State of Illinois
92nd General Assembly
Legislation

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92_SB0022ham007

 










                                             LRB9201505LDpram

 1                     AMENDMENT TO SENATE BILL 22

 2        AMENDMENT NO.     .  Amend Senate Bill  22  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section 5.  The Property Tax Code is amended by changing
 5    Section  18-185 and by adding Sections 18-190.5 and 18-201 as
 6    follows:

 7        (35 ILCS 200/18-185)
 8        Sec. 18-185.  Short title; definitions.  This Division  5
 9    may  be  cited  as the Property Tax Extension Limitation Law.
10    As used in this Division 5:
11        "Consumer Price Index" means the Consumer Price Index for
12    All Urban Consumers for all items  published  by  the  United
13    States Department of Labor.
14        "Extension  limitation" means (a) the lesser of 5% or the
15    percentage increase in the Consumer Price  Index  during  the
16    12-month  calendar  year  preceding  the levy year or (b) the
17    rate of increase approved by voters under Section 18-205.
18        "Affected county" means a county  of  3,000,000  or  more
19    inhabitants  or  a county contiguous to a county of 3,000,000
20    or more inhabitants.
21        "Taxing  district"  has  the  same  meaning  provided  in
22    Section 1-150, except as otherwise provided in this  Section.
 
                            -2-              LRB9201505LDpram
 1    For  the 1991 through 1994 levy years only, "taxing district"
 2    includes only each non-home rule taxing district  having  the
 3    majority  of  its  1990  equalized  assessed value within any
 4    county or counties contiguous to a county with  3,000,000  or
 5    more inhabitants.  Beginning with the 1995 levy year, "taxing
 6    district"  includes  only  each non-home rule taxing district
 7    subject to this Law  before  the  1995  levy  year  and  each
 8    non-home  rule taxing district not subject to this Law before
 9    the 1995 levy year having the majority of its 1994  equalized
10    assessed  value in an affected county or counties.  Beginning
11    with the levy year in which this Law becomes applicable to  a
12    taxing  district  as  provided  in  Section  18-213,  "taxing
13    district"  also  includes those taxing districts made subject
14    to this Law as provided in Section 18-213.
15        "Aggregate extension" for taxing districts to which  this
16    Law  applied  before  the  1995  levy  year  means the annual
17    corporate extension for the taxing district and those special
18    purpose extensions that are  made  annually  for  the  taxing
19    district,  excluding special purpose extensions: (a) made for
20    the taxing district to pay interest or principal  on  general
21    obligation  bonds  that were approved by referendum; (b) made
22    for any taxing district  to  pay  interest  or  principal  on
23    general  obligation  bonds issued before October 1, 1991; (c)
24    made for any taxing district to pay interest or principal  on
25    bonds  issued  to  refund  or  continue to refund those bonds
26    issued before October  1,  1991;  (d)  made  for  any  taxing
27    district  to  pay  interest  or  principal on bonds issued to
28    refund or continue to refund bonds issued  after  October  1,
29    1991  that  were  approved  by  referendum;  (e) made for any
30    taxing district to pay interest or principal on revenue bonds
31    issued before October 1, 1991 for payment of which a property
32    tax levy or the full faith and credit of the  unit  of  local
33    government  is  pledged;  however,  a  tax for the payment of
34    interest or principal on those bonds shall be made only after
 
                            -3-              LRB9201505LDpram
 1    the governing body of the unit of local government finds that
 2    all other sources for payment are insufficient to make  those
 3    payments;  (f)  made for payments under a building commission
 4    lease when the lease payments are for the retirement of bonds
 5    issued by the commission before October 1, 1991, to  pay  for
 6    the  building  project;  (g)  made  for  payments  due  under
 7    installment  contracts  entered  into before October 1, 1991;
 8    (h) made for payments of  principal  and  interest  on  bonds
 9    issued  under the Metropolitan Water Reclamation District Act
10    to finance construction projects initiated before October  1,
11    1991;  (i)  made  for  payments  of principal and interest on
12    limited  bonds,  as  defined  in  Section  3  of  the   Local
13    Government  Debt  Reform  Act, in an amount not to exceed the
14    debt service extension base less the  amount  in  items  (b),
15    (c),  (e),  and  (h)  of  this  definition for non-referendum
16    obligations, except obligations initially issued pursuant  to
17    referendum;  (j)  made for payments of principal and interest
18    on bonds issued under Section 15 of the Local Government Debt
19    Reform  Act;  and  (k)  made  by  a  school   district   that
20    participates  in  the  Special  Education  District  of  Lake
21    County,  created  by  special education joint agreement under
22    Section 10-22.31 of the  School  Code,  for  payment  of  the
23    school  district's  share  of  the  amounts  required  to  be
24    contributed  by the Special Education District of Lake County
25    to the Illinois Municipal Retirement Fund under Article 7  of
26    the  Illinois Pension Code; the amount of any extension under
27    this item (k) shall be certified by the  school  district  to
28    the county clerk.
29        "Aggregate  extension"  for the taxing districts to which
30    this Law did not apply before  the  1995  levy  year  (except
31    taxing  districts  subject  to  this  Law  in accordance with
32    Section 18-213) means the annual corporate extension for  the
33    taxing district and those special purpose extensions that are
34    made  annually  for  the  taxing  district, excluding special
 
                            -4-              LRB9201505LDpram
 1    purpose extensions: (a) made for the taxing district  to  pay
 2    interest  or  principal on general obligation bonds that were
 3    approved by referendum; (b) made for any taxing  district  to
 4    pay  interest or principal on general obligation bonds issued
 5    before March 1, 1995; (c) made for any taxing district to pay
 6    interest or principal on bonds issued to refund  or  continue
 7    to  refund  those bonds issued before March 1, 1995; (d) made
 8    for any taxing district to pay interest or principal on bonds
 9    issued to refund or continue to  refund  bonds  issued  after
10    March  1, 1995 that were approved by referendum; (e) made for
11    any taxing district to pay interest or principal  on  revenue
12    bonds  issued  before  March  1,  1995 for payment of which a
13    property tax levy or the full faith and credit of the unit of
14    local government is pledged; however, a tax for  the  payment
15    of  interest  or  principal on those bonds shall be made only
16    after the governing body of  the  unit  of  local  government
17    finds  that all other sources for payment are insufficient to
18    make those payments; (f) made for payments under  a  building
19    commission   lease  when  the  lease  payments  are  for  the
20    retirement of bonds issued by the commission before March  1,
21    1995  to  pay for the building project; (g) made for payments
22    due under installment contracts entered into before March  1,
23    1995;  (h)  made  for  payments  of principal and interest on
24    bonds  issued  under  the  Metropolitan   Water   Reclamation
25    District  Act  to  finance  construction  projects  initiated
26    before  October  1,  1991; (i) made for payments of principal
27    and interest on limited bonds, as defined in Section 3 of the
28    Local Government Debt Reform Act, in an amount not to  exceed
29    the debt service extension base less the amount in items (b),
30    (c),   and   (e)   of   this  definition  for  non-referendum
31    obligations, except obligations initially issued pursuant  to
32    referendum  and  bonds  described  in  subsection (h) of this
33    definition; (j) made for payments of principal  and  interest
34    on bonds issued under Section 15 of the Local Government Debt
 
                            -5-              LRB9201505LDpram
 1    Reform  Act;  (k) made for payments of principal and interest
 2    on bonds authorized by Public Act  88-503  and  issued  under
 3    Section  20a of the Chicago Park District Act for aquarium or
 4    museum projects; and (l) made for payments of  principal  and
 5    interest on bonds authorized by Public Act 87-1191 and issued
 6    under  Section 42 of the Cook County Forest Preserve District
 7    Act for zoological park projects; and (m)  made  pursuant  to
 8    Section  34-53.5  of the School Code, whether levied annually
 9    or not.
10        "Aggregate extension" for all taxing districts  to  which
11    this  Law  applies  in accordance with Section 18-213, except
12    for those  taxing  districts  subject  to  paragraph  (2)  of
13    subsection  (e) of Section 18-213, means the annual corporate
14    extension for the taxing district and those  special  purpose
15    extensions  that  are  made annually for the taxing district,
16    excluding special purpose extensions: (a) made for the taxing
17    district to pay interest or principal on  general  obligation
18    bonds  that  were  approved  by  referendum; (b) made for any
19    taxing district to  pay  interest  or  principal  on  general
20    obligation   bonds  issued  before  the  date  on  which  the
21    referendum making this Law applicable to the taxing  district
22    is  held; (c) made for any taxing district to pay interest or
23    principal on bonds issued to refund  or  continue  to  refund
24    those  bonds  issued  before the date on which the referendum
25    making this Law applicable to the taxing  district  is  held;
26    (d) made for any taxing district to pay interest or principal
27    on  bonds issued to refund or continue to refund bonds issued
28    after the date  on  which  the  referendum  making  this  Law
29    applicable  to  the taxing district is held if the bonds were
30    approved by referendum after the date on which the referendum
31    making this Law applicable to the taxing  district  is  held;
32    (e) made for any taxing district to pay interest or principal
33    on  revenue  bonds  issued  before  the  date  on  which  the
34    referendum  making this Law applicable to the taxing district
 
                            -6-              LRB9201505LDpram
 1    is held for payment of which a property tax levy or the  full
 2    faith  and credit of the unit of local government is pledged;
 3    however, a tax for the payment of interest  or  principal  on
 4    those  bonds  shall  be made only after the governing body of
 5    the unit of local government finds that all other sources for
 6    payment are insufficient to make those payments; (f) made for
 7    payments under a building commission  lease  when  the  lease
 8    payments  are  for  the  retirement  of  bonds  issued by the
 9    commission before the date on  which  the  referendum  making
10    this Law applicable to the taxing district is held to pay for
11    the  building  project;  (g)  made  for  payments  due  under
12    installment  contracts  entered into before the date on which
13    the referendum making  this  Law  applicable  to  the  taxing
14    district  is  held;  (h)  made  for payments of principal and
15    interest on limited bonds, as defined in  Section  3  of  the
16    Local  Government Debt Reform Act, in an amount not to exceed
17    the debt service extension base less the amount in items (b),
18    (c),  and  (e)  of   this   definition   for   non-referendum
19    obligations,  except obligations initially issued pursuant to
20    referendum; (i) made for payments of principal  and  interest
21    on bonds issued under Section 15 of the Local Government Debt
22    Reform Act; and (j) made for a qualified airport authority to
23    pay  interest or principal on general obligation bonds issued
24    for the purpose of paying obligations due under, or financing
25    airport facilities  required  to  be  acquired,  constructed,
26    installed  or  equipped  pursuant  to, contracts entered into
27    before March 1, 1996 (but not  including  any  amendments  to
28    such a contract taking effect on or after that date).
29        "Aggregate  extension"  for all taxing districts to which
30    this  Law  applies  in  accordance  with  paragraph  (2)   of
31    subsection  (e)  of Section 18-213 means the annual corporate
32    extension for the taxing district and those  special  purpose
33    extensions  that  are  made annually for the taxing district,
34    excluding special purpose extensions: (a) made for the taxing
 
                            -7-              LRB9201505LDpram
 1    district to pay interest or principal on  general  obligation
 2    bonds  that  were  approved  by  referendum; (b) made for any
 3    taxing district to  pay  interest  or  principal  on  general
 4    obligation  bonds  issued  before  the effective date of this
 5    amendatory Act of 1997; (c) made for any taxing  district  to
 6    pay  interest  or  principal  on  bonds  issued  to refund or
 7    continue to refund those bonds issued  before  the  effective
 8    date  of this amendatory Act of 1997; (d) made for any taxing
 9    district to pay interest or  principal  on  bonds  issued  to
10    refund or continue to refund bonds issued after the effective
11    date  of  this  amendatory  Act  of  1997  if  the bonds were
12    approved by referendum  after  the  effective  date  of  this
13    amendatory  Act  of 1997; (e) made for any taxing district to
14    pay interest or principal on revenue bonds issued before  the
15    effective  date of this amendatory Act of 1997 for payment of
16    which a property tax levy or the full faith and credit of the
17    unit of local government is pledged; however, a tax  for  the
18    payment of interest or principal on those bonds shall be made
19    only after the governing body of the unit of local government
20    finds  that all other sources for payment are insufficient to
21    make those payments; (f) made for payments under  a  building
22    commission   lease  when  the  lease  payments  are  for  the
23    retirement of bonds  issued  by  the  commission  before  the
24    effective  date of this amendatory Act of 1997 to pay for the
25    building project; (g) made for payments due under installment
26    contracts entered into before  the  effective  date  of  this
27    amendatory  Act  of  1997; (h) made for payments of principal
28    and interest on limited bonds, as defined in Section 3 of the
29    Local Government Debt Reform Act, in an amount not to  exceed
30    the debt service extension base less the amount in items (b),
31    (c),   and   (e)   of   this  definition  for  non-referendum
32    obligations, except obligations initially issued pursuant  to
33    referendum;  (i)  made for payments of principal and interest
34    on bonds issued under Section 15 of the Local Government Debt
 
                            -8-              LRB9201505LDpram
 1    Reform Act; and (j) made for a qualified airport authority to
 2    pay interest or principal on general obligation bonds  issued
 3    for the purpose of paying obligations due under, or financing
 4    airport  facilities  required  to  be  acquired, constructed,
 5    installed or equipped pursuant  to,  contracts  entered  into
 6    before  March  1,  1996  (but not including any amendments to
 7    such a contract taking effect on or after that date).
 8        "Debt service extension base" means an  amount  equal  to
 9    that  portion  of the extension for a taxing district for the
10    1994 levy year, or for those taxing districts subject to this
11    Law in accordance  with  Section  18-213,  except  for  those
12    subject to paragraph (2) of subsection (e) of Section 18-213,
13    for  the  levy  year  in which the referendum making this Law
14    applicable to the taxing  district  is  held,  or  for  those
15    taxing  districts  subject  to  this  Law  in accordance with
16    paragraph (2) of subsection (e) of  Section  18-213  for  the
17    1996  levy  year,  constituting  an  extension for payment of
18    principal and interest on bonds issued by the taxing district
19    without referendum, but not including (i) bonds authorized by
20    Public Act 88-503 and issued under Section 20a of the Chicago
21    Park District Act for  aquarium  and  museum  projects;  (ii)
22    bonds  issued  under  Section 15 of the Local Government Debt
23    Reform Act; or (iii) refunding obligations issued  to  refund
24    or   to  continue  to  refund  obligations  initially  issued
25    pursuant  to  referendum;  or  (iv)  bonds  issued  for  fire
26    prevention and safety purposes under Section 17-2.11  of  the
27    School  Code  after the effective date of this amendatory Act
28    of the 92nd General Assembly and bonds issued to  refund  the
29    fire  prevention  and safety bonds issued after the effective
30    date of this amendatory Act of the 92nd General Assembly. The
31    debt service extension base may be established  or  increased
32    as provided under Section 18-212.
33        "Special purpose extensions" include, but are not limited
34    to,  extensions  for  levies  made  on  an  annual  basis for
 
                            -9-              LRB9201505LDpram
 1    unemployment  and  workers'   compensation,   self-insurance,
 2    contributions  to pension plans, and extensions made pursuant
 3    to Section 6-601 of the Illinois  Highway  Code  for  a  road
 4    district's  permanent  road  fund  whether levied annually or
 5    not.  The  extension  for  a  special  service  area  is  not
 6    included in the aggregate extension.
 7        "Aggregate  extension  base"  means the taxing district's
 8    last preceding aggregate extension as adjusted under Sections
 9    18-215 through 18-230.
10        "Levy year" has the same meaning as "year" under  Section
11    1-155.
12        "New  property" means (i) the assessed value, after final
13    board  of  review  or  board  of  appeals  action,   of   new
14    improvements  or  additions  to  existing improvements on any
15    parcel of real property that increase the assessed  value  of
16    that  real  property  during  the levy year multiplied by the
17    equalization factor issued by the  Department  under  Section
18    17-30  and  (ii)  the  assessed  value,  after final board of
19    review or board of  appeals  action,  of  real  property  not
20    exempt  from  real  estate  taxation, which real property was
21    exempt from real estate  taxation  for  any  portion  of  the
22    immediately   preceding   levy   year,   multiplied   by  the
23    equalization factor issued by the  Department  under  Section
24    17-30.   In addition, the county clerk in a county containing
25    a population of 3,000,000 or more shall include in  the  1997
26    recovered  tax  increment  value for any school district, any
27    recovered tax increment value that was applicable to the 1995
28    tax year calculations.
29        "Qualified airport authority" means an airport  authority
30    organized  under the Airport Authorities Act and located in a
31    county bordering on the  State  of  Wisconsin  and  having  a
32    population in excess of 200,000 and not greater than 500,000.
33        "Recovered   tax   increment   value"  means,  except  as
34    otherwise provided in  this  paragraph,  the  amount  of  the
 
                            -10-             LRB9201505LDpram
 1    current  year's  equalized  assessed value, in the first year
 2    after a municipality terminates the designation of an area as
 3    a redevelopment project area previously established under the
 4    Tax Increment Allocation  Development  Act  in  the  Illinois
 5    Municipal  Code,  previously established under the Industrial
 6    Jobs  Recovery  Law  in  the  Illinois  Municipal  Code,   or
 7    previously  established  under  the Economic Development Area
 8    Tax Increment Allocation Act, of  each  taxable  lot,  block,
 9    tract,  or  parcel  of  real  property  in  the redevelopment
10    project area over and above the  initial  equalized  assessed
11    value  of  each  property  in the redevelopment project area.
12    For the taxes which are extended for the 1997 levy year,  the
13    recovered  tax  increment  value  for  a non-home rule taxing
14    district that first became subject to this Law for  the  1995
15    levy  year  because a majority of its 1994 equalized assessed
16    value  was  in  an  affected  county  or  counties  shall  be
17    increased if a municipality terminated the designation of  an
18    area  in  1993  as  a  redevelopment  project area previously
19    established under the Tax  Increment  Allocation  Development
20    Act  in  the  Illinois Municipal Code, previously established
21    under the  Industrial  Jobs  Recovery  Law  in  the  Illinois
22    Municipal  Code, or previously established under the Economic
23    Development Area Tax Increment Allocation Act, by  an  amount
24    equal  to  the  1994 equalized assessed value of each taxable
25    lot,  block,  tract,  or  parcel  of  real  property  in  the
26    redevelopment  project  area  over  and  above  the   initial
27    equalized   assessed   value   of   each   property   in  the
28    redevelopment  project  area.  In  the  first  year  after  a
29    municipality removes a taxable lot, block, tract,  or  parcel
30    of   real   property   from   a  redevelopment  project  area
31    established under the Tax  Increment  Allocation  Development
32    Act  in  the  Illinois  Municipal  Code,  the Industrial Jobs
33    Recovery Law in the Illinois Municipal Code, or the  Economic
34    Development Area Tax Increment Allocation Act, "recovered tax
 
                            -11-             LRB9201505LDpram
 1    increment  value"  means  the  amount  of  the current year's
 2    equalized assessed value of each taxable lot,  block,  tract,
 3    or  parcel  of  real  property removed from the redevelopment
 4    project area over and above the  initial  equalized  assessed
 5    value   of   that  real  property  before  removal  from  the
 6    redevelopment project area.
 7        Except as otherwise provided in this  Section,  "limiting
 8    rate"  means  a  fraction  the numerator of which is the last
 9    preceding aggregate extension base times an amount  equal  to
10    one plus the extension limitation defined in this Section and
11    the  denominator  of  which  is  the current year's equalized
12    assessed value of all real property in  the  territory  under
13    the jurisdiction of the taxing district during the prior levy
14    year.    For   those  taxing  districts  that  reduced  their
15    aggregate extension for the last  preceding  levy  year,  the
16    highest  aggregate  extension  in any of the last 3 preceding
17    levy years shall be used for the  purpose  of  computing  the
18    limiting   rate.   The  denominator  shall  not  include  new
19    property.  The denominator shall not  include  the  recovered
20    tax increment value.
21    (Source:  P.A.  90-485,  eff.  1-1-98;  90-511, eff. 8-22-97;
22    90-568, eff.  1-1-99;  90-616,  eff.  7-10-98;  90-655,  eff.
23    7-30-98; 91-357, eff. 7-29-99; 91-478, eff. 11-1-99.)

24        (35 ILCS 200/18-190.5 new)
25        Sec.  18-190.5.  School  districts.   The requirements of
26    Section 18-190 of this Code for a direct  referendum  on  the
27    imposition of a new or increased tax rate do not apply to tax
28    levies  that  are  not  included  in  the aggregate extension
29    pursuant to clause (m) of Section 18-185 of this Code.

30        (35 ILCS 200/18-201 new)
31        Sec. 18-201.  School districts.
32        (a)  The aggregate extension for a school district  shall
 
                            -12-             LRB9201505LDpram
 1    not  include  any  extension (i) made for fire prevention and
 2    safety purposes under Section  17-2.11  of  the  School  Code
 3    produced  by  that  portion  of  the rate for that purpose in
 4    excess of the district's maximum permissible  rate  for  that
 5    purpose  immediately  prior  to  the  effective  date of this
 6    amendatory Act of the 92nd General Assembly or (ii) made  for
 7    payments  of  principal  and  interest on fire prevention and
 8    safety bonds issued under Section 17-2.11 of the School  Code
 9    after  the  effective date of this amendatory Act of the 92nd
10    General Assembly or  on  bonds  issued  to  refund  the  fire
11    prevention  and  safety bonds issued after the effective date
12    of this amendatory Act of the 92nd General Assembly.
13        (b)  The requirements of Section 18-190 of this Code  for
14    a  direct  referendum on the imposition of a new or increased
15    tax rate shall not apply to  the  tax  levies  that  are  not
16    included in the aggregate extension pursuant to this Section.

17        (35 ILCS 200/18-200 rep.)
18        Section   10.   The  Property  Tax  Code  is  amended  by
19    repealing Section 18-200.

20        Section 15.  The  School  Code  is  amended  by  changing
21    Sections 1B-4, 1B-5, 1B-8, 2-3.12, 10-22.14, 17-2.2, 17-2.11,
22    and 19-1 and adding Section 34-53.5 as follows:

23        (105 ILCS 5/1B-4) (from Ch. 122, par. 1B-4)
24        Sec.   1B-4.    Establishment   of   Emergency  Financial
25    Assistance and Financial Oversight Panel.  When  approved  by
26    the  State  Board  under  this Article there is established a
27    body both corporate and politic to be known as the "(Name  of
28    School  District)  Financial  Oversight Panel" which, in such
29    name, shall exercise all authority vested in such  Panels  by
30    this Article.
31        Upon  the affirmative vote of not less than a majority of
 
                            -13-             LRB9201505LDpram
 1    its full membership, a local board of education of  a  school
 2    district   that   has  been  certified  to  be  in  financial
 3    difficulty under Section 1A-8 may petition the State Board of
 4    Education  for  emergency  financial   assistance   and   the
 5    establishment of a Financial Oversight Panel for the district
 6    as  provided  under  this  Article.   In  addition, the State
 7    Superintendent of Education may petition the State  Board  of
 8    Education  for  the  establishment  of  a Financial Oversight
 9    Panel, with or without emergency  financial  assistance,  for
10    any  district  that  has  failed to comply with its financial
11    plan and has had the plan rescinded by  the  State  Board  as
12    provided   in   Section  1A-8.   No  petition  for  emergency
13    financial assistance shall be approved  by  the  State  Board
14    unless there is also established a Financial Oversight Panel.
15        In  determining  whether  to allow the petition the State
16    Board shall consider the following factors among others  that
17    it deems relevant:
18        (a)  whether  the  petition  is  in  the best educational
19    interests of the pupils of the district;
20        (b)  whether the petition is in the near  and  long  term
21    best financial interests of the district;
22        (c)  whether the district has sufficient pupil enrollment
23    and  assessed  valuation  to  provide and maintain recognized
24    schools;
25        (d)  whether the petition is in the best interests of the
26    other schools of the area and the educational welfare of  all
27    of the pupils therein; and
28        (e)  whether the board of education has complied with the
29    requirements of Section 1A-8.
30        The  State  Board  may  vote  to either grant or deny the
31    petition  based  upon  the  recommendation   of   the   State
32    Superintendent  of  Education  and  any  other  testimony  or
33    documentary  evidence  the  State  Board deems relevant.  The
34    decision of the State Board whether  to  grant  or  deny  the
 
                            -14-             LRB9201505LDpram
 1    petition  shall  be  final.  If an approved petition requests
 2    emergency financial assistance, the school district shall  be
 3    eligible for emergency State financial assistance, subject to
 4    the other provisions of this Article.
 5        A   Financial  Oversight  Panel  created  pursuant  to  a
 6    petition filed by a school district may  petition  the  State
 7    Board  of Education to be reconstituted as a Panel having the
 8    powers, duties, legal  status,  and  privileges  of  a  Panel
 9    established  by  the  State Board for a district that has had
10    its financial plan rescinded by the State Board for violating
11    that plan as provided in Section 1A-8.  The State  Board  may
12    grant  such  petition  upon  determining that approval of the
13    petition is in the best financial interests of the  district.
14    Upon  approval of the petition, the Panel shall have the same
15    powers, duties, legal  status,  and  privileges  of  a  Panel
16    established  for  a  district that has had its financial plan
17    rescinded by the State  Board  for  violating  that  plan  as
18    provided  in  Section 1A-8.  The changes made to this Section
19    by this amendatory Act of the 92nd General Assembly apply  to
20    all  Financial  Oversight Panels, whether created before, on,
21    or after the effective date of this amendatory Act.
22    (Source: P.A. 88-618, eff. 9-9-94.)

23        (105 ILCS 5/1B-5) (from Ch. 122, par. 1B-5)
24        Sec. 1B-5.   Appointment  of  Panel;  meetings;  reports;
25    dissolution   of   Panel.  When  a  petition  establishing  a
26    Financial Oversight Panel for emergency financial  assistance
27    for  a  school  district  is allowed by the State Board under
28    Section 1B-4, the State Superintendent shall within  10  days
29    thereafter   appoint   3   members  to  serve  at  the  State
30    Superintendent's pleasure on a Financial Oversight Panel  for
31    the  district.   The State Superintendent shall designate one
32    of the members of the Panel to serve as its Chairman.  In the
33    event of vacancy  or  resignation  the  State  Superintendent
 
                            -15-             LRB9201505LDpram
 1    shall  appoint a successor within 10 days of receiving notice
 2    thereof.
 3        Members of the Panel shall be selected primarily  on  the
 4    basis   of   their  experience  and  education  in  financial
 5    management, with consideration given to persons knowledgeable
 6    in education finance.  A member of the Panel  may  not  be  a
 7    board  member or employee of the district for which the Panel
 8    is constituted, nor may a  member  have  a  direct  financial
 9    interest in that district.
10        Panel  members  shall serve without compensation, but may
11    be  reimbursed  for  travel  and  other  necessary   expenses
12    incurred  in  the performance of their official duties by the
13    State Board.  The amount reimbursed Panel members  for  their
14    expenses  shall  be charged to the school district as part of
15    any emergency financial assistance and incorporated as a part
16    of the terms and conditions for repayment of such  assistance
17    or shall be deducted from the district's general State aid as
18    provided in Section 1B-8.
19        The  first meeting of the Panel shall be held at the call
20    of the Chairman.  The Panel may elect such other officers  as
21    it  deems  appropriate.   The Panel shall prescribe the times
22    and places for its meetings and the manner in  which  regular
23    and special meetings may be called, and shall comply with the
24    Open Meetings Act.
25        Two  members  of the Panel shall constitute a quorum, and
26    the affirmative vote of 2 members shall be necessary for  any
27    decision or action to be taken by the Panel.
28        The  Panel  and  the State Superintendent shall cooperate
29    with each other in the exercise of their  respective  powers.
30    The Panel shall report not later than September 1 annually to
31    the  State Board and the State Superintendent with respect to
32    its activities and the condition of the school  district  for
33    the previous fiscal year.
34        Any  Financial  Oversight  Panel  established  under this
 
                            -16-             LRB9201505LDpram
 1    Article shall remain in existence for not less than  3  years
 2    nor  more  than 10 years from the date the State Board grants
 3    the petition under Section 1B-4.  If after 3 years the school
 4    district has repaid all of  its  obligations  resulting  from
 5    emergency  State  financial  assistance  provided  under this
 6    Article and has improved its financial situation,  the  board
 7    of  education  may,  not  more frequently than once in any 12
 8    month period,  petition  the  State  Board  to  dissolve  the
 9    Financial    Oversight   Panel,   terminate   the   oversight
10    responsibility, and remove the district's certification under
11    Section 1A-8 as  a  district  in  financial  difficulty.   In
12    acting  on  such  a  petition  the  State  Board  shall  give
13    additional   weight  to  the  recommendations  of  the  State
14    Superintendent and the Financial Oversight Panel.
15        The changes made to this Section by this  amendatory  Act
16    of the 92nd General Assembly apply to all Financial Oversight
17    Panels,  whether  created  before, on, or after the effective
18    date of this amendatory Act.
19    (Source: P.A. 88-618, eff. 9-9-94.)

20        (105 ILCS 5/1B-8) (from Ch. 122, par. 1B-8)
21        Sec. 1B-8. School District Emergency Financial Assistance
22    Fund; loans and  grants.   There  is  created  in  the  State
23    Treasury  a  special  fund to be known as the School District
24    Emergency Financial Assistance Fund (the "Fund").  The School
25    District Emergency Financial Assistance Fund shall consist of
26    appropriations,  grants  from  the  federal  government   and
27    donations  from  any public or private source.  Moneys in the
28    Fund may be appropriated only to  the  State  Board  for  the
29    purposes of this Article.  The appropriation may be allocated
30    and  expended by the State Board as grants or loans to school
31    districts which are the subject of an approved  petition  for
32    emergency  financial assistance under Section 1B-4.  From the
33    amount allocated to each such school district the State Board
 
                            -17-             LRB9201505LDpram
 1    shall identify a sum sufficient to cover all  approved  costs
 2    of   the   Financial  Oversight  Panel  established  for  the
 3    respective school district.  If the  State  Board  and  State
 4    Superintendent  of  Education  have  not  approved  emergency
 5    financial assistance in conjunction with the appointment of a
 6    Financial  Oversight  Panel, the Panel's approved costs shall
 7    be paid from deductions from  the  district's  general  State
 8    aid.
 9        The  Financial  Oversight Panel may prepare and file with
10    the State Superintendent a proposal for  emergency  financial
11    assistance  for  the  school  district and for the operations
12    budget of the Panel.  No expenditures shall be authorized  by
13    the  State  Superintendent until he has approved the proposal
14    of the Panel, either as submitted or in  such  lesser  amount
15    determined by the State Superintendent.
16        The  maximum  amount of an emergency financial assistance
17    loan which may be allocated to any school district under this
18    Article, including moneys necessary for the operations of the
19    Panel, shall not exceed $1000  times  the  number  of  pupils
20    enrolled in the school district during the school year ending
21    June  30  prior to the date of approval by the State Board of
22    the petition for emergency financial assistance, as certified
23    to the local board and the Panel by the State Superintendent.
24    An emergency financial assistance grant shall not exceed $250
25    times the number of such pupils.  A district may receive both
26    a loan and a grant.  Any moneys provided to a local board  of
27    education as a loan shall not be subject to any limitation on
28    debt established under Article 19 of this Code.
29        The  payment  of  an emergency State financial assistance
30    grant or loan  shall  be  subject  to  appropriation  by  the
31    General   Assembly.   Emergency  State  financial  assistance
32    allocated and paid to a school district  under  this  Article
33    may  be  applied  to  any  fund or funds from which the local
34    board of education of that district  is  authorized  to  make
 
                            -18-             LRB9201505LDpram
 1    expenditures by law.
 2        Any   emergency  financial  assistance  proposed  by  the
 3    Financial  Oversight  Panel  and  approved   by   the   State
 4    Superintendent may be paid in its entirety during the initial
 5    year of the Panel's existence or spread in equal or declining
 6    amounts  over  a  period of years not to exceed the period of
 7    the Panel's existence.   All  loan  payments  made  from  the
 8    School  District  Emergency  Financial  Assistance Fund for a
 9    school district shall be required to be repaid,  with  simple
10    interest  over the term of the loan at a rate equal to 50% of
11    the discount rate on one-year United States Treasury Bills as
12    determined by the last auction of those one-year  bills  that
13    precedes the date on which the district's loan is approved by
14    the  State  Board  of  Education, not later than the date the
15    Financial Oversight Panel ceases to exist.  The  Panel  shall
16    establish  and  the  State  Superintendent  shall approve the
17    terms and conditions, including the schedule, of  repayments.
18    The  schedule  shall provide for repayments commencing July 1
19    of each year. Repayment shall be incorporated into the annual
20    budget of the school district and may be made from  any  fund
21    or funds of the district in which there are moneys available.
22    When  moneys  are repaid as provided herein they shall not be
23    made  available  to  the  local  board  for  further  use  as
24    emergency financial assistance under this Article at any time
25    thereafter.  All repayments required to be made by  a  school
26    district  shall  be received by the State Board and deposited
27    in the School District Emergency Financial Assistance Fund.
28        The board of any school district  that  receives  a  loan
29    authorized  under  this  Section shall provide for a separate
30    tax for emergency financial  assistance  repayment  purposes.
31    The  separate  tax  levy  shall be in an amount sufficient to
32    repay the emergency financial assistance under the terms  and
33    conditions  set  by  the  Panel  and  approved  by  the State
34    Superintendent.  Notwithstanding any law to the contrary, the
 
                            -19-             LRB9201505LDpram
 1    separate  tax  levy  for   emergency   financial   assistance
 2    repayment shall not be subject to referendum approval.
 3        The  changes  made to this Section by this amendatory Act
 4    of the 92nd General Assembly apply to all Financial Oversight
 5    Panels, whether created before, on, or  after  the  effective
 6    date of this amendatory Act.
 7        In   establishing   the  terms  and  conditions  for  the
 8    repayment obligation of the school district the  Panel  shall
 9    annually determine whether a separate local property tax levy
10    is  required.   The  board  of any school district with a tax
11    rate for educational purposes for the prior year of less than
12    120% of the maximum rate for educational purposes  authorized
13    by  Section  17-2  shall  provide for a separate tax levy for
14    emergency financial assistance repayment purposes.  Such  tax
15    levy shall not be subject to referendum approval.  The amount
16    of  the  levy  shall be equal to the amount necessary to meet
17    the  annual  repayment  obligations  of   the   district   as
18    established  by  the  Panel,  or 20% of the amount levied for
19    educational purposes for the prior year, whichever  is  less.
20    However, no district shall be required to levy the tax if the
21    district's  operating  tax  rate  as determined under Section
22    18-8 or 18-8.05 exceeds 200% of the district's tax  rate  for
23    educational purposes for the prior year.
24    (Source: P.A. 90-548, eff. 1-1-98; 90-802, eff. 12-15-98.)

25        (105 ILCS 5/2-3.12) (from Ch. 122, par. 2-3.12)
26        Sec. 2-3.12.  School building code. To prepare for school
27    boards  with  the  advice of the Department of Public Health,
28    the Capital Development Board, and the State Fire  Marshal  a
29    school building code that will conserve the health and safety
30    and  general  welfare  of the pupils and school personnel and
31    others who use public school facilities.
32        The document known as "Efficient and  Adequate  Standards
33    for  the  Construction  of Schools" applies only to temporary
 
                            -20-             LRB9201505LDpram
 1    school facilities, new school  buildings,  and  additions  to
 2    existing  schools  whose  construction  contracts are awarded
 3    after July 1, 1965.  On or before July 1, 1967,  each  school
 4    board  shall  have  its  school  district buildings that were
 5    constructed  prior  to  January  1,  1955,  surveyed  by   an
 6    architect or engineer licensed in the State of Illinois as to
 7    minimum standards necessary to conserve the health and safety
 8    of  the  pupils  enrolled  in  the  school  buildings  of the
 9    district.  Buildings constructed between January 1, 1955  and
10    July  1,  1965,  not owned by the State of Illinois, shall be
11    surveyed by an architect or engineer licensed in the State of
12    Illinois beginning 10 years after acceptance of the completed
13    building by the school board.  Buildings constructed  between
14    January  1, 1955 and July 1, 1955 and previously exempt under
15    the provisions of Section 35-27 shall be  surveyed  prior  to
16    July  1,  1977  by  an  architect or engineer licensed in the
17    State of Illinois.  The  architect  or  engineer,  using  the
18    document  known  as  "Building  Specifications for Health and
19    Safety in Public Schools" as a guide, shall make a report  of
20    the  findings  of  the  survey  to  the  school board, giving
21    priority  in  that  report  to  fire  safety   problems   and
22    recommendations  thereon  if  any  such  problems exist.  The
23    school board of each district so  surveyed  and  receiving  a
24    report  of  needed  recommendations  to  be  made  to improve
25    standards of safety and health of  the  pupils  enrolled  has
26    until  July 1, 1970, or in case of buildings not owned by the
27    State of Illinois and completed between January 1,  1955  and
28    July  1,  1965  or in the case of buildings previously exempt
29    under the provisions of Section 35-27 has a period of 3 years
30    after  the  survey  is   commenced,   to   effectuate   those
31    recommendations,    giving    first    attention    to    the
32    recommendations  in the survey report having priority status,
33    and is authorized to levy the tax  provided  for  in  Section
34    17-2.11, according to the provisions of that Section, to make
 
                            -21-             LRB9201505LDpram
 1    such  improvements.  School boards unable to effectuate those
 2    recommendations prior to July 1, 1970, on July 1, 1980 in the
 3    case of buildings previously exempt under the  provisions  of
 4    Section  35-27,  may  petition  the  State  Superintendent of
 5    Education   upon   the   recommendation   of   the   Regional
 6    Superintendent for an extension of time.   The  extension  of
 7    time  may be granted by the State Superintendent of Education
 8    for a period of one year, but may be extended  from  year  to
 9    year  provided  substantial  progress,  in the opinion of the
10    State Superintendent  of  Education,  is  being  made  toward
11    compliance.
12        Within   2   years  after  the  effective  date  of  this
13    amendatory Act of 1983, and every 10 years thereafter, or  at
14    such  other  times  as  the  State  Board  of Education deems
15    necessary or the  regional  superintendent  so  orders,  each
16    school  board subject to the provisions of this Section shall
17    again  survey  its  school  buildings  and   effectuate   any
18    recommendations  in  accordance with the procedures set forth
19    herein. An architect or engineer licensed  in  the  State  of
20    Illinois  is  required  to  conduct  the  surveys  under  the
21    provisions  of  this  Section  and shall make a report of the
22    findings of the survey titled "safety survey report"  to  the
23    school  board.   The  school  board  shall approve the safety
24    survey report, including any  recommendations  to  effectuate
25    compliance  with  the  code,  and  submit  it to the Regional
26    Superintendent.  The Regional Superintendent shall  render  a
27    decision  regarding  approval or denial and submit the safety
28    survey report to the State Superintendent of Education.   The
29    State  Superintendent  of Education shall approve or deny the
30    report including  recommendations  to  effectuate  compliance
31    with  the  code  and,  if  approved,  issue  a certificate of
32    approval. Upon receipt of the certificate  of  approval,  the
33    Regional  Superintendent  shall  issue an order to effect any
34    approved recommendations included in the  report.   Items  in
 
                            -22-             LRB9201505LDpram
 1    the  report  shall  be  prioritized.   Urgent  items shall be
 2    considered as those items related  to  life  safety  problems
 3    that  present  an immediate hazard to the safety of students.
 4    Required items shall be considered as those  items  that  are
 5    necessary  for  a  safe  environment  but  present less of an
 6    immediate hazard  to  the  safety  of  students.  Urgent  and
 7    required items shall be defined in rules adopted by the State
 8    Board of Education. Urgent and required items shall reference
 9    a  specific  rule in the code authorized by this Section that
10    is currently being violated or will be  violated  within  the
11    next  12 months if the violation is not remedied.  The school
12    board of each district so surveyed and receiving a report  of
13    needed  recommendations  to  be made to maintain standards of
14    safety and health of the pupils enrolled shall effectuate the
15    correction of urgent items as soon as  achievable  to  ensure
16    the safety of the students, but in no case more than one year
17    after  the  date  of  the State Superintendent of Education's
18    approval of the recommendation.    Required  items  shall  be
19    corrected  in  a  timely manner, but in no case more than 3 5
20    years  from  the  date  of  the   State   Superintendent   of
21    Education's  approval  of the recommendation.  Once each year
22    the school  board  shall  submit  a  report  of  progress  on
23    completion  of  any  recommendations to effectuate compliance
24    with the code.  For each year that the school board does  not
25    effectuate  any  or  all  approved  recommendations, it shall
26    petition  the   Regional   Superintendent   and   the   State
27    Superintendent of Education detailing what work was completed
28    in  the  previous  year and a work plan for completion of the
29    remaining  work.   If  in  the  judgement  of  the   Regional
30    Superintendent  and  the  State  Superintendent  of Education
31    substantial progress has been made and just  cause  has  been
32    shown  by  the  school  board,  the  petition  for a one year
33    extension of time may be approved.
34        As soon as practicable, but not later than 2 years  after
 
                            -23-             LRB9201505LDpram
 1    the  effective date of this amendatory Act of 1992, the State
 2    Board of  Education  shall  combine  the  document  known  as
 3    "Efficient  and  Adequate  Standards  for the Construction of
 4    Schools" with the document known as "Building  Specifications
 5    for  Health  and  Safety in Public Schools" together with any
 6    modifications or additions that may be deemed necessary.  The
 7    combined document shall be known as the  "Health/Life  Safety
 8    Code  for Public Schools" and shall be the governing code for
 9    all facilities that  house  public  school  students  or  are
10    otherwise  used  for  public  school  purposes,  whether such
11    facilities are permanent or temporary and  whether  they  are
12    owned,  leased,  rented,  or  otherwise used by the district.
13    Facilities owned by a school district but that are  not  used
14    to  house  public  school students or are not used for public
15    school purposes shall  be  governed  by  separate  provisions
16    within the code authorized by this Section.
17        The  10 year survey cycle specified in this Section shall
18    continue to apply based upon the standards contained  in  the
19    "Health/Life  Safety  Code  for  Public Schools", which shall
20    specify building standards for buildings that are constructed
21    prior to the effective date of this amendatory  Act  of  1992
22    and for buildings that are constructed after that date.
23        The "Health/Life Safety Code for Public Schools" shall be
24    the   governing   code   for  public  schools;  however,  the
25    provisions of this Section shall not preclude  inspection  of
26    school  premises  and  buildings pursuant to Section 9 of the
27    Fire Investigation Act, provided that the provisions  of  the
28    "Health/Life   Safety  Code  for  Public  Schools",  or  such
29    predecessor document authorized by this  Section  as  may  be
30    applicable  are used, and provided that those inspections are
31    coordinated   with   the   Regional   Superintendent   having
32    jurisdiction over the public  school  facility.   Any  agency
33    having  jurisdiction  beyond  the  scope  of  the  applicable
34    document  authorized by this Section may issue a lawful order
 
                            -24-             LRB9201505LDpram
 1    to a school board  to  effectuate  recommendations,  and  the
 2    school  board  receiving  the  order  shall  certify  to  the
 3    Regional  Superintendent  and  the  State  Superintendent  of
 4    Education when it has complied with the order.
 5        The  State  Board of Education is authorized to adopt any
 6    rules that are necessary relating to the  administration  and
 7    enforcement  of  the  provisions  of  this Section.  The code
 8    authorized by this Section shall apply only to  those  school
 9    districts   having   a   population   of  less  than  500,000
10    inhabitants.
11    (Source: P.A. 89-397, eff. 8-20-95; 90-811, eff. 1-26-99.)

12        (105 ILCS 5/10-22.14) (from Ch. 122, par. 10-22.14)
13        Sec. 10-22.14. Borrowing  money  and  issuing  bonds.  To
14    borrow  money,  and  issue  bonds for the purposes and in the
15    manner provided by this Act.
16        When bond proceeds from  the  sale  of  bonds  include  a
17    premium,  or  when  the proceeds of bonds issued for the fire
18    prevention, safety, energy conservation, and school  security
19    purposes  as  specified  in  Section  17-2.11 are invested as
20    authorized by law, the board shall  determine  by  resolution
21    whether  the  interest  earned  on  the  investment  of  bond
22    proceeds  authorized  under  Section  17-2.11  or the premium
23    realized in the sale of bonds, as the case may be, is  to  be
24    used  for  the  purposes  for which the bonds were issued or,
25    instead,  for  payment  of  the  principal  indebtedness  and
26    interest on those bonds.
27        When  bonds,  other  than  bonds  issued  for  the   fire
28    prevention,  safety, energy conservation, and school security
29    purposes as specified in Section 17-2.11 are  issued  by  any
30    school  district,  and  the purposes for which the bonds have
31    been issued are accomplished and paid for in full, and  there
32    remain  funds  on  hand  from  the  proceeds  of the bonds so
33    issued, the board by resolution  may  transfer  those  excess
 
                            -25-             LRB9201505LDpram
 1    funds to the operations and maintenance fund.
 2        When bonds are issued by any school district for the fire
 3    prevention,  safety, energy conservation, and school security
 4    purposes as specified in Section 17-2.11,  and  the  purposes
 5    for  which  the  bonds  have been issued are accomplished and
 6    paid in full,  and  there  remain  funds  on  hand  from  the
 7    proceeds  of  the bonds issued, the board by resolution shall
 8    use  those  excess  funds  (1)  for  other  authorized   fire
 9    prevention,  safety, energy conservation, and school security
10    purposes as specified in Section 17-2.11 or (2) for  transfer
11    to  the  Bond  and Interest Fund for payment of principal and
12    interest on those bonds.  If any transfer is made to the Bond
13    and Interest Fund, the secretary of the  school  board  shall
14    within  30 days notify the county clerk of the amount of that
15    transfer and direct the  clerk  to  abate  the  taxes  to  be
16    extended  for the purposes of principal and interest payments
17    on the respective bonds issued under Section  17-2.11  by  an
18    amount equal to such transfer.
19    (Source: P.A. 86-970; 87-984.)

20        (105 ILCS 5/17-2.2) (from Ch. 122, par. 17-2.2)
21        Sec. 17-2.2.  Backdoor Back door referendum. Whenever any
22    school district first levies a tax at a rate within the limit
23    prescribed  by paragraph (3) of Section 17-2 but in excess of
24    the maximum permissible on July 9, 1957, or within the  limit
25    prescribed  by  paragraph  (1)  or (2) of Section 17-2 but in
26    excess of the  maximum  permissible  on  June  30,  1965,  or
27    whenever after August 3, 1989 any school district maintaining
28    only  grades  kindergarten  through  8 first levies a tax for
29    transportation purposes for any school year which  is  within
30    the limit prescribed for that school year by paragraph (5) of
31    Section  17-2  but  in excess of the maximum authorized to be
32    levied for such purposes for  the  1988-89  school  year,  or
33    whenever  after  August  3,  1989  any  school district first
 
                            -26-             LRB9201505LDpram
 1    levies a tax for operations and maintenance purposes for  any
 2    school  year  which  is  within the limit prescribed for that
 3    school year by paragraph (3) of Section 17-2 but in excess of
 4    the maximum authorized to be levied for such purposes for the
 5    immediately preceding school year,  or  whenever  a  backdoor
 6    referendum  is  required  under Section 17-2.11, the district
 7    shall cause to be published a notice of the proposed tax levy
 8    such  resolution  in  at  least  one  newspaper  of   general
 9    circulation  or  more  newspapers  published in the district,
10    within  10  days  after  such  levy  is  made.   The   notice
11    publication  of  the resolution shall include a notice of (1)
12    the specific number of voters required  to  sign  a  petition
13    requesting  that the question of the adoption of the tax levy
14    be submitted to the voters of the district; (2) the  time  in
15    which  the  petition  must  be filed; and (3) the date of the
16    prospective referendum.  The district Secretary shall provide
17    a petition form to any individual requesting one.  Any person
18    taxpayer in such district may, within 30 days after such levy
19    is made, file with the Secretary of the board of education  a
20    petition signed by the voters of the district equal to 10% or
21    more  of the registered voters of the district requesting the
22    submission to a referendum of the following proposition:
23        "Shall school district No..... be authorized  to  levy  a
24    tax  for  (state  purposes)  (in  excess  of....  but  not to
25    exceed....) or (at a rate not to exceed...%) as authorized in
26    Section.... 17-2 of the School Code?" The  secretary  of  the
27    board  of  education  shall  certify  the  proposition to the
28    proper election authorities for submission to the  electorate
29    at  a  regular  scheduled  election  in  accordance  with the
30    general election law.
31        If a majority of the voters  voting  on  the  proposition
32    vote in favor thereof, such increased tax shall thereafter be
33    authorized;  if  a  majority  of  the  vote  is  against such
34    proposition, the previous maximum rate  authorized,  if  any,
 
                            -27-             LRB9201505LDpram
 1    shall remain in effect until changed by law.
 2    (Source: P.A. 86-128; 86-134; 86-1028; 86-1334; 87-767.)

 3        (105 ILCS 5/17-2.11) (from Ch. 122, par. 17-2.11)
 4        Sec.  17-2.11.  School  board  power  to levy a tax or to
 5    borrow money and issue bonds  for  fire  prevention,  safety,
 6    energy conservation, disabled accessibility, school security,
 7    and  specified  repair purposes. Whenever, as a result of any
 8    lawful order of any agency, other than a school board, having
 9    authority to enforce any school building code  applicable  to
10    any  facility  that houses students, or any law or regulation
11    for the protection and safety of the environment, pursuant to
12    the Environmental Protection Act, any school district  having
13    a  population of less than 500,000 inhabitants is required to
14    alter,  repair,  or  reconstruct  any  school   building   or
15    permanent,  fixed  equipment;  or  whenever any such district
16    determines that  it  is  necessary  for  energy  conservation
17    purposes   that  any  school  building  or  permanent,  fixed
18    equipment should be altered or reconstructed  and  that  such
19    alterations  or  reconstruction  will  be made with funds not
20    necessary for the  completion  of  approved  and  recommended
21    projects  contained in any safety survey report or amendments
22    thereto authorized by Section 2-3.12 of this Act; or whenever
23    any  such  district  determines  that  it  is  necessary  for
24    disabled accessibility purposes and to comply with the school
25    building code that any school building or equipment should be
26    altered  or  reconstructed  and  that  such  alterations   or
27    reconstruction  will be made with funds not necessary for the
28    completion of approved and recommended projects contained  in
29    any  safety  survey  report  or amendments thereto authorized
30    under Section 2-3.12  of  this  Act;  or  whenever  any  such
31    district  determines that it is necessary for school security
32    purposes and the related protection and safety of pupils  and
33    school  personnel that any school building or property should
 
                            -28-             LRB9201505LDpram
 1    be altered or reconstructed  or  that  security  systems  and
 2    equipment  (including  but  not  limited  to  intercom, early
 3    detection  and  warning,  access   control   and   television
 4    monitoring  systems)  should  be purchased and installed, and
 5    that  such  alterations,  reconstruction  or   purchase   and
 6    installation  of  equipment  will  be  made  with  funds  not
 7    necessary  for  the  completion  of  approved and recommended
 8    projects contained in any safety survey report  or  amendment
 9    thereto  authorized  by  Section  2-3.12 of this Act and will
10    deter and  prevent  unauthorized  entry  or  activities  upon
11    school property by unknown or dangerous persons, assure early
12    detection and advance warning of any such actual or attempted
13    unauthorized   entry   or  activities  and  help  assure  the
14    continued safety of pupils  and  school  staff  if  any  such
15    unauthorized  entry or activity is attempted or occurs; or if
16    a  school  district  does  not  need  funds  for  other  fire
17    prevention and safety projects, including the  completion  of
18    approved  and  recommended  projects  contained in any safety
19    survey report or amendments  thereto  authorized  by  Section
20    2-3.12  of  this  Act,  and  it  is determined after a public
21    hearing (which is preceded by at least one  published  notice
22    (i)  occurring  at  least  7  days  prior to the hearing in a
23    newspaper of general circulation within the  school  district
24    and  (ii)  setting  forth  the time, date, place, and general
25    subject matter of the hearing) that there is  a  substantial,
26    immediate,  and  otherwise  unavoidable threat to the health,
27    safety, or welfare of  pupils  due  to  disrepair  of  school
28    sidewalks,   playgrounds,   parking   lots,   or  school  bus
29    turnarounds and repairs must  be  made:   then  in  any  such
30    event,  such  district  may, by proper resolution, levy a tax
31    for  the  purpose  of  making  such  alteration,  repair,  or
32    reconstruction, based on a survey report by an  architect  or
33    engineer  licensed  in  the  State  of Illinois, upon all the
34    taxable property of the district at the value as assessed  by
 
                            -29-             LRB9201505LDpram
 1    the  Department  of Revenue at a rate not to exceed 0.15% for
 2    elementary and high  school  districts  and  0.30%  for  unit
 3    districts  .05%  per  year for a period sufficient to finance
 4    such  alterations,  repairs,  or  reconstruction,  upon   the
 5    following conditions:
 6             (a)  When  there  are not sufficient funds available
 7        in either the operations  and  maintenance  fund  of  the
 8        district  or  the  fire prevention and safety fund of the
 9        district as determined by the district on  the  basis  of
10        regulations  adopted  by  the State Board of Education to
11        make such alterations, repairs, or reconstruction, or  to
12        purchase  and  install  such permanent fixed equipment so
13        ordered or determined as  necessary.  Appropriate  school
14        district  records  shall  be  made available to the State
15        Superintendent of Education upon request to confirm  such
16        insufficiency.
17             (b)  When  a  certified  estimate of an architect or
18        engineer licensed in the State of  Illinois  stating  the
19        estimated  amount  necessary  to make the alterations, or
20        repairs, reconstruction or to purchase and  install  such
21        equipment  so  ordered  has been secured by the district,
22        and the  estimate  has  been  approved  by  the  regional
23        superintendent  of  schools,  having  jurisdiction of the
24        district, and  the  State  Superintendent  of  Education.
25        Approval  shall  not  be  granted  for  any work that has
26        already started without the prior  express  authorization
27        of  the  State  Superintendent  of  Education.   If  such
28        estimate  is  not  approved  or  denied  approval  by the
29        regional superintendent of schools within 3 months  after
30        the  date  on  which  it  is submitted to him or her, the
31        school board of the district  may  submit  such  estimate
32        directly  to  the  State  Superintendent of Education for
33        approval or denial.
34             (c)  Whenever  a  school  district  subject  to  the
 
                            -30-             LRB9201505LDpram
 1        Property Tax Extension Limitation Law  first  levies  the
 2        tax  at  a  rate  permitted by this amendatory Act of the
 3        92nd General  Assembly  but  in  excess  of  its  maximum
 4        permissible  rate  for  that purpose immediately prior to
 5        the effective date of this amendatory  Act  of  the  92nd
 6        General Assembly, the rate increase shall be subject to a
 7        backdoor  referendum  using  the  procedures  provided in
 8        Section 17-2.2 of this Code,  except  that  the  backdoor
 9        referendum  shall  be  required  if  the petition for the
10        backdoor referendum is  signed  by  5%  or  more  of  the
11        registered voters of the district.
12        For  purposes  of  this  Section  a  school  district may
13    replace a school  building  or  build  additions  to  replace
14    portions  of  a  building  when  it  is  determined  that the
15    effectuation of the recommendations for the existing building
16    will  cost   more   than   the   replacement   costs.    Such
17    determination  shall  be  based  on a comparison of estimated
18    costs made by an architect or engineer licensed in the  State
19    of   Illinois.    The  new  building  or  addition  shall  be
20    equivalent in area (square feet) and  comparable  in  purpose
21    and  grades  served  and  may  be on the same site or another
22    site.  Such replacement may only be done upon  order  of  the
23    regional  superintendent  of  schools and the approval of the
24    State Superintendent of Education.
25        The filing of a certified copy of the resolution  levying
26    the  tax when accompanied by the certificates of the regional
27    superintendent  of  schools  and  State   Superintendent   of
28    Education  shall  be  the  authority  of  the county clerk to
29    extend such tax.
30        The county clerk  of  the  county  in  which  any  school
31    district levying a tax under the authority of this Section is
32    located,  in  reducing  raised levies, shall not consider any
33    such tax as a part of the general levy  for  school  purposes
34    and shall not include the same in the limitation of any other
 
                            -31-             LRB9201505LDpram
 1    tax rate which may be extended.
 2        Such  tax shall be levied and collected in like manner as
 3    all  other  taxes  of  school  districts,  subject   to   the
 4    provisions contained in this Section.
 5        The  tax  rate  limit  specified  in  this Section may be
 6    increased to .10% upon  the  approval  of  a  proposition  to
 7    effect  such increase by a majority of the electors voting on
 8    that  proposition  at  a  regular  scheduled  election.  Such
 9    proposition may be initiated  by  resolution  of  the  school
10    board  and  shall be certified by the secretary to the proper
11    election authorities for submission in  accordance  with  the
12    general election law.
13        When taxes are levied by any school district for the fire
14    prevention,  safety, energy conservation, and school security
15    purposes as specified in this Section, and the  purposes  for
16    which the taxes have been levied are accomplished and paid in
17    full,  and  there remain funds on hand in the Fire Prevention
18    and Safety Fund  from  the  proceeds  of  the  taxes  levied,
19    including  interest  earnings  thereon,  the  school board by
20    resolution shall use such excess and other  board  restricted
21    funds excluding bond proceeds and earnings from such proceeds
22    (1)  for  other  authorized  fire  prevention, safety, energy
23    conservation,  and  school  security  purposes  or  (2)   for
24    transfer  to  the  Operations  and  Maintenance  Fund for the
25    purpose  of  abating  an  equal  amount  of  operations   and
26    maintenance  purposes  taxes.  If any transfer is made to the
27    Operation and Maintenance Fund, the secretary of  the  school
28    board  shall  within  30  days notify the county clerk of the
29    amount of that transfer and direct the  clerk  to  abate  the
30    taxes  to  be  extended  for  the  purposes of operations and
31    maintenance authorized under Section 17-2 of this Act  by  an
32    amount equal to such transfer.
33        If  the  proceeds  from  the  tax levy authorized by this
34    Section are insufficient to complete the work approved  under
 
                            -32-             LRB9201505LDpram
 1    this  Section,  the  school board is authorized to sell bonds
 2    without referendum under the provisions of this Section in an
 3    amount that, when added to  the  proceeds  of  the  tax  levy
 4    authorized  by  this  Section,  will  allow completion of the
 5    approved work, provided that a district that  is  subject  to
 6    the  Property  Tax  Extension Limitation Law shall submit the
 7    authorization to a backdoor referendum as  provided  in  this
 8    Section.   No school district that is subject to the Property
 9    Tax Extension Limitation  Law  may  issue  bonds  under  this
10    Section unless it adopts a resolution declaring its intention
11    to  issue  bonds and directs that notice of this intention be
12    published at least once in a newspaper of general circulation
13    in  the  district.   The  notice  shall  set  forth  (i)  the
14    intention of the district to issue bonds in  accordance  with
15    this  Section,  (ii)  the time within which a petition may be
16    filed  requesting  the  submission  to  the  voters  of   the
17    proposition  to issue the bonds, (iii) the specific number of
18    voters required to sign the petition, and (iv)  the  date  of
19    the  prospective  referendum.   At the time of publication of
20    the notice and for 30 days thereafter, the secretary  of  the
21    district  shall  provide  a  petition  form to any individual
22    requesting one.  If within 30 days after  the  publication  a
23    petition  is filed with the secretary of the district, signed
24    by the voters of the district equal to  5%  or  more  of  the
25    registered   voters  of  the  district  requesting  that  the
26    proposition to issue bonds as authorized by this  Section  be
27    submitted  to the voters thereof, then the district shall not
28    be authorized to issue the bonds until  the  proposition  has
29    been  certified  to  the  proper election authorities and has
30    been submitted to and approved by a majority  of  the  voters
31    voting  on the proposition at a regular scheduled election in
32    accordance  with  the  general  election  law.   If  no  such
33    petition is filed, or if any  and  all  petitions  filed  are
34    invalid, the district may issue the bonds.
 
                            -33-             LRB9201505LDpram
 1        Such  bonds  shall  bear interest at a rate not to exceed
 2    the maximum rate authorized by law at the time of the  making
 3    of  the contract, shall mature within 20 years from date, and
 4    shall be signed by the president of the school board and  the
 5    treasurer of the school district. Such bonds issued after the
 6    effective  date  of  this  amendatory Act of the 92nd General
 7    Assembly and any bonds issued to  refund  such  bonds  issued
 8    after  the  effective date of this amendatory Act of the 92nd
 9    General Assembly shall not be considered debt for purposes of
10    any statutory debt limitation.
11        In order to authorize and issue such  bonds,  the  school
12    board  shall  adopt  a resolution fixing the amount of bonds,
13    the date thereof, the maturities thereof, rates  of  interest
14    thereof, place of payment and denomination, which shall be in
15    denominations of not less than $100 and not more than $5,000,
16    and  provide  for  the levy and collection of a direct annual
17    tax upon all the taxable  property  in  the  school  district
18    sufficient to pay the principal and interest on such bonds to
19    maturity.   Upon the filing in the office of the county clerk
20    of the county in which the school district is  located  of  a
21    certified  copy  of  the  resolution,  it  is the duty of the
22    county clerk to extend the tax therefor in addition to and in
23    excess of all other taxes heretofore or hereafter  authorized
24    to be levied by such school district.
25        After  the  time such bonds are issued as provided for by
26    this  Section,  if  additional   alterations,   repairs,   or
27    reconstructions  are  required  to be made because of surveys
28    conducted by an architect or engineer licensed in  the  State
29    of  Illinois,  the  district  may levy a tax at a rate not to
30    exceed the rate permitted by this Section .05% per year  upon
31    all  the taxable property of the district or issue additional
32    bonds, whichever action shall be the most feasible.
33        This  Section  is  cumulative  and  constitutes  complete
34    authority for the issuance  of  bonds  as  provided  in  this
 
                            -34-             LRB9201505LDpram
 1    Section  notwithstanding  any  other  statute  or  law to the
 2    contrary.
 3        With respect to instruments  for  the  payment  of  money
 4    issued  under  this  Section  either before, on, or after the
 5    effective date of Public Act 86-004 (June 6,  1989),  it  is,
 6    and  always  has  been, the intention of the General Assembly
 7    (i) that the Omnibus Bond Acts are,  and  always  have  been,
 8    supplementary   grants  of  power  to  issue  instruments  in
 9    accordance with the Omnibus  Bond  Acts,  regardless  of  any
10    provision  of  this Act that may appear to be or to have been
11    more restrictive than those Acts, (ii) that the provisions of
12    this Section  are  not  a  limitation  on  the  supplementary
13    authority  granted  by  the Omnibus Bond Acts, and (iii) that
14    instruments   issued   under   this   Section   within    the
15    supplementary  authority granted by the Omnibus Bond Acts are
16    not invalid because of any provision of  this  Act  that  may
17    appear  to  be  or  to  have been more restrictive than those
18    Acts.
19        When the purposes for which the  bonds  are  issued  have
20    been accomplished and paid for in full and there remain funds
21    on  hand  from  the  proceeds  of  the bond sale and interest
22    earnings therefrom, the board shall, by resolution, use  such
23    excess  funds  in  accordance  with the provisions of Section
24    10-22.14 of this Act.
25        Whenever any tax is levied or  bonds  issued  under  this
26    Section,    the   for   fire   prevention,   safety,   energy
27    conservation, and school  security  purposes,  such  proceeds
28    shall  be  deposited  and accounted for separately within the
29    Fire Prevention and Safety Fund.
30    (Source: P.A. 88-251; 88-508; 88-628,  eff.  9-9-94;  88-670,
31    eff. 12-2-94; 89-235, eff. 8-4-95; 89-397, eff. 8-20-95.)

32        (105 ILCS 5/19-1) (from Ch. 122, par. 19-1)
33        Sec. 19-1.  Debt limitations of school districts.
 
                            -35-             LRB9201505LDpram
 1        (a)  School   districts  shall  not  be  subject  to  the
 2    provisions limiting  their  indebtedness  prescribed  in  the
 3    Local  Government  Debt  Limitation  Act "An Act to limit the
 4    indebtedness of counties having a  population  of  less  than
 5    500,000  and  townships, school districts and other municipal
 6    corporations having  a  population  of  less  than  300,000",
 7    approved February 15, 1928, as amended.
 8        No  school  districts maintaining grades K through 8 or 9
 9    through 12 shall become indebted in any  manner  or  for  any
10    purpose to an amount, including existing indebtedness, in the
11    aggregate  exceeding  9.0%  of 6.9% on the equalized assessed
12    value of the taxable property therein to  be  ascertained  by
13    the  last  assessment  for  State  and county taxes or, until
14    January 1, 1983, if greater, the  sum  that  is  produced  by
15    multiplying  the  school  district's  1978 equalized assessed
16    valuation by the debt  limitation  percentage  in  effect  on
17    January   1,   1979,   previous  to  the  incurring  of  such
18    indebtedness.
19        No school districts maintaining grades K through 12 shall
20    become indebted in any  manner  or  for  any  purpose  to  an
21    amount,  including  existing  indebtedness,  in the aggregate
22    exceeding 18.0% of 13.8% on the equalized assessed  value  of
23    the  taxable  property  therein to be ascertained by the last
24    assessment for State and county taxes or,  until  January  1,
25    1983, if greater, the sum that is produced by multiplying the
26    school  district's  1978  equalized assessed valuation by the
27    debt limitation percentage in  effect  on  January  1,  1979,
28    previous to the incurring of such indebtedness.
29        Notwithstanding  the  provisions  of any other law to the
30    contrary, in any  case  in  which  the  voters  of  a  school
31    district  have  approved  a  proposition  for the issuance of
32    bonds of such school district at an election  held  prior  to
33    January  1,  1979,  and  all  of  the  bonds approved at such
34    election have not been issued, the debt limitation applicable
 
                            -36-             LRB9201505LDpram
 1    to such school district during the calendar year  1979  shall
 2    be  computed  by  multiplying  the  value of taxable property
 3    therein, including personal property, as ascertained  by  the
 4    last  assessment  for State and county taxes, previous to the
 5    incurring of such indebtedness, by the percentage  limitation
 6    applicable  to  such  school district under the provisions of
 7    this subsection (a).
 8        (b)  Notwithstanding the debt  limitation  prescribed  in
 9    subsection  (a)  of this Section, additional indebtedness may
10    be incurred in an amount not to exceed the estimated cost  of
11    acquiring  or  improving  school  sites  or  constructing and
12    equipping additional building facilities under the  following
13    conditions:
14             (1)  Whenever  the  enrollment  of  students for the
15        next school year is estimated by the board  of  education
16        to  increase  over  the  actual present enrollment by not
17        less than 35% or by not less than  200  students  or  the
18        actual  present enrollment of students has increased over
19        the previous school year by not less than 35% or  by  not
20        less  than  200  students  and  the  board  of  education
21        determines  that  additional  school  sites  or  building
22        facilities  are  required as a result of such increase in
23        enrollment; and
24             (2)  When the  Regional  Superintendent  of  Schools
25        having  jurisdiction  over  the  school  district and the
26        State  Superintendent  of  Education   concur   in   such
27        enrollment  projection  or  increase and approve the need
28        for such additional school sites or  building  facilities
29        and the estimated cost thereof; and
30             (3)  When  the voters in the school district approve
31        a proposition for the issuance of bonds for  the  purpose
32        of  acquiring  or  improving  such needed school sites or
33        constructing  and  equipping   such   needed   additional
34        building  facilities  at  an election called and held for
 
                            -37-             LRB9201505LDpram
 1        that purpose. Notice of such an election shall state that
 2        the amount of indebtedness proposed to be incurred  would
 3        exceed  the  debt  limitation otherwise applicable to the
 4        school district.  The ballot for such  proposition  shall
 5        state what percentage of the equalized assessed valuation
 6        will  be outstanding in bonds if the proposed issuance of
 7        bonds is approved by the voters; or
 8             (4)  Notwithstanding the  provisions  of  paragraphs
 9        (1)  through  (3)  of  this subsection (b), if the school
10        board determines that additional facilities are needed to
11        provide a quality educational program and not  less  than
12        2/3  of  those voting in an election called by the school
13        board on the question approve the issuance of  bonds  for
14        the  construction of such facilities, the school district
15        may issue bonds for this purpose; or
16             (5)  Notwithstanding the  provisions  of  paragraphs
17        (1) through (3) of this subsection (b), if (i) the school
18        district  has previously availed itself of the provisions
19        of paragraph (4) of this subsection (b) to enable  it  to
20        issue  bonds, (ii) the voters of the school district have
21        not defeated a proposition  for  the  issuance  of  bonds
22        since  the  referendum described in paragraph (4) of this
23        subsection  (b)  was  held,  (iii)   the   school   board
24        determines  that  additional  facilities  are  needed  to
25        provide   a  quality  educational  program,  and  (iv)  a
26        majority of those voting in an  election  called  by  the
27        school  board  on  the  question  approve the issuance of
28        bonds for the construction of such facilities, the school
29        district may issue bonds for this purpose.
30        In no event shall the indebtedness incurred  pursuant  to
31    this  subsection  (b)  and  the  existing indebtedness of the
32    school district exceed 20%  15%  of  the  equalized  assessed
33    value  of  the  taxable property therein to be ascertained by
34    the last assessment for State and county taxes,  previous  to
 
                            -38-             LRB9201505LDpram
 1    the incurring of such indebtedness or, until January 1, 1983,
 2    if  greater,  the  sum  that  is  produced by multiplying the
 3    school district's 1978 equalized assessed  valuation  by  the
 4    debt limitation percentage in effect on January 1, 1979.
 5        The  indebtedness  provided  for  by  this subsection (b)
 6    shall be in addition to and  in  excess  of  any  other  debt
 7    limitation.
 8        (c)  Notwithstanding  the  debt  limitation prescribed in
 9    subsection (a) of this Section, in any case in which a public
10    question for the issuance  of  bonds  of  a  proposed  school
11    district  maintaining grades kindergarten through 12 received
12    at least 60% of the valid ballots cast on the question at  an
13    election  held  on or prior to November 8, 1994, and in which
14    the bonds approved at such election have not been issued, the
15    school district  pursuant  to  the  requirements  of  Section
16    11A-10  may  issue the total amount of bonds approved at such
17    election for the purpose stated in the question.
18        (d)  Notwithstanding the debt  limitation  prescribed  in
19    subsection  (a) of this Section, a school district that meets
20    all the criteria set forth in paragraphs (1) and (2) of  this
21    subsection  (d)  may  incur  an additional indebtedness in an
22    amount not to exceed $4,500,000, even though  the  amount  of
23    the  additional  indebtedness  authorized  by this subsection
24    (d), when incurred and  added  to  the  aggregate  amount  of
25    indebtedness  of  the  district existing immediately prior to
26    the district incurring the additional indebtedness authorized
27    by this subsection (d), causes the aggregate indebtedness  of
28    the   district   to  exceed  the  debt  limitation  otherwise
29    applicable to that district under subsection (a):
30             (1)  The additional indebtedness authorized by  this
31        subsection (d) is incurred by the school district through
32        the  issuance  of  bonds  under  and  in  accordance with
33        Section 17-2.11a for the purpose of  replacing  a  school
34        building  which,  because  of mine subsidence damage, has
 
                            -39-             LRB9201505LDpram
 1        been  closed  as  provided  in  paragraph  (2)  of   this
 2        subsection (d) or through the issuance of bonds under and
 3        in  accordance  with  Section  19-3  for  the  purpose of
 4        increasing the  size  of,  or  providing  for  additional
 5        functions  in, such replacement school buildings, or both
 6        such purposes.
 7             (2)  The bonds issued  by  the  school  district  as
 8        provided  in  paragraph  (1)  above  are  issued  for the
 9        purposes of construction by the school district of a  new
10        school  building  pursuant to Section 17-2.11, to replace
11        an  existing  school  building  that,  because  of   mine
12        subsidence damage, is closed as of the end of the 1992-93
13        school   year   pursuant   to   action  of  the  regional
14        superintendent of  schools  of  the  educational  service
15        region  in  which  the  district is located under Section
16        3-14.22 or are issued for the purpose of  increasing  the
17        size  of,  or  providing for additional functions in, the
18        new school building being constructed to replace a school
19        building closed as the result of mine subsidence  damage,
20        or both such purposes.
21        (e)  Notwithstanding  the  debt  limitation prescribed in
22    subsection (a) of this Section, a school district that  meets
23    all  the  criteria set forth in paragraphs (1) through (5) of
24    this  subsection  (e)  may,  without  referendum,  incur   an
25    additional indebtedness in an amount not to exceed the lesser
26    of  $5,000,000 or 1.5% of the equalized assessed value of the
27    taxable property within the district even though  the  amount
28    of  the additional indebtedness authorized by this subsection
29    (e), when incurred and  added  to  the  aggregate  amount  of
30    indebtedness  of  the  district existing immediately prior to
31    the district incurring that additional  indebtedness,  causes
32    the  aggregate  indebtedness  of  the  district  to exceed or
33    increases the amount by which the aggregate  indebtedness  of
34    the  district  already  exceeds the debt limitation otherwise
 
                            -40-             LRB9201505LDpram
 1    applicable to that district under subsection (a):
 2             (1)  The State  Board  of  Education  certifies  the
 3        school  district  under  Section  19-1.5 as a financially
 4        distressed district.
 5             (2)  The additional indebtedness authorized by  this
 6        subsection  (e) is incurred by the financially distressed
 7        district during the school year or school years in  which
 8        the  certification  of  the  district  as  a  financially
 9        distressed  district  continues  in  effect  through  the
10        issuance  of  bonds for the lawful school purposes of the
11        district, pursuant to resolution of the school board  and
12        without  referendum, as provided in paragraph (5) of this
13        subsection.
14             (3)  The aggregate amount of  bonds  issued  by  the
15        financially  distressed  district during a fiscal year in
16        which  it  is  authorized  to  issue  bonds  under   this
17        subsection  does  not  exceed  the  amount  by  which the
18        aggregate expenditures of the  district  for  operational
19        purposes  during  the  immediately  preceding fiscal year
20        exceeds  the  amount  appropriated  for  the  operational
21        purposes of the district  in  the  annual  school  budget
22        adopted  by  the  school  board  of  the district for the
23        fiscal year in which the bonds are issued.
24             (4)  Throughout   each   fiscal   year   in    which
25        certification of the district as a financially distressed
26        district  continues  in effect, the district maintains in
27        effect a gross salary  expense  and  gross  wage  expense
28        freeze  policy  under which the district expenditures for
29        total employee salaries and  wages  do  not  exceed  such
30        expenditures  for  the immediately preceding fiscal year.
31        Nothing in this paragraph, however, shall  be  deemed  to
32        impair  or  to  require  impairment  of  the  contractual
33        obligations,  including collective bargaining agreements,
34        of the district or to impair or require the impairment of
 
                            -41-             LRB9201505LDpram
 1        the vested rights of any employee of the  district  under
 2        the  terms  of any contract or agreement in effect on the
 3        effective date of this amendatory Act of 1994.
 4             (5)  Bonds  issued  by  the  financially  distressed
 5        district under this subsection shall bear interest  at  a
 6        rate  not to exceed the maximum rate authorized by law at
 7        the time of the making  of  the  contract,  shall  mature
 8        within  40  years  from their date of issue, and shall be
 9        signed by the president of the school board and treasurer
10        of the school district.  In order to  issue  bonds  under
11        this   subsection,   the   school  board  shall  adopt  a
12        resolution fixing the amount of the bonds,  the  date  of
13        the  bonds,  the  maturities  of  the bonds, the rates of
14        interest of the bonds, and their  place  of  payment  and
15        denomination,   and   shall  provide  for  the  levy  and
16        collection of a direct annual tax upon  all  the  taxable
17        property  in the district sufficient to pay the principal
18        and interest on the bonds to maturity.  Upon  the  filing
19        in  the office of the county clerk of the county in which
20        the financially  distressed  district  is  located  of  a
21        certified  copy  of the resolution, it is the duty of the
22        county clerk to extend the tax therefor  in  addition  to
23        and  in  excess of all other taxes at any time authorized
24        to be levied by the district.  If bond proceeds from  the
25        sale of bonds include a premium or if the proceeds of the
26        bonds are invested as authorized by law, the school board
27        shall determine by resolution whether the interest earned
28        on  the  investment  of  bond  proceeds  or  the  premium
29        realized  on  the sale of the bonds is to be used for any
30        of the lawful school purposes for which  the  bonds  were
31        issued  or  for the payment of the principal indebtedness
32        and interest on the bonds.  The proceeds of the bond sale
33        shall be deposited in the educational  purposes  fund  of
34        the  district  and  shall  be  used  to  pay  operational
 
                            -42-             LRB9201505LDpram
 1        expenses  of the district.  This subsection is cumulative
 2        and constitutes complete authority for  the  issuance  of
 3        bonds as provided in this subsection, notwithstanding any
 4        other law to the contrary.
 5        (f)  Notwithstanding  the provisions of subsection (a) of
 6    this Section or of any other law, bonds in not to exceed  the
 7    aggregate  amount  of  $5,500,000  and  issued  by  a  school
 8    district   meeting   the  following  criteria  shall  not  be
 9    considered  indebtedness  for  purposes  of   any   statutory
10    limitation  and  may  be  issued  in  an  amount  or amounts,
11    including existing indebtedness, in excess of any  heretofore
12    or hereafter imposed statutory limitation as to indebtedness:
13             (1)  At  the  time  of  the  sale of such bonds, the
14        board of education of the district shall have  determined
15        by  resolution  that  the  enrollment  of students in the
16        district is projected to increase by  not  less  than  7%
17        during each of the next succeeding 2 school years.
18             (2)  The  board of education shall also determine by
19        resolution that the improvements to be financed with  the
20        proceeds of the bonds are needed because of the projected
21        enrollment increases.
22             (3)  The  board of education shall also determine by
23        resolution that the projected increases in enrollment are
24        the result of improvements made or expected to be made to
25        passenger rail facilities located in the school district.
26        (g)  Notwithstanding the provisions of subsection (a)  of
27    this  Section  or  any  other  law, bonds in not to exceed an
28    aggregate amount of 25% of the equalized  assessed  value  of
29    the  taxable  property  of  a school district and issued by a
30    school  district  meeting  the  criteria  in  paragraphs  (i)
31    through (iv) of  this  subsection  shall  not  be  considered
32    indebtedness for purposes of any statutory limitation and may
33    be  issued  pursuant  to resolution of the school board in an
34    amount or amounts, including existing indebtedness, in excess
 
                            -43-             LRB9201505LDpram
 1    of any statutory limitation  of  indebtedness  heretofore  or
 2    hereafter imposed:
 3             (i)  The   bonds  are  issued  for  the  purpose  of
 4        constructing a new high school building  to  replace  two
 5        adjacent existing buildings which together house a single
 6        high school, each of which is more than 65 years old, and
 7        which together are located on more than 10 acres and less
 8        than 11 acres of property.
 9             (ii)  At  the  time  the  resolution authorizing the
10        issuance  of  the  bonds  is   adopted,   the   cost   of
11        constructing   a  new  school  building  to  replace  the
12        existing school building is less than 60% of the cost  of
13        repairing the existing school building.
14             (iii)  The  sale  of the bonds occurs before July 1,
15        1997.
16             (iv)  The school district issuing  the  bonds  is  a
17        unit  school  district  located  in a county of less than
18        70,000 and more than 50,000  inhabitants,  which  has  an
19        average  daily  attendance  of  less  than  1,500  and an
20        equalized assessed valuation of less than $29,000,000.
21        (h)  Notwithstanding any other provisions of this Section
22    or the provisions of any other law, until January 1, 1998,  a
23    community  unit  school district maintaining grades K through
24    12 may issue  bonds  up  to  an  amount,  including  existing
25    indebtedness,  not  exceeding 27.6% of the equalized assessed
26    value of the taxable property in the district, if all of  the
27    following conditions are met:
28             (i)  The  school  district has an equalized assessed
29        valuation  for  calendar   year   1995   of   less   than
30        $24,000,000;
31             (ii)  The   bonds   are   issued   for  the  capital
32        improvement, renovation, rehabilitation,  or  replacement
33        of  existing  school  buildings  of  the district, all of
34        which buildings were originally constructed not less than
 
                            -44-             LRB9201505LDpram
 1        40 years ago;
 2             (iii)  The  voters  of  the   district   approve   a
 3        proposition for the issuance of the bonds at a referendum
 4        held after March 19, 1996; and
 5             (iv)  The bonds are issued pursuant to Sections 19-2
 6        through 19-7 of this Code.
 7        (i)  Notwithstanding any other provisions of this Section
 8    or  the provisions of any other law, until January 1, 1998, a
 9    community unit school district maintaining grades  K  through
10    12  may  issue  bonds  up  to  an  amount, including existing
11    indebtedness, not exceeding 27%  of  the  equalized  assessed
12    value  of the taxable property in the district, if all of the
13    following conditions are met:
14             (i)  The school district has an  equalized  assessed
15        valuation   for   calendar   year   1995   of  less  than
16        $44,600,000;
17             (ii)  The  bonds  are   issued   for   the   capital
18        improvement,  renovation,  rehabilitation, or replacement
19        of existing school buildings  of  the  district,  all  of
20        which  existing buildings were originally constructed not
21        less than 80 years ago;
22             (iii)  The  voters  of  the   district   approve   a
23        proposition for the issuance of the bonds at a referendum
24        held after December 31, 1996; and
25             (iv)  The bonds are issued pursuant to Sections 19-2
26        through 19-7 of this Code.
27        (j)  Notwithstanding any other provisions of this Section
28    or  the provisions of any other law, until January 1, 1999, a
29    community unit school district maintaining grades  K  through
30    12  may  issue  bonds  up  to  an  amount, including existing
31    indebtedness, not exceeding 27%  of  the  equalized  assessed
32    value  of  the taxable property in the district if all of the
33    following conditions are met:
34             (i)  The school district has an  equalized  assessed
 
                            -45-             LRB9201505LDpram
 1        valuation   for   calendar   year   1995   of  less  than
 2        $140,000,000 and a best 3 months average daily attendance
 3        for the 1995-96 school year of at least 2,800;
 4             (ii)  The bonds are issued to purchase  a  site  and
 5        build  and  equip  a  new  high  school,  and  the school
 6        district's   existing   high   school   was    originally
 7        constructed  not  less than 35 years prior to the sale of
 8        the bonds;
 9             (iii)  At the time of the sale  of  the  bonds,  the
10        board  of  education  determines by resolution that a new
11        high school is needed  because  of  projected  enrollment
12        increases;
13             (iv)  At  least  60%  of those voting in an election
14        held after December 31, 1996 approve  a  proposition  for
15        the issuance of the bonds; and
16             (v)  The  bonds are issued pursuant to Sections 19-2
17        through 19-7 of this Code.
18        (k)  Notwithstanding the debt  limitation  prescribed  in
19    subsection  (a) of this Section, a school district that meets
20    all the criteria set forth in paragraphs (1) through  (4)  of
21    this  subsection  (k)  may issue bonds to incur an additional
22    indebtedness in an  amount  not  to  exceed  $4,000,000  even
23    though  the  amount of the additional indebtedness authorized
24    by this subsection  (k),  when  incurred  and  added  to  the
25    aggregate  amount  of  indebtedness  of  the  school district
26    existing immediately prior to the school  district  incurring
27    such    additional   indebtedness,   causes   the   aggregate
28    indebtedness of the school district to  exceed  or  increases
29    the  amount  by  which  the  aggregate  indebtedness  of  the
30    district   already  exceeds  the  debt  limitation  otherwise
31    applicable to that school district under subsection (a):
32             (1)  the school district is located in  2  counties,
33        and a referendum to authorize the additional indebtedness
34        was  approved  by  a majority of the voters of the school
 
                            -46-             LRB9201505LDpram
 1        district voting on  the  proposition  to  authorize  that
 2        indebtedness;
 3             (2)  the  additional indebtedness is for the purpose
 4        of  financing  a  multi-purpose  room  addition  to   the
 5        existing high school;
 6             (3)  the  additional indebtedness, together with the
 7        existing indebtedness of the school district,  shall  not
 8        exceed  17.4% of the value of the taxable property in the
 9        school district, to be ascertained by the last assessment
10        for State and county taxes; and
11             (4)  the    bonds    evidencing    the    additional
12        indebtedness are issued, if at all, within  120  days  of
13        the effective date of this amendatory Act of 1998.
14        (l)  Notwithstanding any other provisions of this Section
15    or  the provisions of any other law, until January 1, 2000, a
16    school district maintaining grades kindergarten through 8 may
17    issue bonds up to an amount, including existing indebtedness,
18    not exceeding 15% of the  equalized  assessed  value  of  the
19    taxable  property  in  the  district  if all of the following
20    conditions are met:
21             (i)  the  district   has   an   equalized   assessed
22        valuation   for   calendar   year   1996   of  less  than
23        $10,000,000;
24             (ii)  the bonds are issued for capital  improvement,
25        renovation, rehabilitation, or replacement of one or more
26        school  buildings  of  the district, which buildings were
27        originally constructed not less than 70 years ago;
28             (iii)  the  voters  of  the   district   approve   a
29        proposition for the issuance of the bonds at a referendum
30        held on or after March 17, 1998; and
31             (iv)  the bonds are issued pursuant to Sections 19-2
32        through 19-7 of this Code.
33        (m)  Notwithstanding any other provisions of this Section
34    or the provisions of any other law, until January 1, 1999, an
 
                            -47-             LRB9201505LDpram
 1    elementary school district maintaining grades K through 8 may
 2    issue bonds up to an amount, excluding existing indebtedness,
 3    not  exceeding  18%  of  the  equalized assessed value of the
 4    taxable property in the district, if  all  of  the  following
 5    conditions are met:
 6             (i)  The  school  district has an equalized assessed
 7        valuation for calendar year 1995 or less than $7,700,000;
 8             (ii)  The  school  district  operates  2  elementary
 9        attendance centers that until 1976 were operated  as  the
10        attendance  centers  of  2  separate  and distinct school
11        districts;
12             (iii)  The bonds are issued for the construction  of
13        a  new  elementary school building to replace an existing
14        multi-level elementary  school  building  of  the  school
15        district that is not handicapped accessible at all levels
16        and  parts  of  which were constructed more than 75 years
17        ago;
18             (iv)  The voters of the school  district  approve  a
19        proposition for the issuance of the bonds at a referendum
20        held after July 1, 1998; and
21             (v)  The  bonds are issued pursuant to Sections 19-2
22        through 19-7 of this Code.
23        (n)  Notwithstanding the debt  limitation  prescribed  in
24    subsection  (a)  of  this  Section or any other provisions of
25    this Section or of any other  law,  a  school  district  that
26    meets all of the criteria set forth in paragraphs (i) through
27    (vi) of this subsection (n) may incur additional indebtedness
28    by  the  issuance  of  bonds  in  an amount not exceeding the
29    amount certified by the  Capital  Development  Board  to  the
30    school  district  as  provided  in  paragraph  (iii)  of this
31    subsection (n), even though  the  amount  of  the  additional
32    indebtedness  so  authorized,  when incurred and added to the
33    aggregate amount of indebtedness  of  the  district  existing
34    immediately  prior  to  the district incurring the additional
 
                            -48-             LRB9201505LDpram
 1    indebtedness authorized by this subsection  (n),  causes  the
 2    aggregate  indebtedness  of  the  district to exceed the debt
 3    limitation otherwise applicable by law to that district:
 4             (i)  The school district applies to the State  Board
 5        of  Education for a school construction project grant and
 6        submits a district facilities  plan  in  support  of  its
 7        application  pursuant  to  Section  5-20  of  the  School
 8        Construction Law.
 9             (ii)  The    school   district's   application   and
10        facilities  plan  are  approved  by,  and  the   district
11        receives  a  grant  entitlement for a school construction
12        project issued by, the State Board of Education under the
13        School Construction Law.
14             (iii)  The school district has exhausted its bonding
15        capacity or the unused bonding capacity of  the  district
16        is   less  than  the  amount  certified  by  the  Capital
17        Development Board to the district under Section  5-15  of
18        the  School  Construction Law as the dollar amount of the
19        school construction project's cost that the district will
20        be required to finance with non-grant funds in  order  to
21        receive  a  school  construction  project grant under the
22        School Construction Law.
23             (iv)  The   bonds   are   issued   for   a   "school
24        construction project", as that term is defined in Section
25        5-5 of the School Construction Law,  in  an  amount  that
26        does  not exceed the dollar amount certified, as provided
27        in paragraph (iii) of this subsection (n), by the Capital
28        Development Board to the school  district  under  Section
29        5-15 of the School Construction Law.
30             (v)  The   voters   of   the   district   approve  a
31        proposition for the issuance of the bonds at a referendum
32        held after the criteria specified in paragraphs  (i)  and
33        (iii) of this subsection (n) are met.
34             (vi)  The bonds are issued pursuant to Sections 19-2
 
                            -49-             LRB9201505LDpram
 1        through 19-7 of the School Code.
 2    (Source: P.A.  90-570,  eff.  1-28-98;  90-757, eff. 8-14-98;
 3    91-55, eff. 6-30-99.)

 4        (105 ILCS 5/34-53.5 new)
 5        Sec. 34-53.5.  Capital  improvement  tax  levy;  purpose;
 6    maximum amount.
 7        (a)  For  the  purpose  of providing a reliable source of
 8    revenue for capital improvement purposes,  including  without
 9    limitation (i) the construction and equipping of a new school
10    building  or  buildings  or  an  addition  or additions to an
11    existing school building or buildings, (ii) the  purchase  of
12    school  grounds  on  which  any  new  school  building  or an
13    addition to an existing school building is to be  constructed
14    or  located, (iii) both items (i) and (ii) of this subsection
15    (a), or (iv) the rehabilitation, renovation, and equipping of
16    an existing school building or buildings, the board may levy,
17    upon all taxable property of the school district, in calendar
18    year  2001,  a  capital  improvement  tax  to  produce,  when
19    extended, an amount not to exceed  the  product  attained  by
20    multiplying  (1)  the  percentage  increase,  if  any, in the
21    Consumer Price Index for All Urban Consumers  for  all  items
22    published by the United States Department of Labor for the 12
23    months  ending  2 months prior to the month in which the levy
24    is  adopted  by  (2)  $142,500,000.   For  example,  if   the
25    percentage increase in the Consumer Price Index is 2.5%, then
26    the computation would be $142,500,000 x 0.025 = $3,562,500.
27        (b)  In  each  calendar  year from 2002 through 2030, the
28    board may levy a capital improvement  tax  to  produce,  when
29    extended,  an amount not to exceed the sum of (1) the maximum
30    amount that could have  been  levied  by  the  board  in  the
31    preceding  calendar year pursuant to this Section and (2) the
32    product obtained by  multiplying  (A)  the  sum  of  (i)  the
33    maximum  amount  that  could have been levied by the board in
 
                            -50-             LRB9201505LDpram
 1    the preceding calendar year pursuant to this Section and (ii)
 2    $142,500,000 by (B) the percentage increase, if any,  in  the
 3    Consumer  Price  Index  for All Urban Consumers for all items
 4    published by the United States Department of Labor for the 12
 5    months ending 2 months prior to the month in which  the  levy
 6    is adopted.
 7        (c)  In  calendar year 2031, the board may levy a capital
 8    improvement tax to produce, when extended, an amount  not  to
 9    exceed the sum of (1) the maximum amount that could have been
10    levied  by  the  board in calendar year 2030 pursuant to this
11    Section, (2) $142,500,000, and (3) the  product  obtained  by
12    multiplying  (A) the sum of (i) the maximum amount that could
13    have been levied by the board in calendar year 2030  pursuant
14    to  this  Section and (ii) $142,500,000 by (B) the percentage
15    increase, if any, in the Consumer Price Index for  All  Urban
16    Consumers  for  all  items  published  by  the  United States
17    Department of Labor for the 12 months ending 2  months  prior
18    to the month in which the levy is adopted.
19        (d)  In   calendar  year  2032  and  each  calendar  year
20    thereafter, the board may levy a capital improvement  tax  to
21    produce,  when  extended,  an amount not to exceed the sum of
22    (1) the maximum amount that could have  been  levied  by  the
23    board in the preceding calendar year pursuant to this Section
24    and  (2)  the product obtained by multiplying (A) the maximum
25    amount that could have  been  levied  by  the  board  in  the
26    preceding  calendar  year pursuant to this Section by (B) the
27    percentage increase, if any, in the Consumer Price Index  for
28    All  Urban  Consumers  for  all items published by the United
29    States Department of Labor for the 12 months ending 2  months
30    prior to the month in which the levy is adopted.
31        (e)  An  initial  tax  levy  made by the board under this
32    Section must have the approval of the Chicago  City  Council,
33    by  resolution,  before  the levy may be extended.  The board
34    shall communicate its adoption of the  initial  tax  levy  by
 
                            -51-             LRB9201505LDpram
 1    delivering  a  certified  copy  of the levy resolution to the
 2    Clerk of the City of Chicago.  The Chicago City Council shall
 3    have 60 days after receipt, by  the  Clerk  of  the  City  of
 4    Chicago, of the certified resolution to approve or disapprove
 5    the  levy.   The  failure of the Chicago City Council to take
 6    action to approve or disapprove the initial tax  levy  within
 7    the  60-day period shall be deemed disapproval of the initial
 8    tax levy.  Upon the adoption of each subsequent levy  by  the
 9    board  under  this Section, the board must notify the Chicago
10    City Council that the board has adopted the levy.
11        (f)  The board may issue bonds, in  accordance  with  the
12    Local  Government  Debt  Reform  Act, including Section 15 of
13    that Act, against any  revenues  to  be  collected  from  the
14    capital  improvement tax in any year or years and may pledge,
15    pursuant to Section 13 of the Local  Government  Debt  Reform
16    Act,  those  revenues as security for the payment of any such
17    bonds.

18        Section 99.  Effective date.  This Act takes effect  upon
19    becoming law.".

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