satisfy one criterion for issuance of an
 8    initial  alternative  certificate  under  this  Section.  The
 9    comprehensive  course of study so developed shall include one
10    semester of practice teaching.
11        An initial alternative teaching certificate, valid for  4
12    years  for  teaching  mathematics, science or mathematics and
13    science in grades 9 through 12  of  the  common  schools  and
14    renewable as provided in Section 21-14, shall be issued under
15    this  Section  21-5a  to persons who qualify for admission to
16    the alternative certification program and who at the time  of
17    applying  for  an  initial  alternative  teaching certificate
18    under this Section:
19             (1)  have  graduated  with  a  master's  degree   in
20        mathematics or any science discipline from an institution
21        of   higher  learning  whose  scholarship  standards  are
22        approved by the State Board of Education for purposes  of
23        the alternative certification program;
24             (2)  have  been employed for at least 10 years in an
25        area requiring knowledge  and  practical  application  of
26        their  academic  background  in  mathematics or a science
27        discipline;
28             (3)  have  successfully  completed  the  alternative
29        certification program and  the  course  of  comprehensive
30        study,  including  one  semester  of  practice  teaching,
31        developed  as  part  of  the  program as provided in this
32        Section and approved by the State Board of Education; and
33             (4)  have passed the examinations required  by  test
34        of  basic skills and subject matter knowledge required by
                            -156-          LRB9002758THdvam02
 1        Section 21-1a.
 2        The   alternative   certification   program   shall    be
 3    implemented  at  the  commencement  of the 1992-1993 academic
 4    year.
 5        The State Board of Education shall establish criteria for
 6    admission to the alternative certification program and  shall
 7    adopt  rules  and  regulations  that are consistent with this
 8    Section and that the State Board of Education deems necessary
 9    to establish and implement the program.
10    (Source: P.A. 87-446.)
11        (105 ILCS 5/21-5b)
12        Sec. 21-5b.  Alternative certification.  The State  Board
13    of   Education,   in  consultation  with  the  State  Teacher
14    Certification  Board,  shall  establish  and   implement   an
15    alternative  certification  program  under  which persons who
16    meet  the  requirements  of  and  successfully  complete  the
17    program established  by  this  Section  shall  be  issued  an
18    alternative  teaching certificate for teaching in the schools
19    situated in a school district  that  is  located  in  a  city
20    having  a  population  in  excess of 500,000 inhabitants. The
21    program  shall  be  limited  to  not  more   than   260   new
22    participants  during each year that the program is in effect.
23    In establishing an alternative  certification  program  under
24    this  Section,  the  State Board of Education shall designate
25    the City of Chicago as  the  area  in  the  State  where  the
26    program shall be made available. In addition, the State Board
27    of Education, in cooperation with a partnership formed with a
28    university  that  offers  4-year  baccalaureate  and  masters
29    degree  programs  and  that  is  a  recognized institution as
30    defined in Section  21-21  and  one  or  more  not-for-profit
31    organizations  in  the  State  which  support  excellence  in
32    teaching,  shall  within  30  days  after  submission  by the
33    partnership approve  a  course  of  study  developed  by  the
                            -157-          LRB9002758THdvam02
 1    partnership  that  persons  in  the program must successfully
 2    complete in order to satisfy one criterion for issuance of an
 3    alternative certificate under this Section.  The  Alternative
 4    Teacher  Certification  program  course of study must include
 5    the current content and skills contained in the  university's
 6    current  courses  for  State  certification  which  have been
 7    approved by the State Board  of  Education,  in  consultation
 8    with   the   State   Teacher   Certification  Board,  as  the
 9    requirement for State teacher certification.
10        The alternative certification program  established  under
11    this  Section  shall  be  known  as  the  Alternative Teacher
12    Certification program.  The Alternative Teacher Certification
13    Program shall be offered by the  submitting  partnership  and
14    may be offered in conjunction with one or more not-for-profit
15    organizations  in  the  State  which  support  excellence  in
16    teaching.   The program shall be comprised of the following 3
17    phases: (a) the first phase is the course of study offered on
18    an  intensive  basis  in  education   theory,   instructional
19    methods,  and  practice teaching; (b) the second phase is the
20    person's assignment to a full-time teaching position for  one
21    school  year;  and  (c)  the  third  phase is a comprehensive
22    assessment of the person's  teaching  performance  by  school
23    officials    and   the   partnership   participants   and   a
24    recommendation by the partner institution of higher education
25    to the State Board of Education that the person be issued  an
26    initial   a   standard   alternative   teaching  certificate.
27    Successful   completion   of    the    Alternative    Teacher
28    Certification  program  shall  be deemed to satisfy any other
29    practice or student teaching and subject matter  requirements
30    established by law.
31        A provisional alternative teaching certificate, valid for
32    one year of teaching in the common schools and not renewable,
33    shall  be  issued  under this Section 21-5b to persons who at
34    the time of applying for the provisional alternative teaching
                            -158-          LRB9002758THdvam02
 1    certificate under this Section:
 2             (1)  have graduated from an  accredited  college  or
 3        university with a bachelor's degree;
 4             (2)  have  successfully completed the first phase of
 5        the Alternative Teacher Certification program as provided
 6        in this Section; and
 7             (3)  have passed  the  tests  of  basic  skills  and
 8        subject matter knowledge required by Section 21-1a.
 9        A person possessing a provisional alternative certificate
10    under  this Section shall be treated as a regularly certified
11    teacher for purposes of  compensation,  benefits,  and  other
12    terms  and  conditions of employment afforded teachers in the
13    school who are members of a bargaining unit represented by an
14    exclusive bargaining representative, if any.
15        An Initial A standard alternative  Teaching  Certificate,
16    valid  for  4 years for teaching in the schools situated in a
17    school district that is located in a city having a population
18    in excess of 500,000 inhabitants and renewable as provided in
19    Section 21-14, shall be issued under this  Section  21-5b  to
20    persons   who   first   complete  the  requirements  for  the
21    provisional alternative teaching certificate and who  at  the
22    time  of  applying  for  an  Initial  a  standard alternative
23    Teaching Certificate under  this  Section  have  successfully
24    completed  the  second  and  third  phases of the Alternative
25    Teacher Certification program as provided in this Section.
26        This   alternative   certification   program   shall   be
27    implemented  so  that  the  first   provisional   alternative
28    teaching certificates issued under this Section are effective
29    upon  the commencement of the 1997-1998 academic year and the
30    first  Initial  standard  alternative  Teaching  Certificates
31    issued under this Section are effective upon the commencement
32    of the 1998-1999 academic year.
33        The State Board of Education,  in  cooperation  with  the
34    partnership     establishing    the    Alternative    Teacher
                            -159-          LRB9002758THdvam02
 1    Certification program, shall adopt rules and regulations that
 2    are consistent with this Section and that the State Board  of
 3    Education  deems  necessary  to  establish  and implement the
 4    program.
 5    (Source: P.A. 89-708, eff. 2-14-97.)
 6        (105 ILCS 5/21-5c new)
 7        Sec. 21-5c.  Alternative route to teacher  certification.
 8    The  Professional Teacher Standards Board shall establish and
 9    implement  an  alternative  route  to  teacher  certification
10    program under which persons who meet the requirements of  and
11    successfully  complete the program shall be issued an initial
12    teaching certificate for teaching in schools in  this  State.
13    The program shall be designed to encourage and facilitate the
14    entrance into the field of teaching by individuals from other
15    professions.   The Professional Teacher Standards Board shall
16    adopt such rules and regulations as are necessary to develop,
17    implement, and administer the alternative  route  to  teacher
18    certification program authorized by this Section.
19        (105 ILCS 5/21-5d new)
20        Sec.   21-5d.    Alternative   route   to  administrative
21    certification.   The  School  Administrator  Standards  Board
22    shall establish, adopt, and approve an alternative  route  to
23    administrative  certification program under which persons who
24    meet  the  requirements  of  and  successfully  complete  the
25    program established shall be issued a standard administrative
26    certificate   with    a    general    supervisory,    general
27    administrative,    chief   school   business   official,   or
28    superintendent endorsement under Section 21-7.1, renewable as
29    provided  in  Section  21-14.   The  alternative   route   to
30    administrator certification program, as established, adopted,
31    and  approved  by  the  School Administrator Standards Board,
32    shall be implemented and  administered  by  the  Professional
                            -160-          LRB9002758THdvam02
 1    Teacher  Standards  Board,  with  the  advice,  consent,  and
 2    approval of the School Administrator Standards Board.
 3        (105 ILCS 5/21-7.1) (from Ch. 122, par. 21-7.1)
 4        Sec. 21-7.1.  Administrative certificate.
 5        (a)  After January 1, 1986, an administrative certificate
 6    valid  for  5  years  of supervising and administering in the
 7    public common schools may  be  issued  to  persons  who  have
 8    graduated  from  a  recognized institution of higher learning
 9    with a master's degree and who have been certified  by  these
10    institutions of higher learning as having completed a program
11    of  preparation  for  one or more of these endorsements. Such
12    programs of academic and  professional  preparation  required
13    for  endorsement  shall be administered by the institution in
14    accordance  with   standards   set   forth   by   the   State
15    Superintendent  of  Education  in consultation with the State
16    Teacher Certification Board.
17        (b)  No administrative certificate shall  be  issued  for
18    the  first  time  after  June  30,  1987  and  no endorsement
19    provided for by this Section shall be made or affixed  to  an
20    administrative  certificate for the first time after June 30,
21    1987  unless  the  person   to   whom   such   administrative
22    certificate  is  to  be  issued  or  to  whose administrative
23    certificate such  endorsement  is  to  be  affixed  has  been
24    required to demonstrate as a part of a program of academic or
25    professional    preparation   for   such   certification   or
26    endorsement: (i) an understanding of the knowledge called for
27    in establishing productive parent-school relationships and of
28    the  procedures  fostering   the   involvement   which   such
29    relationships  demand;  and  (ii)  an  understanding  of  the
30    knowledge  required  for  establishing  a high quality school
31    climate  and  promoting  good  classroom   organization   and
32    management,  including  rules  of  conduct  and instructional
33    procedures  appropriate  to  accomplishing   the   tasks   of
                            -161-          LRB9002758THdvam02
 1    schooling;  and  (iii)  a  demonstration of the knowledge and
 2    skills called for in providing instructional leadership.  The
 3    standards  for  demonstrating  an   understanding   of   such
 4    knowledge  shall be set forth by the State Board of Education
 5    in consultation with the State Teacher  Certification  Board,
 6    and  shall  be administered by the recognized institutions of
 7    higher learning as part  of  the  programs  of  academic  and
 8    professional   preparation  required  for  certification  and
 9    endorsement under this Section.  As used in this  subsection:
10    "establishing  productive  parent-school relationships" means
11    the  ability  to  maintain  effective  communication  between
12    parents  and  school   personnel,   to   encourage   parental
13    involvement in schooling, and to motivate school personnel to
14    engage  parents in encouraging student achievement, including
15    the development of  programs  and  policies  which  serve  to
16    accomplish  this  purpose;  and  "establishing a high quality
17    school  climate"  means  the  ability  to  promote   academic
18    achievement,  to  maintain discipline, to recognize substance
19    abuse problems among students  and  utilize  appropriate  law
20    enforcement  and  other  community resources to address these
21    problems, to support teachers and students in their education
22    endeavors, to establish learning objectives  and  to  provide
23    instructional   leadership,   including  the  development  of
24    policies and programs which serve to accomplish this purpose;
25    and "providing instructional leadership" means the ability to
26    effectively evaluate school  personnel,  to  possess  general
27    communication  and interpersonal skills, and to establish and
28    maintain appropriate classroom  learning  environments.   The
29    provisions  of  this  subsection shall not apply to or affect
30    the initial issuance or making on or before June 30, 1987  of
31    any  administrative  certificate  or endorsement provided for
32    under this Section, nor shall such  provisions  apply  to  or
33    affect   the   renewal  after  June  30,  1987  of  any  such
34    certificate or endorsement initially issued  or  made  on  or
                            -162-          LRB9002758THdvam02
 1    before June 30, 1987.
 2        (c)  Administrative  certificates  shall be renewed every
 3    five years with the first renewal being five years  following
 4    the initial receipt of an administrative certificate. Renewal
 5    requirements   for  administrators  whose  positions  require
 6    certification shall be  based  upon  evidence  of  continuing
 7    professional  education  which  promotes the following goals:
 8    (1)  Improving  administrators'  knowledge  of  instructional
 9    practices and administrative procedures; (2) Maintaining  the
10    basic level of competence required for initial certification;
11    and  (3)  Improving  the  mastery  of  skills  and  knowledge
12    regarding the improvement of teaching performance in clinical
13    settings  and assessment of the levels of student performance
14    in  their  schools.    Evidence  of  continuing  professional
15    education must include verification of biennial attendance in
16    a program developed by the Illinois  Administrators'  Academy
17    and verification of annual participation in a school district
18    approved    activity    which   contributes   to   continuing
19    professional education.  The State  Board  of  Education,  in
20    consultation  with  the  State  Teacher  Certification Board,
21    shall develop procedures for implementing  this  Section  and
22    shall  administer the renewal of administrative certificates.
23    Failure  to  submit  satisfactory  evidence   of   continuing
24    professional  education  which  contributes  to promoting the
25    goals  of  this  Section  shall   result   in   a   loss   of
26    administrative certification.
27        (d)  Any  limited  or life supervisory certificate issued
28    prior to July 1, 1968 shall continue  to  be  valid  for  all
29    administrative   and  supervisory  positions  in  the  public
30    schools for which it is valid as of that date as long as  its
31    holder  meets the requirements for registration or renewal as
32    set forth in the statutes or until revoked according to law.
33        (e)  The  administrative  or  supervisory  positions  for
34    which the certificate shall be valid shall be  determined  by
                            -163-          LRB9002758THdvam02
 1    one  or  more of 3 endorsements: general supervisory, general
 2    administrative and superintendent.
 3        Subject to the provisions of Section 21-1a,  endorsements
 4    shall  be  made  under  conditions set forth in this Section.
 5    The State Board of Education shall, in consultation with  the
 6    State  Teacher  Certification  Board, adopt rules pursuant to
 7    the  Illinois  Administrative  Procedure  Act,   establishing
 8    requirements  for obtaining administrative certificates where
 9    the  minimum  administrative  or   supervisory   requirements
10    surpass those set forth in this Section.
11        The State Teacher Certification Board shall file with the
12    State  Board  of  Education  a  written  recommendation  when
13    considering    additional   administrative   or   supervisory
14    requirements.  All additional  requirements  shall  be  based
15    upon the requisite knowledge necessary to perform those tasks
16    required  by  the  certificate.  The State Board of Education
17    shall in consultation with the  State  Teacher  Certification
18    Board,  establish  standards  within  its  rules  which shall
19    include the academic and professional requirements  necessary
20    for  certification.   These  standards  shall  at  a  minimum
21    contain, but not be limited to, those used by the State Board
22    of Education in determining whether additional knowledge will
23    be  required.   Additionally,  the  State  Board of Education
24    shall in consultation with the  State  Teacher  Certification
25    Board,  establish  provisions  within  its  rules whereby any
26    member of the educational community or the public may file  a
27    formal    written   recommendation   or   inquiry   regarding
28    requirements.
29             (1)  The general supervisory  endorsement  shall  be
30        affixed  to  the administrative certificate of any holder
31        who has at least 16 semester hours of graduate credit  in
32        professional  education  including  8  semester  hours of
33        graduate credit in curriculum and research and who has at
34        least 2 years of full-time teaching experience or  school
                            -164-          LRB9002758THdvam02
 1        service  personnel  experience in public schools, schools
 2        under the supervision of the Department  of  Corrections,
 3        schools  under  the  administration  of the Department of
 4        Rehabilitation Services, or nonpublic schools meeting the
 5        standards established  by  the  State  Superintendent  of
 6        Education    or   comparable   out-of-state   recognition
 7        standards  approved  by  the  State   Superintendent   of
 8        Education.
 9             Such  endorsement shall be required for supervisors,
10        curriculum directors and for  such  similar  and  related
11        positions  as  determined  by the State Superintendent of
12        Education  in  consultation  with   the   State   Teacher
13        Certification Board.
14             (2)  The general administrative endorsement shall be
15        affixed  to  the administrative certificate of any holder
16        who has at least 20 semester hours of graduate credit  in
17        educational administration and supervision and who has at
18        least  2 years of full-time teaching experience or school
19        service personnel experience in public  schools,  schools
20        under  the  supervision of the Department of Corrections,
21        schools under the administration  of  the  Department  of
22        Rehabilitation Services, or nonpublic schools meeting the
23        standards  established  by  the  State  Superintendent of
24        Education   or   comparable   out-of-state    recognition
25        standards   approved   by  the  State  Superintendent  of
26        Education.
27             Such endorsement shall be  required  for  principal,
28        assistant     principal,     assistant    or    associate
29        superintendent, junior college dean and  for  related  or
30        similar    positions   as   determined   by   the   State
31        Superintendent of  Education  in  consultation  with  the
32        State Teacher Certification Board.
33             Notwithstanding  any  other  provisions of this Act,
34        after January 1, 1990 and  until  January  1,  1991,  any
                            -165-          LRB9002758THdvam02
 1        teacher  employed  by  a  district  subject to Article 34
 2        shall  be   entitled   to   receive   an   administrative
 3        certificate  with  a  general  administrative endorsement
 4        affixed thereto if he or she: (i) had at least 3 years of
 5        experience as a certified teacher for such district prior
 6        to August 1, 1985; (ii) obtained a Master's degree  prior
 7        to  August  1, 1985; (iii) completed at least 20 hours of
 8        graduate credit in education courses (including at  least
 9        12  hours  in educational administration and supervision)
10        prior to September 1,  1987;  and  (iv)  has  received  a
11        rating of superior for at least each of the last 5 years.
12        Any person who obtains an administrative certificate with
13        a  general  administrative  endorsement  affixed  thereto
14        under  this  paragraph shall not be qualified to serve in
15        any administrative position except assistant principal.
16             (3)  The chief school business official  endorsement
17        shall be affixed to the administrative certificate of any
18        holder  who  qualifies  by  having a Master's degree, two
19        years of administrative  experience  in  school  business
20        management,  and  a  minimum  of  20  semester  hours  of
21        graduate  credit  in  a  program established by the State
22        Superintendent of  Education  in  consultation  with  the
23        State  Teacher Certification Board for the preparation of
24        school business administrators.  Such  endorsement  shall
25        also  be affixed to the administrative certificate of any
26        holder who qualifies  by  having  a  Master's  Degree  in
27        Business  Administration,  Finance  or  Accounting from a
28        regionally accredited institution of higher education.
29             After June  30,  1977,  such  endorsement  shall  be
30        required  for  any  individual  first employed as a chief
31        school business official.
32        (4)  The superintendent endorsement shall be  affixed  to
33    the   administrative   certificate  of  any  holder  who  has
34    completed 30 semester hours of  graduate  credit  beyond  the
                            -166-          LRB9002758THdvam02
 1    master's   degree   in  a  program  for  the  preparation  of
 2    superintendents of schools including  16  semester  hours  of
 3    graduate  credit  in  professional  education  and who has at
 4    least 2 years experience as an administrator or supervisor in
 5    the public schools  or  the  State  Board  of  Education   or
 6    education service regions or in nonpublic schools meeting the
 7    standards   established   by   the  State  Superintendent  of
 8    Education or comparable  out-of-state  recognition  standards
 9    approved  by  the State Superintendent of Education and holds
10    general supervisory or general administrative endorsement, or
11    who has  had  2  years  of  experience  as  a  supervisor  or
12    administrator   while   holding   an   all-grade  supervisory
13    certificate or  a  certificate  comparable  in  validity  and
14    educational and experience requirements.
15        After  June  30, 1968, such endorsement shall be required
16    for a superintendent of schools, except as  provided  in  the
17    second paragraph of this Section and in Section 34-6.
18        Any  person  appointed  to the position of superintendent
19    between the effective date of this Act and June 30, 1993 in a
20    school district organized pursuant  to  Article  32  with  an
21    enrollment of at least 20,000 pupils shall be exempt from the
22    provisions of this Subsection (4) until June 30, 1996.
23        (f)  All  official  interpretations or acts of issuing or
24    denying administrative certificates or  endorsements  by  the
25    State Teacher's Certification Board, State Board of Education
26    or the State Superintendent of Education, from the passage of
27    P.A.  81-1208  on November 8, 1979 through September 24, 1981
28    are hereby declared valid and legal acts in all respects  and
29    further  that  the purported repeal of the provisions of this
30    Section by P.A. 81-1208 and P.A. 81-1509 is declared null and
31    void.
32        (g)  Notwithstanding  any  other   provisions   of   this
33    Section, July 1, 1998 and thereafter, all actions that are to
34    be taken and all responsibilities that are to be exercised by
                            -167-          LRB9002758THdvam02
 1    and  all  decisions  that  are  to be made under this Section
 2    before that date by the State Superintendent of  Education  a
 3    State  Board  of  Education  in  consultation  with the State
 4    Teacher Consultation with  the  State  Teacher  Certification
 5    Board shall instead be taken, exercised, or made by the State
 6    Superintendent  of  Education or State Board of Education, as
 7    the  case  may  be,   in   consultation   with   the   School
 8    Administrator  Standards  Board  and the Professional Teacher
 9    Standards Board.
10    (Source: P.A. 89-626, eff. 8-9-96.)
11        (105 ILCS 5/21-10) (from Ch. 122, par. 21-10)
12        Sec. 21-10. Provisional certificate.
13        (A)  Until July 1, 1972, the State Teacher  Certification
14    Board  may issue a provisional certificate valid for teaching
15    in elementary, high school or special subject fields  subject
16    to the following conditions:
17        A  provisional  certificate may be issued to a person who
18    presents certified evidence of  having  earned  a  bachelor's
19    degree from a recognized institution of higher learning.  The
20    academic  and  professional courses offered as a basis of the
21    provisional certificate shall  be  courses  approved  by  the
22    State  Board  of  Education  in  consultation  with the State
23    Teacher Certification Board.
24        A certificate earned under this plan may  be  renewed  at
25    the  end of each two-year period upon evidence filed with the
26    State Teacher Certification Board that the holder has  earned
27    8  semester  hours  of credit within the period; provided the
28    requirements for the certificate of the same type issued  for
29    the teaching position for which the teacher is employed shall
30    be  met  by  the  end of the second renewal period.  A second
31    provisional certificate shall not be issued.  The credits  so
32    earned  must  be  approved by the State Board of Education in
33    consultation with the State Teacher Certification  Board  and
                            -168-          LRB9002758THdvam02
 1    must   meet  the  general  pattern  for  a  similar  type  of
 2    certificate issued on the basis of credit.  No  more  than  4
 3    semester hours shall be chosen from elective subjects.
 4        (B)  After  July 1, 1972, the State Teacher Certification
 5    Board may issue a provisional certificate valid for  teaching
 6    in  early  childhood,  elementary,  high  school  or  special
 7    subject  fields,  or  for providing service as school service
 8    personnel  or  for  administering  schools  subject  to   the
 9    following conditions: A provisional certificate may be issued
10    to  a  person  who  meets  the  requirements  for  a  regular
11    teaching,   school   service   personnel   or  administrative
12    certificate in  another  State  and  who  presents  certified
13    evidence   of  having  earned  a  bachelor's  degree  from  a
14    recognized institution of higher learning.  The academic  and
15    professional  courses  offered  as a basis of the provisional
16    certificate shall be courses approved by the State  Board  of
17    Education    in   consultation   with   the   State   Teacher
18    Certification Board.  A certificate earned under this plan is
19    valid for a period of 2  years  and  shall  not  be  renewed;
20    however,  the  individual  to whom this certificate is issued
21    shall have passed or shall pass the  examinations  and  other
22    criteria  set  forth  by  the  State Board of Education basic
23    skills test and subject matter knowledge test or tests within
24    9  months  of  the  date  of  issuance  of  the   provisional
25    certificate.  Failure  to pass the tests, required in Section
26    21-1a, shall result in the cancellation  of  the  provisional
27    certificate.
28        (C)  The State Teacher Certification Board may also issue
29    a   provisional   vocational   certificate  and  a  temporary
30    provisional vocational certificate.
31             (1)  The requirements for a  provisional  vocational
32        certificate  shall  be  determined  by the State Board of
33        Education in consultation with the State  Teacher  Board;
34        provided, the following minimum requirements are met: (a)
                            -169-          LRB9002758THdvam02
 1        after  July 1, 1972, at least 30 semester hours of credit
 2        from a recognized institution of higher learning; and (b)
 3        after July 1, 1974, at least 60 semester hours of  credit
 4        from a recognized institution of higher learning.
 5             (2)  The  requirements  for  a temporary provisional
 6        vocational certificate shall be determined by  the  State
 7        Board of Education in consultation with the State Teacher
 8        Certification  Board;  provided,  the  following  minimum
 9        requirements  are  met:  (a) after July 1, 1973, at least
10        4,000 hours  of  work  experience  in  the  skill  to  be
11        certified  for  teaching;  and (b) after July 1, 1975, at
12        least 8,000 hours of work experience in the skill  to  be
13        certified for teaching.  Any certificate issued under the
14        provisions  of  this  paragraph  shall  expire on June 30
15        following the date of issue.  Renewals may be granted  on
16        a  yearly  basis,  but shall not be granted to any person
17        who does not file with the  State  Teacher  Certification
18        Board  a  transcript showing at least 3 semester hours of
19        credit earned during the previous year  in  a  recognized
20        institution  of  learning.   No such certificate shall be
21        issued except upon certification by the employing  board,
22        subject to the approval of the regional superintendent of
23        schools,  that  no  qualified  teacher  holding a regular
24        certificate or a provisional  vocational  certificate  is
25        available  and that actual circumstances and need require
26        such issuance.
27        The courses or work experience offered as a basis for the
28    issuance of the provisional  vocational  certificate  or  the
29    temporary   provisional   vocational   certificate  shall  be
30    approved by the State Board of Education in consultation with
31    the State Teacher Certification Board.
32        (D)  Until July 1, 1972, the State Teacher  Certification
33    Board   may   also   issue  a  provisional  foreign  language
34    certificate valid  for  4  years  for  teaching  the  foreign
                            -170-          LRB9002758THdvam02
 1    language  named  therein  in all grades of the common schools
 2    and shall be issued to persons  who  have  graduated  from  a
 3    recognized institution of higher learning with not fewer than
 4    120   semester  hours  of  credit  and  who  have  met  other
 5    requirements as determined by the State Board of Education in
 6    consultation with the State Teacher Certification Board.   If
 7    the  holder  of a provisional foreign language certificate is
 8    not a citizen of the United States within 6 years of the date
 9    of issuance of the  original  certificate,  such  certificate
10    shall  be suspended by the regional superintendent of schools
11    of the region in which the holder is  engaged  to  teach  and
12    shall  not be reinstated until the holder is a citizen of the
13    United States.
14        (E)  Notwithstanding  anything  in  this   Act   to   the
15    contrary,  the  State Teacher Certification Board shall issue
16    part-time provisional certificates  to  eligible  individuals
17    who are professionals and craftsmen.
18        The  requirements  for  a  part-time provisional teachers
19    certificate  shall  be  determined  by  the  State  Board  of
20    Education   in   consultation   with   the   State    Teacher
21    Certification   Board,   provided   the   following   minimum
22    requirements  are  met:   60  semester hours of credit from a
23    recognized institution of higher learning or  4000  hours  of
24    work experience in the skill to be certified for teaching.
25        A  part-time  provisional  certificate  may be issued for
26    teaching no more than 2 courses of study for grades 6 through
27    12.
28        A part-time provisional  teachers  certificate  shall  be
29    valid  for  2  years  and may be renewed at the end of each 2
30    year period.
31    (Source: P.A. 88-204.)
32        (105 ILCS 5/21-11.1) (from Ch. 122, par. 21-11.1)
33        Sec.    21-11.1.      Certificates     for     equivalent
                            -171-          LRB9002758THdvam02
 1    qualifications. An applicant who holds or is eligible to hold
 2    a  teacher's certificate or license under the laws of another
 3    state or territory of the United  States  may  be  granted  a
 4    corresponding   teacher's  certificate  in  Illinois  on  the
 5    written authorization of the State Board of Education and the
 6    State  Teacher  Certification  Board   upon   the   following
 7    conditions:
 8             (1)  That the applicant is at least 19 years of age,
 9        is  of  good  character, good health and a citizen of the
10        United States; and
11             (2)  That the requirements for a  similar  teacher's
12        certificate in the particular state or territory were, at
13        the  date  of  issuance of the certificate, substantially
14        equal to the  requirements  in  force  at  the  time  the
15        application is made for the certificate in this State.
16        After  January  1,  1988,  in  addition to satisfying the
17    foregoing conditions and requirements,  an  applicant  for  a
18    corresponding  teaching certificate in Illinois also shall be
19    required to pass the examinations test of  basic  skills  and
20    subject  matter  knowledge  required  under the provisions of
21    Section 21-1a as directed by the State Board of Education.
22        In determining good character  under  this  Section,  any
23    felony   conviction  of  the  applicant  may  be  taken  into
24    consideration, but the conviction shall not operate as a  bar
25    to registration.
26        The  State  Board  of  Education in consultation with the
27    State Teacher Certification Board shall prescribe  rules  and
28    regulations  establishing  the  similarity of certificates in
29    other  states  and  the   standards   for   determining   the
30    equivalence of requirements.
31    (Source: P.A. 87-242.)
32        (105 ILCS 5/21-11.3) (from Ch. 122, par. 21-11.3)
33        Sec.  21-11.3.  Resident teacher certificate.  A resident
                            -172-          LRB9002758THdvam02
 1    teacher certificate shall be valid for 2 years for employment
 2    as a resident teacher in a public school.  It shall be issued
 3    only  to  persons  who  have  graduated  from  a   recognized
 4    institution of higher education with a bachelor's degree, who
 5    are  enrolled  in  a  program  of preparation approved by the
 6    State Superintendent of Education in  consultation  with  the
 7    State  Teacher  Certification  Board, and who have passed the
 8    appropriate  tests  as  required  in  test  of  basic  skills
 9    required by Section 21-1a and  as  determined  by  the  State
10    Board  of  Education.   A resident teacher certificate may be
11    issued for teaching children through grade 3  or  for  grades
12    K-9,  6-12,  or K-12 in a special subject area and may not be
13    renewed. A resident teacher may  teach  only  in  conjunction
14    with and under the direction of a certified teacher and shall
15    not teach in place of a certified teacher.
16    (Source: P.A. 87-222.)
17        (105 ILCS 5/21-11.4)
18        Sec. 21-11.4.  Illinois Teacher Corps.
19        (a)  The  General  Assembly finds and determines that (i)
20    it  is  important  to  encourage  the  entry   of   qualified
21    professionals  into  elementary  and  secondary teaching as a
22    second career; and (ii) there are a number of individuals who
23    have bachelors' degrees, experience in the work force, and an
24    interest in serving youth that creates a special talent  pool
25    with  great  potential  for  enriching  the lives of Illinois
26    children as teachers.  To provide this talent pool  with  the
27    opportunity  to serve children as teachers, school districts,
28    colleges, and universities are encouraged,  as  part  of  the
29    public  policy  of  this  State,  to enter into collaborative
30    programs  to  educate  and   induct   these   non-traditional
31    candidates  into  the teaching profession.  To facilitate the
32    certification  of  such  candidates,  the  State   Board   of
33    Education,   in   consultation   with   the   State   Teacher
                            -173-          LRB9002758THdvam02
 1    Certification  Board,  shall  assist  institutions  of higher
 2    education and school districts with the implementation of the
 3    Illinois Teacher Corps.
 4        (b)  Individuals who wish to become  candidates  for  the
 5    Illinois  Teacher  Corps program must earn a resident teacher
 6    certificate as defined in Section 21-11.3, including:
 7             (1)  graduation from  a  recognized  institution  of
 8        higher  education with a bachelor's degree and at least a
 9        3.00 out of a 4.00 grade point average;
10             (2)  a minimum of 5 years of professional experience
11        in the area the candidate wishes to teach;
12             (3)  passing the examinations required by the  State
13        Board  of  Education  test  of  basic  skills and subject
14        matter required by Section 21-1a;
15             (4)  enrollment in a  Masters  of  Education  Degree
16        program approved by the State Superintendent of Education
17        in  consultation  with  the  State  Teacher Certification
18        Board; and
19             (5)  completion of a 6 week summer intensive teacher
20        preparation course which is the first  component  of  the
21        Masters Degree program.
22        (c)  School  districts may hire an Illinois Teacher Corps
23    candidate  after  the  candidate  has  received  his  or  her
24    resident teacher certificate.  The school  district  has  the
25    responsibility  of  ensuring  that the candidates receive the
26    supports  necessary  to  become  qualified,   competent   and
27    productive  teachers.   To  be eligible to participate in the
28    Illinois Teacher Corps program, school districts must provide
29    a minimum of the following supports to the candidates:
30             (1)  a salary and  benefits  package  as  negotiated
31        through the teacher contracts;
32             (2)  a  mentor  certified  teacher  who will provide
33        guidance to  one  or  more  candidates  under  a  program
34        developed  collaboratively  by  the  school  district and
                            -174-          LRB9002758THdvam02
 1        university;
 2             (3)  at least  quarterly  evaluations  performed  of
 3        each  candidate  jointly  by  the  mentor teacher and the
 4        principal of the school or the principal's designee; and
 5             (4)  a written and signed document from  the  school
 6        district  outlining  the  support the district intends to
 7        provide to the candidates,  for  approval  by  the  State
 8        Teacher Certification Board.
 9        (d)  Illinois institutions of higher education shall work
10    collaboratively  with  school districts and the State Teacher
11    Certification Board to academically  prepare  the  candidates
12    for  the teaching profession.  To be eligible to participate,
13    the  College  or  School  of  Education  of  a  participating
14    Illinois institution  of  higher  education  must  develop  a
15    curriculum  that  provides, upon completion, a Masters Degree
16    in Education for the candidates.  The Masters Degree  program
17    must:
18             (1)  receive   approval   from   the  State  Teacher
19        Certification Board; and
20             (2)  take no longer than 3 summers  and  2  academic
21        years  to  complete,  and  balance  the  needs  and  time
22        constraints of the candidates.
23        (e)  Upon  successful  completion  of  the Masters Degree
24    program,  the  candidate    receives  an   Initial   Teaching
25    Certificate becomes a fully certified teacher in the State of
26    Illinois  and all other general education academic coursework
27    deficiencies are waived.
28        (f)  If an individual wishes to become a candidate in the
29    Illinois Teacher Corps program, but does not possess 5  years
30    of  professional  experience,  the individual may qualify for
31    the  program  by  participating  in  a  one  year  internship
32    teacher preparation program with a school district.  The  one
33    year  internship  shall  be  developed collaboratively by the
34    school  district  and  the  Illinois  institution  of  higher
                            -175-          LRB9002758THdvam02
 1    education,  and  shall  be  approved  by  the  State  Teacher
 2    Certification Board.
 3        (g)  The State Board of Education is authorized to  award
 4    grants  to  school  districts that seek to prepare candidates
 5    for the teaching profession who have bachelors'  degrees  and
 6    professional work experience in subjects relevant to teaching
 7    fields,  but who do not have formal preparation for teaching.
 8    Grants may be made to school districts for up to  $3,000  per
 9    candidate  when  the  school  district, in cooperation with a
10    public  or  private  university  and  the  school  district's
11    teacher  bargaining  unit,  develop  a  program  designed  to
12    prepare teachers  pursuant  to  the  Illinois  Teacher  Corps
13    program under this Section.
14    (Source: P.A. 88-204.)
15        (105 ILCS 5/21-14) (from Ch. 122, par. 21-14)
16        Sec. 21-14. Registration and renewal of certificates.)
17        (a)  A  limited  four-year  certificate  or a certificate
18    issued  after  July  1,  1955,  shall  be  renewable  at  its
19    expiration  or  within  60  days  thereafter  by  the  county
20    superintendent of schools having supervision and control over
21    the school where  the  teacher  is  teaching  upon  certified
22    evidence  of meeting the requirements for renewal as required
23    by this Act and prescribed by the State Board of Education in
24    consultation with the State Teacher Certification Board.   An
25    elementary  supervisory  certificate  shall not be renewed at
26    the  end  of  the  first  four-year  period  covered  by  the
27    certificate unless the holder  thereof  has  filed  certified
28    evidence  with  the State Teacher Certification Board that he
29    has a master's degree or that he has earned 8 semester  hours
30    of  credit  in  the  field  of educational administration and
31    supervision in a recognized institution of  higher  learning.
32    The  holder shall continue to earn 8 semester hours of credit
33    each four-year period until such time  as  he  has  earned  a
                            -176-          LRB9002758THdvam02
 1    master's degree.
 2        All  certificates  not  renewed  or  registered as herein
 3    provided shall lapse after a  period  of  4  years  from  the
 4    expiration   of   the   last   year  of  registration.   Such
 5    certificates may be reinstated for a  one  year  period  upon
 6    payment   of   all   accumulated   registration  fees.   Such
 7    reinstated certificates shall only be renewed: (1) by earning
 8    5 semester hours of credit in  a  recognized  institution  of
 9    higher  learning in the field of professional education or in
10    courses related to the holder's contractual teaching  duties;
11    or  (2)  by  presenting  evidence  of holding a valid regular
12    certificate of some  other  type.   Any  certificate  may  be
13    voluntarily   surrendered   by  the  certificate  holder.   A
14    voluntarily surrendered certificate shall  be  treated  as  a
15    revoked certificate.
16        The  provisions of this subsection (a) are subject to the
17    provisions of subsection (b).
18        (b)  Teaching   and   administrative   certificates   and
19    endorsements issued before July 1, 1998  that  expire  on  or
20    after  July  1,  2000  are  renewable  as  Standard  Teaching
21    Certificates    or    as   administrative   certificates   or
22    endorsements, as the  case  may  be,  for  additional  5-year
23    periods,   provided   that   the   teacher  or  administrator
24    successfully   completes   such   additional    requirements,
25    including   examinations,   continuing  education,  and  such
26    evidence of professional growth as the  Professional  Teacher
27    Standards  Board  shall  by  rule establish. The Professional
28    Teacher Standards Board  may  set  additional  standards  and
29    other criteria for renewal, which may include peer review and
30    other  forms  of  evaluation.   Teaching  and  administrative
31    certificates and endorsements issued before July 1, 1998 that
32    expire before July 1, 2000 are renewable as Standard Teaching
33    Certificates    or    as   administrative   certificates   or
34    endorsements, as the case may  be,    for  additional  5-year
                            -177-          LRB9002758THdvam02
 1    periods  as  provided in this subsection (b), except that the
 2    Professional Teacher Standards Board shall afford the holders
 3    of those certificates and endorsements such  additional  time
 4    as  the  Board  determines  is  reasonably required to enable
 5    those certificate holders to satisfy the  additional  renewal
 6    requirements  established  by  this  subsection  (b). Initial
 7    Teaching  Certificates  issued   under   this   Article   are
 8    non-renewable, except that the Professional Teacher Standards
 9    Board may, in appropriate cases extend the term of an Initial
10    Teaching   Certificate   if   the  individual  to  whom  that
11    certificate is issued has not completed 4 years  of  teaching
12    under  that  certificate.  A  Standard  Teaching  Certificate
13    issued  to  replace an Initial Teaching Certificate which has
14    expired or an administrative certificate or endorsement  that
15    is  first  issued  on  or  after  July 1, 1998 and thereafter
16    expires is valid for 5 years  and  renewable  for  additional
17    5-year  periods,  provided  that the teacher or administrator
18    successfully   completes   such   additional    requirements,
19    including  examinations,  continuing  education,  evidence of
20    professional growth,  and  such  other  criteria  (which  may
21    include  peer  review  and  other forms of evaluation) as the
22    Professional Teacher Standards Board shall by rule establish.
23    A Master  Certificate  is  renewable  for  additional  7-year
24    periods   subject   to   such  renewal  requirements  as  the
25    Professional Teacher Standards Board shall by rule establish.
26    Notwithstanding the foregoing provisions of this Section, any
27    new or additional requirements that  are  applicable  to  the
28    renewal  of administrative certificates or endorsements shall
29    be established by the Professional Teacher Standards Board in
30    consultation with the School  Administrator  Standards  Board
31    and  shall  not  be  implemented  or enforced except with the
32    consent and approval of the  School  Administrator  Standards
33    Board.
34    (Source: P.A. 86-400.)
                            -178-          LRB9002758THdvam02
 1        (105 ILCS 5/24-11) (from Ch. 122, par. 24-11)
 2        Sec.  24-11.   Boards  of  Education  -  Boards of School
 3    Inspectors - Contractual continued service.  As used in  this
 4    and the succeeding Sections of this Article:,
 5        "Teacher"  means  any  or  all  school district employees
 6    regularly required to be certified under laws relating to the
 7    certification of teachers.,
 8        "Board" means board of directors, board of education,  or
 9    board of school inspectors, as the case may be., and
10        "School term" means that portion of the school year, July
11    1 to the following June 30, when school is in actual session.
12        This  Section  and  Sections  24-12 through 24-16 of this
13    Article apply only  to  school  districts  having  less  than
14    500,000 inhabitants.
15        Any  teacher  who  has been employed in any district as a
16    full-time teacher for a probationary period of 2  consecutive
17    school  terms  shall enter upon contractual continued service
18    unless given written notice of dismissal stating the specific
19    reason therefor, by certified mail, return receipt  requested
20    by  the employing board at least 45 60 days before the end of
21    such period; except that for a teacher who is first  employed
22    by a school district on or after July 1, 1997 and who has not
23    before  that  date already entered upon contractual continued
24    service in that district, the probationary period shall be  4
25    consecutive  school terms before the teacher shall enter upon
26    contractual  continued   service.    For   the   purpose   of
27    determining   contractual   continued   service,   the  first
28    probationary year shall be any full-time employment under  an
29    initial  or  standard teaching certificate from a date before
30    November 1 through the end of the school year.  If,  however,
31    a  teacher  has not had one school term of full-time teaching
32    experience before the beginning of such probationary  period,
33    the   employing   board   may   at  its  option  extend  such
34    probationary period for one additional school term by  giving
                            -179-          LRB9002758THdvam02
 1    the  teacher written notice by certified mail, return receipt
 2    requested at least 60 days  before  the  end  of  the  second
 3    school  term  of  the  period  of  2 consecutive school terms
 4    referred to above.  Such notice must state  the  reasons  for
 5    the  one  year  extension  and  must  outline  the corrective
 6    actions which  the  teacher  should  take  to  satisfactorily
 7    complete probation.
 8        Any full-time teacher who is completing the first year of
 9    the probationary period described in the preceding paragraph,
10    or  any  teacher employed on a full-time basis not later than
11    January 1 of the school term, shall  receive  written  notice
12    from  the  employing board at least 45 60 days before the end
13    of any school term whether or not he will be re-employed  for
14    the  following  school  term. If the board fails to give such
15    notice, the employee shall  be  deemed  reemployed,  and  not
16    later  than  the  close  of  the then current school term the
17    board shall issue a  regular  contract  to  the  employee  as
18    though the board had reemployed him in the usual manner.
19        Contractual  continued  service  shall continue in effect
20    the terms and provisions of the  contract  with  the  teacher
21    during  the  last  school  term  of  the probationary period,
22    subject to  this  Act  and  the  lawful  regulations  of  the
23    employing  board. This Section and succeeding Sections do not
24    modify any existing power of the board except with respect to
25    the procedure of the discharge of a teacher and reductions in
26    salary as hereinafter provided. Contractual continued service
27    status shall not restrict the power of the board to  transfer
28    a  teacher  to  a  position which the teacher is qualified to
29    fill  or  to  make  such  salary  adjustments  as  it   deems
30    desirable,  but  unless  reductions  in salary are uniform or
31    based upon some reasonable classification, any teacher  whose
32    salary is reduced shall be entitled to a notice and a hearing
33    as  hereinafter provided in the case of certain dismissals or
34    removals.
                            -180-          LRB9002758THdvam02
 1        The employment of any teacher in a program of  a  special
 2    education  joint agreement established under Section 3-15.14,
 3    10-22.31 or 10-22.31a shall  be  under  this  and  succeeding
 4    Sections  of  this  Article.   For  purposes of attaining and
 5    maintaining  contractual  continued  service  and   computing
 6    length  of  continuing service as referred to in this Section
 7    and Section 24-12, employment in a special educational  joint
 8    program  shall  be  deemed  a  continuation  of  all previous
 9    certificated  employment  of  such  teacher  for  such  joint
10    agreement whether the employer of the teacher was  the  joint
11    agreement,   the  regional  superintendent,  or  one  of  the
12    participating districts in the joint agreement.
13        Any teacher employed after July 1, 1987  as  a  full-time
14    teacher  in a program of a special education joint agreement,
15    whether the program is operated by the joint agreement  or  a
16    member  district  on  behalf  of  the  joint agreement, for a
17    probationary period of two consecutive years shall enter upon
18    contractual  continued  service  in  all  of   the   programs
19    conducted  by  such  joint  agreement  which  the  teacher is
20    legally qualified to hold; except that for a teacher  who  is
21    first  employed  on  or  after July 1, 1997 in a program of a
22    special education joint agreement and who has not before that
23    date already entered upon contractual  continued  service  in
24    all of the programs conducted by the joint agreement that the
25    teacher is legally qualified to hold, the probationary period
26    shall  be  4 consecutive years before the teacher enters upon
27    contractual continued service in all of those  programs.   In
28    the  event  of  a  reduction  in  the  number  of programs or
29    positions in the joint agreement, the teacher on  contractual
30    continued  service  shall  be  eligible for employment in the
31    joint agreement programs for which  the  teacher  is  legally
32    qualified in order of greater length of continuing service in
33    the   joint   agreement   unless  an  alternative  method  of
34    determining the sequence of dismissal  is  established  in  a
                            -181-          LRB9002758THdvam02
 1    collective   bargaining  agreement.   In  the  event  of  the
 2    dissolution of a joint agreement, the teacher on  contractual
 3    continued  service who is legally qualified shall be assigned
 4    to any comparable position in  a  member  district  currently
 5    held  by  a  teacher  who  has  not  entered upon contractual
 6    continued service or held by a teacher who has  entered  upon
 7    contractual   continued   service   with  shorter  length  of
 8    contractual continued service.
 9        The governing  board  of  the  joint  agreement,  or  the
10    administrative  district, if so authorized by the articles of
11    agreement of the joint agreement, rather than  the  board  of
12    education  of a school district, may carry out employment and
13    termination actions including dismissals under  this  Section
14    and Section 24-12.
15        For  purposes  of  this  and  succeeding Sections of this
16    Article, a program of a special educational  joint  agreement
17    shall be defined as instructional, consultative, supervisory,
18    administrative,  diagnostic,  and  related services which are
19    managed by the special educational joint  agreement  designed
20    to  service  two  or  more districts which are members of the
21    joint agreement.
22        Each  joint  agreement  shall  be  required  to  post  by
23    February 1, a list of all its employees in order of length of
24    continuing  service  in  the  joint  agreement,   unless   an
25    alternative  method of determining a sequence of dismissal is
26    established in an applicable collective bargaining agreement.
27        The employment of any  teacher  in  a  special  education
28    program  authorized by Section 14-1.01 through 14-14.01, or a
29    joint   educational   program   established   under   Section
30    10-22.31a, shall be under this and the succeeding Sections of
31    this  Article,  and  such  employment  shall  be   deemed   a
32    continuation  of  the  previous employment of such teacher in
33    any  of  the  participating  districts,  regardless  of   the
34    participation  of other districts in the program. Any teacher
                            -182-          LRB9002758THdvam02
 1    employed as  a  full-time  teacher  in  a  special  education
 2    program prior to September 23, 1987 in which 2 or more school
 3    districts   participate   for  a  probationary  period  of  2
 4    consecutive years  shall  enter  upon  contractual  continued
 5    service  in  each  of the participating districts, subject to
 6    this and the succeeding Sections of this Article, and in  the
 7    event of the termination of the program shall be eligible for
 8    any  vacant  position in any of such districts for which such
 9    teacher is qualified.
10    (Source: P.A. 85-1163; 85-1209; 85-1440.)
11        (105 ILCS 5/24-12) (from Ch. 122, par. 24-12)
12        Sec.  24-12.   Removal  or  dismissal  of   teachers   in
13    contractual  continued  service.  If a teacher in contractual
14    continued service is removed or dismissed as a  result  of  a
15    decision  of  the  board  to  decrease the number of teachers
16    employed by the board or to discontinue some particular  type
17    of  teaching  service,  written notice shall be mailed to the
18    teacher and also given the teacher either by certified  mail,
19    return receipt requested or personal delivery with receipt at
20    least  45 60 days before the end of the school term, together
21    with a  statement  of  honorable  dismissal  and  the  reason
22    therefor,  and in all such cases the board shall first remove
23    or dismiss all teachers who have not entered upon contractual
24    continued service before removing or dismissing  any  teacher
25    who has entered upon contractual continued service and who is
26    legally  qualified  to  hold  a  position currently held by a
27    teacher  who  has  not  entered  upon  contractual  continued
28    service.  As  between  teachers   who   have   entered   upon
29    contractual  continued  service, the teacher or teachers with
30    the shorter length of continuing service  with  the  district
31    shall  be  dismissed  first  unless  an alternative method of
32    determining the sequence of dismissal  is  established  in  a
33    collective bargaining agreement or contract between the board
                            -183-          LRB9002758THdvam02
 1    and  a  professional faculty members' organization and except
 2    that this provision shall not impair  the  operation  of  any
 3    affirmative  action  program  in  the district, regardless of
 4    whether it exists by operation of law or is  conducted  on  a
 5    voluntary  basis  by  the  board.  Any teacher dismissed as a
 6    result of such decrease or discontinuance shall be  paid  all
 7    earned  compensation  on  or  before  the  third business day
 8    following the last day of pupil  attendance  in  the  regular
 9    school  term.   If  the  board  has  any  vacancies  for  the
10    following  school  term  or within one calendar year from the
11    beginning of the following school term, the positions thereby
12    becoming available shall  be  tendered  to  the  teachers  so
13    removed  or dismissed so far as they are legally qualified to
14    hold such positions; provided, however, that if the number of
15    honorable  dismissal  notices  based  on  economic  necessity
16    exceeds 15% of the number of full time  equivalent  positions
17    filled  by  certified  employees  (excluding  principals  and
18    administrative  personnel)  during the preceding school year,
19    then if the board has any vacancies for the following  school
20    term  or  within  2  calendar years from the beginning of the
21    following school term, the positions  so  becoming  available
22    shall  be  tendered  to the teachers who were so notified and
23    removed or dismissed whenever they are legally  qualified  to
24    hold  such  positions. Each board shall, in consultation with
25    any exclusive employee representatives, each year establish a
26    list,  categorized  by  positions,  showing  the  length   of
27    continuing  service  of each teacher who is qualified to hold
28    any  such  positions,  unless  an   alternative   method   of
29    determining   a  sequence  of  dismissal  is  established  as
30    provided for in this Section, in which case a list  shall  be
31    made  in  accordance  with the alternative method.  Copies of
32    the list shall  be  distributed  to  the  exclusive  employee
33    representative   on  or  before  February  1  of  each  year.
34    Whenever the number of honorable dismissal notices based upon
                            -184-          LRB9002758THdvam02
 1    economic necessity exceeds 5, or 150% of the  average  number
 2    of  teachers  honorably  dismissed  in the preceding 3 years,
 3    whichever is more, then the board also shall  hold  a  public
 4    hearing  on  the  question  of the dismissals.  Following the
 5    hearing and board review  the  action  to  approve  any  such
 6    reduction shall require a majority vote of the board members.
 7        If  a dismissal or removal is sought for any other reason
 8    or cause, including those under Section  10-22.4,  the  board
 9    must  first approve a motion containing specific charges by a
10    majority vote of all its members.   Written  notice  of  such
11    charges shall be served upon the teacher within 5 days of the
12    adoption  of the motion.  Such notice shall contain a bill of
13    particulars.  No hearing upon the charges is required  unless
14    the teacher within 10 days after receiving notice requests in
15    writing  of  the  board that a hearing be scheduled, in which
16    case the board shall schedule  a  hearing  on  those  charges
17    before a disinterested hearing officer on a date no less than
18    15  nor  more than 30 days after the enactment of the motion.
19    The secretary of the school board shall forward a copy of the
20    notice to the State Board of Education.  Within 5 days  after
21    receiving   this  notice  of  hearing,  the  State  Board  of
22    Education shall provide a list of  5  prospective,  impartial
23    hearing officers.  Each person on the list must be accredited
24    by  a  national  arbitration  organization,  and  have  had a
25    minimum of 5 years experience directly related to  labor  and
26    employment  relations  matters  between educational employers
27    and  educational  employees  or  their  exclusive  bargaining
28    representatives. No one on the list may be a resident of  the
29    school  district.   The  board and the teacher or their legal
30    representatives within 3 days shall  alternately  strike  one
31    name  from  the  list  until  only  one name remains.  Unless
32    waived by the teacher, the teacher shall have  the  right  to
33    proceed  first with the striking. Within 3 days of receipt of
34    the first list provided by the State Board of Education,  the
                            -185-          LRB9002758THdvam02
 1    board  and  the  teacher or their legal representatives shall
 2    each  have  the  right  to  reject  all  prospective  hearing
 3    officers named on the first list and  to  require  the  State
 4    Board of Education to provide a second list of 5 prospective,
 5    impartial  hearing  officers,  none of whom were named on the
 6    first list.  Within 5 days after receiving this request for a
 7    second list, the State Board of Education shall  provide  the
 8    second  list  of  5  prospective, impartial hearing officers.
 9    The procedure for selecting a hearing officer from the second
10    list shall be the same as the procedure for the  first  list.
11    In  the  alternative  to selecting a hearing officer from the
12    first or  second  list  received  from  the  State  Board  of
13    Education,   the   board  and  the  teacher  or  their  legal
14    representatives may mutually agree  to  select  an  impartial
15    hearing  officer who is not on a list received from the State
16    Board of  Education  either  by  direct  appointment  by  the
17    parties  or  by  using  procedures  for the appointment of an
18    arbitrator  established  by   the   Federal   Mediation   and
19    Conciliation Service or the American Arbitration Association.
20    The  parties  shall  notify  the  State Board of Education of
21    their intent to select a hearing officer using an alternative
22    procedure within 3 days of receipt of a list  of  prospective
23    hearing  officers  provided  by the State Board of Education.
24    Any person selected by the  parties  under  this  alternative
25    procedure for the selection of a hearing officer shall not be
26    a  resident  of  the  school district and shall have the same
27    qualifications and authority as a  hearing  officer  selected
28    from  a  list  provided by the State Board of Education.  The
29    State Board of Education shall promulgate  uniform  standards
30    and  rules  of procedure for such hearings.  As to prehearing
31    discovery, such rules and regulations shall,  at  a  minimum,
32    allow  for:  (1)  discovery of names and addresses of persons
33    who may be called as expert witnesses  at  the  hearing,  the
34    omission  of  any  such name to result in a preclusion of the
                            -186-          LRB9002758THdvam02
 1    testimony of such witness in the absence of a showing of good
 2    cause and the express permission of the hearing officer;  (2)
 3    bills  of  particulars;  (3) written interrogatories; and (4)
 4    production of relevant documents.  The per diem allowance for
 5    the hearing officer shall be determined and paid by the State
 6    Board of Education and may  not  exceed  $300.   The  hearing
 7    officer  shall  hold  a  hearing and render a final decision.
 8    The hearing shall be public at  the  request  of  either  the
 9    teacher or the board.  The teacher has the privilege of being
10    present  at  the  hearing with counsel and of cross-examining
11    witnesses and may offer evidence and  witnesses  and  present
12    defenses  to  the  charges.   The  hearing  officer may issue
13    subpoenas and subpoenas duces tecum requiring the  attendance
14    of  witnesses and, at the request of the teacher against whom
15    a charge is made or the board, shall  issue  such  subpoenas,
16    but  the hearing officer may limit the number of witnesses to
17    be subpoenaed in behalf of the teacher or the  board  to  not
18    more  than  10.  All  testimony at the hearing shall be taken
19    under oath administered by the hearing officer.  The  hearing
20    officer  shall  cause  a record of the proceedings to be kept
21    and shall employ a competent reporter to take stenographic or
22    stenotype notes of all  the  testimony.   The  costs  of  the
23    reporter's  attendance  and  services at the hearing shall be
24    paid by the State Board of Education. Either party desiring a
25    transcript of the hearing shall pay for the cost thereof.  If
26    in the opinion of the  board  the  interests  of  the  school
27    require  it,  the  board  may suspend the teacher pending the
28    hearing, but if acquitted the teacher shall  not  suffer  the
29    loss of any salary by reason of the suspension.
30        Before  setting a hearing on charges stemming from causes
31    that are considered remediable, a board must give the teacher
32    reasonable  warning  in  writing,  stating  specifically  the
33    causes which, if not removed, may result in charges; however,
34    no such written warning shall be required if the causes  have
                            -187-          LRB9002758THdvam02
 1    been  the  subject  of a remediation plan pursuant to Article
 2    24A. The hearing officer shall consider and  give  weight  to
 3    all  of the teacher's evaluations written pursuant to Article
 4    24A. The hearing officer  shall,  within  30  days  from  the
 5    conclusion of the hearing or closure of the record, whichever
 6    is  later  with  reasonable  dispatch,  make a decision as to
 7    whether or not the teacher shall be dismissed and shall  give
 8    a  copy  of  the  decision to both the teacher and the school
 9    board. If the hearing officer  fails  to  render  a  decision
10    within   30   days,   the  State  Board  of  Education  shall
11    communicate with the hearing officer to  determine  the  date
12    that  the  parties  can  reasonably  expect  to  receive  the
13    decision.   The State Board of Education shall provide copies
14    of all such communications to the parties.  In the event  the
15    hearing  officer  fails without good cause to make a decision
16    within the 30-day period, the name of  such  hearing  officer
17    shall  be struck for a period of not more than 24 months from
18    the master list of hearing officers maintained by  the  State
19    Board  of Education.  If a hearing officer fails without good
20    cause to render a decision within 3 months after the  hearing
21    is concluded or the record is closed, whichever is later, the
22    State Board of Education shall provide the parties with a new
23    list  of  prospective,  impartial  hearing officers, with the
24    same qualifications provided herein, one  of  whom  shall  be
25    selected,  as  provided in this Section, to review the record
26    and render a decision.  The parties  may  mutually  agree  to
27    select   a   hearing  officer  pursuant  to  the  alternative
28    procedure, as provided in this Section, to rehear the charges
29    heard by the hearing officer who failed to render a decision.
30    If the hearing officer fails without good cause to  render  a
31    decision  within  3  months after the hearing is concluded or
32    the record is closed, whichever is later, the hearing officer
33    shall be removed from the master  list  of  hearing  officers
34    maintained  by  the  State  Board of Education.  The Board of
                            -188-          LRB9002758THdvam02
 1    Education  shall  not  lose  jurisdiction  to  discharge  the
 2    teacher if the hearing officer fails  to  render  a  decision
 3    within  the  time  specified in this Section. The decision of
 4    the hearing officer is final unless reviewed as  provided  in
 5    Section  24-16  of  this  Act.   In  the event such review is
 6    instituted, any costs of preparing and filing the  record  of
 7    proceedings shall be paid by the board.
 8        If  a decision of the hearing officer is adjudicated upon
 9    review or appeal in favor of  the  teacher,  then  the  trial
10    court  shall  order  reinstatement  and  shall  determine the
11    amount for which  the  board  is  liable  including  but  not
12    limited to loss of income and costs incurred therein.
13        Any   teacher   who  is  reinstated  by  any  hearing  or
14    adjudication brought under this Section shall be assigned  by
15    the  board  to  a  position  substantially similar to the one
16    which that teacher held prior to that teacher's suspension or
17    dismissal.
18        If, by reason of any change in the boundaries  of  school
19    districts,  or  by  reason  of  the  creation of a new school
20    district,  the  position  held  by  any  teacher   having   a
21    contractual  continued service status is transferred from one
22    board to the  control  of  a  new  or  different  board,  the
23    contractual  continued  service status of such teacher is not
24    thereby lost, and such new or different board is  subject  to
25    this  Act  with respect to such teacher in the same manner as
26    if such teacher were its employee and had been  its  employee
27    during  the  time  such  teacher was actually employed by the
28    board from whose control the position was transferred.
29    (Source: P.A. 89-618, eff. 8-9-96.)
30        (105 ILCS 5/34-84) (from Ch. 122, par. 34-84)
31        Sec. 34-84.  Appointments  and  promotions  of  teachers.
32    Appointments  and  promotions  of  teachers shall be made for
33    merit only, and after satisfactory service for a probationary
                            -189-          LRB9002758THdvam02
 1    period of 3 years  with  respect  to  probationary  employees
 2    employed as full-time teachers in the public school system of
 3    the  district before July 1, 1997 and 4 years with respect to
 4    probationary employees who are first  employed  as  full-time
 5    teachers  in  the  public school system of the district on or
 6    after July 1, 1997 (during which period the board may dismiss
 7    or  discharge  any  such  probationary  employee   upon   the
 8    recommendation,  accompanied by the written reasons therefor,
 9    of the general superintendent  of  schools)  appointments  of
10    teachers shall become permanent, subject to removal for cause
11    in the manner provided by Section 34-85.
12        A  probationary  year  shall  consist  of  any  full-time
13    employment   under   an   initial   or  a  standard  teaching
14    certificate from a date before November 1 through the end  of
15    the school year.
16        As  used  in  this Article, "teachers" means and includes
17    all members of  the  teaching  force  excluding  the  general
18    superintendent and principals.
19        There  shall  be  no  reduction  in teachers because of a
20    decrease  in  student  membership  or  a  change  in  subject
21    requirements within the attendance center organization  after
22    the  20th  day  following  the  first day of the school year,
23    except  that:   (1)  this  provision  shall  not   apply   to
24    desegregation  positions, special education positions, or any
25    other positions funded by State or federal categorical funds,
26    and (2) at attendance centers maintaining  any  of  grades  9
27    through  12,  there  may be a second reduction in teachers on
28    the first day of the second semester of  the  regular  school
29    term  because of a decrease in student membership or a change
30    in  subject  requirements  within   the   attendance   center
31    organization.
32        The school principal shall make the decision in selecting
33    teachers  to  fill  new  and vacant positions consistent with
34    Section 34-8.1.
                            -190-          LRB9002758THdvam02
 1    (Source: P.A. 88-338; 88-511; 89-15, eff. 5-30-95.)
 2        Section 41.  The  School  Code  is  amended  by  changing
 3    Sections  1B-8,  2-3.51.5,  7-11,  10-22.20,  18-4.3, 18-8.4,
 4    29-5, 34-8.4, and 34-18 as follows:
 5        (105 ILCS 5/1B-8) (from Ch. 122, par. 1B-8)
 6        Sec. 1B-8.  There is created  in  the  State  Treasury  a
 7    special  fund  to  be  known as the School District Emergency
 8    Financial Assistance Fund (the "Fund").  The School  District
 9    Emergency   Financial   Assistance   Fund  shall  consist  of
10    appropriations,  grants  from  the  federal  government   and
11    donations  from  any public or private source.  Moneys in the
12    Fund may be appropriated only to  the  State  Board  for  the
13    purposes of this Article.  The appropriation may be allocated
14    and  expended by the State Board as loans to school districts
15    which are the subject of an approved petition  for  emergency
16    financial  assistance  under  Section  1B-4.  From the amount
17    allocated to each such school district the State Board  shall
18    identify  a sum sufficient to cover all approved costs of the
19    Financial Oversight  Panel  established  for  the  respective
20    school district.  If the State Board and State Superintendent
21    of Education have not approved emergency financial assistance
22    in  conjunction with the appointment of a Financial Oversight
23    Panel,  the  Panel's  approved  costs  shall  be  paid   from
24    deductions from the district's general State aid.
25        The  Financial  Oversight Panel may prepare and file with
26    the State Superintendent a proposal for  emergency  financial
27    assistance  for  the  school  district and for the operations
28    budget of the Panel.  No expenditures shall be authorized  by
29    the  State  Superintendent until he has approved the proposal
30    of the Panel, either as submitted or in  such  lesser  amount
31    determined by the State Superintendent.
32        The  maximum  amount  of  emergency  financial assistance
                            -191-          LRB9002758THdvam02
 1    which may be allocated to  any  school  district  under  this
 2    Article, including moneys necessary for the operations of the
 3    Panel,  shall  not  exceed  $1000  times the number of pupils
 4    enrolled in the school district during the school year ending
 5    June 30 prior to the date of approval by the State  Board  of
 6    the petition for emergency financial assistance, as certified
 7    to the local board and the Panel by the State Superintendent.
 8        The payment of emergency State financial assistance shall
 9    be   subject   to  appropriation  by  the  General  Assembly.
10    Emergency State financial assistance allocated and paid to  a
11    school district under this Article may be applied to any fund
12    or  funds  from  which  the  local board of education of that
13    district is authorized to make expenditures by law.
14        Any  emergency  financial  assistance  proposed  by   the
15    Financial   Oversight   Panel   and  approved  by  the  State
16    Superintendent may be paid in its entirety during the initial
17    year of the Panel's existence or spread in equal or declining
18    amounts over a period of years not to exceed  the  period  of
19    the  Panel's  existence.   All  payments made from the School
20    District Emergency Financial Assistance  Fund  for  a  school
21    district shall be required to be repaid, with simple interest
22    at  the  rate  of  4%,  not later than the date the Financial
23    Oversight Panel ceases to exist. The  Panel  shall  establish
24    and  the  State  Superintendent  shall  approve the terms and
25    conditions,  including  the  schedule,  of  repayments.   The
26    schedule shall provide for repayments commencing  July  1  of
27    each  year.  Repayment  shall be incorporated into the annual
28    budget of the school district and may be made from  any  fund
29    or funds of the district in which there are moneys available.
30    When  moneys  are repaid as provided herein they shall not be
31    made  available  to  the  local  board  for  further  use  as
32    emergency financial assistance under this Article at any time
33    thereafter.  All repayments required to be made by  a  school
34    district  shall  be received by the State Board and deposited
                            -192-          LRB9002758THdvam02
 1    in the School District Emergency Financial Assistance Fund.
 2        In  establishing  the  terms  and  conditions   for   the
 3    repayment  obligation  of the school district the Panel shall
 4    annually determine whether a separate local property tax levy
 5    is required.  The board of any school  district  with  a  tax
 6    rate for educational purposes for the prior year of less than
 7    120%  of the maximum rate for educational purposes authorized
 8    by Section 17-2 shall provide for a  separate  tax  levy  for
 9    emergency  financial assistance repayment purposes.  Such tax
10    levy shall not be subject to referendum approval.  The amount
11    of the levy shall be equal to the amount  necessary  to  meet
12    the   annual   repayment   obligations  of  the  district  as
13    established by the Panel, or 20% of  the  amount  levied  for
14    educational  purposes  for the prior year, whichever is less.
15    However, no district shall be required to levy the tax if the
16    district's   operating   tax   rate   as   determined   under
17    subparagraph (A)(5)(b) of Section 18-8 exceeds  200%  of  the
18    district's  tax  rate  for educational purposes for the prior
19    year.
20    (Source: P.A. 88-618, eff. 9-9-94.)
21        (105 ILCS 5/2-3.51.5)
22        Sec. 2-3.51.5.  School Safety and Educational Improvement
23    Block Grant Program.  To improve the level of  education  and
24    safety  of  students  from  kindergarten  through grade 12 in
25    school districts.  The State Board of Education is authorized
26    to fund a School Safety  and  Educational  Improvement  Block
27    Grant Program.
28        (1)  The program shall provide funding for school safety,
29    textbooks  and  software,  teacher  training  and  curriculum
30    development,  school  improvements,  and remediation programs
31    under subsection (a) of Section 2-3.64.  A school district or
32    laboratory school as  defined  in  subsection  (K)  of  B  of
33    Section  18-8 is not required to file an application in order
                            -193-          LRB9002758THdvam02
 1    to receive the categorical funding to which  it  is  entitled
 2    under   this  Section.   Funds  for  the  School  Safety  and
 3    Educational  Improvement  Block  Grant   Program   shall   be
 4    distributed  to school districts and laboratory schools based
 5    on the prior year's best 3 months average  daily  attendance.
 6    The  State  Board  of  Education  shall  promulgate rules and
 7    regulations necessary for the implementation of this program.
 8        (2)  Distribution of moneys to school districts shall  be
 9    made  in 2 semi-annual installments, one payment on or before
10    October 30, and one payment prior to April 30, of each fiscal
11    year.
12        (3)  Grants  under  the  School  Safety  and  Educational
13    Improvement Block Grant Program  shall  be  awarded  provided
14    there is an appropriation for the program, and funding levels
15    for  each  district shall be prorated according to the amount
16    of the appropriation.
17    (Source: P.A. 89-610, eff. 8-6-96.)
18        (105 ILCS 5/7-11) (from Ch. 122, par. 7-11)
19        Sec.  7-11.   Annexation   of   dissolved   non-operating
20    districts.  If  any  school  district has become dissolved as
21    provided in Section 5-32, or if a petition for dissolution is
22    filed under subsection (b)  of  Section  7-2a,  the  regional
23    board  of  school trustees shall attach the territory of such
24    dissolved district to one  or  more  districts  and,  if  the
25    territory  is  added to 2 or more districts, shall divide the
26    property of the dissolved district  among  the  districts  to
27    which  its territory is added, in the manner provided for the
28    division of property in case of the  organization  of  a  new
29    district  from a part of another district. The regional board
30    of school trustees  of  the  region  in  which  the  regional
31    superintendent  has supervision over the school district that
32    is dissolved shall have all  power  necessary  to  annex  the
33    territory  of  the  dissolved  district  as  provided in this
                            -194-          LRB9002758THdvam02
 1    Section, including the power to attach  the  territory  to  a
 2    school   district  under  the  supervision  of  the  regional
 3    superintendent of another educational  service  region.   The
 4    annexation  of  the  territory of a dissolved school district
 5    under  this  Section  shall  entitle  the  school   districts
 6    involved  in  the annexation to payments from the State Board
 7    of Education under subsection (I) (A)(5)(m) of  Section  18-8
 8    and  Sections 18-8.2 and 18-8.3 in the same manner and to the
 9    same extent authorized in the case of other annexations under
10    this Article.  Other provisions of  this  Article  7  of  The
11    School  Code  shall  apply  to  and  govern  dissolutions and
12    annexations under this Section and Section 7-2a, except  that
13    it  is the intent of the General Assembly that in the case of
14    conflict the provisions of  this  Section  and  Section  7-2a
15    shall control over the other provisions of this Article.
16        The  regional  board of school trustees shall give notice
17    of a hearing, to be held not less than 50 days nor more  than
18    70  days  after  a school district is dissolved under Section
19    5-32 or a petition is filed under subsection (b)  of  Section
20    7-2a,  on  the  disposition  of  the territory of such school
21    district by publishing a notice thereof at  least  once  each
22    week  for 2 successive weeks in at least one newspaper having
23    a general  circulation  within  the  area  of  the  territory
24    involved.  At  such  hearing,  the  regional  board of school
25    trustees shall hear evidence  as  to  the  school  needs  and
26    conditions  of  the  territory  and  of  the  area within and
27    adjacent thereto,  and  shall  take  into  consideration  the
28    educational  welfare  of  the pupils of the territory and the
29    normal high school attendance pattern of the children. In the
30    case of an elementary school district if all the eighth grade
31    graduates of such district customarily attend high school  in
32    the  same  high school district, the regional board of school
33    trustees shall,  unless  it  be  impossible  because  of  the
34    restrictions   of  a  special  charter  district,  annex  the
                            -195-          LRB9002758THdvam02
 1    territory of the district to a contiguous  elementary  school
 2    district whose eighth grade graduates customarily attend that
 3    high  school,  and  that  has  an  elementary school building
 4    nearest to the center of the territory to be annexed, but  if
 5    such  eighth grade graduates customarily attend more than one
 6    high school the  regional  board  of  school  trustees  shall
 7    determine the attendance pattern of such graduates and divide
 8    the territory of the district among the contiguous elementary
 9    districts  whose  graduates  attend  the same respective high
10    schools.
11        The decision of the regional board of school trustees  in
12    such  matter  shall  be  issued  within  10  days  after  the
13    conclusion  of  the  hearing  and  deemed  an "administrative
14    decision" as defined in Section 3-101 of the  Code  of  Civil
15    Procedure  and any resident who appears at the hearing or any
16    petitioner may within 10 days after a copy  of  the  decision
17    sought  to be reviewed was served by registered mail upon the
18    party affected thereby file  a  complaint  for  the  judicial
19    review    of   such   decision   in   accordance   with   the
20    "Administrative  Review  Law",   and   all   amendments   and
21    modifications thereof and the rules adopted pursuant thereto.
22    The  commencement of any action for review shall operate as a
23    stay of enforcement, and no further proceedings shall be  had
24    until final disposition of such review. The final decision of
25    the  regional  board  of school trustees or of any court upon
26    judicial review shall become effective under Section  7-9  in
27    the case of a petition for dissolution filed under subsection
28    (b)  of  Section  7-2a,  and  a  final  decision shall become
29    effective immediately following the date no further appeal is
30    allowable in the case of a district dissolved  under  Section
31    5-32.
32        Notwithstanding  the foregoing provisions of this Section
33    or any other provision of law to  the  contrary,  the  school
34    board  of  the  Mt.  Morris  School District is authorized to
                            -196-          LRB9002758THdvam02
 1    donate to the City  of  Mount  Morris,  Illinois  the  school
 2    building and other real property used as a school site by the
 3    Mt. Morris School District at the time of its dissolution, by
 4    appropriate  resolution  adopted  by  the school board of the
 5    district prior to the dissolution of the district;  and  upon
 6    the adoption of a resolution by the school board donating the
 7    school  building and school site to the City of Mount Morris,
 8    Illinois as authorized by this Section, the regional board of
 9    school trustees or other school officials holding legal title
10    to the school building  and  school  site  so  donated  shall
11    immediately  convey  the  same  to  the  City  of Mt. Morris,
12    Illinois.
13    (Source: P.A. 88-386.)
14        (105 ILCS 5/10-22.20) (from Ch. 122, par. 10-22.20)
15        (Text of Section before amendment by P.A. 89-507)
16        Sec.  10-22.20.  Classes  for  adults  and  youths  whose
17    schooling  has  been  interrupted;   Conditions   for   State
18    reimbursement; Use of child care facilities.
19        (a)  To establish special classes for the instruction (1)
20    of  persons  of age 21 years or over, and (2) of persons less
21    than age 21 and not otherwise in attendance in public school,
22    for the purpose of providing adults  in  the  community,  and
23    youths  whose  schooling  has  been  interrupted,  with  such
24    additional  basic  education,  vocational skill training, and
25    other instruction as  may  be  necessary  to  increase  their
26    qualifications  for employment or other means of self-support
27    and their ability to meet their responsibilities as  citizens
28    including  courses  of  instruction  regularly  accepted  for
29    graduation   from   elementary   or   high  schools  and  for
30    Americanization and General  Educational  Development  Review
31    classes.
32        The  board  shall  pay  the  necessary  expenses  of such
33    classes out of school funds of the district, including  costs
                            -197-          LRB9002758THdvam02
 1    of  student  transportation  and such facilities or provision
 2    for child-care as may be necessary in  the  judgment  of  the
 3    board  to  permit  maximum  utilization  of  the  courses  by
 4    students  with  children,  and  other  special  needs  of the
 5    students directly related to such instruction.  The  expenses
 6    thus  incurred  shall  be  subject to State reimbursement, as
 7    provided in this Section.   The  board  may  make  a  tuition
 8    charge  for persons taking instruction who are not subject to
 9    State reimbursement, such tuition charge not  to  exceed  the
10    per capita cost of such classes.
11        The  cost  of  such instruction, including the additional
12    expenses  herein  authorized,  incurred  for  recipients   of
13    financial  aid  under  the  Illinois  Public Aid Code, or for
14    persons  for  whom  education  and  training  aid  has   been
15    authorized  under  Section 9-8 of that Code, shall be assumed
16    in its entirety from funds appropriated by the State  to  the
17    State Board of Education.
18        (b)  The  State  Board  of  Education  and  the  Illinois
19    Community   College   Board  shall  annually  enter  into  an
20    interagency  agreement  to  implement  this   Section.    The
21    interagency  agreement  shall establish the standards for the
22    courses of instruction reimbursed under  this  Section.   The
23    State  Board  of Education shall supervise the administration
24    of  the  programs.   The  State  Board  of  Education   shall
25    determine   the   cost  of  instruction  in  accordance  with
26    standards jointly established by the State Board of Education
27    and the Illinois Community College Board as set forth in  the
28    interagency  agreement,  including  therein  other incidental
29    costs as herein authorized, which shall serve as the basis of
30    State reimbursement in  accordance  with  the  provisions  of
31    this   Section.   In   the   approval  of  programs  and  the
32    determination of the cost of instruction, the State Board  of
33    Education  shall  provide  for  the  maximum  utilization  of
34    federal  funds  for  such programs. The interagency agreement
                            -198-          LRB9002758THdvam02
 1    shall also include:
 2             (1)  the development of an index of need for program
 3        planning and for area funding allocations as  defined  by
 4        the State Board of Education;
 5             (2)  the    method    for   calculating   hours   of
 6        instruction, as defined by the State Board of  Education,
 7        claimable  for reimbursement and a method to phase in the
 8        calculation and for adjusting the calculations  in  cases
 9        where  the  services  of a program are interrupted due to
10        circumstances beyond the control of the program provider;
11             (3)  a  plan  for  the  reallocation  of  funds   to
12        increase  the  amount  allocated  for  grants  based upon
13        program performance as set forth in subsection (d) below;
14        and
15             (4)  the development of  standards  for  determining
16        grants  based upon performance as set forth in subsection
17        (d) below and a plan for the phased-in implementation  of
18        those standards.
19        For   instruction   provided   by  school  districts  and
20    community  college  districts  beginning  July  1,  1996  and
21    thereafter, reimbursement provided  by  the  State  Board  of
22    Education  for  classes  authorized  by this Section shall be
23    provided pursuant to the terms of the  interagency  agreement
24    from  funds  appropriated  for the reimbursement criteria set
25    forth in subsection (c) below.
26        (c)  Upon  the  annual  approval   of   the   interagency
27    agreement,   reimbursement   shall   be  first  provided  for
28    transportation, child care services, and other special  needs
29    of the students directly related to instruction and then from
30    the  funds  remaining  an  amount equal to the product of the
31    total credit hours or units of instruction  approved  by  the
32    State Board of Education, multiplied by the following:
33             (1)  For   adult   basic   education,   the  maximum
34        reimbursement per credit hour or per unit of  instruction
                            -199-          LRB9002758THdvam02
 1        shall  be  equal  to  the  general  state  aid  per pupil
 2        foundation   level   established   in   subsection    (B)
 3        subsections 5(a) through 5(d) of Section 18-8, divided by
 4        60;
 5             (2)  The  maximum  reimbursement  per credit hour or
 6        per unit of instruction in subparagraph (1)  above  shall
 7        be  weighted  for students enrolled in classes defined as
 8        vocational skills and approved  by  the  State  Board  of
 9        Education by 1.25;
10             (3)  The  maximum  reimbursement  per credit hour or
11        per unit of instruction in subparagraph (1)  above  shall
12        be  multiplied  by  .90  for students enrolled in classes
13        defined  as  adult  secondary  education   programs   and
14        approved by the State Board of Education;
15             (4)  For  community  college  districts  the maximum
16        reimbursement per credit hour in subparagraphs (1),  (2),
17        and  (3)  above  shall  be  reduced  by  the  Adult Basic
18        Education/Adult Secondary Education/English As  A  Second
19        Language  credit  hour  grant  rate prescribed in Section
20        2-16.02 of the Public Community College Act, as pro-rated
21        to the appropriation level; and
22             (5)  Programs receiving funds under the formula that
23        was in effect during the  1994-1995  program  year  which
24        continue  to  be approved and which generate at least 80%
25        of the hours claimable in 1994-95,  or  in  the  case  of
26        programs  not  approved  in  1994-95  at least 80% of the
27        hours  claimable  in  1995-96,  shall  have  funding  for
28        subsequent years based upon 100% of the  1995-96  formula
29        funding  level  for  1996-97,  90% of the 1995-96 formula
30        funding level for 1997-98, 80%  of  the  1995-96  formula
31        funding level for 1998-99, and 70% of the 1995-96 formula
32        funding  level  for  1999-2000.  For any approved program
33        which generates less than 80% of the claimable  hours  in
34        its  base  year,  the  level  of funding pursuant to this
                            -200-          LRB9002758THdvam02
 1        paragraph shall be reduced proportionately.  Funding  for
 2        program  years  after  1999-2000 shall be pursuant to the
 3        interagency agreement.
 4        (d)  Upon  the  annual  approval   of   the   interagency
 5    agreement,  the State Board of Education shall provide grants
 6    to eligible programs for supplemental activities  to  improve
 7    or  expand  services under the Adult Education Act.  Eligible
 8    programs shall be determined based upon performance  outcomes
 9    of  students  in the programs as set forth in the interagency
10    agreement.
11        (e)  Reimbursement under this Section  shall  not  exceed
12    the actual costs of the approved program.
13        If   the  amount  appropriated  to  the  State  Board  of
14    Education for reimbursement under this Section is  less  than
15    the  amount  required under this Act, the apportionment shall
16    be proportionately reduced.
17        School districts  and  community  college  districts  may
18    assess  students  up  to  $3.00  per credit hour, for classes
19    other than Adult Basic Education level programs, if needed to
20    meet program costs.
21        (f)  An education plan  shall  be  established  for  each
22    adult  or  youth whose schooling has been interrupted and who
23    is participating in the instructional programs provided under
24    this Section.
25        Each school board and community  college  shall  keep  an
26    accurate and detailed account of the students assigned to and
27    receiving  instruction  under this Section who are subject to
28    State reimbursement and  shall  submit  reports  of  services
29    provided  commencing with fiscal year 1997 as required in the
30    interagency agreement.
31        For classes authorized under this Section, a credit  hour
32    or  unit  of  instruction  is  equal  to  15  hours of direct
33    instruction for students enrolled in approved adult education
34    programs at midterm  and  making  satisfactory  progress,  in
                            -201-          LRB9002758THdvam02
 1    accordance  with  standards  jointly established by the State
 2    Board of Education and the Illinois Community  College  Board
 3    as set forth in the interagency agreement.
 4        (g)  Upon  proof  submitted to the Illinois Department of
 5    Public Aid of the payment of all claims submitted under  this
 6    Section,  that  Department shall apply for federal funds made
 7    available therefor and any federal funds so received shall be
 8    paid into the General Revenue Fund in the State Treasury.
 9        School districts or community colleges providing  classes
10    under  this  Section  shall  submit applications to the State
11    Board of Education for preapproval  in  accordance  with  the
12    standards jointly established by the State Board of Education
13    and  the Illinois Community College Board as set forth in the
14    interagency agreement.  Payments shall be made by  the  State
15    Board  of  Education  based  upon approved programs.  Interim
16    expenditure reports may be required by  the  State  Board  of
17    Education  as  set forth in the interagency agreement.  Final
18    claims for the school year shall be submitted to the regional
19    superintendents  for  transmittal  to  the  State  Board   of
20    Education  as  set forth in the interagency agreement.  Final
21    adjusted payments shall be made by September 30.
22        If a school district or community college district  fails
23    to  provide,  or  is providing unsatisfactory or insufficient
24    classes under this Section, the State Board of Education  may
25    enter  into  agreements with public or private educational or
26    other  agencies  other  than  the  public  schools  for   the
27    establishment of such classes.
28        (h)  If  a  school district or community college district
29    establishes  child-care  facilities  for  the   children   of
30    participants  in  classes  established under this Section, it
31    may extend the use of these facilities to students  who  have
32    obtained  employment  and  to  other persons in the community
33    whose children require care and supervision while the  parent
34    or  other  person  in  charge  of the children is employed or
                            -202-          LRB9002758THdvam02
 1    otherwise absent from the home during all or part of the day.
 2    It may make the facilities available before and after as well
 3    as during regular school hours to school  age  and  preschool
 4    age  children who may benefit thereby, including children who
 5    require care and supervision  pending  the  return  of  their
 6    parent   or  other  person  in  charge  of  their  care  from
 7    employment or other activity requiring absence from the home.
 8        The State Board of Education shall pay to the  board  the
 9    cost  of  care  in  the  facilities  for  any  child who is a
10    recipient of financial aid  under  The  Illinois  Public  Aid
11    Code.
12        The  board  may  charge  for care of children for whom it
13    cannot make claim under the provisions of this Section.   The
14    charge  shall  not  exceed per capita cost, and to the extent
15    feasible, shall  be  fixed  at  a  level  which  will  permit
16    utilization  by  employed  parents of low or moderate income.
17    It may also permit any  other  State  or  local  governmental
18    agency  or  private  agency  providing  care  for children to
19    purchase care.
20        After  July  1,  1970  when  the  provisions  of  Section
21    10-20.20 become operative in  the  district,  children  in  a
22    child-care  facility shall be transferred to the kindergarten
23    established under that Section for such portion of the day as
24    may be required for the kindergarten program,  and  only  the
25    prorated  costs  of  care and training provided in the Center
26    for the remaining period shall be  charged  to  the  Illinois
27    Department  of Public Aid or other persons or agencies paying
28    for such care.
29        (i)  The provisions of this Section shall also  apply  to
30    school districts having a population exceeding 500,000.
31    (Source: P.A. 89-524, eff. 7-19-96.)
32        (Text of Section after amendment by P.A. 89-507)
33        Sec.  10-22.20.  Classes  for  adults  and  youths  whose
34    schooling   has   been   interrupted;  Conditions  for  State
                            -203-          LRB9002758THdvam02
 1    reimbursement; Use of child care facilities.
 2        (a)  To establish special classes for the instruction (1)
 3    of persons of age 21 years or over, and (2) of  persons  less
 4    than age 21 and not otherwise in attendance in public school,
 5    for  the  purpose  of  providing adults in the community, and
 6    youths  whose  schooling  has  been  interrupted,  with  such
 7    additional basic education, vocational  skill  training,  and
 8    other  instruction  as  may  be  necessary  to increase their
 9    qualifications for employment or other means of  self-support
10    and  their ability to meet their responsibilities as citizens
11    including  courses  of  instruction  regularly  accepted  for
12    graduation  from  elementary  or   high   schools   and   for
13    Americanization  and  General  Educational Development Review
14    classes.
15        The board  shall  pay  the  necessary  expenses  of  such
16    classes  out of school funds of the district, including costs
17    of student transportation and such  facilities  or  provision
18    for  child-care  as  may  be necessary in the judgment of the
19    board  to  permit  maximum  utilization  of  the  courses  by
20    students with  children,  and  other  special  needs  of  the
21    students  directly related to such instruction.  The expenses
22    thus incurred shall be subject  to  State  reimbursement,  as
23    provided  in  this  Section.   The  board  may make a tuition
24    charge for persons taking instruction who are not subject  to
25    State  reimbursement,  such  tuition charge not to exceed the
26    per capita cost of such classes.
27        The cost of such instruction,  including  the  additional
28    expenses   herein  authorized,  incurred  for  recipients  of
29    financial aid under the Illinois  Public  Aid  Code,  or  for
30    persons   for  whom  education  and  training  aid  has  been
31    authorized under Section 9-8 of that Code, shall  be  assumed
32    in  its  entirety from funds appropriated by the State to the
33    State Board of Education.
34        (b)  The  State  Board  of  Education  and  the  Illinois
                            -204-          LRB9002758THdvam02
 1    Community  College  Board  shall  annually  enter   into   an
 2    interagency   agreement   to  implement  this  Section.   The
 3    interagency agreement shall establish the standards  for  the
 4    courses  of  instruction  reimbursed under this Section.  The
 5    State Board of Education shall supervise  the  administration
 6    of   the  programs.   The  State  Board  of  Education  shall
 7    determine  the  cost  of  instruction  in   accordance   with
 8    standards jointly established by the State Board of Education
 9    and  the Illinois Community College Board as set forth in the
10    interagency agreement,  including  therein  other  incidental
11    costs as herein authorized, which shall serve as the basis of
12    State  reimbursement  in  accordance  with  the provisions of
13    this  Section.  In  the  approval   of   programs   and   the
14    determination  of the cost of instruction, the State Board of
15    Education  shall  provide  for  the  maximum  utilization  of
16    federal funds for such programs.  The  interagency  agreement
17    shall also include:
18             (1)  the development of an index of need for program
19        planning  and  for area funding allocations as defined by
20        the State Board of Education;
21             (2)  the   method   for   calculating    hours    of
22        instruction,  as defined by the State Board of Education,
23        claimable for reimbursement and a method to phase in  the
24        calculation  and  for adjusting the calculations in cases
25        where the services of a program are  interrupted  due  to
26        circumstances beyond the control of the program provider;
27             (3)  a   plan  for  the  reallocation  of  funds  to
28        increase the  amount  allocated  for  grants  based  upon
29        program performance as set forth in subsection (d) below;
30        and
31             (4)  the  development  of  standards for determining
32        grants based upon performance as set forth in  subsection
33        (d)  below and a plan for the phased-in implementation of
34        those standards.
                            -205-          LRB9002758THdvam02
 1        For  instruction  provided  by   school   districts   and
 2    community  college  districts  beginning  July  1,  1996  and
 3    thereafter,  reimbursement  provided  by  the  State Board of
 4    Education for classes authorized by  this  Section  shall  be
 5    provided  pursuant  to the terms of the interagency agreement
 6    from funds appropriated for the  reimbursement  criteria  set
 7    forth in subsection (c) below.
 8        (c)  Upon   the   annual   approval  of  the  interagency
 9    agreement,  reimbursement  shall  be   first   provided   for
10    transportation,  child care services, and other special needs
11    of the students directly related to instruction and then from
12    the funds remaining an amount equal to  the  product  of  the
13    total  credit  hours  or units of instruction approved by the
14    State Board of Education, multiplied by the following:
15             (1)  For  adult   basic   education,   the   maximum
16        reimbursement  per credit hour or per unit of instruction
17        shall be  equal  to  the  general  state  aid  per  pupil
18        foundation    level   established   in   subsection   (B)
19        subsections 5(a) through 5(d) of Section 18-8, divided by
20        60;
21             (2)  The maximum reimbursement per  credit  hour  or
22        per  unit  of instruction in subparagraph (1) above shall
23        be weighted for students enrolled in classes  defined  as
24        vocational  skills  and  approved  by  the State Board of
25        Education by 1.25;
26             (3)  The maximum reimbursement per  credit  hour  or
27        per  unit  of instruction in subparagraph (1) above shall
28        be multiplied by .90 for  students  enrolled  in  classes
29        defined   as   adult  secondary  education  programs  and
30        approved by the State Board of Education;
31             (4)  For community  college  districts  the  maximum
32        reimbursement  per credit hour in subparagraphs (1), (2),
33        and (3)  above  shall  be  reduced  by  the  Adult  Basic
34        Education/Adult  Secondary  Education/English As A Second
                            -206-          LRB9002758THdvam02
 1        Language credit hour grant  rate  prescribed  in  Section
 2        2-16.02 of the Public Community College Act, as pro-rated
 3        to the appropriation level; and
 4             (5)  Programs receiving funds under the formula that
 5        was  in  effect  during  the 1994-1995 program year which
 6        continue to be approved and which generate at  least  80%
 7        of  the  hours  claimable  in  1994-95, or in the case of
 8        programs not approved in 1994-95  at  least  80%  of  the
 9        hours  claimable  in  1995-96,  shall  have  funding  for
10        subsequent  years  based upon 100% of the 1995-96 formula
11        funding level for 1996-97, 90%  of  the  1995-96  formula
12        funding  level  for  1997-98,  80% of the 1995-96 formula
13        funding level for 1998-99, and 70% of the 1995-96 formula
14        funding level for 1999-2000.  For  any  approved  program
15        which  generates  less than 80% of the claimable hours in
16        its base year, the level  of  funding  pursuant  to  this
17        paragraph  shall be reduced proportionately.  Funding for
18        program years after 1999-2000 shall be  pursuant  to  the
19        interagency agreement.
20        (d)  Upon   the   annual   approval  of  the  interagency
21    agreement, the State Board of Education shall provide  grants
22    to  eligible  programs for supplemental activities to improve
23    or expand services under the Adult Education Act.    Eligible
24    programs  shall be determined based upon performance outcomes
25    of students in the programs as set forth in  the  interagency
26    agreement.
27        (e)  Reimbursement  under  this  Section shall not exceed
28    the actual costs of the approved program.
29        If  the  amount  appropriated  to  the  State  Board   of
30    Education  for  reimbursement under this Section is less than
31    the amount required under this Act, the  apportionment  shall
32    be proportionately reduced.
33        School  districts  and  community  college  districts may
34    assess students up to $3.00  per  credit  hour,  for  classes
                            -207-          LRB9002758THdvam02
 1    other than Adult Basic Education level programs, if needed to
 2    meet program costs.
 3        (f)  An  education  plan  shall  be  established for each
 4    adult or youth whose schooling has been interrupted  and  who
 5    is participating in the instructional programs provided under
 6    this Section.
 7        Each  school  board  and  community college shall keep an
 8    accurate and detailed account of the students assigned to and
 9    receiving instruction under this Section who are  subject  to
10    State  reimbursement  and  shall  submit  reports of services
11    provided commencing with fiscal year 1997 as required in  the
12    interagency agreement.
13        For  classes authorized under this Section, a credit hour
14    or unit of  instruction  is  equal  to  15  hours  of  direct
15    instruction for students enrolled in approved adult education
16    programs  at  midterm  and  making  satisfactory progress, in
17    accordance with standards jointly established  by  the  State
18    Board  of  Education and the Illinois Community College Board
19    as set forth in the interagency agreement.
20        (g)  Upon proof submitted to the Illinois  Department  of
21    Human  Services  of the payment of all claims submitted under
22    this Section, that Department shall apply for  federal  funds
23    made  available  therefor  and  any federal funds so received
24    shall be paid into the General  Revenue  Fund  in  the  State
25    Treasury.
26        School  districts or community colleges providing classes
27    under this Section shall submit  applications  to  the  State
28    Board  of  Education  for  preapproval in accordance with the
29    standards jointly established by the State Board of Education
30    and the Illinois Community College Board as set forth in  the
31    interagency  agreement.   Payments shall be made by the State
32    Board of Education based  upon  approved  programs.   Interim
33    expenditure  reports  may  be  required by the State Board of
34    Education as set forth in the interagency agreement.    Final
                            -208-          LRB9002758THdvam02
 1    claims for the school year shall be submitted to the regional
 2    superintendents   for  transmittal  to  the  State  Board  of
 3    Education as set forth in the interagency  agreement.   Final
 4    adjusted payments shall be made by September 30.
 5        If  a school district or community college district fails
 6    to provide, or is providing  unsatisfactory  or  insufficient
 7    classes  under this Section, the State Board of Education may
 8    enter into agreements with public or private  educational  or
 9    other   agencies  other  than  the  public  schools  for  the
10    establishment of such classes.
11        (h)  If a school district or community  college  district
12    establishes   child-care   facilities  for  the  children  of
13    participants in classes established under  this  Section,  it
14    may  extend  the use of these facilities to students who have
15    obtained employment and to other  persons  in  the  community
16    whose  children require care and supervision while the parent
17    or other person in charge of  the  children  is  employed  or
18    otherwise absent from the home during all or part of the day.
19    It may make the facilities available before and after as well
20    as  during  regular  school hours to school age and preschool
21    age children who may benefit thereby, including children  who
22    require  care  and  supervision  pending  the return of their
23    parent  or  other  person  in  charge  of  their  care   from
24    employment or other activity requiring absence from the home.
25        The  State  Board of Education shall pay to the board the
26    cost of care in  the  facilities  for  any  child  who  is  a
27    recipient  of  financial  aid  under  The Illinois Public Aid
28    Code.
29        The board may charge for care of  children  for  whom  it
30    cannot  make claim under the provisions of this Section.  The
31    charge shall not exceed per capita cost, and  to  the  extent
32    feasible,  shall  be  fixed  at  a  level  which  will permit
33    utilization by employed parents of low  or  moderate  income.
34    It  may  also  permit  any  other State or local governmental
                            -209-          LRB9002758THdvam02
 1    agency or private  agency  providing  care  for  children  to
 2    purchase care.
 3        After  July  1,  1970  when  the  provisions  of  Section
 4    10-20.20  become  operative  in  the  district, children in a
 5    child-care facility shall be transferred to the  kindergarten
 6    established under that Section for such portion of the day as
 7    may  be  required  for the kindergarten program, and only the
 8    prorated costs of care and training provided  in  the  Center
 9    for  the  remaining  period  shall be charged to the Illinois
10    Department of Human Services or  other  persons  or  agencies
11    paying for such care.
12        (i)  The  provisions  of this Section shall also apply to
13    school districts having a population exceeding 500,000.
14    (Source: P.A. 89-507,  eff.  7-1-97;  89-524,  eff.  7-19-96;
15    revised 8-15-96.)
16        (105 ILCS 5/18-4.3) (from Ch. 122, par. 18-4.3)
17        Sec.  18-4.3.   Summer  school  grants.   Grants shall be
18    determined for pupil attendance in summer  schools  conducted
19    under Sections 10-22.33A and 34-18 and approved under Section
20    2-3.25 in the following manner.
21        The  amount  of  grant  for each accredited summer school
22    attendance pupil shall be  obtained  by  dividing  the  total
23    amount of apportionments determined under subsections (1) and
24    (2) of Section 18-8 by the actual number of pupils in average
25    daily attendance used for such apportionments.  The number of
26    credited  summer school attendance pupils shall be determined
27    (a) by counting clock hours of class  instruction  by  pupils
28    enrolled in grades 1 through 12 in approved courses conducted
29    at  least  60 clock hours in summer sessions; (b) by dividing
30    such total of clock  hours  of  class  instruction  by  4  to
31    produce  days  of  credited pupil attendance; (c) by dividing
32    such days of credited pupil attendance by the  actual  number
33    of  days  in  the  regular term as used in computation in the
                            -210-          LRB9002758THdvam02
 1    general apportionment in Section 18-8; and (d) by multiplying
 2    by 1.25.
 3        The amount of the  grant  for  a  summer  school  program
 4    approved   by  the  State  Superintendent  of  Education  for
 5    children with disabilities, as defined  in  Sections  14-1.02
 6    through  14-1.07, shall be determined in the manner contained
 7    above except that average daily membership shall be  utilized
 8    in lieu of average daily attendance.
 9        In  the  case  of an apportionment based on summer school
10    attendance or membership pupils, the claim therefor shall  be
11    presented  as a separate claim for the particular school year
12    in  which such summer school  session  ends.   On  or  before
13    October  15  of each year the superintendent of each eligible
14    school district shall certify to the regional  superintendent
15    the  claim of the district for the summer session just ended.
16    Failure on the part of the school board to so  certify  shall
17    constitute  a  forfeiture  of its right to such payment.  The
18    regional  superintendent   shall   certify   to   the   State
19    Superintendent  of  Education  no  later  than November 1 the
20    regional report of  claims  for  summer  school.   The  State
21    Superintendent of Education shall transmit to the Comptroller
22    no later than December 15th of each year vouchers for payment
23    of amounts due school districts for summer school.  The State
24    Superintendent  of  Education shall direct the Comptroller to
25    draw his warrants for payments thereof by  the  30th  day  of
26    December.   If the money appropriated by the General Assembly
27    for  such  purpose  for any year is insufficient, it shall be
28    apportioned on the basis of claims approved.
29        However, notwithstanding the  foregoing  provisions,  for
30    each  fiscal  year  the  money  appropriated  by  the General
31    Assembly for the purposes of this Section shall only be  used
32    for  grants  for  approved  summer  school programs for those
33    children  with  disabilities  served  pursuant  to   Sections
34    14-7.02 and 14-7.02a of the School Code.
                            -211-          LRB9002758THdvam02
 1    (Source:   P.A.  88-9;  88-641,  eff.  9-9-94;  89-397,  eff.
 2    8-20-95.)
 3        (105 ILCS 5/18-8.4) (from Ch. 122, par. 18-8.4)
 4        Sec. 18-8.4.  Supplementary State aid for districts  with
 5    an  increasing  weighted  average  daily  attendance.  School
 6    districts which are entitled to  a  supplementary  State  aid
 7    payment pursuant to subsection 1(m) of Part A of Section 18-8
 8    because  of  an  increase  in  their  weighted  average daily
 9    attendance as computed for the  first  calendar  month  of  a
10    current  school  year  beginning  July  1, 1986 or thereafter
11    shall file their claim for such supplementary  aid  on  forms
12    prescribed  by the State Board of Education.  The State Board
13    of Education shall establish by rule the time and  manner  of
14    filing  such  claims  and  such  reporting requirements as it
15    deems necessary to determine and compute the  amount  of  the
16    supplementary  State  aid to be paid to districts pursuant to
17    subsection  1(m)  of  Part   A   of   Section   18-8.    Such
18    supplementary State aid payments shall be treated as separate
19    from  all other payments made pursuant to Section 18-8.  This
20    Section does not  apply  to  the  1997-1998  school  year  or
21    thereafter.
22    (Source: P.A. 84-1243.)
23        (105 ILCS 5/29-5) (from Ch. 122, par. 29-5)
24        Sec.  29-5.   Reimbursement  by State for transportation.
25    Any  school  district,  maintaining  a  school,  transporting
26    resident  pupils  to  another  school  district's  vocational
27    program, offered through a joint agreement  approved  by  the
28    State  Board of Education, as provided in Section 10-22.22 or
29    transporting its resident pupils to a school which meets  the
30    standards  for  recognition as established by the State Board
31    of  Education  which  provides  transportation  meeting   the
32    standards  of  safety,  comfort,  convenience, efficiency and
                            -212-          LRB9002758THdvam02
 1    operation prescribed by the  State  Board  of  Education  for
 2    resident pupils in kindergarten or any of grades 1 through 12
 3    who:  (a)  reside  at  least  1  1/2 miles as measured by the
 4    customary route of travel, from the school attended;  or  (b)
 5    reside  in  areas  where  conditions  are  such  that walking
 6    constitutes  a  hazard  to  the  safety  of  the  child  when
 7    determined under Section 29-3; and (c) are transported to the
 8    school attended from pick-up points at the beginning  of  the
 9    school  day  and back again at the close of the school day or
10    transported to and from  their  assigned  attendance  centers
11    during  the  school  day, shall be reimbursed by the State as
12    hereinafter provided in this Section.
13        The State will pay  the  cost  of  transporting  eligible
14    pupils  less the assessed valuation in a dual school district
15    maintaining secondary  grades  9  to  12  inclusive  times  a
16    qualifying  rate  of  .05%;  in  elementary  school districts
17    maintaining grades K to 8 times a qualifying rate of .06%; in
18    unit districts maintaining grades K to 12 times a  qualifying
19    rate  of  .07%.  To  be  eligible to receive reimbursement in
20    excess of 4/5 of the cost to  transport  eligible  pupils,  a
21    school  district shall have a Transportation Fund tax rate of
22    at least .12%.  If a school district does  not  have  a  .12%
23    Transportation  Fund  tax  rate,  the  amount of its claim in
24    excess of 4/5 of the cost of  transporting  pupils  shall  be
25    reduced   by   the   sum   arrived   at  by  subtracting  the
26    Transportation Fund tax rate from .12% and  multiplying  that
27    amount  by  the  districts  equalized  or assessed valuation,
28    provided, that in no case  shall  said  reduction  result  in
29    reimbursement  of  less  than  4/5  of  the cost to transport
30    eligible pupils.
31        The minimum amount to be received by a  district  is  $16
32    times the number of eligible pupils transported.
33        Any such district transporting resident pupils during the
34    school  day  to  an  area vocational school or another school
                            -213-          LRB9002758THdvam02
 1    district's vocational program more than 1 1/2 miles from  the
 2    school  attended,  as  provided  in  Sections  10-22.20a  and
 3    10-22.22,  shall  be  reimbursed  by the State for 4/5 of the
 4    cost of transporting eligible pupils.
 5        School day means that period of time which the  pupil  is
 6    required to be in attendance for instructional purposes.
 7        If  a  pupil  is at a location within the school district
 8    other than his residence for child care purposes at the  time
 9    for transportation to school, that location may be considered
10    for  purposes  of determining the 1 1/2 miles from the school
11    attended.
12        Claims for reimbursement that include children who attend
13    any school other than a public school shall show  the  number
14    of such children transported.
15        Claims  for reimbursement under this Section shall not be
16    paid for the transportation of pupils for whom transportation
17    costs are claimed for payment under other  Sections  of  this
18    Act.
19        The  allowable  direct  cost  of  transporting pupils for
20    regular,   vocational,   and    special    education    pupil
21    transportation  shall  be  limited  to the sum of the cost of
22    physical examinations required for employment as a school bus
23    driver; the salaries of full or part-time drivers and  school
24    bus   maintenance   personnel;  employee  benefits  excluding
25    Illinois  municipal  retirement  payments,  social   security
26    payments,   unemployment   insurance  payments  and  workers'
27    compensation insurance premiums; expenditures to  independent
28    carriers  who  operate school buses; payments to other school
29    districts for  pupil  transportation  services;  pre-approved
30    contractual expenditures for computerized bus scheduling; the
31    cost  of  gasoline,  oil, tires, and other supplies necessary
32    for the operation of school buses;  the  cost  of  converting
33    buses'  gasoline engines to more fuel efficient engines or to
34    engines which use alternative energy  sources;  the  cost  of
                            -214-          LRB9002758THdvam02
 1    travel  to  meetings  and workshops conducted by the regional
 2    superintendent  or  the  State  Superintendent  of  Education
 3    pursuant to the standards established  by  the  Secretary  of
 4    State  under  Section  6-106  of the Illinois Vehicle Code to
 5    improve the driving skills of school bus drivers; the cost of
 6    maintenance of school buses  including  parts  and  materials
 7    used;   expenditures  for  leasing  transportation  vehicles,
 8    except interest and service charges; the  cost  of  insurance
 9    and  licenses  for  transportation vehicles; expenditures for
10    the rental of transportation equipment; plus  a  depreciation
11    allowance  of  20%  for 5 years for school buses and vehicles
12    approved for transporting pupils to and  from  school  and  a
13    depreciation   allowance  of  10%  for  10  years  for  other
14    transportation equipment so used. In addition  to  the  above
15    allowable   costs  school  districts  shall  also  claim  all
16    transportation supervisory salary costs,  including  Illinois
17    municipal retirement payments, and all transportation related
18    building and building maintenance costs without limitation.
19        Special  education  allowable  costs  shall  also include
20    expenditures for the salaries of attendants or aides for that
21    portion of the time  they  assist  special  education  pupils
22    while  in  transit  and  expenditures  for parents and public
23    carriers  for  transporting  special  education  pupils  when
24    pre-approved by the State Superintendent of Education.
25        Indirect costs shall be  included  in  the  reimbursement
26    claim  for  districts  which own and operate their own school
27    buses.  Such  indirect  costs  shall  include  administrative
28    costs,  or any costs attributable to transporting pupils from
29    their attendance  centers  to  another  school  building  for
30    instructional  purposes.   No  school district which owns and
31    operates its own school buses  may  claim  reimbursement  for
32    indirect  costs which exceed 5% of the total allowable direct
33    costs for pupil transportation.
34        The State Board  of  Education  shall  prescribe  uniform
                            -215-          LRB9002758THdvam02
 1    regulations  for  determining  the  above standards and shall
 2    prescribe  forms  of  cost  accounting   and   standards   of
 3    determining  reasonable depreciation. Such depreciation shall
 4    include the cost of equipping school buses  with  the  safety
 5    features  required  by  law  or by the rules, regulations and
 6    standards promulgated by the State Board  of  Education,  and
 7    the   Department   of   Transportation  for  the  safety  and
 8    construction of school buses provided, however, any equipment
 9    cost reimbursed  by  the  Department  of  Transportation  for
10    equipping  school  buses  with such safety equipment shall be
11    deducted from  the  allowable  cost  in  the  computation  of
12    reimbursement  under  this  Section in the same percentage as
13    the cost of the equipment is depreciated.
14        On or before July 10, annually, the board  clerk  or  the
15    secretary  of  the  district  shall  certify  to the regional
16    superintendent of schools upon forms prescribed by the  State
17    Superintendent   of   Education   the  district's  claim  for
18    reimbursement for the school  year  ended  on  June  30  next
19    preceding.   The  regional  superintendent  of  schools shall
20    check all transportation claims to ascertain compliance  with
21    the  prescribed standards and upon his approval shall certify
22    not later  than  July  25  to  the  State  Superintendent  of
23    Education  the  regional report of claims for reimbursements.
24    The State Superintendent of Education shall check and approve
25    the claims and prepare the vouchers showing the  amounts  due
26    for  district  reimbursement claims.  Beginning with the 1977
27    fiscal year, the  State  Superintendent  of  Education  shall
28    prepare  and transmit the first 3 vouchers to the Comptroller
29    on  the  30th  day   of  September,   December   and   March,
30    respectively, and the final voucher, no later than June 15.
31        If    the    amount   appropriated   for   transportation
32    reimbursement is insufficient to fund total  claims  for  any
33    fiscal  year,  the State Board of Education shall reduce each
34    school district's  allowable  costs  and  flat  grant  amount
                            -216-          LRB9002758THdvam02
 1    proportionately to make total adjusted claims equal the total
 2    amount appropriated.
 3        For  purposes  of  calculating  claims  for reimbursement
 4    under this Section for any  school  year  beginning  July  1,
 5    1980,  or  thereafter, the equalized assessed valuation for a
 6    school  district  used  to  compute  reimbursement  shall  be
 7    determined by adding to the real property equalized  assessed
 8    valuation for the district an amount computed by dividing the
 9    amount of money received by the district under the provisions
10    of  "An  Act  in  relation  to  the  abolition  of ad valorem
11    personal property tax and the replacement  of  revenues  lost
12    thereby, and amending and repealing certain Acts and parts of
13    Acts  in connection therewith", certified August 14, 1979, as
14    amended, by  the  total  tax  rate  for  the  district.   For
15    purposes of this subsection, 1976 tax rates shall be used for
16    school  districts  in  the county of Cook, and 1977 tax rates
17    shall be used in all other counties.   For  the  purposes  of
18    calculating  claims  for reimbursement under this Section for
19    any school year beginning July 1, 1986,  or  thereafter,  the
20    real  property  equalized  assessed  valuation  for  a school
21    district used to compute reimbursement shall be determined by
22    subtracting from the real  property  value  as  equalized  or
23    assessed  by  the  Department  of Revenue for the district an
24    amount computed by dividing the amount of  any  abatement  of
25    taxes  under  Section  18-170 of the Property Tax Code by the
26    following: in the  case  of  a  school  district  maintaining
27    grades  kindergarten  through  12,  3.00%;  in  the case of a
28    school district maintaining grades  kindergarten  through  8,
29    2.20%;  in the case of a school district maintaining grades 9
30    through 12, 1.10% the maximum operating tax  rates  specified
31    in subsection 5(c) of Section 18-8.
32        All  reimbursements  received  from  the  State  shall be
33    deposited into the district's transportation fund or into the
34    fund from which the allowable expenditures were made.
                            -217-          LRB9002758THdvam02
 1    (Source: P.A.  88-612,  eff.  7-1-95;  88-641,  eff.  9-9-94;
 2    88-670, eff. 12-2-94; 89-235, eff. 8-4-95.)
 3        (105 ILCS 5/34-8.4)
 4        Sec. 34-8.4.  Intervention.  The Chicago Schools Academic
 5    Accountability  Council  may  recommend to the Chicago School
 6    Reform  Board  of  Trustees  that  any   school   placed   on
 7    remediation or probation under Section 34-8.3 or schools that
 8    for  the  3 consecutive school years of 1992-1993, 1993-1994,
 9    and  1994-1995  have  met  the  State  Board  of  Education's
10    category of "does not meet expectations" be made  subject  to
11    intervention  under  this Section 34-8.4.  In addition to any
12    powers created under this Section, the  Trustees  shall  have
13    all  powers  created  under  Section  34-8.3  with respect to
14    schools subjected to intervention.
15        Prior  to  subjecting  a  school  to  intervention,   the
16    Trustees  shall conduct a public hearing and make findings of
17    facts concerning the recommendation of  the  Chicago  Schools
18    Academic  Accountability  Council and the factors causing the
19    failure of the school to adequately  perform.   The  Trustees
20    shall  afford  an  opportunity  at the hearing for interested
21    persons to comment  about  the  intervention  recommendation.
22    After the hearing has been held and completion of findings of
23    fact,  the  Trustees  shall  make  a determination whether to
24    subject the school to intervention.
25        If the Trustees determine that a school shall be  subject
26    to  intervention  under  this  Section,  the  Trustees  shall
27    develop an intervention implementation plan and shall cause a
28    performance  evaluation  to  be  made of each employee at the
29    school.   Upon  consideration  of   such   evaluations,   and
30    consistent  with  the  intervention  implementation plan, the
31    Trustees may reassign, layoff, or dismiss  any  employees  at
32    the  attendance  center,  notwithstanding  the  provisions of
33    Sections 24A-5 and 34-85.
                            -218-          LRB9002758THdvam02
 1        The chief educational officer shall appoint  a  principal
 2    for  the school and shall set the terms and conditions of the
 3    principal's contract, which in no case may be longer  than  2
 4    years.    The   principal   shall  select  all  teachers  and
 5    non-certified personnel for the school as may  be  necessary.
 6    Any  provision  of  Section  34-8.1  that conflicts with this
 7    Section shall not apply to a school subjected to intervention
 8    under this Section.
 9        If pursuant to this Section, the general  superintendent,
10    with  the  approval  of  the  board,  orders new local school
11    council elections, the general superintendent shall carry out
12    the responsibilities of the local school council for a school
13    subject to intervention until the new  local  school  council
14    members are elected and trained.
15        Each  school  year,  5% of the supplemental general State
16    aid Chapter 1  funds  distributed  to  a  school  subject  to
17    intervention  during  that  school  year under subsection (H)
18    5(i)(1)(a) of part A  of  Section  18-8  shall  be  used  for
19    employee  performance incentives.  The Trustees shall prepare
20    a  report  evaluating  the  results  of   any   interventions
21    undertaken   pursuant   to   this   Section  and  shall  make
22    recommendations concerning implementation of special programs
23    for dealing with underperforming schools on an ongoing basis.
24    This report shall be submitted to the State Superintendent of
25    Education and Mayor of the City  of  Chicago  by  January  1,
26    1999.
27    (Source: P.A. 89-15, eff. 5-30-95; 89-698, eff. 1-14-97.)
28        (105 ILCS 5/34-18) (from Ch. 122, par. 34-18)
29        Sec.  34-18.   Powers  of  the  board.   The  board shall
30    exercise general supervision and jurisdiction over the public
31    education and the public school  system  of  the  city,  and,
32    except  as  otherwise  provided  by  this Article, shall have
33    power:
                            -219-          LRB9002758THdvam02
 1             1.  To make suitable provision for the establishment
 2        and maintenance throughout the year or for  such  portion
 3        thereof  as  it  may  direct,  not less than 9 months, of
 4        schools  of  all  grades  and  kinds,  including   normal
 5        schools,   high   schools,  night  schools,  schools  for
 6        defectives and delinquents, parental and truant  schools,
 7        schools for the blind, the deaf and the crippled, schools
 8        or   classes   in   manual  training,  constructural  and
 9        vocational teaching, domestic arts and physical  culture,
10        vocation  and  extension schools and lecture courses, and
11        all other educational courses and  facilities,  including
12        establishing,   equipping,   maintaining   and  operating
13        playgrounds and recreational programs, when such programs
14        are conducted in, adjacent  to,  or  connected  with  any
15        public   school   under   the   general  supervision  and
16        jurisdiction of the board;  provided,  however,  that  in
17        allocating  funds  from year to year for the operation of
18        all attendance centers within  the  district,  the  board
19        shall  ensure that supplemental general State aid Chapter
20        1 funds are allocated  and  applied  in  accordance  with
21        Section  18-8.  To  admit  to such schools without charge
22        foreign exchange students  who  are  participants  in  an
23        organized exchange student program which is authorized by
24        the board.  The board shall permit all students to enroll
25        in  apprenticeship  programs in trade schools operated by
26        the board, whether those programs  are union-sponsored or
27        not.  No student shall be refused admission  into  or  be
28        excluded  from  any  course of instruction offered in the
29        common schools by  reason  of  that  student's  sex.   No
30        student   shall   be  denied  equal  access  to  physical
31        education and interscholastic athletic programs supported
32        from school district funds  or  denied  participation  in
33        comparable   physical  education  and  athletic  programs
34        solely by reason of the student's sex.  Equal  access  to
                            -220-          LRB9002758THdvam02
 1        programs   supported   from  school  district  funds  and
 2        comparable programs will be defined in rules  promulgated
 3        by  the State Board of Education in consultation with the
 4        Illinois High School Association.    Notwithstanding  any
 5        other  provision  of  this  Article, neither the board of
 6        education nor any local school council  or  other  school
 7        official  shall recommend that children with disabilities
 8        be placed into regular education classrooms unless  those
 9        children    with    disabilities    are   provided   with
10        supplementary  services  to  assist  them  so  that  they
11        benefit from the regular classroom  instruction  and  are
12        included   on   the  teacher's  regular  education  class
13        register;
14             2.  To  furnish  lunches  to  pupils,  to   make   a
15        reasonable  charge  therefor, and to use school funds for
16        the payment of such expenses as the board  may  determine
17        are necessary in conducting the school lunch program;
18             3.  To co-operate with the circuit court;
19             4.  To   make   arrangements   with  the  public  or
20        quasi-public libraries and museums for the use  of  their
21        facilities by teachers and pupils of the public schools;
22             5.  To  employ  dentists  and prescribe their duties
23        for the purpose of treating the pupils  in  the  schools,
24        but  accepting  such  treatment  shall  be  optional with
25        parents or guardians;
26             6.  To  grant  the  use  of   assembly   halls   and
27        classrooms  when  not  otherwise needed, including light,
28        heat, and attendants, for free public lectures, concerts,
29        and other  educational  and  social  interests,  free  of
30        charge,   under   such  provisions  and  control  as  the
31        principal  of  the   affected   attendance   center   may
32        prescribe;
33             7.  To  apportion the pupils to the several schools;
34        provided  that  no  pupil  shall  be  excluded  from   or
                            -221-          LRB9002758THdvam02
 1        segregated  in  any  such school on account of his color,
 2        race, sex, or nationality.  The  board  shall  take  into
 3        consideration  the  prevention  of  segregation  and  the
 4        elimination  of  separation of children in public schools
 5        because of color, race, sex, or nationality. Except  that
 6        children  may  be  committed  to  or  attend parental and
 7        social  adjustment  schools  established  and  maintained
 8        either for boys or girls only.  All records pertaining to
 9        the creation, alteration or revision of attendance  areas
10        shall  be open to the public.  Nothing herein shall limit
11        the board's authority to establish multi-area  attendance
12        centers   or   other   student   assignment  systems  for
13        desegregation purposes or otherwise, and to apportion the
14        pupils to the several schools.  Furthermore, beginning in
15        school year 1994-95, pursuant to a board plan adopted  by
16        October  1,  1993, the board shall offer, commencing on a
17        phased-in basis, the opportunity for families within  the
18        school district to apply for enrollment of their children
19        in any attendance center within the school district which
20        does  not  have selective admission requirements approved
21        by the board.  The appropriate geographical area in which
22        such open enrollment may be exercised shall be determined
23        by the board of education.  Such children may be admitted
24        to any such attendance center on a space available  basis
25        after   all  children  residing  within  such  attendance
26        center's area have been accommodated.  If the  number  of
27        applicants  from  outside  the attendance area exceed the
28        space available,  then  successful  applicants  shall  be
29        selected  by  lottery.   The  board  of  education's open
30        enrollment plan must include provisions  that  allow  low
31        income  students  to have access to transportation needed
32        to exercise school choice.  Open enrollment shall  be  in
33        compliance  with the provisions of the Consent Decree and
34        Desegregation Plan cited in Section 34-1.01.
                            -222-          LRB9002758THdvam02
 1             8.  To approve programs and policies  for  providing
 2        transportation services to students. Nothing herein shall
 3        be  construed  to  permit  or  empower the State Board of
 4        Education to order, mandate, or require busing  or  other
 5        transportation  of  pupils  for  the purpose of achieving
 6        racial balance in any school;
 7             9.  Subject to the limitations in this  Article,  to
 8        establish  and  approve system-wide curriculum objectives
 9        and  standards,  including  graduation  standards,  which
10        reflect the multi-cultural diversity in the city and  are
11        consistent with State law, provided that for all purposes
12        of  this  Article courses or proficiency in American Sign
13        Language  shall  be  deemed  to  constitute  courses   or
14        proficiency   in   a  foreign  language;  and  to  employ
15        principals and teachers, appointed as  provided  in  this
16        Article,  and  fix  their  compensation.  The board shall
17        prepare  such  reports  related  to  minimal   competency
18        testing  as  may  be  requested  by  the  State  Board of
19        Education, and in  addition  shall  monitor  and  approve
20        special  education  and  bilingual education programs and
21        policies within the district to assure  that  appropriate
22        services are provided in accordance with applicable State
23        and  federal  laws  to  children  requiring  services and
24        education in those areas;
25             10.  To employ  non-teaching  personnel  or  utilize
26        volunteer  personnel  for:  (i)  non-teaching  duties not
27        requiring instructional judgment or evaluation of pupils,
28        including library  duties;  and  (ii)  supervising  study
29        halls,   long  distance  teaching  reception  areas  used
30        incident  to  instructional   programs   transmitted   by
31        electronic  media  such  as  computers, video, and audio,
32        detention  and  discipline  areas,  and  school-sponsored
33        extracurricular activities. The board may further utilize
34        volunteer   non-certificated    personnel    or    employ
                            -223-          LRB9002758THdvam02
 1        non-certificated  personnel  to assist in the instruction
 2        of pupils under the immediate supervision  of  a  teacher
 3        holding a valid certificate, directly engaged in teaching
 4        subject  matter  or  conducting activities; provided that
 5        the  teacher  shall  be   continuously   aware   of   the
 6        non-certificated persons' activities and shall be able to
 7        control  or modify them. The general superintendent shall
 8        determine qualifications  of  such  personnel  and  shall
 9        prescribe rules for determining the duties and activities
10        to be assigned to such personnel;
11             11.  To  provide television studio facilities in not
12        to exceed one school building and to provide programs for
13        educational purposes, provided, however, that  the  board
14        shall  not  construct,  acquire,  operate,  or maintain a
15        television transmitter; to grant the use  of  its  studio
16        facilities  to  a  licensed television station located in
17        the school district; and to maintain and operate  not  to
18        exceed  one school radio transmitting station and provide
19        programs for educational purposes;
20             12.  To  offer,  if  deemed   appropriate,   outdoor
21        education courses, including field trips within the State
22        of  Illinois,  or  adjacent  states,  and  to  use school
23        educational funds for the expense  of  the  said  outdoor
24        educational  programs, whether within the school district
25        or not;
26             13.  During that period of  the  calendar  year  not
27        embraced  within  the regular school term, to provide and
28        conduct courses in subject matters normally  embraced  in
29        the program of the schools during the regular school term
30        and  to  give  regular  school  credit  for  satisfactory
31        completion  by  the  student  of  such  courses as may be
32        approved for credit by the State Board of Education;
33             14.  To insure against any loss or liability of  the
34        board,  the  former  School  Board Nominating Commission,
                            -224-          LRB9002758THdvam02
 1        Local  School  Councils,  the  Chicago  Schools  Academic
 2        Accountability  Council,  or   the   former   Subdistrict
 3        Councils  or  of  any  member, officer, agent or employee
 4        thereof,  resulting  from  alleged  violations  of  civil
 5        rights arising  from  incidents  occurring  on  or  after
 6        September  5,  1967 or from the wrongful or negligent act
 7        or omission of any such person whether  occurring  within
 8        or  without  the  school  premises, provided the officer,
 9        agent or  employee  was,  at  the  time  of  the  alleged
10        violation  of  civil  rights or wrongful act or omission,
11        acting within  the  scope  of  his  employment  or  under
12        direction   of   the   board,  the  former  School  Board
13        Nominating  Commission,  the  Chicago  Schools   Academic
14        Accountability  Council,  Local  School  Councils, or the
15        former  Subdistrict  Councils;  and  to  provide  for  or
16        participate in  insurance  plans  for  its  officers  and
17        employees,   including  but  not  limited  to  retirement
18        annuities, medical, surgical and hospitalization benefits
19        in such types and amounts as may  be  determined  by  the
20        board;  provided,  however, that the board shall contract
21        for  such  insurance  only  with  an  insurance   company
22        authorized  to do business in this State.  Such insurance
23        may include provision for employees who rely on treatment
24        by prayer  or  spiritual  means  alone  for  healing,  in
25        accordance  with  the tenets and practice of a recognized
26        religious denomination;
27             15.  To contract with the corporate  authorities  of
28        any  municipality  or  the county board of any county, as
29        the case may be, to provide for the regulation of traffic
30        in parking areas of property used for school purposes, in
31        such manner as is  provided  by  Section  11-209  of  The
32        Illinois  Vehicle  Code,  approved September 29, 1969, as
33        amended;
34             16.  To provide, on an equal basis,  access  to  the
                            -225-          LRB9002758THdvam02
 1        school  campus to the official recruiting representatives
 2        of the armed forces of Illinois and the United States for
 3        the purposes of informing students of the educational and
 4        career opportunities available in  the  military  if  the
 5        board has provided such access to persons or groups whose
 6        purpose  is  to  acquaint  students  with  educational or
 7        occupational opportunities available to them.  The  board
 8        is  not  required  to  give  greater notice regarding the
 9        right of access to  recruiting  representatives  than  is
10        given to other persons and groups;
11             17. (a)  To  sell  or  market  any  computer program
12        developed by an employee of the school district, provided
13        that such employee developed the computer  program  as  a
14        direct  result  of  his  or  her  duties  with the school
15        district  or  through  the  utilization  of  the   school
16        district  resources  or  facilities.    The  employee who
17        developed the computer program shall be entitled to share
18        in the proceeds of such sale or marketing of the computer
19        program.  The distribution of such proceeds  between  the
20        employee  and the school district shall be as agreed upon
21        by the employee and  the  school  district,  except  that
22        neither  the employee nor the school district may receive
23        more than 90% of such proceeds.  The negotiation  for  an
24        employee  who  is  represented by an exclusive bargaining
25        representative  may  be  conducted  by  such   bargaining
26        representative at the employee's request.
27             (b)  For the purpose of this paragraph 17:
28                  (1)  "Computer" means an internally programmed,
29             general    purpose   digital   device   capable   of
30             automatically accepting data,  processing  data  and
31             supplying the results of the operation.
32                  (2)  "Computer program" means a series of coded
33             instructions or statements in a form acceptable to a
34             computer,  which causes the computer to process data
                            -226-          LRB9002758THdvam02
 1             in order to achieve a certain result.
 2                  (3)  "Proceeds"  means  profits  derived   from
 3             marketing  or  sale of a product after deducting the
 4             expenses of developing and marketing such product;
 5             18.  To delegate to the  general  superintendent  of
 6        schools,   by   resolution,   the  authority  to  approve
 7        contracts and expenditures in amounts of $10,000 or less;
 8             19.  Upon the written request  of  an  employee,  to
 9        withhold from the compensation of that employee any dues,
10        payments or contributions payable by such employee to any
11        labor organization as defined in the Illinois Educational
12        Labor  Relations  Act.  Under such arrangement, an amount
13        shall be withheld from each regular payroll period  which
14        is  equal  to  the pro rata share of the annual dues plus
15        any  payments  or  contributions,  and  the  board  shall
16        transmit  such  withholdings  to  the   specified   labor
17        organization  within 10 working days from the time of the
18        withholding;
19             20.  The board is encouraged to employ a  sufficient
20        number  of  certified  school  counselors  to  maintain a
21        student/counselor ratio of 250 to  1  by  July  1,  1990.
22        Each  counselor shall spend at least 75% of his work time
23        in direct contact with  students  and  shall  maintain  a
24        record of such time;
25             21.  To  make  available  to students vocational and
26        career counseling  and  to  establish  5  special  career
27        counseling  days for students and parents.  On these days
28        representatives of local businesses and industries  shall
29        be invited to the school campus and shall inform students
30        of  career opportunities available to them in the various
31        businesses and industries.  Special  consideration  shall
32        be  given  to  counseling  minority students as to career
33        opportunities available to them in various fields.    For
34        the  purposes of this paragraph, minority student means a
                            -227-          LRB9002758THdvam02
 1        person who is:
 2                  (a)  Black (a person having origins in  any  of
 3             the black racial groups in Africa);
 4                  (b)  Hispanic   (a   person   of   Spanish   or
 5             Portuguese  culture with origins in Mexico, South or
 6             Central   America,   or   the   Caribbean   islands,
 7             regardless of race);
 8                  (c)  Asian American (a person having origins in
 9             any  of  the  original  peoples  of  the  Far  East,
10             Southeast  Asia,  the  Indian  Subcontinent  or  the
11             Pacific Islands); or
12                  (d)  American  Indian  or  Alaskan  Native   (a
13             person having origins in any of the original peoples
14             of North America).
15             Counseling  days  shall  not  be  in lieu of regular
16        school days;
17             22.  To report to the State Board of  Education  the
18        annual  student  dropout  rate and number of students who
19        graduate from, transfer from or otherwise leave bilingual
20        programs;
21             23.  Except as otherwise provided in the Abused  and
22        Neglected  Child  Reporting Act or other applicable State
23        or federal law, to permit school officials  to  withhold,
24        from  any  person,  information on the whereabouts of any
25        child removed from school premises  when  the  child  has
26        been  taken  into  protective  custody  as  a  victim  of
27        suspected  child  abuse.   School  officials shall direct
28        such person to the  Department  of  Children  and  Family
29        Services,  or  to  the  local  law  enforcement agency if
30        appropriate;
31             24.  To develop a policy, based on the current state
32        of existing school facilities, projected  enrollment  and
33        efficient utilization of available resources, for capital
34        improvement  of  schools  and school buildings within the
                            -228-          LRB9002758THdvam02
 1        district, addressing in that  policy  both  the  relative
 2        priority  for major repairs, renovations and additions to
 3        school facilities, and the advisability or  necessity  of
 4        building   new  school  facilities  or  closing  existing
 5        schools to meet current or projected demographic patterns
 6        within the district;
 7             25.  To make available to the students in every high
 8        school attendance center the ability to take all  courses
 9        necessary  to comply with the Board of Higher Education's
10        college entrance criteria effective in 1993;
11             26.  To  encourage  mid-career  changes   into   the
12        teaching   profession,  whereby  qualified  professionals
13        become  certified  teachers,  by  allowing   credit   for
14        professional    employment   in   related   fields   when
15        determining point of entry on teacher pay scale;
16             27.  To provide or contract  out  training  programs
17        for  administrative personnel and principals with revised
18        or expanded duties pursuant  to  this  Act  in  order  to
19        assure  they  have  the  knowledge  and skills to perform
20        their duties;
21             28.  To establish a fund for the prioritized special
22        needs programs, and to allocate such funds and other lump
23        sum  amounts  to  each  attendance  center  in  a  manner
24        consistent with the  provisions  of  part  4  of  Section
25        34-2.3.   Nothing in this paragraph shall be construed to
26        require any additional appropriations of State funds  for
27        this purpose;
28             29.  (Blank);
29             30.  Notwithstanding any other provision of this Act
30        or  any other law to the contrary, to contract with third
31        parties for services otherwise  performed  by  employees,
32        including those in a bargaining unit, and to layoff those
33        employees  upon  14  days  written notice to the affected
34        employees.  Those contracts may be for a  period  not  to
                            -229-          LRB9002758THdvam02
 1        exceed 5 years and may be awarded on a system-wide basis;
 2             31.  To  promulgate  rules  establishing  procedures
 3        governing  the  layoff or reduction in force of employees
 4        and the recall of  such  employees,  including,  but  not
 5        limited  to,  criteria  for  such  layoffs, reductions in
 6        force or recall rights of such employees and  the  weight
 7        to  be  given to any particular criterion.  Such criteria
 8        shall take into account factors  including,  but  not  be
 9        limited  to,  qualifications, certifications, experience,
10        performance ratings or evaluations, and any other factors
11        relating to an employee's job performance; and
12             32.  To develop a policy to prevent nepotism in  the
13        hiring of personnel or the selection of contractors.
14        The  specifications  of the powers herein granted are not
15    to be  construed  as  exclusive  but  the  board  shall  also
16    exercise  all  other  powers  that  they  may be requisite or
17    proper for the maintenance and the development  of  a  public
18    school  system, not inconsistent with the other provisions of
19    this Article or provisions of this Code which  apply  to  all
20    school districts.
21        In  addition  to the powers herein granted and authorized
22    to be exercised by the board, it shall be  the  duty  of  the
23    board  to  review or to direct independent reviews of special
24    education expenditures and services. The board shall  file  a
25    report  of such review with the General Assembly on or before
26    May 1, 1990.
27    (Source: P.A. 88-89; 88-511;  88-686,  eff.  1-24-95;  89-15,
28    eff. 5-30-95; 89-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
29        (105 ILCS 5/1C-3 rep.)
30        (105 ILCS 5/1C-4 rep.)
31        Section  42.   The  School  Code  is amended by repealing
32    Sections 1C-3 and 1C-4.
                            -230-          LRB9002758THdvam02
 1        Section 50.  The Illinois Educational Labor Relations Act
 2    is amended by changing Section 13 as follows:
 3        (115 ILCS 5/13) (from Ch. 48, par. 1713)
 4        Sec. 13.  Strikes.
 5        (a)  Notwithstanding the existence of any other provision
 6    in this Act or other law, educational employees  employed  in
 7    school  districts  organized  under  Article 34 of the School
 8    Code shall not engage in a strike at any time during  the  18
 9    month  period  that  commences  on the effective date of this
10    amendatory Act of 1995.  An educational employee employed  in
11    a  school  district  organized under Article 34 of the School
12    Code who participates  in  a  strike  in  violation  of  this
13    Section  is  subject  to  discipline  by  the  employer.   In
14    addition,  no educational employer organized under Article 34
15    of the School Code  may  pay  or  cause  to  be  paid  to  an
16    educational   employee   who  participates  in  a  strike  in
17    violation of this subsection any wages or other  compensation
18    for   any   period   during  which  an  educational  employee
19    participates in the strike, except for wages or  compensation
20    earned  before  participation in the strike.  Notwithstanding
21    the existence of any other provision in  this  Act  or  other
22    law,  during  the 18-month period that strikes are prohibited
23    under this subsection nothing in  this  subsection  shall  be
24    construed  to  require an educational employer to submit to a
25    binding dispute resolution process.
26        (b)  Notwithstanding the existence of any other provision
27    in this Act or any other  law,  educational  employees  other
28    than  those  employed  in  a  school district organized under
29    Article 34 of the School Code and, after  the  expiration  of
30    the  18  month period that commences on the effective date of
31    this amendatory Act  of  1995,  educational  employees  in  a
32    school district organized under Article 34 of the School Code
33    shall  not  engage  in  a  strike  except under the following
                            -231-          LRB9002758THdvam02
 1    conditions:
 2             (1)   they   are   represented   by   an   exclusive
 3        bargaining representative;
 4             (2)   mediation has been used without success;
 5             (3)   at least 10 5 days have elapsed after a notice
 6        of intent to strike  has  been  given  by  the  exclusive
 7        bargaining  representative  to  the educational employer,
 8        the regional superintendent and the Illinois  Educational
 9        Labor Relations Board.
10             (4)   the  collective  bargaining  agreement between
11        the educational employer and  educational  employees,  if
12        any, has expired; and
13             (5)   the  employer  and  the  exclusive  bargaining
14        representative have not mutually submitted the unresolved
15        issues to arbitration.
16        If,  however, in the opinion of an employer the strike is
17    or has become a clear and present danger  to  the  health  or
18    safety  of  the  public,  the  employer  may  initiate in the
19    circuit court of the county in which such  danger  exists  an
20    action  for  relief which may include, but is not limited to,
21    injunction.  The court may grant appropriate relief upon  the
22    finding that such clear and present danger exists.  An unfair
23    practice  or  other  evidence  of  lack of clean hands by the
24    educational employer is a defense to such action.  Except  as
25    provided for in this paragraph, the jurisdiction of the court
26    under this Section is limited by the Labor Dispute Act.
27    (Source: P.A. 89-15, eff. 5-30-95.)
28        Section  95.   No  acceleration or delay.  Where this Act
29    makes changes in a statute that is represented in this Act by
30    text that is not yet or no longer in effect (for  example,  a
31    Section  represented  by  multiple versions), the use of that
32    text does not accelerate or delay the taking  effect  of  (i)
33    the  changes made by this Act or (ii) provisions derived from
                            -232-          LRB9002758THdvam02
 1    any other Public Act.
 2        Section 98.  Severability.   If  any  provision  of  this
 3    amendatory  Act  of  1997 or its application to any person or
 4    circumstances  is  held  invalid,  the  invalidity  of   that
 5    provision  or application does not affect other provisions or
 6    applications of this amendatory Act that can be given  effect
 7    without the invalid provision or application.
 8        Section  99.  Effective date.  This Act takes effect July
 9    1, 1997.".

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