92nd General Assembly
Summary of HB3729
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Short description: 
SCH CD-TAX ANTICIPAT WARNT                                                 

Synopsis of Bill as introduced:
        Amends the School Code.  Provides that, in lieu  of  issuing  tax      
   anticipation warrants, the Chicago Board of Education may issue notes,      
   bonds,  or  other  obligations  (and in connection with that issuance,      
   establish a line of credit with a bank) in an amount not to exceed 85%      
   of the amount of property taxes most recently levied  for  educational      
   and  building purposes.  Provides that all moneys so borrowed shall be      
   repaid from the taxes when collected.   Provides  that  the  borrowing      
   shall  bear  interest  at  a  rate  not  to  exceed  the  maximum rate      
   authorized by the Bond Authorization Act, from the  date  of  issuance      
   until   paid.    Provides   that  prior  to  the  Board  borrowing  or      
   establishing  a  line  of  credit,  the  Board  shall  authorize,   by      
   resolution,  the borrowing or line of credit. Establishes requirements      
   for the resolution.  Effective immediately.                                 
        HOUSE AMENDMENT NO. 1.                                                 
        Provides that all moneys so borrowed shall be repaid  exclusively      
   from  property  tax  revenues  within  60  days after the property tax      
   revenues have been received by the Board (instead of the  money  being      
   repaid from the taxes when collected).                                      
        HOUSE AMENDMENT NO. 2.                                                 
          Adds reference to:                                                   
          105 ILCS 5/17-17 new                                                 
        Allows all school districts, not just Chicago,  to  issue  notes,      
   bonds, or other obligations in lieu of tax anticipation warrants.           
          FISCAL NOTE, H-AM 1 & 2 (State Board of Education)                   
          HB 3729, as amended by H-ams #1 and #2, should not increase          
          costs to the State. Using notes, bonds, and other obligations        
          instead of tax anticipation warrants may increase or decrease        
          borrowing costs for local school districts depending on the          
          circumstances, but it is likely to be a marginal change in           
          either case.                                                         
          STATE MANDATES NOTE, H-AM 1 & 2 (State Board of Education)           
          Same as SBE fiscal note.                                             
Last action on Bill: PUBLIC ACT.............................. 92-0620

   Last action date: JUL-11-2002

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   2     SENATE -   0


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