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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;and9 (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 21989through December 19971989, 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), 14and(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), 33and(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 aid21shall not be reduced under the computation under subsections225(a) through 5(h) of Part A of Section 18-8 of the School23Code due to the operating tax rate falling from above the24minimum requirement of that Section of the School Code to25below the minimum requirement of that Section of the School26Code 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 theWhen thecollector's books 3are 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,and5 (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 JulySeptemberof one 14 calendar year and ending on the 30th31stday of JuneAugust15 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, includingtaxes andState 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. 14The General Assembly finds that for many years the State has15contributed to the Fund an annual amount that is between 20%16and 30% of the amount of the annual State contribution to the17Article 16 retirement system, and the General Assembly18declares that it is its goal and intention to continue this19level 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, the7minimum contribution to the Fund to be made by the board of8education in each fiscal year shall be an amount determined9by the Fund to be sufficient to bring the total assets of the10Fund up to 90% of the total actuarial liabilities of the Fund11by the end of fiscal year 2045. In making these12determinations, the required board of education contribution13shall be calculated each year as a level percentage of14payroll over the years remaining to and including fiscal year152045 and shall be determined under the projected unit credit16actuarial cost method.17For fiscal years 1999 through 2010, the board of18education's contribution to the Fund, as a percentage of the19applicable employee payroll, shall be increased in equal20annual increments so that by fiscal year 2011, the board of21education is contributing at the rate required under this22subsection.23Beginning in fiscal year 2046, the minimum board of24education contribution for each fiscal year shall be the25amount needed to maintain the total assets of the Fund at 90%26of the total actuarial liabilities of the Fund.27(c) The Board of Trustees shall determine the amount of28board of education contributions required for each fiscal29year on the basis of the actuarial tables and other30assumptions adopted by the Board and the recommendations of31the actuary, in order to meet the minimum contribution32requirements of subsections (a) and (b). Annually, on or33before November 15, the Board shall certify to the Board of34Education the amount of the required board of education-66- LRB9002758THdvam02 1contribution for the coming fiscal year. The certification2shall include a copy of the actuarial recommendations upon3which 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 anorinstitution 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. 21From appropriations made for block grant purposes, the State22Board of Education is authorized to award funds to eligible23recipients upon application. Semiannual installment payments24shall be made and semiannual expenditure reports shall be25required.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 19981996and 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 19971995fiscal 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 4560days 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 contractNo such-84- LRB9002758THdvam02 1contract can be offered or accepted for less than or more2than three years, except for a person serving as3superintendent for the first time in Illinois. In such case,4the initial contract shall be for a two year period. Such5contractmay be discontinued at any time by mutual agreement 6 of the contracting parties and, ormay be extended foran7 additional3years 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 be14given by the board or by the superintendent by April 1 of the15year in which the contract expires, unless the contract16specifically provides otherwise. Failure to do so will17automatically extend the contract for 1 additional year. The18provisions of this paragraph shall not apply to a district19under a Financial Oversight Panel pursuant to Section 1A-820for violating a financial plan.21Notice of intent not to renew a contract when given by a22board must be in writing, stating the specific reason23therefor. Within 10 days after receipt of such notice of24intent not to renew a contract, the superintendent may25request a closed session hearing on the dismissal. At the26hearing the superintendent has the privilege of presenting27evidence, witnesses and defenses on the grounds for28dismissal. The provisions of this paragraph shall not apply29to a district under a Financial Oversight Panel pursuant to30Section 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-yearNo such contract can be offered7or accepted for less than or more than 3 years, except for a8person serving as principal for the first time in Illinois.9In such case, the initial contract shall be for a 2 year10period. Suchcontract may be discontinued at any time by 11 mutual agreement of the contracting parties and, ormay be 12 extended foranadditional3years 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. 15Notice of intent not to renew the contract must be given by16the board or by the principal at least 90 days before the17contract expires. Failure to do so will automatically extend18the contract for 1 additional year. If offered by a school19board, each individual principal shall have the option to20accept or refuse a multi-year contract. The provisions of21this paragraph shall not apply to a district under a22Financial Oversight Panel pursuant to Section 1A-8 for23violating 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 1Basis for apportionment to districts, laboratory schools2and alternative schools.3A. The amounts to be apportioned shall be determined for4each educational service region by school districts, as5follows:61. General Provisions.7(a) In the computation of the amounts to be apportioned,8the average daily attendance of all pupils in grades 99through 12 shall be multiplied by 1.25. The average daily10attendance of all pupils in grades 7 and 8 shall be11multiplied by 1.05.12(b) The actual number of pupils in average daily13attendance shall be computed in a one-teacher school district14by dividing the total aggregate days of pupil attendance by15the actual number of days school is in session but not more16than 30 such pupils shall be accredited for such type of17district; and in districts of 2 or more teachers, or in18districts where records of attendance are kept by session19teachers, by taking the sum of the respective averages of the20units composing the group.21(c) Pupils in average daily attendance shall be computed22upon the average of the best 3 months of pupils attendance of23the current school year except as district claims may be24later amended as provided hereinafter in this Section.25However, for any school district maintaining grades26kindergarten through 12, the "average daily attendance" shall27be computed on the average of the best 3 months of pupils28attendance of the current year in grades kindergarten through298, added together with the average of the best 3 months of30pupils attendance of the current year in grades 9 through 12,31except as district claims may be later amended as provided in32this Section. Days of attendance shall be kept by regular33calendar months, except any days of attendance in August34shall be added to the month of September and any days of-115- LRB9002758THdvam02 1attendance in June shall be added to the month of May.2Except as otherwise provided in this Section, days of3attendance by pupils shall be counted only for sessions of4not less than 5 clock hours of school work per day under5direct supervision of: (i) teachers, or (ii) non-teaching6personnel or volunteer personnel when engaging in7non-teaching duties and supervising in those instances8specified in subsection (a) of Section 10-22.34 and paragraph910 of Section 34-18, with pupils of legal school age and in10kindergarten and grades 1 through 12.11(d) Pupils regularly enrolled in a public school for12only a part of the school day may be counted on the basis of131/6 day for every class hour of instruction of 40 minutes or14more attended pursuant to such enrollment.15(e) Days of attendance may be less than 5 clock hours on16the opening and closing of the school term, and upon the17first day of pupil attendance, if preceded by a day or days18utilized as an institute or teachers' workshop.19(f) A session of 4 or more clock hours may be counted as20a day of attendance upon certification by the regional21superintendent, and approved by the State Superintendent of22Education to the extent that the district has been forced to23use daily multiple sessions.24(g) A session of 3 or more clock hours may be counted as25a day of attendance (1) when the remainder of the school day26or at least 2 hours in the evening of that day is utilized27for an in-service training program for teachers, up to a28maximum of 5 days per school year of which a maximum of 429days of such 5 days may be used for parent-teacher30conferences, provided a district conducts an in-service31training program for teachers which has been approved by the32State Superintendent of Education; or, in lieu of 4 such33days, 2 full days may be used, in which event each such day34may be counted as a day of attendance; and (2) when days in-116- LRB9002758THdvam02 1addition to those provided in item (1) are scheduled by a2school pursuant to its school improvement plan adopted under3Article 34 or its revised or amended school improvement plan4adopted under Article 2, provided that (i) such sessions of 35or more clock hours are scheduled to occur at regular6intervals, (ii) the remainder of the school days in which7such sessions occur are utilized for in-service training8programs or other staff development activities for teachers,9and (iii) a sufficient number of minutes of school work under10the direct supervision of teachers are added to the school11days between such regularly scheduled sessions to accumulate12not less than the number of minutes by which such sessions of133 or more clock hours fall short of 5 clock hours. Any full14days used for the purposes of this paragraph shall not be15considered for computing average daily attendance. Days16scheduled for in-service training programs, staff development17activities, or parent-teacher conferences may be scheduled18separately for different grade levels and different19attendance centers of the district.20(h) A session of not less than one clock hour teaching21of hospitalized or homebound pupils on-site or by telephone22to the classroom may be counted as 1/2 day of attendance,23however these pupils must receive 4 or more clock hours of24instruction to be counted for a full day of attendance.25(i) A session of at least 4 clock hours may be counted26as a day of attendance for first grade pupils, and pupils in27full day kindergartens, and a session of 2 or more hours may28be counted as 1/2 day of attendance by pupils in29kindergartens which provide only 1/2 day of attendance.30(j) For children with disabilities who are below the age31of 6 years and who cannot attend two or more clock hours32because of their disability or immaturity, a session of not33less than one clock hour may be counted as 1/2 day of34attendance; however for such children whose educational needs-117- LRB9002758THdvam02 1so require a session of 4 or more clock hours may be counted2as a full day of attendance.3(k) A recognized kindergarten which provides for only41/2 day of attendance by each pupil shall not have more than51/2 day of attendance counted in any 1 day. However,6kindergartens may count 2 1/2 days of attendance in any 57consecutive school days. Where a pupil attends such a8kindergarten for 2 half days on any one school day, such9pupil shall have the following day as a day absent from10school, unless the school district obtains permission in11writing from the State Superintendent of Education.12Attendance at kindergartens which provide for a full day of13attendance by each pupil shall be counted the same as14attendance by first grade pupils. Only the first year of15attendance in one kindergarten shall be counted except in16case of children who entered the kindergarten in their fifth17year whose educational development requires a second year of18kindergarten as determined under the rules and regulations of19the State Board of Education.20(l) Days of attendance by tuition pupils shall be21accredited only to the districts that pay the tuition to a22recognized school.23(m) The greater of the immediately preceding year's24weighted average daily attendance or the average of the25weighted average daily attendance of the immediately26preceding year and the previous 2 years shall be used.27For any school year beginning July 1, 1986 or thereafter,28if the weighted average daily attendance in either grades29kindergarten through 8 or grades 9 through 12 of a district30as computed for the first calendar month of the current31school year exceeds by more than 5%, but not less than 2532pupils, the district's weighted average daily attendance for33the first calendar month of the immediately preceding year34in, respectively, grades kindergarten through 8 or grades 9-118- LRB9002758THdvam02 1through 12, a supplementary payment shall be made to the2district equal to the difference in the amount of aid the3district would be paid under this Section using the weighted4average daily attendance in the district as computed for the5first calendar month of the current school year and the6amount of aid the district would be paid using the weighted7average daily attendance in the district for the first8calendar month of the immediately preceding year. Such9supplementary State aid payment shall be paid to the district10as provided in Section 18-8.4 and shall be treated as11separate from all other payments made pursuant to this12Section 18-8.13(n) The number of low income eligible pupils in a14district shall result in an increase in the weighted average15daily attendance calculated as follows: The number of low16income pupils shall increase the weighted ADA by .53 for each17student adjusted by dividing the percent of low income18eligible pupils in the district by the ratio of eligible low19income pupils in the State to the best 3 months' weighted20average daily attendance in the State. In no case may the21adjustment under this paragraph result in a greater weighting22than .625 for each eligible low income student. The number23of low income eligible pupils in a district shall be the24low-income eligible count from the most recently available25federal census and the weighted average daily attendance26shall be calculated in accordance with the other provisions27of this paragraph.28(o) Any school district which fails for any given school29year to maintain school as required by law, or to maintain a30recognized school is not eligible to file for such school31year any claim upon the Common School Fund. In case of32nonrecognition of one or more attendance centers in a school33district otherwise operating recognized schools, the claim of34the district shall be reduced in the proportion which the-119- LRB9002758THdvam02 1average daily attendance in the attendance center or centers2bear to the average daily attendance in the school district.3A "recognized school" means any public school which meets the4standards as established for recognition by the State Board5of Education. A school district or attendance center not6having recognition status at the end of a school term is7entitled to receive State aid payments due upon a legal claim8which was filed while it was recognized.9(p) School district claims filed under this Section are10subject to Sections 18-9, 18-10 and 18-12, except as herein11otherwise provided.12(q) The State Board of Education shall secure from the13Department of Revenue the value as equalized or assessed by14the Department of Revenue of all taxable property of every15school district together with the applicable tax rate used in16extending taxes for the funds of the district as of September1730 of the previous year. The Department of Revenue shall add18to the equalized assessed value of all taxable property of19each school district situated entirely or partially within a20county with 2,000,000 or more inhabitants an amount equal to21the total amount by which the homestead exemptions allowed22under Sections 15-170 and 15-175 of the Property Tax Code for23real property situated in that school district exceeds the24total amount that would have been allowed in that school25district as homestead exemptions under those Sections if the26maximum reduction under Section 15-170 of the Property Tax27Code was $2,000 and the maximum reduction under Section2815-175 of the Property Tax Code was $3,500. The county clerk29of any county with 2,000,000 or more inhabitants shall30annually calculate and certify to the Department for each31school district all homestead exemption amounts required by32this amendatory Act of 1992. In a new district which has not33had any tax rates yet determined for extension of taxes, a34leveled uniform rate shall be computed from the latest amount-120- LRB9002758THdvam02 1of the fund taxes extended on the several areas within such2new district.3(r) If a school district operates a full year school4under Section 10-19.1, the general state aid to the school5district shall be determined by the State Board of Education6in accordance with this Section as near as may be applicable.72. New or recomputed claim. The general State aid8entitlement for a newly created school district or a district9which has annexed an entire school district shall be computed10using attendance, compensatory pupil counts, equalized11assessed valuation, and tax rate data which would have been12used had the district been in existence for 3 years. General13State aid entitlements shall not be recomputed except as14permitted herein.153. Impaction. Impaction payments shall be made as16provided for in Section 18-4.2.174. Summer school. Summer school payments shall be made18as provided in Section 18-4.3.195. Computation of State aid. The State grant shall be20determined as follows:21(a) The State shall guarantee the amount of money that a22district's operating tax rate as limited in other Sections of23this Act would produce if every district maintaining grades24kindergarten through 12 had an equalized assessed valuation25equal to $74,791 per weighted ADA pupil; every district26maintaining grades kindergarten through 8 had an equalized27assessed valuation of $108,644 per weighted ADA pupil; and28every district maintaining grades 9 through 12 had an29equalized assessed valuation of $187,657 per weighted ADA30pupil. The State Board of Education shall adjust the31equalized assessed valuation amounts stated in this32paragraph, if necessary, to conform to the amount of the33appropriation approved for any fiscal year.34(b) The operating tax rate to be used shall consist of-121- LRB9002758THdvam02 1all district taxes extended for all purposes except community2college educational purposes for the payment of tuition under3Section 6-1 of the Public Community College Act, Bond and4Interest, Summer School, Rent, Capital Improvement and5Vocational Education Building. Any district may elect to6exclude Transportation from the calculation of its operating7tax rate. Districts may include taxes extended for the8payment of principal and interest on bonds issued under the9provisions of Sections 17-2.11a and 20-2 at a rate of .05%10per year for each purpose or the actual rate extended,11whichever is less.12(c) For calculation of aid under this Act a district13shall use the combined authorized tax rates of all funds not14exempt in (b) above, not to exceed 2.76% of the value of all15its taxable property as equalized or assessed by the16Department of Revenue for districts maintaining grades17kindergarten through 12; 1.90% of the value of all its18taxable property as equalized or assessed by the Department19of Revenue for districts maintaining grades kindergarten20through 8 only; 1.10% of the value of all its taxable21property as equalized or assessed by the Department of22Revenue for districts maintaining grades 9 through 12 only.23A district may, however, as provided in Article 17, increase24its operating tax rate above the maximum rate provided in25this subsection without affecting the amount of State aid to26which it is entitled under this Act.27(d) (1) For districts maintaining grades kindergarten28through 12 with an operating tax rate as described in29subsections 5(b) and (c) of less than 2.18%, and districts30maintaining grades kindergarten through 8 with an operating31tax rate of less than 1.28%, State aid shall be computed by32multiplying the difference between the guaranteed equalized33assessed valuation per weighted ADA pupil in subsection 5(a)34and the equalized assessed valuation per weighted ADA pupil-122- LRB9002758THdvam02 1in the district by the operating tax rate, multiplied by the2weighted average daily attendance of the district; provided,3however, that for the 1989-1990 school year only, a school4district maintaining grades kindergarten through 8 whose5operating tax rate with reference to which its general State6aid for the 1989-1990 school year is determined is less than71.28% and more than 1.090%, and which had an operating tax8rate of 1.28% or more for the previous year, shall have its9general State aid computed according to the provisions of10subsection 5(d)(2).11(2) For districts maintaining grades kindergarten12through 12 with an operating tax rate as described in13subsection 5(b) and (c) of 2.18% and above, the State aid14shall be computed as provided in subsection (d) (1) but as15though the district had an operating tax rate of 2.76%; in16K-8 districts with an operating tax rate of 1.28% and above,17the State aid shall be computed as provided in subsection (d)18(1) but as though the district had an operating tax rate of191.90%; and in 9-12 districts, the State aid shall be computed20by multiplying the difference between the guaranteed21equalized assessed valuation per weighted average daily22attendance pupil in subsection 5(a) and the equalized23assessed valuation per weighted average daily attendance24pupil in the district by the operating tax rate, not to25exceed 1.10%, multiplied by the weighted average daily26attendance of the district. State aid computed under the27provisions of this subsection (d) (2) shall be treated as28separate from all other payments made pursuant to this29Section. The State Comptroller and State Treasurer shall30transfer from the General Revenue Fund to the Common School31Fund the amounts necessary to permit these claims to be paid32in equal installments along with other State aid payments33remaining to be made for the 1983-1984 school year under this34Section.-123- LRB9002758THdvam02 1(3) For any school district whose 1995 equalized2assessed valuation is at least 6% less than its 19943equalized assessed valuation as the result of a reduction in4the equalized assessed valuation of the taxable property5within such district of any one taxpayer whose taxable6property within the district has a 1994 equalized assessed7valuation constituting at least 20% of the 1994 equalized8assessed valuation of all taxable property within the9district, the 1996-97 State aid of such district shall be10computed using its 1995 equalized assessed valuation.11(4) For any school district whose 1988 equalized12assessed valuation is 55% or less of its 1981 equalized13assessed valuation, the 1990-91 State aid of such district14shall be computed by multiplying the 1988 equalized assessed15valuation by a factor of .8. Any such school district which16is reorganized effective for the 1991-92 school year shall17use the formula provided in this subparagraph for purposes of18the calculation made pursuant to subsection (m) of this19Section.20(e) The amount of State aid shall be computed under the21provisions of subsections 5(a) through 5(d) provided the22equalized assessed valuation per weighted ADA pupil is less23than .87 of the amounts in subsection 5(a). If the equalized24assessed valuation per weighted ADA pupil is equal to or25greater than .87 of the amounts in subsection 5(a), the State26aid shall be computed under the provisions of subsection275(f).28(f) If the equalized assessed valuation per weighted ADA29pupil is equal to or greater than .87 of the amounts in30subsection 5(a), the State aid per weighted ADA pupil shall31be computed by multiplying the product of .13 times the32maximum per pupil amount computed under the provisions of33subsections 5(a) through 5(d) by an amount equal to the34quotient of .87 times the equalized assessed valuation per-124- LRB9002758THdvam02 1weighted ADA pupil in subsection 5(a) for that type of2district divided by the district equalized valuation per3weighted ADA pupil except in no case shall the district4receive State aid per weighted ADA pupil of less than .075times the maximum per pupil amount computed under the6provisions of subsections 5(a) through 5(d).7(g) In addition to the above grants, summer school8grants shall be made based upon the calculation as provided9in subsection 4 of this Section.10(h) The board of any district receiving any of the11grants provided for in this Section may apply those funds to12any fund so received for which that board is authorized to13make expenditures by law.14(i) (1) (a) In school districts with an average daily15attendance of 50,000 or more, the amount which is provided16under subsection 1(n) of this Section by the application of a17base Chapter 1 weighting factor of .375 shall be distributed18to the attendance centers within the district in proportion19to the number of pupils enrolled at each attendance center20who are eligible to receive free or reduced-price lunches or21breakfasts under the federal Child Nutrition Act of 1966 and22under the National School Lunch Act during the immediately23preceding school year. The amount of State aid provided24under subsection 1(n) of this Section by the application of25the Chapter 1 weighting factor in excess of .375 shall be26distributed to the attendance centers within the district in27proportion to the total enrollment at each attendance center.28Beginning with school year 1989-90, and each school year29thereafter, all funds provided under subsection 1 (n) of this30Section by the application of the Chapter 1 weighting factor31which are in excess of the level of non-targeted Chapter 132funds in school year 1988-89 shall be distributed to33attendance centers, and only to attendance centers, within34the district in proportion to the number of pupils enrolled-125- LRB9002758THdvam02 1at each attendance center who are eligible to receive free or2reduced price lunches or breakfasts under the Federal Child3Nutrition Act and under the National School Lunch Act during4the immediately preceding school year. Beginning in school5year 1989-90, 25% of the previously non-targeted Chapter 16funds as established for school year 1988-89 shall also be7distributed to the attendance centers, and only to attendance8centers, in the district in proportion to the number of9pupils enrolled at each attendance center who are eligible to10receive free or reduced price lunches or breakfasts under the11Federal Child Nutrition Act and under the National School12Lunch Act during the immediately preceding school year; in13school year 1990-91, 50% of the previously non-targeted14Chapter 1 funds as established for school year 1988-89 shall15be distributed to attendance centers, and only to attendance16centers, in the district in proportion to the number of17pupils enrolled at each attendance center who are eligible to18receive such free or reduced price lunches or breakfasts19during the immediately preceding school year; in school year201991-92, 75% of the previously non-targeted Chapter 1 funds21as established for school year 1988-89 shall be distributed22to attendance centers, and only to attendance centers, in the23district in proportion to the number of pupils enrolled at24each attendance center who are eligible to receive such free25or reduced price lunches or breakfasts during the immediately26preceding school year; in school year 1992-93 and thereafter,27all funds provided under subsection 1 (n) of this Section by28the application of the Chapter 1 weighting factor shall be29distributed to attendance centers, and only to attendance30centers, in the district in proportion to the number of31pupils enrolled at each attendance center who are eligible to32receive free or reduced price lunches or breakfasts under the33Federal Child Nutrition Act and under the National School34Lunch Act during the immediately preceding school year;-126- LRB9002758THdvam02 1provided, however, that the distribution formula in effect2beginning with school year 1989-90 shall not be applicable to3such portion of State aid provided under subsection 1 (n) of4this Section by the application of the Chapter 1 weighting5formula as is set aside and appropriated by the school6district for the purpose of providing desegregation programs7and related transportation to students (which portion shall8not exceed 5% of the total amount of State aid which is9provided under subsection 1 (n) of this Section by10application of the Chapter 1 weighting formula), and the11relevant percentages shall be applied to the remaining12portion of such State aid. The distribution of these13portions of general State aid among attendance centers14according to these requirements shall not be compensated for15or contravened by adjustments of the total of other funds16appropriated to any attendance centers. (b) The Board of17Education shall utilize funding from one or several sources18in order to fully implement this provision annually prior to19the opening of school. The Board of Education shall apply20savings from reduced administrative costs required under21Section 34-43.1 and growth in non-Chapter 1 State and local22funds to assure that all attendance centers receive funding23to replace losses due to redistribution of Chapter 1 funding.24The distribution formula and funding to replace losses due to25the distribution formula shall occur, in full, using any and26all sources available, including, if necessary, revenue from27administrative reductions beyond those required in Section2834-43.1, in order to provide the necessary funds. (c) Each29attendance center shall be provided by the school district a30distribution of noncategorical funds and other categorical31funds to which an attendance center is entitled under law in32order that the State aid provided by application of the33Chapter 1 weighting factor and required to be distributed34among attendance centers according to the requirements of-127- LRB9002758THdvam02 1this paragraph supplements rather than supplants the2noncategorical funds and other categorical funds provided by3the school district to the attendance centers.4Notwithstanding the foregoing provisions of this subsection55(i)(1) or any other law to the contrary, beginning with the61995-1996 school year and for each school year thereafter,7the board of a school district to which the provisions of8this subsection apply shall be required to allocate or9provide to attendance centers of the district in any such10school year, from the State aid provided for the district11under this Section by application of the Chapter 1 weighting12factor, an aggregate amount of not less than $261,000,000 of13State Chapter 1 funds. Any State Chapter 1 funds that by14reason of the provisions of this paragraph are not required15to be allocated and provided to attendance centers may be16used and appropriated by the board of the district for any17lawful school purpose. Chapter 1 funds received by an18attendance center (except those funds set aside for19desegregation programs and related transportation to20students) shall be used on the schedule cited in this Section21at the attendance center at the discretion of the principal22and local school council for programs to improve educational23opportunities at qualifying schools through the following24programs and services: early childhood education, reduced25class size or improved adult to student classroom ratio,26enrichment programs, remedial assistance, attendance27improvement and other educationally beneficial expenditures28which supplement the regular and basic programs as determined29by the State Board of Education. Chapter 1 funds shall not30be expended for any political or lobbying purposes as defined31by board rule. (d) Each district subject to the provisions of32this paragraph shall submit an acceptable plan to meet the33educational needs of disadvantaged children, in compliance34with the requirements of this paragraph, to the State Board-128- LRB9002758THdvam02 1of Education prior to July 15 of each year. This plan shall2be consistent with the decisions of local school councils3concerning the school expenditure plans developed in4accordance with part 4 of Section 34-2.3. The State Board5shall approve or reject the plan within 60 days after its6submission. If the plan is rejected the district shall give7written notice of intent to modify the plan within 15 days of8the notification of rejection and then submit a modified plan9within 30 days after the date of the written notice of intent10to modify. Districts may amend approved plans pursuant to11rules promulgated by the State Board of Education.12Upon notification by the State Board of Education that13the district has not submitted a plan prior to July 15 or a14modified plan within the time period specified herein, the15State aid funds affected by said plan or modified plan shall16be withheld by the State Board of Education until a plan or17modified plan is submitted.18If the district fails to distribute State aid to19attendance centers in accordance with an approved plan, the20plan for the following year shall allocate funds, in addition21to the funds otherwise required by this subparagraph, to22those attendance centers which were underfunded during the23previous year in amounts equal to such underfunding.24For purposes of determining compliance with this25subsection in relation to Chapter 1 expenditures, each26district subject to the provisions of this subsection shall27submit as a separate document by December 1 of each year a28report of Chapter 1 expenditure data for the prior year in29addition to any modification of its current plan. If it is30determined that there has been a failure to comply with the31expenditure provisions of this subsection regarding32contravention or supplanting, the State Superintendent of33Education shall, within 60 days of receipt of the report,34notify the district and any affected local school council.-129- LRB9002758THdvam02 1The district shall within 45 days of receipt of that2notification inform the State Superintendent of Education of3the remedial or corrective action to be taken, whether by4amendment of the current plan, if feasible, or by adjustment5in the plan for the following year. Failure to provide the6expenditure report or the notification of remedial or7corrective action in a timely manner shall result in a8withholding of the affected funds.9The State Board of Education shall promulgate rules and10regulations to implement the provisions of this subsection115(i)(1). No funds shall be released under subsection 1(n) of12this Section or under this subsection 5(i)(1) to any district13which has not submitted a plan which has been approved by the14State Board of Education.15(2) School districts with an average daily attendance of16more than 1,000 and less than 50,000 and having a low income17pupil weighting factor in excess of .53 shall submit a plan18to the State Board of Education prior to October 30 of each19year for the use of the funds resulting from the application20of subsection 1(n) of this Section for the improvement of21instruction in which priority is given to meeting the22education needs of disadvantaged children. Such plan shall23be submitted in accordance with rules and regulations24promulgated by the State Board of Education.25(j) For the purposes of calculating State aid under this26Section, with respect to any part of a school district within27a redevelopment project area in respect to which a28municipality has adopted tax increment allocation financing29pursuant to the Tax Increment Allocation Redevelopment Act,30Sections 11-74.4-1 through 11-74.4-11 of the Illinois31Municipal Code or the Industrial Jobs Recovery Law, Sections3211-74.6-1 through 11-74.6-50 of the Illinois Municipal Code,33no part of the current equalized assessed valuation of real34property located in any such project area which is-130- LRB9002758THdvam02 1attributable to an increase above the total initial equalized2assessed valuation of such property shall be used in3computing the equalized assessed valuation per weighted ADA4pupil in the district, until such time as all redevelopment5project costs have been paid, as provided in Section611-74.4-8 of the Tax Increment Allocation Redevelopment Act7or in Section 11-74.6-35 of the Industrial Jobs Recovery Law.8For the purpose of computing the equalized assessed valuation9per weighted ADA pupil in the district the total initial10equalized assessed valuation or the current equalized11assessed valuation, whichever is lower, shall be used until12such time as all redevelopment project costs have been paid.13(k) For a school district operating under the financial14supervision of an Authority created under Article 34A, the15State aid otherwise payable to that district under this16Section, other than State aid attributable to Chapter 117students, shall be reduced by an amount equal to the budget18for the operations of the Authority as certified by the19Authority to the State Board of Education, and an amount20equal to such reduction shall be paid to the Authority21created for such district for its operating expenses in the22manner provided in Section 18-11. The remainder of State23school aid for any such district shall be paid in accordance24with Article 34A when that Article provides for a disposition25other than that provided by this Article.26(l) For purposes of calculating State aid under this27Section, the equalized assessed valuation for a school28district used to compute State aid shall be determined by29adding to the real property equalized assessed valuation for30the district an amount computed by dividing the amount of31money received by the district under the provisions of "An32Act in relation to the abolition of ad valorem personal33property tax and the replacement of revenues lost thereby",34certified August 14, 1979, by the total tax rate for the-131- LRB9002758THdvam02 1district. For purposes of this subsection 1976 tax rates2shall be used for school districts in the county of Cook and31977 tax rates shall be used for school districts in all4other counties.5(m) (1) For a new school district formed by combining6property included totally within 2 or more previously7existing school districts, for its first year of existence or8if the new district was formed after October 31, 1982 and9prior to September 23, 1985, for the year immediately10following September 23, 1985, the State aid calculated under11this Section shall be computed for the new district and for12the previously existing districts for which property is13totally included within the new district. If the computation14on the basis of the previously existing districts is greater,15a supplementary payment equal to the difference shall be made16for the first 3 years of existence of the new district or if17the new district was formed after October 31, 1982 and prior18to September 23, 1985, for the 3 years immediately following19September 23, 1985.20(2) For a school district which annexes all of the21territory of one or more entire other school districts, for22the first year during which the change of boundaries23attributable to such annexation becomes effective for all24purposes as determined under Section 7-9 or 7A-8, the State25aid calculated under this Section shall be computed for the26annexing district as constituted after the annexation and for27the annexing and each annexed district as constituted prior28to the annexation; and if the computation on the basis of the29annexing and annexed districts as constituted prior to the30annexation is greater, a supplementary payment equal to the31difference shall be made for the first 3 years of existence32of the annexing school district as constituted upon such33annexation.34(3) For 2 or more school districts which annex all of-132- LRB9002758THdvam02 1the territory of one or more entire other school districts,2and for 2 or more community unit districts which result upon3the division (pursuant to petition under Section 11A-2) of4one or more other unit school districts into 2 or more parts5and which together include all of the parts into which such6other unit school district or districts are so divided, for7the first year during which the change of boundaries8attributable to such annexation or division becomes effective9for all purposes as determined under Section 7-9 or 11A-10,10as the case may be, the State aid calculated under this11Section shall be computed for each annexing or resulting12district as constituted after the annexation or division and13for each annexing and annexed district, or for each resulting14and divided district, as constituted prior to the annexation15or division; and if the aggregate of the State aid as so16computed for the annexing or resulting districts as17constituted after the annexation or division is less than the18aggregate of the State aid as so computed for the annexing19and annexed districts, or for the resulting and divided20districts, as constituted prior to the annexation or21division, then a supplementary payment equal to the22difference shall be made and allocated between or among the23annexing or resulting districts, as constituted upon such24annexation or division, for the first 3 years of their25existence. The total difference payment shall be allocated26between or among the annexing or resulting districts in the27same ratio as the pupil enrollment from that portion of the28annexed or divided district or districts which is annexed to29or included in each such annexing or resulting district bears30to the total pupil enrollment from the entire annexed or31divided district or districts, as such pupil enrollment is32determined for the school year last ending prior to the date33when the change of boundaries attributable to the annexation34or division becomes effective for all purposes. The amount-133- LRB9002758THdvam02 1of the total difference payment and the amount thereof to be2allocated to the annexing or resulting districts shall be3computed by the State Board of Education on the basis of4pupil enrollment and other data which shall be certified to5the State Board of Education, on forms which it shall provide6for that purpose, by the regional superintendent of schools7for each educational service region in which the annexing and8annexed districts, or resulting and divided districts are9located.10(4) If a unit school district annexes all the territory11of another unit school district effective for all purposes12pursuant to Section 7-9 on July 1, 1988, and if part of the13annexed territory is detached within 90 days after July 1,141988, then the detachment shall be disregarded in computing15the supplementary State aid payments under this paragraph (m)16for the entire 3 year period and the supplementary State aid17payments shall not be diminished because of the detachment.18(5) Any supplementary State aid payment made under this19paragraph (m) shall be treated as separate from all other20payments made pursuant to this Section.21(n) For the purposes of calculating State aid under this22Section, the real property equalized assessed valuation for a23school district used to compute State aid shall be determined24by subtracting from the real property value as equalized or25assessed by the Department of Revenue for the district an26amount computed by dividing the amount of any abatement of27taxes under Section 18-170 of the Property Tax Code by the28maximum operating tax rates specified in subsection 5(c) of29this Section and an amount computed by dividing the amount of30any abatement of taxes under subsection (a) of Section 18-16531of the Property Tax Code by the maximum operating tax rates32specified in subsection 5(c) of this Section.33(o) Notwithstanding any other provisions of this34Section, for the 1996-1997 school year the amount of the-134- LRB9002758THdvam02 1aggregate general State aid entitlement that is received2under this Section by each school district for that school3year shall be not less than the amount of the aggregate4general State aid entitlement that was received by the5district under this Section for the 1995-1996 school year. If6a school district is to receive an aggregate general State7aid entitlement under this Section for the 1996-1997 school8year that is less than the amount of the aggregate general9State aid entitlement that the district received under this10Section for the 1995-1996 school year, the school district11shall also receive, from a separate appropriation made for12purposes of this paragraph (o), a supplementary payment that13is equal to the amount by which the general State aid14entitlement received by the district under this Section for15the 1995-1996 school year exceeds the general State aid16entitlement that the district is to receive under this17Section for the 1996-1997 school year. If the amount18appropriated for supplementary payments to school districts19under this paragraph (o) is insufficient for that purpose,20the supplementary payments that districts are to receive21under this paragraph shall be prorated according to the22aggregate amount of the appropriation made for purposes of23this paragraph.24B. In calculating the amount to be paid to the governing25board of a public university that operates a laboratory26school under this Section or to any alternative school that27is operated by a regional superintendent, the State Board of28Education shall require by rule such reporting requirements29as it deems necessary.30As used in this Section, "laboratory school" means a31public school which is created and operated by a public32university and approved by the State Board of Education. The33governing board of a public university which receives funds34from the State Board under this subsection B may not increase-135- LRB9002758THdvam02 1the number of students enrolled in its laboratory school from2a single district, if that district is already sending 50 or3more students, except under a mutual agreement between the4school board of a student's district of residence and the5university which operates the laboratory school. A6laboratory school may not have more than 1,000 students,7excluding students with disabilities in a special education8program.9As used in this Section, "alternative school" means a10public school which is created and operated by a Regional11Superintendent of Schools and approved by the State Board of12Education. Such alternative schools may offer courses of13instruction for which credit is given in regular school14programs, courses to prepare students for the high school15equivalency testing program or vocational and occupational16training.17Each laboratory and alternative school shall file, on18forms provided by the State Superintendent of Education, an19annual State aid claim which states the average daily20attendance of the school's students by month. The best 321months' average daily attendance shall be computed for each22school. The weighted average daily attendance shall be23computed and the weighted average daily attendance for the24school's most recent 3 year average shall be compared to the25most recent weighted average daily attendance, and the26greater of the 2 shall be used for the calculation under this27subsection B. The general State aid entitlement shall be28computed by multiplying the school's student count by the29foundation 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 43years 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 43years 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 initialalternativeteaching 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 initialalternativecertificate under this Section. The 9 comprehensive course of study so developed shall include one 10 semester of practice teaching. 11 An initialalternativeteaching 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 initialalternativeteaching 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 bytest34of 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 initiala standard alternativeteaching 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 InitialA standard alternativeTeaching 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 Initiala standard alternative23 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 Initialstandard alternativeTeaching 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 Educationbasic23skills test and subject matter knowledge test or testswithin 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 examinationstest of basic skills and20subject matter knowledgerequired 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 intest of basic skills9required bySection 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 Educationtest of basic skills and subject14matter 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 Certificatebecomes a fully certified teacherin the State of 26 Illinoisand all other general education academic coursework27deficiencies 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., and10 "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 4560days 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,31a teacher has not had one school term of full-time teaching32experience before the beginning of such probationary period,33the employing board may at its option extend such34probationary period for one additional school term by giving-179- LRB9002758THdvam02 1the teacher written notice by certified mail, return receipt2requested at least 60 days before the end of the second3school term of the period of 2 consecutive school terms4referred to above. Such notice must state the reasons for5the one year extension and must outline the corrective6actions which the teacher should take to satisfactorily7complete 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 4560days 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 4560days 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 Educationand may not exceed $300. The hearing 7 officer shall hold a hearing and render a final decision. 8The hearing shall be public at the request of either the9teacher 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 laterwith 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 17subparagraph (A)(5)(b) ofSection 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) ofB of33 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) 3subsections 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) 19subsections 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 undersubsections (1) and24(2) ofSection 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 specified31in 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 aidChapter 1funds distributed to a school subject to 17 intervention during that school year under subsection (H) 185(i)(1)(a) of part Aof 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 aidChapter201funds 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 105days 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.".