Public Act 096-1277
 
HB6041 EnrolledLRB096 16820 MJR 36442 b

    AN ACT concerning education.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The School Code is amended by changing Sections
20-1, 20-2, 20-3, 20-4, 20-5, 20-7, 20-8, and 20-9 and by
adding Section 20-10 as follows:
 
    (105 ILCS 5/20-1)  (from Ch. 122, par. 20-1)
    Sec. 20-1. Authority to create working cash fund. In each
school district, whether organized under general law or special
charter, having a population of less than 500,000 inhabitants,
a fund to be known as a "Working Cash Fund" may be created and ,
maintained consistent with the limitations of and administered
in the manner prescribed in this Article, for the purpose of
enabling the district to have in its treasury at all time
sufficient money to meet demands thereon for ordinary and
necessary expenditures for corporate purposes.
(Source: P.A. 80-272.)
 
    (105 ILCS 5/20-2)   (from Ch. 122, par. 20-2)
    Sec. 20-2. Indebtedness and bonds. For the purpose of
creating, re-creating, or increasing a working cash fund, the
school board of any such district may incur an indebtedness and
issue bonds as evidence thereof in an amount or amounts not
exceeding in the aggregate 85% of the taxes permitted to be
levied for educational purposes for the then current year to be
determined by multiplying the maximum educational tax rate or
rates applicable to such school district by the last assessed
valuation or assessed valuations as determined at the time of
the issue of said bonds plus 85% of the last known entitlement
of such district to taxes as by law now or hereafter enacted or
amended, imposed by the General Assembly of the State of
Illinois to replace revenue lost by units of local government
and school districts as a result of the abolition of ad valorem
personal property taxes, pursuant to Article IX, Section 5,
paragraph (c) of the Constitution of the State of Illinois. The
bonds shall bear interest at not more than the maximum rate
authorized by law the Bond Authorization Act, as amended at the
time of the making of the contract, if issued before January 1,
1972 and not more than the maximum rate authorized by the Bond
Authorization Act, as amended at the time of the making of the
contract, if issued after January 1, 1972 and shall mature
within 20 years from the date thereof. Subject to the foregoing
limitations as to amount, the bonds may be issued in an amount
including existing indebtedness which will not exceed the
constitutional limitation as to debt, notwithstanding any
statutory debt limitation to the contrary. The school board
shall before or at the time of issuing the bonds provide for
the collection of a direct annual tax upon all the taxable
property within the district sufficient to pay the principal
thereof at maturity and to pay the interest thereon as it falls
due, which tax shall be in addition to the maximum amount of
all other taxes, either educational; transportation;
operations and maintenance; or fire prevention and safety fund
taxes, now or hereafter authorized and in addition to any
limitations upon the levy of taxes as provided by Sections 17-2
through 17-9. The bonds may be issued redeemable at the option
of the school board of the district issuing them on any
interest payment date on or after 5 years from date of issue.
    With respect to instruments for the payment of money issued
under this Section either before, on, or after the effective
date of this amendatory Act of 1989, it is and always has been
the intention of the General Assembly (i) that the Omnibus Bond
Acts are and always have been supplementary grants of power to
issue instruments in accordance with the Omnibus Bond Acts,
regardless of any provision of this Act that may appear to be
or to have been more restrictive than those Acts, (ii) that the
provisions of this Section are not a limitation on the
supplementary authority granted by the Omnibus Bond Acts, and
(iii) that instruments issued under this Section within the
supplementary authority granted by the Omnibus Bond Acts are
not invalid because of any provision of this Act that may
appear to be or to have been more restrictive than those Acts.
(Source: P.A. 94-234, eff. 7-1-06; 94-1019, eff. 7-10-06.)
 
    (105 ILCS 5/20-3)   (from Ch. 122, par. 20-3)
    Sec. 20-3. Tax levy. For the purpose of providing moneys
for a working cash fund, the school board of any such school
district may also levy annually upon all the taxable property
of their district a tax, known as the "working cash fund tax,"
not to exceed 0.05% of value, as equalized or assessed by the
Department of Revenue; provided that no such tax shall be
levied if bonds are issued in amount or amounts equal in the
aggregate to the limitation set forth in Section 20-2 for the
creation, re-creation, or increase of a working cash fund. The
collection of the tax shall not be anticipated by the issuance
of any warrants drawn against it. The tax shall be levied and
collected, except as otherwise provided in this Section, in
like manner as the general taxes of the district, and shall be
in addition to the maximum of all other taxes, either
educational; transportation; operations and maintenance; or
fire prevention and safety fund taxes, now or hereafter to be
levied for school purposes. It may be levied by separate
resolution by the last Tuesday in December September in each
year or it may be included in the certificate of tax levy filed
under Section 17-11.
(Source: P.A. 94-234, eff. 7-1-06.)
 
    (105 ILCS 5/20-4)  (from Ch. 122, par. 20-4)
    Sec. 20-4. Use and reimbursement of fund. This Section
shall not apply in any school district which does not operate a
working cash fund.
    Moneys derived from the issuance of bonds as authorized by
Section 20-2, or from any tax levied pursuant to Section 20-3,
shall be used only for the purposes and in the manner
hereinafter provided in this Article. Moneys in the fund shall
not be regarded as current assets available for school
purposes. The school board may appropriate moneys to the
working cash fund up to the maximum amount allowable in the
fund, and the working cash fund may receive such appropriations
and any other contributions. Moneys in the fund may shall not
be used by the school board for any and all in any manner other
than to provide moneys with which to meet ordinary and
necessary disbursements for salaries and other school purposes
and may be transferred in whole or in part to the general funds
or both of the school district and disbursed therefrom in
anticipation of the collection of taxes lawfully levied for any
or all purposes, or in anticipation of such taxes as by law now
or hereafter enacted or amended are imposed by the General
Assembly of the State of Illinois to replace revenue lost by
units of local government and school districts as a result of
the abolition of ad valorem personal property taxes, pursuant
to Article IX, Section 5(c) of the Constitution of the State of
Illinois. Moneys so transferred to any other fund shall be
deemed to be transferred in anticipation of the collection of
that part of the taxes so levied or to be received which is in
excess of the amount thereof required to pay any warrants or
notes and the interest thereon theretofore and thereafter
issued in anticipation of the collection thereof and such taxes
when collected shall be applied to the payment of any such
warrants and the interest thereon, the amount estimated to be
required to satisfy debt service and pension or retirement
obligations, as set forth in Section 12 of the State Revenue
Sharing Act and then to the reimbursement of such working cash
fund as hereinafter provided.
    Upon receipt by the school district of any taxes in
anticipation of the collection whereof moneys of the working
cash fund have been so transferred for disbursement, the fund
shall immediately be reimbursed therefrom until the full amount
so transferred has been retransferred to the fund. Unless the
taxes so received and applied to the reimbursement of the
working cash fund prior to the first day of the eighth month
following the month in which due and unpaid real property taxes
begin to bear interest are sufficient to effect a complete
reimbursement of such fund for any moneys transferred therefrom
in anticipation of the collection of such taxes, the working
cash fund shall be reimbursed for the amount of the deficiency
therein from any other revenues accruing to the educational
fund, and the school board shall make provisions for the
immediate reimbursement of the amount of any such deficiency in
its next annual tax levy.
(Source: P.A. 87-984; 87-1168; 88-45.)
 
    (105 ILCS 5/20-5)   (from Ch. 122, par. 20-5)
    Sec. 20-5. Transfer to other fund. This Section shall not
apply in any school district which does not operate a working
cash fund.
    Moneys in , including interest earned from investment of the
working cash fund as in this Section provided, shall be
transferred from the working cash fund to another fund of the
district only upon the authority of the school board which
shall from time to time by separate resolution direct the
school treasurer to make transfers of such sums as may be
required for the purposes herein authorized.
    The resolution shall set forth (a) the taxes in
anticipation of which such transfer is to be made and from
which the working cash fund is to be reimbursed; (b) the entire
amount of taxes extended, or which the school board estimates
will be extended or received, for any year in anticipation of
the collection of all or part of which such transfer is to be
made; (c) the aggregate amount of warrants or notes theretofore
issued in anticipation of the collection of such taxes together
with the amount of interest accrued and which the school board
estimates will accrue thereon; (d) the aggregate amount of
receipts from taxes imposed to replace revenue lost by units of
local government and school districts as a result of the
abolition of ad valorem personal property taxes, pursuant to
Article IX, Section 5(c) of the Constitution of the State of
Illinois, which the corporate authorities estimate will be set
aside for the payment of the proportionate amount of debt
service and pension or retirement obligations, as required by
Section 12 of the State Revenue Sharing Act; and (e) the
aggregate amount of money theretofore transferred from the
working cash fund to the other fund in anticipation of the
collection of such taxes. The amount which any such resolution
shall direct the treasurer so to transfer, in anticipation of
the collection of taxes levied or to be received for any year,
together with the aggregate amount of such anticipation tax
warrants or notes theretofore drawn against such taxes and the
amount of interest accrued and estimated to accrue thereon and
the aggregate amount of such transfers to be made in
anticipation of the collection of such taxes and the amount
estimated to be required to satisfy debt service and pension or
retirement obligations, as set forth in Section 12 of the State
Revenue Sharing Act, shall not exceed 85% of the actual or
estimated amount of such taxes extended or to be extended or to
be received as set forth in such resolution. At any time moneys
are available in the working cash fund they shall be
transferred to such other funds of the district the educational
fund and used for any and all disbursed for the payment of
salaries and other school purposes expenses so as to avoid,
whenever possible, the issuance of anticipation tax warrants or
notes.
    Moneys earned as interest from the investment of the
working cash fund, or any portion thereof, may be transferred
from the working cash fund to another fund of the district that
is most in need of the interest without any requirement of
repayment to the working cash fund, upon the authority of the
school board by separate resolution directing the school
treasurer to make such transfer and stating the purpose in
accordance with subsection (c) of Section 9 of the Local
Government Debt Reform Act therefore as one herein authorized.
(Source: P.A. 94-234, eff. 7-1-06.)
 
    (105 ILCS 5/20-7)  (from Ch. 122, par. 20-7)
    Sec. 20-7. Resolution for issuance of bonds - Submission to
voters - Ballot. No school district may issue bonds under this
Article unless it adopts a resolution declaring its intention
to issue bonds for the purpose therein provided and directs
that notice of such intention be published at least once in a
newspaper published and having a general circulation in the
district, if there be one, but if there is no newspaper
published in such district then by publishing such notice in a
newspaper having a general circulation in the district. The
notice shall set forth (1) the intention of the district to
issue bonds in accordance with this Article; (2) the time
within which a petition may be filed requesting the submission
of the proposition to issue the bonds; (3) the specific number
of voters required to sign the petition; and (4) the date of
the prospective referendum. At the time of publication of the
notice and for 30 days thereafter, the recording officer of the
district shall provide a petition form to any individual
requesting one. If within 30 days after the publication a
petition is filed with the recording officer of the district,
signed by the voters of the district equal to 10% or more of
the registered voters of the district requesting that the
proposition to issue bonds as authorized by this Article be
submitted to the voters thereof, then the district shall not be
authorized to issue such bonds until the proposition has been
certified to the proper election authorities and has been
submitted to and approved by a majority of the voters voting on
the proposition at a regular scheduled election in accordance
with the general election law. If no such petition is so filed,
or if any and all petitions filed are invalid, the district may
issue the bonds. In addition to the requirements of the general
election law the notice of the election shall set forth the
intention of the district to issue bonds under this Article.
The proposition shall be in substantially the following form:
OFFICIAL BALLOT
-------------------------------------------------------------
    Shall the Board board of....
of School District district number....           YES
County, Illinois, be authorized
to issue bonds for a working       --------------------------
cash fund as provided for
by Article 20 of the                    NO
School Code?
-------------------------------------------------------------
(Source: P.A. 87-767.)
 
    (105 ILCS 5/20-8)  (from Ch. 122, par. 20-8)
    Sec. 20-8. Abolishment of working cash fund. Any school
district may abolish its working cash fund, upon the adoption
of a resolution so providing, and direct the transfer of any
balance in such fund to the educational fund at the close of
the then current school year. Any outstanding loans to other
funds of the district the transportation; operations and
maintenance; or fire prevention and safety fund shall be paid
or become payable to the educational fund at the close of the
then current school year. Thereafter, all outstanding taxes of
such school district levied pursuant to Section 20-3 shall be
collected and paid into the educational fund.
    Any balance in any working cash fund that is created in any
school district on or after the effective date of this
amendatory Act of 1991 (including all outstanding loans from
any such working cash fund to other funds the educational,
transportation, operations and maintenance, or fire prevention
and safety fund of the district and all outstanding taxes
levied by the district under Section 20-3 to provide moneys for
any such working cash fund) may, when such working cash fund is
abolished, be used and applied for the purpose of reducing, by
the balance in that working cash fund at the close of the
school year in which the fund so created is abolished, the
amount of the taxes that the school board of the school
district otherwise would be authorized or required to levy for
educational purposes for the immediately succeeding school
year.
    Any obligation incurred by any school district pursuant to
Section 20-2 shall be discharged as therein provided.
(Source: P.A. 86-970; 87-643; 87-984.)
 
    (105 ILCS 5/20-9)  (from Ch. 122, par. 20-9)
    Sec. 20-9. A Nothing in this Article prevents a school
district which has abolished or abated its working cash fund
has the authority to again create from again creating a working
cash fund at any time in the manner provided in this Article.
(Source: Laws 1967, p. 642.)
 
    (105 ILCS 5/20-10 new)
    Sec. 20-10. Abatement of working cash fund. Any school
district may abate its working cash fund at any time, upon the
adoption of a resolution so providing, and direct the transfer
at any time of moneys in that fund to any fund or funds of the
district most in need of the money, provided that the district
maintains an amount to the credit of the working cash fund,
including taxes levied pursuant to Section 20-3 and not yet
collected and amounts transferred pursuant to Section 20-4 and
to be reimbursed to the working cash fund, at least equal to
0.05% of the then current value, as equalized or assessed by
the Department of Revenue, of the taxable property in the
district. If necessary to effectuate the abatement, any
outstanding loans to other funds of the district may be paid or
become payable to the fund or funds to which the abatement is
made. Any abatement of a school district's working cash fund
prior to the effective date of this amendatory Act of the 96th
General Assembly that would have complied with the provisions
of this Section is hereby validated.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.