State of Illinois
91st General Assembly
Legislation

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[ Engrossed ]

91_HB2686

 
                                               LRB9105955NTsb

 1        AN ACT relating to school construction projects, amending
 2    named Acts.

 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:

 5        Section 5.   The  School  Code  is  amended  by  changing
 6    Section 19-1 as follows:

 7        (105 ILCS 5/19-1) (from Ch. 122, par. 19-1)
 8        Sec. 19-1.  Debt limitations of school districts.
 9        (a)  School   districts  shall  not  be  subject  to  the
10    provisions limiting their indebtedness prescribed in "An  Act
11    to  limit the indebtedness of counties having a population of
12    less than 500,000 and townships, school districts  and  other
13    municipal  corporations  having  a  population  of  less than
14    300,000", approved February 15, 1928, as amended.
15        No school districts maintaining grades K through 8  or  9
16    through  12  shall  become  indebted in any manner or for any
17    purpose to an amount, including existing indebtedness, in the
18    aggregate exceeding 6.9% on the value of the taxable property
19    therein to be ascertained by the last  assessment  for  State
20    and  county  taxes or, until January 1, 1983, if greater, the
21    sum that is produced by  multiplying  the  school  district's
22    1978  equalized  assessed  valuation  by  the debt limitation
23    percentage in effect on January  1,  1979,  previous  to  the
24    incurring of such indebtedness.
25        No school districts maintaining grades K through 12 shall
26    become  indebted  in  any  manner  or  for  any purpose to an
27    amount, including existing  indebtedness,  in  the  aggregate
28    exceeding  13.8% on the value of the taxable property therein
29    to be ascertained by the last assessment for State and county
30    taxes or, until January 1, 1983, if greater, the sum that  is
31    produced  by multiplying the school district's 1978 equalized
 
                            -2-                LRB9105955NTsb
 1    assessed valuation  by  the  debt  limitation  percentage  in
 2    effect  on January 1, 1979, previous to the incurring of such
 3    indebtedness.
 4        Notwithstanding the provisions of any other  law  to  the
 5    contrary,  in  any  case  in  which  the  voters  of a school
 6    district have approved a  proposition  for  the  issuance  of
 7    bonds  of  such  school district at an election held prior to
 8    January 1, 1979, and  all  of  the  bonds  approved  at  such
 9    election have not been issued, the debt limitation applicable
10    to  such  school district during the calendar year 1979 shall
11    be computed by multiplying  the  value  of  taxable  property
12    therein,  including  personal property, as ascertained by the
13    last assessment for State and county taxes, previous  to  the
14    incurring  of such indebtedness, by the percentage limitation
15    applicable to such school district under  the  provisions  of
16    this subsection (a).
17        (b)  Notwithstanding  the  debt  limitation prescribed in
18    subsection (a) of this Section, additional  indebtedness  may
19    be  incurred in an amount not to exceed the estimated cost of
20    acquiring or  improving  school  sites  or  constructing  and
21    equipping  additional building facilities under the following
22    conditions:
23             (1)  Whenever the enrollment  of  students  for  the
24        next  school  year is estimated by the board of education
25        to increase over the actual  present  enrollment  by  not
26        less  than  35%  or  by not less than 200 students or the
27        actual present enrollment of students has increased  over
28        the  previous  school year by not less than 35% or by not
29        less  than  200  students  and  the  board  of  education
30        determines  that  additional  school  sites  or  building
31        facilities are required as a result of such  increase  in
32        enrollment; and
33             (2)  When  the  Regional  Superintendent  of Schools
34        having jurisdiction over  the  school  district  and  the
 
                            -3-                LRB9105955NTsb
 1        State   Superintendent   of   Education  concur  in  such
 2        enrollment projection or increase and  approve  the  need
 3        for  such  additional school sites or building facilities
 4        and the estimated cost thereof; and
 5             (3)  When the voters in the school district  approve
 6        a  proposition  for the issuance of bonds for the purpose
 7        of acquiring or improving such  needed  school  sites  or
 8        constructing   and   equipping   such  needed  additional
 9        building facilities at an election called  and  held  for
10        that purpose. Notice of such an election shall state that
11        the  amount of indebtedness proposed to be incurred would
12        exceed the debt limitation otherwise  applicable  to  the
13        school  district.   The ballot for such proposition shall
14        state what percentage of the equalized assessed valuation
15        will be outstanding in bonds if the proposed issuance  of
16        bonds is approved by the voters; or
17             (4)  Notwithstanding  the  provisions  of paragraphs
18        (1) through (3) of this subsection  (b),  if  the  school
19        board determines that additional facilities are needed to
20        provide  a  quality educational program and not less than
21        2/3 of those voting in an election called by  the  school
22        board  on  the question approve the issuance of bonds for
23        the construction of such facilities, the school  district
24        may issue bonds for this purpose; or
25             (5)  Notwithstanding  the  provisions  of paragraphs
26        (1) through (3) of this subsection (b), if (i) the school
27        district has previously availed itself of the  provisions
28        of  paragraph  (4) of this subsection (b) to enable it to
29        issue bonds, (ii) the voters of the school district  have
30        not  defeated  a  proposition  for  the issuance of bonds
31        since the referendum described in paragraph (4)  of  this
32        subsection   (b)   was   held,  (iii)  the  school  board
33        determines  that  additional  facilities  are  needed  to
34        provide  a  quality  educational  program,  and  (iv)   a
 
                            -4-                LRB9105955NTsb
 1        majority  of  those  voting  in an election called by the
 2        school board on the  question  approve  the  issuance  of
 3        bonds for the construction of such facilities, the school
 4        district may issue bonds for this purpose.
 5        In  no  event shall the indebtedness incurred pursuant to
 6    this subsection (b) and  the  existing  indebtedness  of  the
 7    school  district  exceed  15%  of  the  value  of the taxable
 8    property therein to be ascertained by the last assessment for
 9    State and county taxes, previous to  the  incurring  of  such
10    indebtedness  or,  until January 1, 1983, if greater, the sum
11    that is produced by multiplying the  school  district's  1978
12    equalized   assessed   valuation   by   the  debt  limitation
13    percentage in effect on January 1, 1979.
14        The indebtedness provided  for  by  this  subsection  (b)
15    shall  be  in  addition  to  and  in excess of any other debt
16    limitation.
17        (c)  Notwithstanding the debt  limitation  prescribed  in
18    subsection (a) of this Section, in any case in which a public
19    question  for  the  issuance  of  bonds  of a proposed school
20    district maintaining grades kindergarten through 12  received
21    at  least 60% of the valid ballots cast on the question at an
22    election held on or prior to November 8, 1994, and  in  which
23    the bonds approved at such election have not been issued, the
24    school  district  pursuant  to  the  requirements  of Section
25    11A-10 may issue the total amount of bonds approved  at  such
26    election for the purpose stated in the question.
27        (d)  Notwithstanding  the  debt  limitation prescribed in
28    subsection (a) of this Section, a school district that  meets
29    all  the criteria set forth in paragraphs (1) and (2) of this
30    subsection (d) may incur an  additional  indebtedness  in  an
31    amount  not  to  exceed $4,500,000, even though the amount of
32    the additional indebtedness  authorized  by  this  subsection
33    (d),  when  incurred  and  added  to  the aggregate amount of
34    indebtedness of the district existing  immediately  prior  to
 
                            -5-                LRB9105955NTsb
 1    the district incurring the additional indebtedness authorized
 2    by  this subsection (d), causes the aggregate indebtedness of
 3    the  district  to  exceed  the  debt   limitation   otherwise
 4    applicable to that district under subsection (a):
 5             (1)  The  additional indebtedness authorized by this
 6        subsection (d) is incurred by the school district through
 7        the issuance  of  bonds  under  and  in  accordance  with
 8        Section  17-2.11a  for  the purpose of replacing a school
 9        building which, because of mine  subsidence  damage,  has
10        been   closed  as  provided  in  paragraph  (2)  of  this
11        subsection (d) or through the issuance of bonds under and
12        in accordance  with  Section  19-3  for  the  purpose  of
13        increasing  the  size  of,  or  providing  for additional
14        functions in, such replacement school buildings, or  both
15        such purposes.
16             (2)  The  bonds  issued  by  the  school district as
17        provided in  paragraph  (1)  above  are  issued  for  the
18        purposes  of construction by the school district of a new
19        school building pursuant to Section 17-2.11,  to  replace
20        an   existing  school  building  that,  because  of  mine
21        subsidence damage, is closed as of the end of the 1992-93
22        school  year  pursuant  to   action   of   the   regional
23        superintendent  of  schools  of  the  educational service
24        region in which the district  is  located  under  Section
25        3-14.22  or  are issued for the purpose of increasing the
26        size of, or providing for additional  functions  in,  the
27        new school building being constructed to replace a school
28        building  closed as the result of mine subsidence damage,
29        or both such purposes.
30        (e)  Notwithstanding the debt  limitation  prescribed  in
31    subsection  (a) of this Section, a school district that meets
32    all the criteria set forth in paragraphs (1) through  (5)  of
33    this   subsection  (e)  may,  without  referendum,  incur  an
34    additional indebtedness in an amount not to exceed the lesser
 
                            -6-                LRB9105955NTsb
 1    of $5,000,000 or 1.5% of the value of  the  taxable  property
 2    within  the district even though the amount of the additional
 3    indebtedness authorized by this subsection (e), when incurred
 4    and added to the aggregate  amount  of  indebtedness  of  the
 5    district existing immediately prior to the district incurring
 6    that    additional   indebtedness,   causes   the   aggregate
 7    indebtedness of the  district  to  exceed  or  increases  the
 8    amount  by  which  the aggregate indebtedness of the district
 9    already exceeds the debt limitation otherwise  applicable  to
10    that district under subsection (a):
11             (1)  The  State  Board  of  Education  certifies the
12        school district under Section  19-1.5  as  a  financially
13        distressed district.
14             (2)  The  additional indebtedness authorized by this
15        subsection (e) is incurred by the financially  distressed
16        district  during the school year or school years in which
17        the  certification  of  the  district  as  a  financially
18        distressed  district  continues  in  effect  through  the
19        issuance of bonds for the lawful school purposes  of  the
20        district,  pursuant to resolution of the school board and
21        without referendum, as provided in paragraph (5) of  this
22        subsection.
23             (3)  The  aggregate  amount  of  bonds issued by the
24        financially distressed district during a fiscal  year  in
25        which   it  is  authorized  to  issue  bonds  under  this
26        subsection does  not  exceed  the  amount  by  which  the
27        aggregate  expenditures  of  the district for operational
28        purposes during the  immediately  preceding  fiscal  year
29        exceeds  the  amount  appropriated  for  the  operational
30        purposes  of  the  district  in  the annual school budget
31        adopted by the school  board  of  the  district  for  the
32        fiscal year in which the bonds are issued.
33             (4)  Throughout    each   fiscal   year   in   which
34        certification of the district as a financially distressed
 
                            -7-                LRB9105955NTsb
 1        district continues in effect, the district  maintains  in
 2        effect  a  gross  salary  expense  and gross wage expense
 3        freeze policy under which the district  expenditures  for
 4        total  employee  salaries  and  wages  do not exceed such
 5        expenditures for the immediately preceding  fiscal  year.
 6        Nothing  in  this  paragraph, however, shall be deemed to
 7        impair  or  to  require  impairment  of  the  contractual
 8        obligations, including collective bargaining  agreements,
 9        of the district or to impair or require the impairment of
10        the  vested  rights of any employee of the district under
11        the terms of any contract or agreement in effect  on  the
12        effective date of this amendatory Act of 1994.
13             (5)  Bonds  issued  by  the  financially  distressed
14        district  under  this subsection shall bear interest at a
15        rate not to exceed the maximum rate authorized by law  at
16        the  time  of  the  making  of the contract, shall mature
17        within 40 years from their date of issue,  and  shall  be
18        signed by the president of the school board and treasurer
19        of  the  school  district.  In order to issue bonds under
20        this  subsection,  the  school  board   shall   adopt   a
21        resolution  fixing  the  amount of the bonds, the date of
22        the bonds, the maturities of  the  bonds,  the  rates  of
23        interest  of  the  bonds,  and their place of payment and
24        denomination,  and  shall  provide  for  the   levy   and
25        collection  of  a  direct annual tax upon all the taxable
26        property in the district sufficient to pay the  principal
27        and  interest  on the bonds to maturity.  Upon the filing
28        in the office of the county clerk of the county in  which
29        the  financially  distressed  district  is  located  of a
30        certified copy of the resolution, it is the duty  of  the
31        county  clerk  to  extend the tax therefor in addition to
32        and in excess of all other taxes at any  time  authorized
33        to  be levied by the district.  If bond proceeds from the
34        sale of bonds include a premium or if the proceeds of the
 
                            -8-                LRB9105955NTsb
 1        bonds are invested as authorized by law, the school board
 2        shall determine by resolution whether the interest earned
 3        on  the  investment  of  bond  proceeds  or  the  premium
 4        realized on the sale of the bonds is to be used  for  any
 5        of  the  lawful  school purposes for which the bonds were
 6        issued or for the payment of the  principal  indebtedness
 7        and interest on the bonds.  The proceeds of the bond sale
 8        shall  be  deposited  in the educational purposes fund of
 9        the  district  and  shall  be  used  to  pay  operational
10        expenses of the district.  This subsection is  cumulative
11        and  constitutes  complete  authority for the issuance of
12        bonds as provided in this subsection, notwithstanding any
13        other law to the contrary.
14        (f)  Notwithstanding the provisions of subsection (a)  of
15    this  Section or of any other law, bonds in not to exceed the
16    aggregate  amount  of  $5,500,000  and  issued  by  a  school
17    district  meeting  the  following  criteria  shall   not   be
18    considered   indebtedness   for  purposes  of  any  statutory
19    limitation and  may  be  issued  in  an  amount  or  amounts,
20    including  existing indebtedness, in excess of any heretofore
21    or hereafter imposed statutory limitation as to indebtedness:
22             (1)  At the time of the  sale  of  such  bonds,  the
23        board  of education of the district shall have determined
24        by resolution that the  enrollment  of  students  in  the
25        district  is  projected  to  increase by not less than 7%
26        during each of the next succeeding 2 school years.
27             (2)  The board of education shall also determine  by
28        resolution  that the improvements to be financed with the
29        proceeds of the bonds are needed because of the projected
30        enrollment increases.
31             (3)  The board of education shall also determine  by
32        resolution that the projected increases in enrollment are
33        the result of improvements made or expected to be made to
34        passenger rail facilities located in the school district.
 
                            -9-                LRB9105955NTsb
 1        (g)  Notwithstanding  the provisions of subsection (a) of
 2    this Section or any other law, bonds  in  not  to  exceed  an
 3    aggregate  amount  of  25% of the equalized assessed value of
 4    the taxable property of a school district  and  issued  by  a
 5    school  district  meeting  the  criteria  in  paragraphs  (i)
 6    through  (iv)  of  this  subsection  shall  not be considered
 7    indebtedness for purposes of any statutory limitation and may
 8    be issued pursuant to resolution of the school  board  in  an
 9    amount or amounts, including existing indebtedness, in excess
10    of  any  statutory  limitation  of indebtedness heretofore or
11    hereafter imposed:
12             (i)  The  bonds  are  issued  for  the  purpose   of
13        constructing  a  new  high school building to replace two
14        adjacent existing buildings which together house a single
15        high school, each of which is more than 65 years old, and
16        which together are located on more than 10 acres and less
17        than 11 acres of property.
18             (ii)  At the time  the  resolution  authorizing  the
19        issuance   of   the   bonds   is  adopted,  the  cost  of
20        constructing  a  new  school  building  to  replace   the
21        existing  school building is less than 60% of the cost of
22        repairing the existing school building.
23             (iii)  The sale of the bonds occurs before  July  1,
24        1997.
25             (iv)  The  school  district  issuing  the bonds is a
26        unit school district located in a  county  of  less  than
27        70,000  and  more  than  50,000 inhabitants, which has an
28        average daily  attendance  of  less  than  1,500  and  an
29        equalized assessed valuation of less than $29,000,000.
30        (h)  Notwithstanding any other provisions of this Section
31    or  the provisions of any other law, until January 1, 1998, a
32    community unit school district maintaining grades  K  through
33    12  may  issue  bonds  up  to  an  amount, including existing
34    indebtedness, not exceeding 27.6% of the  equalized  assessed
 
                            -10-               LRB9105955NTsb
 1    value  of the taxable property in the district, if all of the
 2    following conditions are met:
 3             (i)  The school district has an  equalized  assessed
 4        valuation   for   calendar   year   1995   of  less  than
 5        $24,000,000;
 6             (ii)  The  bonds  are   issued   for   the   capital
 7        improvement,  renovation,  rehabilitation, or replacement
 8        of existing school buildings  of  the  district,  all  of
 9        which buildings were originally constructed not less than
10        40 years ago;
11             (iii)  The   voters   of   the  district  approve  a
12        proposition for the issuance of the bonds at a referendum
13        held after March 19, 1996; and
14             (iv)  The bonds are issued pursuant to Sections 19-2
15        through 19-7 of this Code.
16        (i)  Notwithstanding any other provisions of this Section
17    or the provisions of any other law, until January 1, 1998,  a
18    community  unit  school district maintaining grades K through
19    12 may issue  bonds  up  to  an  amount,  including  existing
20    indebtedness,  not  exceeding  27%  of the equalized assessed
21    value of the taxable property in the district, if all of  the
22    following conditions are met:
23             (i)  The  school  district has an equalized assessed
24        valuation  for  calendar   year   1995   of   less   than
25        $44,600,000;
26             (ii)  The   bonds   are   issued   for  the  capital
27        improvement, renovation, rehabilitation,  or  replacement
28        of  existing  school  buildings  of  the district, all of
29        which existing buildings were originally constructed  not
30        less than 80 years ago;
31             (iii)  The   voters   of   the  district  approve  a
32        proposition for the issuance of the bonds at a referendum
33        held after December 31, 1996; and
34             (iv)  The bonds are issued pursuant to Sections 19-2
 
                            -11-               LRB9105955NTsb
 1        through 19-7 of this Code.
 2        (j)  Notwithstanding any other provisions of this Section
 3    or the provisions of any other law, until January 1, 1999,  a
 4    community  unit  school district maintaining grades K through
 5    12 may issue  bonds  up  to  an  amount,  including  existing
 6    indebtedness,  not  exceeding  27%  of the equalized assessed
 7    value of the taxable property in the district if all  of  the
 8    following conditions are met:
 9             (i)  The  school  district has an equalized assessed
10        valuation  for  calendar   year   1995   of   less   than
11        $140,000,000 and a best 3 months average daily attendance
12        for the 1995-96 school year of at least 2,800;
13             (ii)  The  bonds  are  issued to purchase a site and
14        build and  equip  a  new  high  school,  and  the  school
15        district's    existing   high   school   was   originally
16        constructed not less than 35 years prior to the  sale  of
17        the bonds;
18             (iii)  At  the  time  of  the sale of the bonds, the
19        board of education determines by resolution  that  a  new
20        high  school  is  needed  because of projected enrollment
21        increases;
22             (iv)  At least 60% of those voting  in  an  election
23        held  after  December  31, 1996 approve a proposition for
24        the issuance of the bonds; and
25             (v)  The bonds are issued pursuant to Sections  19-2
26        through 19-7 of this Code.
27        (k)  Notwithstanding  the  debt  limitation prescribed in
28    subsection (a) of this Section, a school district that  meets
29    all  the  criteria set forth in paragraphs (1) through (4) of
30    this subsection (k) may issue bonds to  incur  an  additional
31    indebtedness  in  an  amount  not  to  exceed $4,000,000 even
32    though the amount of the additional  indebtedness  authorized
33    by  this  subsection  (k),  when  incurred  and  added to the
34    aggregate amount  of  indebtedness  of  the  school  district
 
                            -12-               LRB9105955NTsb
 1    existing  immediately  prior to the school district incurring
 2    such   additional   indebtedness,   causes   the    aggregate
 3    indebtedness  of  the  school district to exceed or increases
 4    the  amount  by  which  the  aggregate  indebtedness  of  the
 5    district  already  exceeds  the  debt  limitation   otherwise
 6    applicable to that school district under subsection (a):
 7             (1)  the  school  district is located in 2 counties,
 8        and a referendum to authorize the additional indebtedness
 9        was approved by a majority of the voters  of  the  school
10        district  voting  on  the  proposition  to authorize that
11        indebtedness;
12             (2)  the additional indebtedness is for the  purpose
13        of   financing  a  multi-purpose  room  addition  to  the
14        existing high school;
15             (3)  the additional indebtedness, together with  the
16        existing  indebtedness  of the school district, shall not
17        exceed 17.4% of the value of the taxable property in  the
18        school district, to be ascertained by the last assessment
19        for State and county taxes; and
20             (4)  the    bonds    evidencing    the    additional
21        indebtedness  are  issued,  if at all, within 120 days of
22        the effective date of this amendatory Act of 1998.
23        (l)  Notwithstanding any other provisions of this Section
24    or the provisions of any other law, until January 1, 2000,  a
25    school district maintaining grades kindergarten through 8 may
26    issue bonds up to an amount, including existing indebtedness,
27    not  exceeding  15%  of  the  equalized assessed value of the
28    taxable property in the district  if  all  of  the  following
29    conditions are met:
30             (i)  the   district   has   an   equalized  assessed
31        valuation  for  calendar   year   1996   of   less   than
32        $10,000,000;
33             (ii)  the  bonds are issued for capital improvement,
34        renovation, rehabilitation, or replacement of one or more
 
                            -13-               LRB9105955NTsb
 1        school buildings of the district,  which  buildings  were
 2        originally constructed not less than 70 years ago;
 3             (iii)  the   voters   of   the  district  approve  a
 4        proposition for the issuance of the bonds at a referendum
 5        held on or after March 17, 1998; and
 6             (iv)  the bonds are issued pursuant to Sections 19-2
 7        through 19-7 of this Code.
 8        (m)  Notwithstanding any other provisions of this Section
 9    or the provisions of any other law, until January 1, 1999, an
10    elementary school district maintaining grades K through 8 may
11    issue bonds up to an amount, excluding existing indebtedness,
12    not exceeding 18% of the  equalized  assessed  value  of  the
13    taxable  property  in  the  district, if all of the following
14    conditions are met:
15             (i)  The school district has an  equalized  assessed
16        valuation for calendar year 1995 or less than $7,700,000;
17             (ii)  The  school  district  operates  2  elementary
18        attendance  centers  that until 1976 were operated as the
19        attendance centers of  2  separate  and  distinct  school
20        districts;
21             (iii)  The  bonds are issued for the construction of
22        a new elementary school building to replace  an  existing
23        multi-level  elementary  school  building  of  the school
24        district that is not handicapped accessible at all levels
25        and parts of which were constructed more  than  75  years
26        ago;
27             (iv)  The  voters  of  the school district approve a
28        proposition for the issuance of the bonds at a referendum
29        held after July 1, 1998; and
30             (v)  The bonds are issued pursuant to Sections  19-2
31        through 19-7 of this Code.
32        (n)  Notwithstanding  the  debt  limitation prescribed in
33    subsection (a) of this Section or  any  other  provisions  of
34    this  Section  or  of  any  other law, a school district that
 
                            -14-               LRB9105955NTsb
 1    meets all of the criteria set forth in paragraphs (i) through
 2    (vi) of this subsection (n) may incur additional indebtedness
 3    by the issuance of bonds  in  an  amount  not  exceeding  the
 4    amount  certified  by  the  State  Board  of Education to the
 5    school district  as  provided  in  paragraph  (iii)  of  this
 6    subsection  (n),  even  though  the  amount of the additional
 7    indebtedness so authorized, when incurred and  added  to  the
 8    aggregate  amount  of  indebtedness  of the district existing
 9    immediately prior to the district  incurring  the  additional
10    indebtedness  authorized  by  this subsection (n), causes the
11    aggregate indebtedness of the district  to  exceed  the  debt
12    limitation otherwise applicable by law to that district:
13             (i)  The  school district applies to the State Board
14        of Education for a school construction project grant  and
15        submits  a  district  facilities  plan  in support of its
16        application  pursuant  to  Section  5-20  of  the  School
17        Construction Law.
18             (ii)  The   school   district's   application    and
19        facilities   plan  are  approved  by,  and  the  district
20        receives a grant entitlement for  a  school  construction
21        project issued by, the State Board of Education under the
22        School Construction Law.
23             (iii)  The school district has exhausted its bonding
24        capacity  or  the unused bonding capacity of the district
25        is less than the amount certified by the State  Board  of
26        Education  to  the  district  under  Section  5-15 of the
27        School Construction Law  as  the  dollar  amount  of  the
28        school construction project's cost that the district will
29        be  required  to finance with non-grant funds in order to
30        receive a school construction  project  grant  under  the
31        School Construction Law.
32             (iv)  The   bonds   are   issued   for   a   "school
33        construction project", as that term is defined in Section
34        5-5  of  the  School  Construction Law, in an amount that
 
                            -15-               LRB9105955NTsb
 1        does not exceed the dollar amount certified, as  provided
 2        in  paragraph  (iii) of this subsection (n), by the State
 3        Board of Education to the school district  under  Section
 4        5-15 of the School Construction Law.
 5             (v)  The   voters   of   the   district   approve  a
 6        proposition for the issuance of the bonds at a referendum
 7        held after the criteria specified in paragraphs  (i)  and
 8        (iii) of this subsection (n) are met.
 9             (vi)  The bonds are issued pursuant to Sections 19-2
10        through 19-7 of the School Code.
11    (Source: P.A.   89-47,  eff.  7-1-95;  89-661,  eff.  1-1-97;
12    89-698, eff. 1-14-97;  90-570,  eff.  1-28-98;  90-757,  eff.
13    8-14-98.)

14        Section  10.  The  School  Construction Law is amended by
15    changing Sections  5-15 and 5-20 as follows:

16        (105 ILCS 230/5-15)
17        Sec.  5-15.  Grant  entitlements.   The  State  Board  of
18    Education is  authorized  to  issue  grant  entitlements  for
19    school  construction  projects  and  debt  service  and shall
20    determine the priority order for school construction  project
21    grants  to  be  made  by  the Capital Development Board. When
22    issuing  a  grant  entitlement  for  a  school   construction
23    project,  the  State  Board  of  Education, as a part of that
24    entitlement, shall certify  to  the  district  receiving  the
25    entitlement  the  dollar  amount  of  the school construction
26    project's cost that the district will be required to  finance
27    with  non-grant funds in order to qualify to receive a school
28    construction  project  grant  under  this  Article  from  the
29    Capital Development Board.
30    (Source: P.A. 90-548, eff. 1-1-98.)

31        (105 ILCS 230/5-20)
 
                            -16-               LRB9105955NTsb
 1        Sec. 5-20.  Grant application; district facilities  plan.
 2    School  districts shall apply to the State Board of Education
 3    for school  construction  project  grants  and  debt  service
 4    grants.   Districts filing grant applications shall submit to
 5    the  State  Board  a  district  facilities  plan  that  shall
 6    include,  but not be limited to, an assessment of present and
 7    future district facility needs as  required  by  present  and
 8    anticipated  educational  programming,  the  availability  of
 9    local  financial  resources  including current revenues, fund
10    balances, and unused bonding  capacity,  a  fiscal  plan  for
11    meeting present and anticipated debt service obligations, and
12    a  maintenance  plan  and  schedule  that  contain  necessary
13    assurances  that  new, renovated, and existing facilities are
14    being or will be properly maintained.   If  a  district  that
15    applies for a school construction project grant has no unused
16    bonding  capacity  or  if  its unused bonding capacity may be
17    less than the portion of the  cost  of  the  proposed  school
18    construction  project  that the district would be required to
19    finance with non-grant funds, the application and  facilities
20    plan  submitted by the district shall set forth the estimated
21    amount of the project's cost that the  district  proposes  to
22    finance  by  the  issuance  of  bonds under subsection (n) of
23    Section 19-1 of the School Code. The State Board of Education
24    shall review and approve district facilities plans  prior  to
25    issuing  grant  entitlements.   Each district that receives a
26    grant  entitlement  shall  annually   update   its   district
27    facilities  plan  and  submit  the  revised plan to the State
28    Board for approval.
29    (Source: P.A. 90-548, eff. 1-1-98.)

30        Section 99.  Effective date.  This Act takes effect  upon
31    becoming law.

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