SB1947 EnrolledLRB100 09675 MLM 19844 b

1    AN ACT concerning education.
 
2    WHEREAS, This Act may be referred to as the Evidence-Based
3Funding for Student Success Act; therefore
 
4    Be it enacted by the People of the State of Illinois,
5represented in the General Assembly:
 
6    Section 1. Short title. This Act may be cited as the Invest
7in Kids Act.
 
8    Section 5. Definitions. As used in this Act:
9    "Authorized contribution" means the contribution amount
10that is listed on the contribution authorization certificate
11issued to the taxpayer.
12    "Board" means the State Board of Education.
13    "Contribution" means a donation made by the taxpayer during
14the taxable year for providing scholarships as provided in this
15Act.
16    "Custodian" means, with respect to eligible students, an
17Illinois resident who is a parent or legal guardian of the
18eligible student or students.
19    "Department" means the Department of Revenue.
20    "Eligible student" means a child who:
21        (1) is a member of a household whose federal adjusted
22    gross income the year before he or she initially receives a

 

 

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1    scholarship under this program, as determined by the
2    Department, does not exceed 300% of the federal poverty
3    level and, once the child receives a scholarship, does not
4    exceed 400% of the federal poverty level;
5        (2) is eligible to attend a public elementary school or
6    high school in Illinois in the semester immediately
7    preceding the semester for which he or she first receives a
8    scholarship or is starting school in Illinois for the first
9    time when he or she first receives a scholarship; and
10        (3) resides in Illinois while receiving a scholarship.
11    "Family member" means a parent, child, or sibling, whether
12by whole blood, half blood, or adoption; spouse; or stepchild.
13    "Focus district" means a school district which has a school
14that is either (i) a school that has one or more subgroups in
15which the average student performance is at or below the State
16average for the lowest 10% of student performance in that
17subgroup or (ii) a school with an average graduation rate of
18less than 60% and not identified for priority.
19    "Necessary costs and fees" includes the customary charge
20for instruction and use of facilities in general and the
21additional fixed fees charged for specified purposes that are
22required generally of non-scholarship recipients for each
23academic period for which the scholarship applicant actually
24enrolls, including costs associated with student assessments,
25but does not include fees payable only once and other
26contingent deposits that are refundable in whole or in part.

 

 

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1The Board may prescribe, by rules consistent with this Act,
2detailed provisions concerning the computation of necessary
3costs and fees.
4    "Scholarship granting organization" means an entity that:
5        (1) is exempt from taxation under Section 501(c)(3) of
6    the Internal Revenue Code;
7        (2) uses at least 95% of the qualified contributions
8    received during a taxable year for scholarships;
9        (3) provides scholarships to students according to the
10    guidelines of this Act;
11        (4) deposits and holds qualified contributions and any
12    income derived from qualified contributions in an account
13    that is separate from the organization's operating fund or
14    other funds until such qualified contributions or income
15    are withdrawn for use; and
16        (5) is approved to issue certificates of receipt.
17    "Qualified contribution" means the authorized contribution
18made by a taxpayer to a scholarship granting organization for
19which the taxpayer has received a certificate of receipt from
20such organization.
21    "Qualified school" means a non-public school located in
22Illinois and recognized by the Board pursuant to Section
232-3.25o of the School Code.
24    "Scholarship" means an educational scholarship awarded to
25an eligible student to attend a qualified school of their
26custodians' choice in an amount not exceeding the necessary

 

 

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1costs and fees to attend that school.
2    "Taxpayer" means any individual, corporation, partnership,
3trust, or other entity subject to the Illinois income tax. For
4the purposes of this Act, 2 individuals filing a joint return
5shall be considered one taxpayer.
 
6    Section 10. Credit awards.
7    (a) The Department shall award credits against the tax
8imposed under subsections (a) and (b) of Section 201 of the
9Illinois Income Tax Act to taxpayers who make qualified
10contributions. For contributions made under this Act, the
11credit shall be equal to 75% of the total amount of qualified
12contributions made by the taxpayer during a taxable year, not
13to exceed a credit of $1,000,000 per taxpayer.
14    (b) The aggregate amount of all credits the Department may
15award under this Act in any calendar year may not exceed
16$75,000,000.
17    (c) Contributions made by corporations (including
18Subchapter S corporations), partnerships, and trusts under
19this Act may not be directed to a particular subset of schools,
20a particular school, a particular group of students, or a
21particular student. Contributions made by individuals under
22this Act may be directed to a particular subset of schools or a
23particular school but may not be directed to a particular group
24of students or a particular student.
25    (d) No credit shall be taken under this Act for any

 

 

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1qualified contribution for which the taxpayer claims a federal
2income tax deduction.
3    (e) Credits shall be awarded in a manner, as determined by
4the Department, that is geographically proportionate to
5enrollment in recognized non-public schools in Illinois. If the
6cap on the aggregate credits that may be awarded by the
7Department is not reached by June 1 of a given year, the
8Department shall award remaining credits on a first-come,
9first-served basis, without regard to the limitation of this
10subsection.
 
11    Section 15. Approval to issue certificates of receipt.
12    (a) A scholarship granting organization shall submit an
13application for approval to issue certificates of receipt in
14the form and manner prescribed by the Department, provided that
15each application shall include:
16        (1) documentary evidence that the scholarship granting
17    organization has been granted an exemption from taxation
18    under Section 501(c)(3) of the Internal Revenue Code;
19        (2) certification that all qualified contributions and
20    any income derived from qualified contributions are
21    deposited and held in an account that is separate from the
22    scholarship granting organization's operating or other
23    funds until such qualified contributions or income are
24    withdrawn for use;
25        (3) certification that the scholarship granting

 

 

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1    organization will use at least 95% of its annual revenue
2    from qualified contributions for scholarships;
3        (4) certification that the scholarship granting
4    organization will provide scholarships to eligible
5    students;
6        (5) a list of the names and addresses of all members of
7    the governing board of the scholarship granting
8    organization; and
9        (6) a copy of the most recent financial audit of the
10    scholarship granting organization's accounts and records
11    conducted by an independent certified public accountant in
12    accordance with auditing standards generally accepted in
13    the United States, government auditing standards, and
14    rules adopted by the Department.
15    (b) A scholarship granting organization whose owner or
16operator in the last 7 years has filed for personal bankruptcy
17or corporate bankruptcy in a corporation of which he or she
18owned more than 20% shall not be eligible to provide
19scholarships.
20    (c) A scholarship granting organization must not have an
21owner or operator who owns or operates a qualified school or
22has a family member who is a paid staff or board member of a
23participating qualified school.
24    (d) A scholarship granting organization shall comply with
25the anti-discrimination provisions of 42 U.S.C. 2000d.
26    (e) The Department shall review and either approve or deny

 

 

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1each application to issue certificates of receipt pursuant to
2this Act. Approval or denial of an application shall be made on
3a periodic basis. Applicants shall be notified of the
4Department's determination within 30 business days after the
5application is received.
6    (f) No scholarship granting organization shall issue any
7certificates of receipt without first being approved to issue
8certificates of receipt.
 
9    Section 20. Annual review.
10    (a) Each scholarship granting organization that receives
11approval to issue certificates of receipt shall file an
12application for recertification on an annual basis. Such
13application for recertification shall be in the form and manner
14prescribed by the Department and shall include:
15        (1) certification from the Director or Chief Executive
16    Officer of the organization that the organization has
17    complied with and continues to comply with the requirements
18    of this Act, including evidence of that compliance; and
19        (2) a copy of the organization's current financial
20    statements.
21    (b) The Department may revoke the approval of a scholarship
22granting organization to issue certificates of receipt upon a
23finding that the organization has violated this Act or any
24rules adopted under this Act. These violations shall include,
25but need not be limited to, any of the following:

 

 

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1        (1) failure to meet the requirements of this Act;
2        (2) failure to maintain full and adequate records with
3    respect to the receipt of qualified contributions;
4        (3) failure to supply such records to the Department;
5    or
6        (4) failure to provide notice to the Department of the
7    issuance of certificates of receipt pursuant to Section 35
8    of this Act.
9    (c) Within 5 days after the determination to revoke
10approval, the Department shall provide notice of the
11determination to the scholarship granting organization and
12information regarding the process to request a hearing to
13appeal the determination.
 
14    Section 25. Contribution authorization certificates.
15    (a) A taxpayer shall not be allowed a credit pursuant to
16this Act for any contribution to a scholarship granting
17organization that was made prior to the Department's issuance
18of a contribution authorization certificate for such
19contribution to the taxpayer.
20    (b) Prior to making a contribution to a scholarship
21granting organization, the taxpayer shall apply to the
22Department for a contribution authorization certificate.
23    (c) A taxpayer who makes more than one contribution to a
24scholarship granting organization must make a separate
25application for each such contribution authorization

 

 

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1certificate. The application shall be in the form and manner
2prescribed by the Department, provided that the application
3includes:
4        (1) the taxpayer's name and address;
5        (2) the amount the taxpayer will contribute; and
6        (3) any other information the Department deems
7    necessary.
8    (d) The Department may allow taxpayers to make multiple
9applications on the same form, provided that each application
10shall be treated as a separate application.
11    (e) The Department shall issue credit authorization
12certificates on a first-come, first-served basis based upon the
13date that the Department received the taxpayer's application
14for the certificate subject to the provisions of subsection (e)
15of Section 10 of this Act.
16    (f) A taxpayer's aggregate authorized contribution amount
17as listed on one or more authorized contribution certificates
18issued to the taxpayer shall not exceed the aggregate of the
19amounts listed on the taxpayer's applications submitted in
20accordance with this Section.
21    (g) Each contribution authorization certificate shall
22state:
23        (1) the date such certificate was issued;
24        (2) the date by which the authorized contributions
25    listed in the certificate must be made, which shall be 60
26    days from the date of the issuance of a credit

 

 

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1    authorization certificate;
2        (3) the total amount of authorized contributions; and
3        (4) any other information the Department deems
4    necessary.
5    (h) Credit authorization certificates shall be mailed to
6the appropriate taxpayers within 3 business days after their
7issuance.
8    (i) A taxpayer may rescind all or part of an authorized
9contribution approved under this Act by providing written
10notice to the Department. Amounts rescinded shall no longer be
11deducted from the cap prescribed in Section 10 of this Act.
12    (j) The Department shall maintain on its website a running
13total of the amount of credits for which taxpayers may make
14applications for contribution authorization certification. The
15running total shall be updated every business day.
 
16    Section 30. Certificates of receipt.
17    (a) No scholarship granting organization shall issue a
18certificate of receipt for any qualified contribution made by a
19taxpayer under this Act unless that scholarship granting
20organization has been approved to issue certificates of receipt
21pursuant to Section 15 of this Act.
22    (b) No scholarship granting organization shall issue a
23certificate of receipt for a contribution made by a taxpayer
24unless the taxpayer has been issued a credit authorization
25certificate by the Department.

 

 

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1    (c) If a taxpayer makes a contribution to a scholarship
2granting organization prior to the date by which the authorized
3contribution shall be made, the scholarship granting
4organization shall, within 30 days of receipt of the authorized
5contribution, issue to the taxpayer a written certificate of
6receipt.
7    (d) If a taxpayer fails to make all or a portion of a
8contribution prior to the date by which such authorized
9contribution is required to be made, the taxpayer shall not be
10entitled to a certificate of receipt for that portion of the
11authorized contribution not made.
12    (e) Each certificate of receipt shall state:
13        (1) the name and address of the issuing scholarship
14    granting organization;
15        (2) the taxpayer's name and address;
16        (3) the date for each qualified contribution;
17        (4) the amount of each qualified contribution;
18        (5) the total qualified contribution amount; and
19        (6) any other information that the Department may deem
20    necessary.
21    (f) Upon the issuance of a certificate of receipt, the
22issuing scholarship granting organization shall, within 10
23days after issuing the certificate of receipt, provide the
24Department with notification of the issuance of such
25certificate in the form and manner prescribed by the
26Department, provided that such notification shall include:

 

 

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1        (1) the taxpayer's name and address;
2        (2) the date of the issuance of a certificate of
3    receipt;
4        (3) the qualified contribution date or dates and the
5    amounts contributed on such dates;
6        (4) the total qualified contribution listed on such
7    certificates;
8        (5) the issuing scholarship granting organization's
9    name and address; and
10        (6) any other information the Department may deem
11    necessary.
12    (g) Any portion of a contribution that a taxpayer fails to
13make by the date indicated on the authorized contribution
14certificate shall no longer be deducted from the cap prescribed
15in Section 10 of this Act.
 
16    Section 35. Reports.
17    (a) Within 180 days after the end of its fiscal year, each
18scholarship granting organization must provide to the
19Department a copy of a financial audit of its accounts and
20records conducted by an independent certified public
21accountant in accordance with auditing standards generally
22accepted in the United States, government auditing standards,
23and rules adopted by the Department. The audit must include a
24report on financial statements presented in accordance with
25generally accepted accounting principles. The audit must

 

 

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1include evidence that no less than 95% of qualified
2contributions received were used to provide scholarships to
3eligible students. The Department shall review all audits
4submitted pursuant to this subsection. The Department shall
5request any significant items that were omitted in violation of
6a rule adopted by the Department. The items must be provided
7within 45 days after the date of request. If a scholarship
8granting organization does not comply with the Department's
9request, the Department may revoke the scholarship granting
10organization's ability to issue certificates of receipt.
11    (b) A scholarship granting organization that is approved to
12receive qualified contributions shall report to the
13Department, on a form prescribed by the Department, by January
1431 of each calendar year. The report shall include:
15        (1) the total number of certificates of receipt issued
16    during the immediately preceding calendar year;
17        (2) the total dollar amount of qualified contributions
18    received, as set forth in the certificates of receipt
19    issued during the immediately preceding calendar year;
20        (3) the total number of eligible students utilizing
21    scholarships for the immediately preceding calendar year
22    and the school year in progress and the total dollar value
23    of the scholarships;
24        (4) the name and address of each qualified school for
25    which scholarships using qualified contributions were
26    issued during the immediately preceding calendar year,

 

 

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1    detailing the number, grade, race, gender, income level,
2    and residency by Zip Code of eligible students and the
3    total dollar value of scholarships being utilized at each
4    qualified school by priority group, as identified in
5    subsection (d) of Section 40 of this Act; and
6        (5) any additional information requested by the
7    Department.
8    (c) On or before the last day of March for each calendar
9year, for the immediately preceding calendar year, the
10Department shall submit a written report to the Governor, the
11President of the Senate, the Speaker of the House of
12Representatives, the Minority Leader of the Senate, and the
13Minority Leader of the House of Representatives regarding this
14Act. The report shall include, but not be limited to, the
15following information:
16        (1) the names and addresses of all scholarship granting
17    organizations approved to issue certificates of receipt;
18        (2) the number and aggregate total of certificates of
19    receipt issued by each scholarship granting organization;
20    and
21        (3) the information reported to the Department
22    required by subsection (b) of this Section.
23    (d) The sharing and reporting of student data under this
24Section must be in accordance with the requirements of the
25Family Educational Rights and Privacy Act and the Illinois
26School Student Records Act. All parties must preserve the

 

 

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1confidentiality of such information as required by law. Data
2reported by the Department under subsection (c) of this Section
3must not disaggregate data to a level that will disclose
4demographic data of individual students.
 
5    Section 40. Scholarship granting organization
6responsibilities.
7    (a) Before granting a scholarship for an academic year, all
8scholarship granting organizations shall assess and document
9each student's eligibility for the academic year.
10    (b) A scholarship granting organization shall grant
11scholarships only to eligible students.
12    (c) A scholarship granting organization shall allow an
13eligible student to attend any qualified school of the
14student's choosing, subject to the availability of funds.
15    (d) In granting scholarships, a scholarship granting
16organization shall give priority to the following priority
17groups:
18        (1) eligible students who received a scholarship from a
19    scholarship granting organization during the previous
20    school year;
21        (2) eligible students who are members of a household
22    whose previous year's total annual income does not exceed
23    185% of the federal poverty level;
24        (3) eligible students who reside within a focus
25    district; and

 

 

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1        (4) eligible students who are siblings of students
2    currently receiving a scholarship.
3    (d-5) A scholarship granting organization shall begin
4granting scholarships no later than February 1 preceding the
5school year for which the scholarship is sought. The priority
6groups identified in subsection (d) of this Section shall be
7eligible to receive scholarships on a first-come, first-served
8basis until the April 1 immediately preceding the school year
9for which the scholarship is sought. Applications for
10scholarships for eligible students meeting the qualifications
11of one or more priority groups that are received before April 1
12must be either approved or denied within 10 business days after
13receipt. Beginning April 1, all eligible students shall be
14eligible to receive scholarships without regard to the priority
15groups identified in subsection (d) of this Section.
16    (e) Except as provided in subsection (e-5) of this Section,
17scholarships shall not exceed the lesser of (i) the statewide
18average operational expense per student among public schools or
19(ii) the necessary costs and fees for attendance at the
20qualified school. Scholarships shall be prorated as follows:
21        (1) for eligible students whose household income is
22    less than 185% of the federal poverty level, the
23    scholarship shall be 100% of the amount determined pursuant
24    to this subsection (e) and subsection (e-5) of this
25    Section;
26        (2) for eligible students whose household income is

 

 

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1    185% or more of the federal poverty level but less than
2    250% of the federal poverty level, the average of
3    scholarships shall be 75% of the amount determined pursuant
4    to this subsection (e) and subsection (e-5) of this
5    Section; and
6        (3) for eligible students whose household income is
7    250% or more of the federal poverty level, the average of
8    scholarships shall be 50% of the amount determined pursuant
9    to this subsection (e) and subsection (e-5) of this
10    Section.
11    (e-5) The statewide average operational expense per
12student among public schools shall be multiplied by the
13following factors:
14        (1) for students determined eligible to receive
15    services under the federal Individuals with Disabilities
16    Education Act, 2;
17        (2) for students who are English learners, as defined
18    in subsection (d) of Section 14C-2 of the School Code, 1.2;
19    and
20        (3) for students who are gifted and talented children,
21    as defined in Section 14A-20 of the School Code, 1.1.
22    (f) A scholarship granting organization shall distribute
23scholarship payments to the participating school where the
24student is enrolled.
25    (g) For the 2018-2019 school year through the 2021-2022
26school year, each scholarship granting organization shall

 

 

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1expend no less than 75% of the qualified contributions received
2during the calendar year in which the qualified contributions
3were received. No more than 25% of the qualified contributions
4may be carried forward to the following calendar year.
5    (h) For the 2022-2023 school year, each scholarship
6granting organization shall expend all qualified contributions
7received during the calendar year in which the qualified
8contributions were received. No qualified contributions may be
9carried forward to the following calendar year.
10    (i) A scholarship granting organization shall allow an
11eligible student to transfer a scholarship during a school year
12to any other participating school of the custodian's choice.
13Such scholarships shall be prorated.
14    (j) With the prior approval of the Department, a
15scholarship granting organization may transfer funds to
16another scholarship granting organization if additional funds
17are required to meet scholarship demands at the receiving
18scholarship granting organization. All transferred funds must
19be deposited by the receiving scholarship granting
20organization into its scholarship accounts. All transferred
21amounts received by any scholarship granting organization must
22be separately disclosed to the Department.
23    (k) If the approval of a scholarship granting organization
24is revoked as provided in Section 20 of this Act or the
25scholarship granting organization is dissolved, all remaining
26qualified contributions of the scholarship granting

 

 

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1organization shall be transferred to another scholarship
2granting organization. All transferred funds must be deposited
3by the receiving scholarship granting organization into its
4scholarship accounts.
5    (l) Scholarship granting organizations shall make
6reasonable efforts to advertise the availability of
7scholarships to eligible students.
 
8    Section 45. State Board responsibilities.
9    (a) Beginning in the 2019-2020 school year, students who
10have been granted a scholarship under this Act shall be
11annually assessed at the qualified school where the student
12attends school in the same manner in which students that attend
13public schools are annually assessed pursuant to Section
142-3.64a-5 of the School Code. Such qualified school shall pay
15costs associated with this requirement.
16    (b) The Board shall select an independent research
17organization, which may be a public or private entity or
18university, to which participating qualified schools must
19report the scores of students who are receiving scholarships
20and are assessed pursuant to subsection (a) of this Section.
21Costs associated with the independent research organization
22shall be paid by the scholarship granting organizations on a
23per-pupil basis or by gifts, grants, or donations received by
24the Board under subsection (d) of this Section, as determined
25by the Board. The independent research organization must

 

 

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1annually report to the Board on the year-to-year learning gains
2of students receiving scholarships on a statewide basis. The
3report shall also include, to the extent possible, a comparison
4of these learning gains to the statewide learning gains of
5public school students with socioeconomic backgrounds similar
6to those of students receiving scholarships. The annual report
7shall be delivered to the Board and published on its website.
8    (c) Beginning within 120 days after the Board first
9receives the annual report by the independent research
10organization as provided in subsection (b) of this Section and
11on an annual basis thereafter, the Board shall submit a written
12report to the Governor, the President of the Senate, the
13Speaker of the House of Representatives, the Minority Leader of
14the Senate, and the Minority Leader of the House of
15Representatives regarding this Act. Such report shall include
16an evaluation of the academic performance of students receiving
17scholarships and recommendations for improving student
18performance.
19    (d) Subject to the State Officials and Employees Ethics
20Act, the Board may receive and expend gifts, grants, and
21donations of any kind from any public or private entity to
22carry out the purposes of this Section, subject to the terms
23and conditions under which the gifts are given, provided that
24all such terms and conditions are permissible under law.
25    (e) The sharing and reporting of student learning gain data
26under this Section must be in accordance with requirements of

 

 

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1the Family Educational Rights and Privacy Act and the Illinois
2School Student Records Act. All parties must preserve the
3confidentiality of such information as required by law. The
4annual report must not disaggregate data to a level that will
5disclose the academic level of individual students.
 
6    Section 50. Qualified school responsibilities. A qualified
7school that accepts scholarship students must do all of the
8following:
9        (1) provide to a scholarship granting organization,
10    upon request, all documentation required for the student's
11    participation, including the non-public school's cost and
12    student's fee schedules;
13        (2) be academically accountable to the custodian for
14    meeting the educational needs of the student by:
15            (A) at a minimum, annually providing to the
16        custodian a written explanation of the student's
17        progress; and
18            (B) annually administering assessments required by
19        subsection (a) of Section 45 of this Act in the same
20        manner in which they are administered at public schools
21        pursuant to Section 2-3.64a-5 of the School Code; the
22        Board shall bill participating qualified schools for
23        all costs associated with administering assessments
24        required by this paragraph; the participating
25        qualified schools shall ensure that all test security

 

 

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1        and assessment administration procedures are followed;
2        participating qualified schools must report individual
3        student scores to the custodians of the students; the
4        independent research organization described in
5        subsection (b) of Section 45 of this Act shall be
6        provided all student score data in a secure manner by
7        the participating qualified school.
8    The inability of a qualified school to meet the
9requirements of this Section shall constitute a basis for the
10ineligibility of the qualified school to participate in the
11scholarship program as determined by the Board.
 
12    Section 55. Custodian and student responsibilities.
13    (a) The custodian must select a qualified school and apply
14for the admission of his or her child.
15    (b) The custodian shall ensure that the student
16participating in the scholarship program takes the assessment
17required by subsection (a) of Section 45 of this Act.
18    (c) Each custodian and each student has an obligation to
19comply with the qualified school's published policies.
20    (d) The custodian shall authorize the scholarship granting
21organization to access information needed for income
22eligibility determinations.
 
23    Section 60. Recordkeeping; rulemaking; violations.
24    (a) Each taxpayer shall, for each taxable year for which

 

 

SB1947 Enrolled- 23 -LRB100 09675 MLM 19844 b

1the tax credit provided for under this Act is claimed, maintain
2records of the following information: (i) contribution
3authorization certificates obtained under Section 25 of this
4Act and (ii) certificates of receipt obtained under Section 30
5of this Act.
6    (b) The Board and the Department may adopt rules consistent
7with and necessary for the implementation of this Act.
8    (c) Violations of State laws or rules and complaints
9relating to program participation shall be referred to the
10Attorney General.
 
11    Section 65. Credit period; repeal.
12    (a) A taxpayer may take a credit under this Act for tax
13years beginning on or after January 1, 2018 and ending before
14January 1, 2023. A taxpayer may not take a credit pursuant to
15this Act for tax years beginning on or after January 1, 2023.
16    (b) This Act is repealed on January 1, 2024.
 
17    Section 900. The Open Meetings Act is amended by changing
18Section 2 as follows:
 
19    (5 ILCS 120/2)  (from Ch. 102, par. 42)
20    Sec. 2. Open meetings.
21    (a) Openness required. All meetings of public bodies shall
22be open to the public unless excepted in subsection (c) and
23closed in accordance with Section 2a.

 

 

SB1947 Enrolled- 24 -LRB100 09675 MLM 19844 b

1    (b) Construction of exceptions. The exceptions contained
2in subsection (c) are in derogation of the requirement that
3public bodies meet in the open, and therefore, the exceptions
4are to be strictly construed, extending only to subjects
5clearly within their scope. The exceptions authorize but do not
6require the holding of a closed meeting to discuss a subject
7included within an enumerated exception.
8    (c) Exceptions. A public body may hold closed meetings to
9consider the following subjects:
10        (1) The appointment, employment, compensation,
11    discipline, performance, or dismissal of specific
12    employees of the public body or legal counsel for the
13    public body, including hearing testimony on a complaint
14    lodged against an employee of the public body or against
15    legal counsel for the public body to determine its
16    validity. However, a meeting to consider an increase in
17    compensation to a specific employee of a public body that
18    is subject to the Local Government Wage Increase
19    Transparency Act may not be closed and shall be open to the
20    public and posted and held in accordance with this Act.
21        (2) Collective negotiating matters between the public
22    body and its employees or their representatives, or
23    deliberations concerning salary schedules for one or more
24    classes of employees.
25        (3) The selection of a person to fill a public office,
26    as defined in this Act, including a vacancy in a public

 

 

SB1947 Enrolled- 25 -LRB100 09675 MLM 19844 b

1    office, when the public body is given power to appoint
2    under law or ordinance, or the discipline, performance or
3    removal of the occupant of a public office, when the public
4    body is given power to remove the occupant under law or
5    ordinance.
6        (4) Evidence or testimony presented in open hearing, or
7    in closed hearing where specifically authorized by law, to
8    a quasi-adjudicative body, as defined in this Act, provided
9    that the body prepares and makes available for public
10    inspection a written decision setting forth its
11    determinative reasoning.
12        (5) The purchase or lease of real property for the use
13    of the public body, including meetings held for the purpose
14    of discussing whether a particular parcel should be
15    acquired.
16        (6) The setting of a price for sale or lease of
17    property owned by the public body.
18        (7) The sale or purchase of securities, investments, or
19    investment contracts. This exception shall not apply to the
20    investment of assets or income of funds deposited into the
21    Illinois Prepaid Tuition Trust Fund.
22        (8) Security procedures, school building safety and
23    security, and the use of personnel and equipment to respond
24    to an actual, a threatened, or a reasonably potential
25    danger to the safety of employees, students, staff, the
26    public, or public property.

 

 

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1        (9) Student disciplinary cases.
2        (10) The placement of individual students in special
3    education programs and other matters relating to
4    individual students.
5        (11) Litigation, when an action against, affecting or
6    on behalf of the particular public body has been filed and
7    is pending before a court or administrative tribunal, or
8    when the public body finds that an action is probable or
9    imminent, in which case the basis for the finding shall be
10    recorded and entered into the minutes of the closed
11    meeting.
12        (12) The establishment of reserves or settlement of
13    claims as provided in the Local Governmental and
14    Governmental Employees Tort Immunity Act, if otherwise the
15    disposition of a claim or potential claim might be
16    prejudiced, or the review or discussion of claims, loss or
17    risk management information, records, data, advice or
18    communications from or with respect to any insurer of the
19    public body or any intergovernmental risk management
20    association or self insurance pool of which the public body
21    is a member.
22        (13) Conciliation of complaints of discrimination in
23    the sale or rental of housing, when closed meetings are
24    authorized by the law or ordinance prescribing fair housing
25    practices and creating a commission or administrative
26    agency for their enforcement.

 

 

SB1947 Enrolled- 27 -LRB100 09675 MLM 19844 b

1        (14) Informant sources, the hiring or assignment of
2    undercover personnel or equipment, or ongoing, prior or
3    future criminal investigations, when discussed by a public
4    body with criminal investigatory responsibilities.
5        (15) Professional ethics or performance when
6    considered by an advisory body appointed to advise a
7    licensing or regulatory agency on matters germane to the
8    advisory body's field of competence.
9        (16) Self evaluation, practices and procedures or
10    professional ethics, when meeting with a representative of
11    a statewide association of which the public body is a
12    member.
13        (17) The recruitment, credentialing, discipline or
14    formal peer review of physicians or other health care
15    professionals, or for the discussion of matters protected
16    under the federal Patient Safety and Quality Improvement
17    Act of 2005, and the regulations promulgated thereunder,
18    including 42 C.F.R. Part 3 (73 FR 70732), or the federal
19    Health Insurance Portability and Accountability Act of
20    1996, and the regulations promulgated thereunder,
21    including 45 C.F.R. Parts 160, 162, and 164, by a hospital,
22    or other institution providing medical care, that is
23    operated by the public body.
24        (18) Deliberations for decisions of the Prisoner
25    Review Board.
26        (19) Review or discussion of applications received

 

 

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1    under the Experimental Organ Transplantation Procedures
2    Act.
3        (20) The classification and discussion of matters
4    classified as confidential or continued confidential by
5    the State Government Suggestion Award Board.
6        (21) Discussion of minutes of meetings lawfully closed
7    under this Act, whether for purposes of approval by the
8    body of the minutes or semi-annual review of the minutes as
9    mandated by Section 2.06.
10        (22) Deliberations for decisions of the State
11    Emergency Medical Services Disciplinary Review Board.
12        (23) The operation by a municipality of a municipal
13    utility or the operation of a municipal power agency or
14    municipal natural gas agency when the discussion involves
15    (i) contracts relating to the purchase, sale, or delivery
16    of electricity or natural gas or (ii) the results or
17    conclusions of load forecast studies.
18        (24) Meetings of a residential health care facility
19    resident sexual assault and death review team or the
20    Executive Council under the Abuse Prevention Review Team
21    Act.
22        (25) Meetings of an independent team of experts under
23    Brian's Law.
24        (26) Meetings of a mortality review team appointed
25    under the Department of Juvenile Justice Mortality Review
26    Team Act.

 

 

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1        (27) (Blank).
2        (28) Correspondence and records (i) that may not be
3    disclosed under Section 11-9 of the Illinois Public Aid
4    Code or (ii) that pertain to appeals under Section 11-8 of
5    the Illinois Public Aid Code.
6        (29) Meetings between internal or external auditors
7    and governmental audit committees, finance committees, and
8    their equivalents, when the discussion involves internal
9    control weaknesses, identification of potential fraud risk
10    areas, known or suspected frauds, and fraud interviews
11    conducted in accordance with generally accepted auditing
12    standards of the United States of America.
13        (30) Those meetings or portions of meetings of a
14    fatality review team or the Illinois Fatality Review Team
15    Advisory Council during which a review of the death of an
16    eligible adult in which abuse or neglect is suspected,
17    alleged, or substantiated is conducted pursuant to Section
18    15 of the Adult Protective Services Act.
19        (31) Meetings and deliberations for decisions of the
20    Concealed Carry Licensing Review Board under the Firearm
21    Concealed Carry Act.
22        (32) Meetings between the Regional Transportation
23    Authority Board and its Service Boards when the discussion
24    involves review by the Regional Transportation Authority
25    Board of employment contracts under Section 28d of the
26    Metropolitan Transit Authority Act and Sections 3A.18 and

 

 

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1    3B.26 of the Regional Transportation Authority Act.
2        (33) Those meetings or portions of meetings of the
3    advisory committee and peer review subcommittee created
4    under Section 320 of the Illinois Controlled Substances Act
5    during which specific controlled substance prescriber,
6    dispenser, or patient information is discussed.
7        (34) Meetings of the Tax Increment Financing Reform
8    Task Force under Section 2505-800 of the Department of
9    Revenue Law of the Civil Administrative Code of Illinois.
10    (d) Definitions. For purposes of this Section:
11    "Employee" means a person employed by a public body whose
12relationship with the public body constitutes an
13employer-employee relationship under the usual common law
14rules, and who is not an independent contractor.
15    "Public office" means a position created by or under the
16Constitution or laws of this State, the occupant of which is
17charged with the exercise of some portion of the sovereign
18power of this State. The term "public office" shall include
19members of the public body, but it shall not include
20organizational positions filled by members thereof, whether
21established by law or by a public body itself, that exist to
22assist the body in the conduct of its business.
23    "Quasi-adjudicative body" means an administrative body
24charged by law or ordinance with the responsibility to conduct
25hearings, receive evidence or testimony and make
26determinations based thereon, but does not include local

 

 

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1electoral boards when such bodies are considering petition
2challenges.
3    (e) Final action. No final action may be taken at a closed
4meeting. Final action shall be preceded by a public recital of
5the nature of the matter being considered and other information
6that will inform the public of the business being conducted.
7(Source: P.A. 98-49, eff. 7-1-13; 98-63, eff. 7-9-13; 98-756,
8eff. 7-16-14; 98-1027, eff. 1-1-15; 98-1039, eff. 8-25-14;
999-78, eff. 7-20-15; 99-235, eff. 1-1-16; 99-480, eff. 9-9-15;
1099-642, eff. 7-28-16; 99-646, eff. 7-28-16; 99-687, eff.
111-1-17; revised 9-21-16.)
 
12    Section 902. The Freedom of Information Act is amended by
13changing Section 7.5 as follows:
 
14    (5 ILCS 140/7.5)
15    Sec. 7.5. Statutory exemptions. To the extent provided for
16by the statutes referenced below, the following shall be exempt
17from inspection and copying:
18        (a) All information determined to be confidential
19    under Section 4002 of the Technology Advancement and
20    Development Act.
21        (b) Library circulation and order records identifying
22    library users with specific materials under the Library
23    Records Confidentiality Act.
24        (c) Applications, related documents, and medical

 

 

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1    records received by the Experimental Organ Transplantation
2    Procedures Board and any and all documents or other records
3    prepared by the Experimental Organ Transplantation
4    Procedures Board or its staff relating to applications it
5    has received.
6        (d) Information and records held by the Department of
7    Public Health and its authorized representatives relating
8    to known or suspected cases of sexually transmissible
9    disease or any information the disclosure of which is
10    restricted under the Illinois Sexually Transmissible
11    Disease Control Act.
12        (e) Information the disclosure of which is exempted
13    under Section 30 of the Radon Industry Licensing Act.
14        (f) Firm performance evaluations under Section 55 of
15    the Architectural, Engineering, and Land Surveying
16    Qualifications Based Selection Act.
17        (g) Information the disclosure of which is restricted
18    and exempted under Section 50 of the Illinois Prepaid
19    Tuition Act.
20        (h) Information the disclosure of which is exempted
21    under the State Officials and Employees Ethics Act, and
22    records of any lawfully created State or local inspector
23    general's office that would be exempt if created or
24    obtained by an Executive Inspector General's office under
25    that Act.
26        (i) Information contained in a local emergency energy

 

 

SB1947 Enrolled- 33 -LRB100 09675 MLM 19844 b

1    plan submitted to a municipality in accordance with a local
2    emergency energy plan ordinance that is adopted under
3    Section 11-21.5-5 of the Illinois Municipal Code.
4        (j) Information and data concerning the distribution
5    of surcharge moneys collected and remitted by wireless
6    carriers under the Wireless Emergency Telephone Safety
7    Act.
8        (k) Law enforcement officer identification information
9    or driver identification information compiled by a law
10    enforcement agency or the Department of Transportation
11    under Section 11-212 of the Illinois Vehicle Code.
12        (l) Records and information provided to a residential
13    health care facility resident sexual assault and death
14    review team or the Executive Council under the Abuse
15    Prevention Review Team Act.
16        (m) Information provided to the predatory lending
17    database created pursuant to Article 3 of the Residential
18    Real Property Disclosure Act, except to the extent
19    authorized under that Article.
20        (n) Defense budgets and petitions for certification of
21    compensation and expenses for court appointed trial
22    counsel as provided under Sections 10 and 15 of the Capital
23    Crimes Litigation Act. This subsection (n) shall apply
24    until the conclusion of the trial of the case, even if the
25    prosecution chooses not to pursue the death penalty prior
26    to trial or sentencing.

 

 

SB1947 Enrolled- 34 -LRB100 09675 MLM 19844 b

1        (o) Information that is prohibited from being
2    disclosed under Section 4 of the Illinois Health and
3    Hazardous Substances Registry Act.
4        (p) Security portions of system safety program plans,
5    investigation reports, surveys, schedules, lists, data, or
6    information compiled, collected, or prepared by or for the
7    Regional Transportation Authority under Section 2.11 of
8    the Regional Transportation Authority Act or the St. Clair
9    County Transit District under the Bi-State Transit Safety
10    Act.
11        (q) Information prohibited from being disclosed by the
12    Personnel Records Review Act.
13        (r) Information prohibited from being disclosed by the
14    Illinois School Student Records Act.
15        (s) Information the disclosure of which is restricted
16    under Section 5-108 of the Public Utilities Act.
17        (t) All identified or deidentified health information
18    in the form of health data or medical records contained in,
19    stored in, submitted to, transferred by, or released from
20    the Illinois Health Information Exchange, and identified
21    or deidentified health information in the form of health
22    data and medical records of the Illinois Health Information
23    Exchange in the possession of the Illinois Health
24    Information Exchange Authority due to its administration
25    of the Illinois Health Information Exchange. The terms
26    "identified" and "deidentified" shall be given the same

 

 

SB1947 Enrolled- 35 -LRB100 09675 MLM 19844 b

1    meaning as in the Health Insurance Portability and
2    Accountability Act of 1996, Public Law 104-191, or any
3    subsequent amendments thereto, and any regulations
4    promulgated thereunder.
5        (u) Records and information provided to an independent
6    team of experts under Brian's Law.
7        (v) Names and information of people who have applied
8    for or received Firearm Owner's Identification Cards under
9    the Firearm Owners Identification Card Act or applied for
10    or received a concealed carry license under the Firearm
11    Concealed Carry Act, unless otherwise authorized by the
12    Firearm Concealed Carry Act; and databases under the
13    Firearm Concealed Carry Act, records of the Concealed Carry
14    Licensing Review Board under the Firearm Concealed Carry
15    Act, and law enforcement agency objections under the
16    Firearm Concealed Carry Act.
17        (w) Personally identifiable information which is
18    exempted from disclosure under subsection (g) of Section
19    19.1 of the Toll Highway Act.
20        (x) Information which is exempted from disclosure
21    under Section 5-1014.3 of the Counties Code or Section
22    8-11-21 of the Illinois Municipal Code.
23        (y) Confidential information under the Adult
24    Protective Services Act and its predecessor enabling
25    statute, the Elder Abuse and Neglect Act, including
26    information about the identity and administrative finding

 

 

SB1947 Enrolled- 36 -LRB100 09675 MLM 19844 b

1    against any caregiver of a verified and substantiated
2    decision of abuse, neglect, or financial exploitation of an
3    eligible adult maintained in the Registry established
4    under Section 7.5 of the Adult Protective Services Act.
5        (z) Records and information provided to a fatality
6    review team or the Illinois Fatality Review Team Advisory
7    Council under Section 15 of the Adult Protective Services
8    Act.
9        (aa) Information which is exempted from disclosure
10    under Section 2.37 of the Wildlife Code.
11        (bb) Information which is or was prohibited from
12    disclosure by the Juvenile Court Act of 1987.
13        (cc) Recordings made under the Law Enforcement
14    Officer-Worn Body Camera Act, except to the extent
15    authorized under that Act.
16        (dd) Information that is prohibited from being
17    disclosed under Section 45 of the Condominium and Common
18    Interest Community Ombudsperson Act.
19        (ee) (dd) Information that is exempted from disclosure
20    under Section 30.1 of the Pharmacy Practice Act.
21        (ff) Information which is exempted from disclosure
22    under Section 2505-800 of the Department of Revenue Law of
23    the Civil Administrative Code of Illinois.
24(Source: P.A. 98-49, eff. 7-1-13; 98-63, eff. 7-9-13; 98-756,
25eff. 7-16-14; 98-1039, eff. 8-25-14; 98-1045, eff. 8-25-14;
2699-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352, eff. 1-1-16;

 

 

SB1947 Enrolled- 37 -LRB100 09675 MLM 19844 b

199-642, eff. 7-28-16; 99-776, eff. 8-12-16; 99-863, eff.
28-19-16; revised 9-1-16.)
 
3    Section 904. The Election Code is amended by changing
4Section 28-2 as follows:
 
5    (10 ILCS 5/28-2)  (from Ch. 46, par. 28-2)
6    Sec. 28-2. (a) Except as otherwise provided in this
7Section, petitions for the submission of public questions to
8referendum must be filed with the appropriate officer or board
9not less than 92 days prior to a regular election to be
10eligible for submission on the ballot at such election; and
11petitions for the submission of a question under Section 18-120
12or Section 18-206 of the Property Tax Code must be filed with
13the appropriate officer or board not more than 10 months nor
14less than 6 months prior to the election at which such question
15is to be submitted to the voters.
16    (b) However, petitions for the submission of a public
17question to referendum which proposes the creation or formation
18of a political subdivision must be filed with the appropriate
19officer or board not less than 122 days prior to a regular
20election to be eligible for submission on the ballot at such
21election.
22    (c) Resolutions or ordinances of governing boards of
23political subdivisions which initiate the submission of public
24questions pursuant to law must be adopted not less than 79 days

 

 

SB1947 Enrolled- 38 -LRB100 09675 MLM 19844 b

1before a regularly scheduled election to be eligible for
2submission on the ballot at such election.
3    (d) A petition, resolution or ordinance initiating the
4submission of a public question may specify a regular election
5at which the question is to be submitted, and must so specify
6if the statute authorizing the public question requires
7submission at a particular election. However, no petition,
8resolution or ordinance initiating the submission of a public
9question, other than a legislative resolution initiating an
10amendment to the Constitution, may specify such submission at
11an election more than one year, or 15 months in the case of a
12back door referendum as defined in subsection (f), after the
13date on which it is filed or adopted, as the case may be. A
14petition, resolution or ordinance initiating a public question
15which specifies a particular election at which the question is
16to be submitted shall be so limited, and shall not be valid as
17to any other election, other than an emergency referendum
18ordered pursuant to Section 2A-1.4.
19    (e) If a petition initiating a public question does not
20specify a regularly scheduled election, the public question
21shall be submitted to referendum at the next regular election
22occurring not less than 92 days after the filing of the
23petition, or not less than 122 days after the filing of a
24petition for referendum to create a political subdivision. If a
25resolution or ordinance initiating a public question does not
26specify a regularly scheduled election, the public question

 

 

SB1947 Enrolled- 39 -LRB100 09675 MLM 19844 b

1shall be submitted to referendum at the next regular election
2occurring not less than 79 days after the adoption of the
3resolution or ordinance.
4    (f) In the case of back door referenda, any limitations in
5another statute authorizing such a referendum which restrict
6the time in which the initiating petition may be validly filed
7shall apply to such petition, in addition to the filing
8deadlines specified in this Section for submission at a
9particular election. In the case of any back door referendum,
10the publication of the ordinance or resolution of the political
11subdivision shall include a notice of (1) the specific number
12of voters required to sign a petition requesting that a public
13question be submitted to the voters of the subdivision; (2) the
14time within which the petition must be filed; and (3) the date
15of the prospective referendum. The secretary or clerk of the
16political subdivision shall provide a petition form to any
17individual requesting one. The legal sufficiency of that form,
18if provided by the secretary or clerk of the political
19subdivision, cannot be the basis of a challenge to placing the
20back door referendum on the ballot. As used herein, a "back
21door referendum" is the submission of a public question to the
22voters of a political subdivision, initiated by a petition of
23voters or residents of such political subdivision, to determine
24whether an action by the governing body of such subdivision
25shall be adopted or rejected.
26    (g) A petition for the incorporation or formation of a new

 

 

SB1947 Enrolled- 40 -LRB100 09675 MLM 19844 b

1political subdivision whose officers are to be elected rather
2than appointed must have attached to it an affidavit attesting
3that at least 122 days and no more than 152 days prior to such
4election notice of intention to file such petition was
5published in a newspaper published within the proposed
6political subdivision, or if none, in a newspaper of general
7circulation within the territory of the proposed political
8subdivision in substantially the following form:
9
NOTICE OF PETITION TO FORM A NEW........
10    Residents of the territory described below are notified
11that a petition will or has been filed in the Office
12of............requesting a referendum to establish a
13new........, to be called the............
14    *The officers of the new...........will be elected on the
15same day as the referendum. Candidates for the governing board
16of the new......may file nominating petitions with the officer
17named above until...........
18    The territory proposed to comprise the new........is
19described as follows:
20        (description of territory included in petition)
21        (signature)....................................
22        Name and address of person or persons proposing
23        the new political subdivision.
24    * Where applicable.
25    Failure to file such affidavit, or failure to publish the
26required notice with the correct information contained therein

 

 

SB1947 Enrolled- 41 -LRB100 09675 MLM 19844 b

1shall render the petition, and any referendum held pursuant to
2such petition, null and void.
3    Notwithstanding the foregoing provisions of this
4subsection (g) or any other provisions of this Code, the
5publication of notice and affidavit requirements of this
6subsection (g) shall not apply to any petition filed under
7Article 7 or 11E of the School Code nor to any referendum held
8pursuant to any such petition, and neither any petition filed
9under any of those Articles nor any referendum held pursuant to
10any such petition shall be rendered null and void because of
11the failure to file an affidavit or publish a notice with
12respect to the petition or referendum as required under this
13subsection (g) for petitions that are not filed under any of
14those Articles of the School Code.
15(Source: P.A. 96-1008, eff. 7-6-10.)
 
16    Section 905. The Economic Development Area Tax Increment
17Allocation Act is amended by changing Section 7 as follows:
 
18    (20 ILCS 620/7)  (from Ch. 67 1/2, par. 1007)
19    Sec. 7. Creation of special tax allocation fund. If a
20municipality has adopted tax increment allocation financing
21for an economic development project area by ordinance, the
22county clerk has thereafter certified the "total initial
23equalized assessed value" of the taxable real property within
24such economic development project area in the manner provided

 

 

SB1947 Enrolled- 42 -LRB100 09675 MLM 19844 b

1in Section 6 of this Act, and the Department has approved and
2certified the economic development project area, each year
3after the date of the certification by the county clerk of the
4"total initial equalized assessed value" until economic
5development project costs and all municipal obligations
6financing economic development project costs have been paid,
7the ad valorem taxes, if any, arising from the levies upon the
8taxable real property in the economic development project area
9by taxing districts and tax rates determined in the manner
10provided in subsection (b) of Section 6 of this Act shall be
11divided as follows:
12    (1) That portion of the taxes levied upon each taxable lot,
13block, tract or parcel of real property which is attributable
14to the lower of the current equalized assessed value or the
15initial equalized assessed value of each such taxable lot,
16block, tract, or parcel of real property existing at the time
17tax increment allocation financing was adopted, shall be
18allocated to and when collected shall be paid by the county
19collector to the respective affected taxing districts in the
20manner required by law in the absence of the adoption of tax
21increment allocation financing.
22    (2) That portion, if any, of those taxes which is
23attributable to the increase in the current equalized assessed
24valuation of each taxable lot, block, tract, or parcel of real
25property in the economic development project area, over and
26above the initial equalized assessed value of each property

 

 

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1existing at the time tax increment allocation financing was
2adopted, shall be allocated to and when collected shall be paid
3to the municipal treasurer, who shall deposit those taxes into
4a special fund called the special tax allocation fund of the
5municipality for the purpose of paying economic development
6project costs and obligations incurred in the payment thereof.
7    The municipality, by an ordinance adopting tax increment
8allocation financing, may pledge the funds in and to be
9deposited in the special tax allocation fund for the payment of
10obligations issued under this Act and for the payment of
11economic development project costs. No part of the current
12equalized assessed valuation of each property in the economic
13development project area attributable to any increase above the
14total initial equalized assessed value, of such properties
15shall be used in calculating the general State school aid
16formula, provided for in Section 18-8 of the School Code, or
17the evidence-based funding formula, provided for in Section
1818-8.15 of the School Code, until such time as all economic
19development projects costs have been paid as provided for in
20this Section.
21    When the economic development project costs, including
22without limitation all municipal obligations financing
23economic development project costs incurred under this Act,
24have been paid, all surplus funds then remaining in the special
25tax allocation fund shall be distributed by being paid by the
26municipal treasurer to the county collector, who shall

 

 

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1immediately thereafter pay those funds to the taxing districts
2having taxable property in the economic development project
3area in the same manner and proportion as the most recent
4distribution by the county collector to those taxing districts
5of real property taxes from real property in the economic
6development project area.
7    Upon the payment of all economic development project costs,
8retirement of obligations and the distribution of any excess
9monies pursuant to this Section the municipality shall adopt an
10ordinance dissolving the special tax allocation fund for the
11economic development project area, terminating the economic
12development project area, and terminating the use of tax
13increment allocation financing for the economic development
14project area. Thereafter the rates of the taxing districts
15shall be extended and taxes levied, collected and distributed
16in the manner applicable in the absence of the adoption of tax
17increment allocation financing.
18    Nothing in this Section shall be construed as relieving
19property in economic development project areas from being
20assessed as provided in the Property Tax Code, or as relieving
21owners of that property from paying a uniform rate of taxes, as
22required by Section 4 of Article IX of the Illinois
23Constitution.
24(Source: P.A. 98-463, eff. 8-16-13.)
 
25    Section 910. The Civil Administrative Code of Illinois

 

 

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1(Department of Revenue Law) is amended by adding Section
22505-800 as follows:
 
3    (20 ILCS 2505/2505-800 new)
4    Sec. 2505-800. Tax Increment Financing Reform Task Force.
5    (a) There is hereby created the Tax Increment Financing
6Reform Task Force which shall consist of the following members:
7        (1) 3 members of the General Assembly, appointed by the
8    President of the Senate;
9        (2) 3 members of the General Assembly, appointed by the
10    Minority Leader of the Senate;
11        (3) 3 members of the General Assembly, appointed by the
12    Speaker of the House of Representatives; and
13        (4) 3 members of the General Assembly, appointed by the
14    Minority Leader of the House of Representatives.
15    (b) The members of the Task Force shall elect one co-chair
16from each legislative caucus, who shall call meetings of the
17Task Force to order. The Task Force shall hold an initial
18meeting within 60 days after the effective date of this
19amendatory Act of the 100th General Assembly.
20    (c) The Task Force shall conduct a study examining current
21Tax Increment Financing (TIF) laws in this State and issues
22that include, but are not limited to:
23        (1) the benefits and costs of TIF districts;
24        (2) the interaction between TIF law and school funding;
25        (3) the expenditure of TIF funds; and

 

 

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1        (4) the expenditure of TIF surplus funds.
2    (d) The Task Force shall report the findings of the study
3and any recommendations to the General Assembly on or before
4April 1, 2018, at which time the Task Force shall be dissolved.
5    (e) The Department of Revenue shall provide staff and
6administrative support to the Task Force, and shall post on its
7website the report under subsection (d) of this Section.
8    (f) The Task Force is exempt from any requirements under
9the Freedom of Information Act and Open Meetings Act.
10    (g) This Section is repealed on April 30, 2018.
 
11    Section 915. The State Finance Act is amended by changing
12Section 13.2 as follows:
 
13    (30 ILCS 105/13.2)  (from Ch. 127, par. 149.2)
14    Sec. 13.2. Transfers among line item appropriations.
15    (a) Transfers among line item appropriations from the same
16treasury fund for the objects specified in this Section may be
17made in the manner provided in this Section when the balance
18remaining in one or more such line item appropriations is
19insufficient for the purpose for which the appropriation was
20made.
21    (a-1) No transfers may be made from one agency to another
22agency, nor may transfers be made from one institution of
23higher education to another institution of higher education
24except as provided by subsection (a-4).

 

 

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1    (a-2) Except as otherwise provided in this Section,
2transfers may be made only among the objects of expenditure
3enumerated in this Section, except that no funds may be
4transferred from any appropriation for personal services, from
5any appropriation for State contributions to the State
6Employees' Retirement System, from any separate appropriation
7for employee retirement contributions paid by the employer, nor
8from any appropriation for State contribution for employee
9group insurance. During State fiscal year 2005, an agency may
10transfer amounts among its appropriations within the same
11treasury fund for personal services, employee retirement
12contributions paid by employer, and State Contributions to
13retirement systems; notwithstanding and in addition to the
14transfers authorized in subsection (c) of this Section, the
15fiscal year 2005 transfers authorized in this sentence may be
16made in an amount not to exceed 2% of the aggregate amount
17appropriated to an agency within the same treasury fund. During
18State fiscal year 2007, the Departments of Children and Family
19Services, Corrections, Human Services, and Juvenile Justice
20may transfer amounts among their respective appropriations
21within the same treasury fund for personal services, employee
22retirement contributions paid by employer, and State
23contributions to retirement systems. During State fiscal year
242010, the Department of Transportation may transfer amounts
25among their respective appropriations within the same treasury
26fund for personal services, employee retirement contributions

 

 

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1paid by employer, and State contributions to retirement
2systems. During State fiscal years 2010 and 2014 only, an
3agency may transfer amounts among its respective
4appropriations within the same treasury fund for personal
5services, employee retirement contributions paid by employer,
6and State contributions to retirement systems.
7Notwithstanding, and in addition to, the transfers authorized
8in subsection (c) of this Section, these transfers may be made
9in an amount not to exceed 2% of the aggregate amount
10appropriated to an agency within the same treasury fund.
11    (a-2.5) During State fiscal year 2015 only, the State's
12Attorneys Appellate Prosecutor may transfer amounts among its
13respective appropriations contained in operational line items
14within the same treasury fund. Notwithstanding, and in addition
15to, the transfers authorized in subsection (c) of this Section,
16these transfers may be made in an amount not to exceed 4% of
17the aggregate amount appropriated to the State's Attorneys
18Appellate Prosecutor within the same treasury fund.
19    (a-3) Further, if an agency receives a separate
20appropriation for employee retirement contributions paid by
21the employer, any transfer by that agency into an appropriation
22for personal services must be accompanied by a corresponding
23transfer into the appropriation for employee retirement
24contributions paid by the employer, in an amount sufficient to
25meet the employer share of the employee contributions required
26to be remitted to the retirement system.

 

 

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1    (a-4) Long-Term Care Rebalancing. The Governor may
2designate amounts set aside for institutional services
3appropriated from the General Revenue Fund or any other State
4fund that receives monies for long-term care services to be
5transferred to all State agencies responsible for the
6administration of community-based long-term care programs,
7including, but not limited to, community-based long-term care
8programs administered by the Department of Healthcare and
9Family Services, the Department of Human Services, and the
10Department on Aging, provided that the Director of Healthcare
11and Family Services first certifies that the amounts being
12transferred are necessary for the purpose of assisting persons
13in or at risk of being in institutional care to transition to
14community-based settings, including the financial data needed
15to prove the need for the transfer of funds. The total amounts
16transferred shall not exceed 4% in total of the amounts
17appropriated from the General Revenue Fund or any other State
18fund that receives monies for long-term care services for each
19fiscal year. A notice of the fund transfer must be made to the
20General Assembly and posted at a minimum on the Department of
21Healthcare and Family Services website, the Governor's Office
22of Management and Budget website, and any other website the
23Governor sees fit. These postings shall serve as notice to the
24General Assembly of the amounts to be transferred. Notice shall
25be given at least 30 days prior to transfer.
26    (b) In addition to the general transfer authority provided

 

 

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1under subsection (c), the following agencies have the specific
2transfer authority granted in this subsection:
3    The Department of Healthcare and Family Services is
4authorized to make transfers representing savings attributable
5to not increasing grants due to the births of additional
6children from line items for payments of cash grants to line
7items for payments for employment and social services for the
8purposes outlined in subsection (f) of Section 4-2 of the
9Illinois Public Aid Code.
10    The Department of Children and Family Services is
11authorized to make transfers not exceeding 2% of the aggregate
12amount appropriated to it within the same treasury fund for the
13following line items among these same line items: Foster Home
14and Specialized Foster Care and Prevention, Institutions and
15Group Homes and Prevention, and Purchase of Adoption and
16Guardianship Services.
17    The Department on Aging is authorized to make transfers not
18exceeding 2% of the aggregate amount appropriated to it within
19the same treasury fund for the following Community Care Program
20line items among these same line items: purchase of services
21covered by the Community Care Program and Comprehensive Case
22Coordination.
23    The State Treasurer is authorized to make transfers among
24line item appropriations from the Capital Litigation Trust
25Fund, with respect to costs incurred in fiscal years 2002 and
262003 only, when the balance remaining in one or more such line

 

 

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1item appropriations is insufficient for the purpose for which
2the appropriation was made, provided that no such transfer may
3be made unless the amount transferred is no longer required for
4the purpose for which that appropriation was made.
5    The State Board of Education is authorized to make
6transfers from line item appropriations within the same
7treasury fund for General State Aid, and General State Aid -
8Hold Harmless, and Evidence-Based Funding, provided that no
9such transfer may be made unless the amount transferred is no
10longer required for the purpose for which that appropriation
11was made, to the line item appropriation for Transitional
12Assistance when the balance remaining in such line item
13appropriation is insufficient for the purpose for which the
14appropriation was made.
15    The State Board of Education is authorized to make
16transfers between the following line item appropriations
17within the same treasury fund: Disabled Student
18Services/Materials (Section 14-13.01 of the School Code),
19Disabled Student Transportation Reimbursement (Section
2014-13.01 of the School Code), Disabled Student Tuition -
21Private Tuition (Section 14-7.02 of the School Code),
22Extraordinary Special Education (Section 14-7.02b of the
23School Code), Reimbursement for Free Lunch/Breakfast Program,
24Summer School Payments (Section 18-4.3 of the School Code), and
25Transportation - Regular/Vocational Reimbursement (Section
2629-5 of the School Code). Such transfers shall be made only

 

 

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1when the balance remaining in one or more such line item
2appropriations is insufficient for the purpose for which the
3appropriation was made and provided that no such transfer may
4be made unless the amount transferred is no longer required for
5the purpose for which that appropriation was made.
6    The Department of Healthcare and Family Services is
7authorized to make transfers not exceeding 4% of the aggregate
8amount appropriated to it, within the same treasury fund, among
9the various line items appropriated for Medical Assistance.
10    (c) The sum of such transfers for an agency in a fiscal
11year shall not exceed 2% of the aggregate amount appropriated
12to it within the same treasury fund for the following objects:
13Personal Services; Extra Help; Student and Inmate
14Compensation; State Contributions to Retirement Systems; State
15Contributions to Social Security; State Contribution for
16Employee Group Insurance; Contractual Services; Travel;
17Commodities; Printing; Equipment; Electronic Data Processing;
18Operation of Automotive Equipment; Telecommunications
19Services; Travel and Allowance for Committed, Paroled and
20Discharged Prisoners; Library Books; Federal Matching Grants
21for Student Loans; Refunds; Workers' Compensation,
22Occupational Disease, and Tort Claims; and, in appropriations
23to institutions of higher education, Awards and Grants.
24Notwithstanding the above, any amounts appropriated for
25payment of workers' compensation claims to an agency to which
26the authority to evaluate, administer and pay such claims has

 

 

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1been delegated by the Department of Central Management Services
2may be transferred to any other expenditure object where such
3amounts exceed the amount necessary for the payment of such
4claims.
5    (c-1) Special provisions for State fiscal year 2003.
6Notwithstanding any other provision of this Section to the
7contrary, for State fiscal year 2003 only, transfers among line
8item appropriations to an agency from the same treasury fund
9may be made provided that the sum of such transfers for an
10agency in State fiscal year 2003 shall not exceed 3% of the
11aggregate amount appropriated to that State agency for State
12fiscal year 2003 for the following objects: personal services,
13except that no transfer may be approved which reduces the
14aggregate appropriations for personal services within an
15agency; extra help; student and inmate compensation; State
16contributions to retirement systems; State contributions to
17social security; State contributions for employee group
18insurance; contractual services; travel; commodities;
19printing; equipment; electronic data processing; operation of
20automotive equipment; telecommunications services; travel and
21allowance for committed, paroled, and discharged prisoners;
22library books; federal matching grants for student loans;
23refunds; workers' compensation, occupational disease, and tort
24claims; and, in appropriations to institutions of higher
25education, awards and grants.
26    (c-2) Special provisions for State fiscal year 2005.

 

 

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1Notwithstanding subsections (a), (a-2), and (c), for State
2fiscal year 2005 only, transfers may be made among any line
3item appropriations from the same or any other treasury fund
4for any objects or purposes, without limitation, when the
5balance remaining in one or more such line item appropriations
6is insufficient for the purpose for which the appropriation was
7made, provided that the sum of those transfers by a State
8agency shall not exceed 4% of the aggregate amount appropriated
9to that State agency for fiscal year 2005.
10    (c-3) Special provisions for State fiscal year 2015.
11Notwithstanding any other provision of this Section, for State
12fiscal year 2015, transfers among line item appropriations to a
13State agency from the same State treasury fund may be made for
14operational or lump sum expenses only, provided that the sum of
15such transfers for a State agency in State fiscal year 2015
16shall not exceed 4% of the aggregate amount appropriated to
17that State agency for operational or lump sum expenses for
18State fiscal year 2015. For the purpose of this subsection,
19"operational or lump sum expenses" includes the following
20objects: personal services; extra help; student and inmate
21compensation; State contributions to retirement systems; State
22contributions to social security; State contributions for
23employee group insurance; contractual services; travel;
24commodities; printing; equipment; electronic data processing;
25operation of automotive equipment; telecommunications
26services; travel and allowance for committed, paroled, and

 

 

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1discharged prisoners; library books; federal matching grants
2for student loans; refunds; workers' compensation,
3occupational disease, and tort claims; lump sum and other
4purposes; and lump sum operations. For the purpose of this
5subsection (c-3), "State agency" does not include the Attorney
6General, the Secretary of State, the Comptroller, the
7Treasurer, or the legislative or judicial branches.
8    (d) Transfers among appropriations made to agencies of the
9Legislative and Judicial departments and to the
10constitutionally elected officers in the Executive branch
11require the approval of the officer authorized in Section 10 of
12this Act to approve and certify vouchers. Transfers among
13appropriations made to the University of Illinois, Southern
14Illinois University, Chicago State University, Eastern
15Illinois University, Governors State University, Illinois
16State University, Northeastern Illinois University, Northern
17Illinois University, Western Illinois University, the Illinois
18Mathematics and Science Academy and the Board of Higher
19Education require the approval of the Board of Higher Education
20and the Governor. Transfers among appropriations to all other
21agencies require the approval of the Governor.
22    The officer responsible for approval shall certify that the
23transfer is necessary to carry out the programs and purposes
24for which the appropriations were made by the General Assembly
25and shall transmit to the State Comptroller a certified copy of
26the approval which shall set forth the specific amounts

 

 

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1transferred so that the Comptroller may change his records
2accordingly. The Comptroller shall furnish the Governor with
3information copies of all transfers approved for agencies of
4the Legislative and Judicial departments and transfers
5approved by the constitutionally elected officials of the
6Executive branch other than the Governor, showing the amounts
7transferred and indicating the dates such changes were entered
8on the Comptroller's records.
9    (e) The State Board of Education, in consultation with the
10State Comptroller, may transfer line item appropriations for
11General State Aid or Evidence-Based Funding between the Common
12School Fund and the Education Assistance Fund. With the advice
13and consent of the Governor's Office of Management and Budget,
14the State Board of Education, in consultation with the State
15Comptroller, may transfer line item appropriations between the
16General Revenue Fund and the Education Assistance Fund for the
17following programs:
18        (1) Disabled Student Personnel Reimbursement (Section
19    14-13.01 of the School Code);
20        (2) Disabled Student Transportation Reimbursement
21    (subsection (b) of Section 14-13.01 of the School Code);
22        (3) Disabled Student Tuition - Private Tuition
23    (Section 14-7.02 of the School Code);
24        (4) Extraordinary Special Education (Section 14-7.02b
25    of the School Code);
26        (5) Reimbursement for Free Lunch/Breakfast Programs;

 

 

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1        (6) Summer School Payments (Section 18-4.3 of the
2    School Code);
3        (7) Transportation - Regular/Vocational Reimbursement
4    (Section 29-5 of the School Code);
5        (8) Regular Education Reimbursement (Section 18-3 of
6    the School Code); and
7        (9) Special Education Reimbursement (Section 14-7.03
8    of the School Code).
9(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-2,
10eff. 3-26-15.)
 
11    Section 920. The Illinois Income Tax Act is amended by
12adding Section 224 as follows:
 
13    (35 ILCS 5/224 new)
14    Sec. 224. Invest in Kids credit.
15    (a) For taxable years beginning on or after January 1, 2018
16and ending before January 1, 2023, each taxpayer for whom a tax
17credit has been awarded by the Department under the Invest in
18Kids Act is entitled to a credit against the tax imposed under
19subsections (a) and (b) of Section 201 of this Act in an amount
20equal to the amount awarded under the Invest in Kids Act.
21    (b) For partners, shareholders of subchapter S
22corporations, and owners of limited liability companies, if the
23liability company is treated as a partnership for purposes of
24federal and State income taxation, the credit under this

 

 

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1Section shall be determined in accordance with the
2determination of income and distributive share of income under
3Sections 702 and 704 and subchapter S of the Internal Revenue
4Code.
5    (c) The credit may not be carried back and may not reduce
6the taxpayer's liability to less than zero. If the amount of
7the credit exceeds the tax liability for the year, the excess
8may be carried forward and applied to the tax liability of the
95 taxable years following the excess credit year. The tax
10credit shall be applied to the earliest year for which there is
11a tax liability. If there are credits for more than one year
12that are available to offset the liability, the earlier credit
13shall be applied first.
14    (d) A tax credit awarded by the Department under the Invest
15in Kids Act may not be claimed for any qualified contribution
16for which the taxpayer claims a federal income tax deduction.
 
17    Section 925. The Property Tax Code is amended by changing
18Sections 18-185, 18-200, and 18-249 and by adding Section
1918-206 as follows:
 
20    (35 ILCS 200/18-185)
21    Sec. 18-185. Short title; definitions. This Division 5 may
22be cited as the Property Tax Extension Limitation Law. As used
23in this Division 5:
24    "Consumer Price Index" means the Consumer Price Index for

 

 

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1All Urban Consumers for all items published by the United
2States Department of Labor.
3    "Extension limitation" means (a) the lesser of 5% or the
4percentage increase in the Consumer Price Index during the
512-month calendar year preceding the levy year or (b) the rate
6of increase approved by voters under Section 18-205.
7    "Affected county" means a county of 3,000,000 or more
8inhabitants or a county contiguous to a county of 3,000,000 or
9more inhabitants.
10    "Taxing district" has the same meaning provided in Section
111-150, except as otherwise provided in this Section. For the
121991 through 1994 levy years only, "taxing district" includes
13only each non-home rule taxing district having the majority of
14its 1990 equalized assessed value within any county or counties
15contiguous to a county with 3,000,000 or more inhabitants.
16Beginning with the 1995 levy year, "taxing district" includes
17only each non-home rule taxing district subject to this Law
18before the 1995 levy year and each non-home rule taxing
19district not subject to this Law before the 1995 levy year
20having the majority of its 1994 equalized assessed value in an
21affected county or counties. Beginning with the levy year in
22which this Law becomes applicable to a taxing district as
23provided in Section 18-213, "taxing district" also includes
24those taxing districts made subject to this Law as provided in
25Section 18-213.
26    "Aggregate extension" for taxing districts to which this

 

 

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1Law applied before the 1995 levy year means the annual
2corporate extension for the taxing district and those special
3purpose extensions that are made annually for the taxing
4district, excluding special purpose extensions: (a) made for
5the taxing district to pay interest or principal on general
6obligation bonds that were approved by referendum; (b) made for
7any taxing district to pay interest or principal on general
8obligation bonds issued before October 1, 1991; (c) made for
9any taxing district to pay interest or principal on bonds
10issued to refund or continue to refund those bonds issued
11before October 1, 1991; (d) made for any taxing district to pay
12interest or principal on bonds issued to refund or continue to
13refund bonds issued after October 1, 1991 that were approved by
14referendum; (e) made for any taxing district to pay interest or
15principal on revenue bonds issued before October 1, 1991 for
16payment of which a property tax levy or the full faith and
17credit of the unit of local government is pledged; however, a
18tax for the payment of interest or principal on those bonds
19shall be made only after the governing body of the unit of
20local government finds that all other sources for payment are
21insufficient to make those payments; (f) made for payments
22under a building commission lease when the lease payments are
23for the retirement of bonds issued by the commission before
24October 1, 1991, to pay for the building project; (g) made for
25payments due under installment contracts entered into before
26October 1, 1991; (h) made for payments of principal and

 

 

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1interest on bonds issued under the Metropolitan Water
2Reclamation District Act to finance construction projects
3initiated before October 1, 1991; (i) made for payments of
4principal and interest on limited bonds, as defined in Section
53 of the Local Government Debt Reform Act, in an amount not to
6exceed the debt service extension base less the amount in items
7(b), (c), (e), and (h) of this definition for non-referendum
8obligations, except obligations initially issued pursuant to
9referendum; (j) made for payments of principal and interest on
10bonds issued under Section 15 of the Local Government Debt
11Reform Act; (k) made by a school district that participates in
12the Special Education District of Lake County, created by
13special education joint agreement under Section 10-22.31 of the
14School Code, for payment of the school district's share of the
15amounts required to be contributed by the Special Education
16District of Lake County to the Illinois Municipal Retirement
17Fund under Article 7 of the Illinois Pension Code; the amount
18of any extension under this item (k) shall be certified by the
19school district to the county clerk; (l) made to fund expenses
20of providing joint recreational programs for persons with
21disabilities under Section 5-8 of the Park District Code or
22Section 11-95-14 of the Illinois Municipal Code; (m) made for
23temporary relocation loan repayment purposes pursuant to
24Sections 2-3.77 and 17-2.2d of the School Code; (n) made for
25payment of principal and interest on any bonds issued under the
26authority of Section 17-2.2d of the School Code; (o) made for

 

 

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1contributions to a firefighter's pension fund created under
2Article 4 of the Illinois Pension Code, to the extent of the
3amount certified under item (5) of Section 4-134 of the
4Illinois Pension Code; and (p) made for road purposes in the
5first year after a township assumes the rights, powers, duties,
6assets, property, liabilities, obligations, and
7responsibilities of a road district abolished under the
8provisions of Section 6-133 of the Illinois Highway Code.
9    "Aggregate extension" for the taxing districts to which
10this Law did not apply before the 1995 levy year (except taxing
11districts subject to this Law in accordance with Section
1218-213) means the annual corporate extension for the taxing
13district and those special purpose extensions that are made
14annually for the taxing district, excluding special purpose
15extensions: (a) made for the taxing district to pay interest or
16principal on general obligation bonds that were approved by
17referendum; (b) made for any taxing district to pay interest or
18principal on general obligation bonds issued before March 1,
191995; (c) made for any taxing district to pay interest or
20principal on bonds issued to refund or continue to refund those
21bonds issued before March 1, 1995; (d) made for any taxing
22district to pay interest or principal on bonds issued to refund
23or continue to refund bonds issued after March 1, 1995 that
24were approved by referendum; (e) made for any taxing district
25to pay interest or principal on revenue bonds issued before
26March 1, 1995 for payment of which a property tax levy or the

 

 

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1full faith and credit of the unit of local government is
2pledged; however, a tax for the payment of interest or
3principal on those bonds shall be made only after the governing
4body of the unit of local government finds that all other
5sources for payment are insufficient to make those payments;
6(f) made for payments under a building commission lease when
7the lease payments are for the retirement of bonds issued by
8the commission before March 1, 1995 to pay for the building
9project; (g) made for payments due under installment contracts
10entered into before March 1, 1995; (h) made for payments of
11principal and interest on bonds issued under the Metropolitan
12Water Reclamation District Act to finance construction
13projects initiated before October 1, 1991; (h-4) made for
14stormwater management purposes by the Metropolitan Water
15Reclamation District of Greater Chicago under Section 12 of the
16Metropolitan Water Reclamation District Act; (i) made for
17payments of principal and interest on limited bonds, as defined
18in Section 3 of the Local Government Debt Reform Act, in an
19amount not to exceed the debt service extension base less the
20amount in items (b), (c), and (e) of this definition for
21non-referendum obligations, except obligations initially
22issued pursuant to referendum and bonds described in subsection
23(h) of this definition; (j) made for payments of principal and
24interest on bonds issued under Section 15 of the Local
25Government Debt Reform Act; (k) made for payments of principal
26and interest on bonds authorized by Public Act 88-503 and

 

 

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1issued under Section 20a of the Chicago Park District Act for
2aquarium or museum projects; (l) made for payments of principal
3and interest on bonds authorized by Public Act 87-1191 or
493-601 and (i) issued pursuant to Section 21.2 of the Cook
5County Forest Preserve District Act, (ii) issued under Section
642 of the Cook County Forest Preserve District Act for
7zoological park projects, or (iii) issued under Section 44.1 of
8the Cook County Forest Preserve District Act for botanical
9gardens projects; (m) made pursuant to Section 34-53.5 of the
10School Code, whether levied annually or not; (n) made to fund
11expenses of providing joint recreational programs for persons
12with disabilities under Section 5-8 of the Park District Code
13or Section 11-95-14 of the Illinois Municipal Code; (o) made by
14the Chicago Park District for recreational programs for persons
15with disabilities under subsection (c) of Section 7.06 of the
16Chicago Park District Act; (p) made for contributions to a
17firefighter's pension fund created under Article 4 of the
18Illinois Pension Code, to the extent of the amount certified
19under item (5) of Section 4-134 of the Illinois Pension Code;
20(q) made by Ford Heights School District 169 under Section
2117-9.02 of the School Code; and (r) made for the purpose of
22making employer contributions to the Public School Teachers'
23Pension and Retirement Fund of Chicago under Section 34-53 of
24the School Code.
25    "Aggregate extension" for all taxing districts to which
26this Law applies in accordance with Section 18-213, except for

 

 

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1those taxing districts subject to paragraph (2) of subsection
2(e) of Section 18-213, means the annual corporate extension for
3the taxing district and those special purpose extensions that
4are made annually for the taxing district, excluding special
5purpose extensions: (a) made for the taxing district to pay
6interest or principal on general obligation bonds that were
7approved by referendum; (b) made for any taxing district to pay
8interest or principal on general obligation bonds issued before
9the date on which the referendum making this Law applicable to
10the taxing district is held; (c) made for any taxing district
11to pay interest or principal on bonds issued to refund or
12continue to refund those bonds issued before the date on which
13the referendum making this Law applicable to the taxing
14district is held; (d) made for any taxing district to pay
15interest or principal on bonds issued to refund or continue to
16refund bonds issued after the date on which the referendum
17making this Law applicable to the taxing district is held if
18the bonds were approved by referendum after the date on which
19the referendum making this Law applicable to the taxing
20district is held; (e) made for any taxing district to pay
21interest or principal on revenue bonds issued before the date
22on which the referendum making this Law applicable to the
23taxing district is held for payment of which a property tax
24levy or the full faith and credit of the unit of local
25government is pledged; however, a tax for the payment of
26interest or principal on those bonds shall be made only after

 

 

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1the governing body of the unit of local government finds that
2all other sources for payment are insufficient to make those
3payments; (f) made for payments under a building commission
4lease when the lease payments are for the retirement of bonds
5issued by the commission before the date on which the
6referendum making this Law applicable to the taxing district is
7held to pay for the building project; (g) made for payments due
8under installment contracts entered into before the date on
9which the referendum making this Law applicable to the taxing
10district is held; (h) made for payments of principal and
11interest on limited bonds, as defined in Section 3 of the Local
12Government Debt Reform Act, in an amount not to exceed the debt
13service extension base less the amount in items (b), (c), and
14(e) of this definition for non-referendum obligations, except
15obligations initially issued pursuant to referendum; (i) made
16for payments of principal and interest on bonds issued under
17Section 15 of the Local Government Debt Reform Act; (j) made
18for a qualified airport authority to pay interest or principal
19on general obligation bonds issued for the purpose of paying
20obligations due under, or financing airport facilities
21required to be acquired, constructed, installed or equipped
22pursuant to, contracts entered into before March 1, 1996 (but
23not including any amendments to such a contract taking effect
24on or after that date); (k) made to fund expenses of providing
25joint recreational programs for persons with disabilities
26under Section 5-8 of the Park District Code or Section 11-95-14

 

 

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1of the Illinois Municipal Code; (l) made for contributions to a
2firefighter's pension fund created under Article 4 of the
3Illinois Pension Code, to the extent of the amount certified
4under item (5) of Section 4-134 of the Illinois Pension Code;
5and (m) made for the taxing district to pay interest or
6principal on general obligation bonds issued pursuant to
7Section 19-3.10 of the School Code.
8    "Aggregate extension" for all taxing districts to which
9this Law applies in accordance with paragraph (2) of subsection
10(e) of Section 18-213 means the annual corporate extension for
11the taxing district and those special purpose extensions that
12are made annually for the taxing district, excluding special
13purpose extensions: (a) made for the taxing district to pay
14interest or principal on general obligation bonds that were
15approved by referendum; (b) made for any taxing district to pay
16interest or principal on general obligation bonds issued before
17the effective date of this amendatory Act of 1997; (c) made for
18any taxing district to pay interest or principal on bonds
19issued to refund or continue to refund those bonds issued
20before the effective date of this amendatory Act of 1997; (d)
21made for any taxing district to pay interest or principal on
22bonds issued to refund or continue to refund bonds issued after
23the effective date of this amendatory Act of 1997 if the bonds
24were approved by referendum after the effective date of this
25amendatory Act of 1997; (e) made for any taxing district to pay
26interest or principal on revenue bonds issued before the

 

 

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1effective date of this amendatory Act of 1997 for payment of
2which a property tax levy or the full faith and credit of the
3unit of local government is pledged; however, a tax for the
4payment of interest or principal on those bonds shall be made
5only after the governing body of the unit of local government
6finds that all other sources for payment are insufficient to
7make those payments; (f) made for payments under a building
8commission lease when the lease payments are for the retirement
9of bonds issued by the commission before the effective date of
10this amendatory Act of 1997 to pay for the building project;
11(g) made for payments due under installment contracts entered
12into before the effective date of this amendatory Act of 1997;
13(h) made for payments of principal and interest on limited
14bonds, as defined in Section 3 of the Local Government Debt
15Reform Act, in an amount not to exceed the debt service
16extension base less the amount in items (b), (c), and (e) of
17this definition for non-referendum obligations, except
18obligations initially issued pursuant to referendum; (i) made
19for payments of principal and interest on bonds issued under
20Section 15 of the Local Government Debt Reform Act; (j) made
21for a qualified airport authority to pay interest or principal
22on general obligation bonds issued for the purpose of paying
23obligations due under, or financing airport facilities
24required to be acquired, constructed, installed or equipped
25pursuant to, contracts entered into before March 1, 1996 (but
26not including any amendments to such a contract taking effect

 

 

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1on or after that date); (k) made to fund expenses of providing
2joint recreational programs for persons with disabilities
3under Section 5-8 of the Park District Code or Section 11-95-14
4of the Illinois Municipal Code; and (l) made for contributions
5to a firefighter's pension fund created under Article 4 of the
6Illinois Pension Code, to the extent of the amount certified
7under item (5) of Section 4-134 of the Illinois Pension Code.
8    "Debt service extension base" means an amount equal to that
9portion of the extension for a taxing district for the 1994
10levy year, or for those taxing districts subject to this Law in
11accordance with Section 18-213, except for those subject to
12paragraph (2) of subsection (e) of Section 18-213, for the levy
13year in which the referendum making this Law applicable to the
14taxing district is held, or for those taxing districts subject
15to this Law in accordance with paragraph (2) of subsection (e)
16of Section 18-213 for the 1996 levy year, constituting an
17extension for payment of principal and interest on bonds issued
18by the taxing district without referendum, but not including
19excluded non-referendum bonds. For park districts (i) that were
20first subject to this Law in 1991 or 1995 and (ii) whose
21extension for the 1994 levy year for the payment of principal
22and interest on bonds issued by the park district without
23referendum (but not including excluded non-referendum bonds)
24was less than 51% of the amount for the 1991 levy year
25constituting an extension for payment of principal and interest
26on bonds issued by the park district without referendum (but

 

 

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1not including excluded non-referendum bonds), "debt service
2extension base" means an amount equal to that portion of the
3extension for the 1991 levy year constituting an extension for
4payment of principal and interest on bonds issued by the park
5district without referendum (but not including excluded
6non-referendum bonds). A debt service extension base
7established or increased at any time pursuant to any provision
8of this Law, except Section 18-212, shall be increased each
9year commencing with the later of (i) the 2009 levy year or
10(ii) the first levy year in which this Law becomes applicable
11to the taxing district, by the lesser of 5% or the percentage
12increase in the Consumer Price Index during the 12-month
13calendar year preceding the levy year. The debt service
14extension base may be established or increased as provided
15under Section 18-212. "Excluded non-referendum bonds" means
16(i) bonds authorized by Public Act 88-503 and issued under
17Section 20a of the Chicago Park District Act for aquarium and
18museum projects; (ii) bonds issued under Section 15 of the
19Local Government Debt Reform Act; or (iii) refunding
20obligations issued to refund or to continue to refund
21obligations initially issued pursuant to referendum.
22    "Special purpose extensions" include, but are not limited
23to, extensions for levies made on an annual basis for
24unemployment and workers' compensation, self-insurance,
25contributions to pension plans, and extensions made pursuant to
26Section 6-601 of the Illinois Highway Code for a road

 

 

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1district's permanent road fund whether levied annually or not.
2The extension for a special service area is not included in the
3aggregate extension.
4    "Aggregate extension base" means the taxing district's
5last preceding aggregate extension as adjusted under Sections
618-135, 18-215, and 18-230, and 18-206. An adjustment under
7Section 18-135 shall be made for the 2007 levy year and all
8subsequent levy years whenever one or more counties within
9which a taxing district is located (i) used estimated
10valuations or rates when extending taxes in the taxing district
11for the last preceding levy year that resulted in the over or
12under extension of taxes, or (ii) increased or decreased the
13tax extension for the last preceding levy year as required by
14Section 18-135(c). Whenever an adjustment is required under
15Section 18-135, the aggregate extension base of the taxing
16district shall be equal to the amount that the aggregate
17extension of the taxing district would have been for the last
18preceding levy year if either or both (i) actual, rather than
19estimated, valuations or rates had been used to calculate the
20extension of taxes for the last levy year, or (ii) the tax
21extension for the last preceding levy year had not been
22adjusted as required by subsection (c) of Section 18-135.
23    Notwithstanding any other provision of law, for levy year
242012, the aggregate extension base for West Northfield School
25District No. 31 in Cook County shall be $12,654,592.
26    "Levy year" has the same meaning as "year" under Section

 

 

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11-155.
2    "New property" means (i) the assessed value, after final
3board of review or board of appeals action, of new improvements
4or additions to existing improvements on any parcel of real
5property that increase the assessed value of that real property
6during the levy year multiplied by the equalization factor
7issued by the Department under Section 17-30, (ii) the assessed
8value, after final board of review or board of appeals action,
9of real property not exempt from real estate taxation, which
10real property was exempt from real estate taxation for any
11portion of the immediately preceding levy year, multiplied by
12the equalization factor issued by the Department under Section
1317-30, including the assessed value, upon final stabilization
14of occupancy after new construction is complete, of any real
15property located within the boundaries of an otherwise or
16previously exempt military reservation that is intended for
17residential use and owned by or leased to a private corporation
18or other entity, (iii) in counties that classify in accordance
19with Section 4 of Article IX of the Illinois Constitution, an
20incentive property's additional assessed value resulting from
21a scheduled increase in the level of assessment as applied to
22the first year final board of review market value, and (iv) any
23increase in assessed value due to oil or gas production from an
24oil or gas well required to be permitted under the Hydraulic
25Fracturing Regulatory Act that was not produced in or accounted
26for during the previous levy year. In addition, the county

 

 

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1clerk in a county containing a population of 3,000,000 or more
2shall include in the 1997 recovered tax increment value for any
3school district, any recovered tax increment value that was
4applicable to the 1995 tax year calculations.
5    "Qualified airport authority" means an airport authority
6organized under the Airport Authorities Act and located in a
7county bordering on the State of Wisconsin and having a
8population in excess of 200,000 and not greater than 500,000.
9    "Recovered tax increment value" means, except as otherwise
10provided in this paragraph, the amount of the current year's
11equalized assessed value, in the first year after a
12municipality terminates the designation of an area as a
13redevelopment project area previously established under the
14Tax Increment Allocation Development Act in the Illinois
15Municipal Code, previously established under the Industrial
16Jobs Recovery Law in the Illinois Municipal Code, previously
17established under the Economic Development Project Area Tax
18Increment Act of 1995, or previously established under the
19Economic Development Area Tax Increment Allocation Act, of each
20taxable lot, block, tract, or parcel of real property in the
21redevelopment project area over and above the initial equalized
22assessed value of each property in the redevelopment project
23area. For the taxes which are extended for the 1997 levy year,
24the recovered tax increment value for a non-home rule taxing
25district that first became subject to this Law for the 1995
26levy year because a majority of its 1994 equalized assessed

 

 

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1value was in an affected county or counties shall be increased
2if a municipality terminated the designation of an area in 1993
3as a redevelopment project area previously established under
4the Tax Increment Allocation Development Act in the Illinois
5Municipal Code, previously established under the Industrial
6Jobs Recovery Law in the Illinois Municipal Code, or previously
7established under the Economic Development Area Tax Increment
8Allocation Act, by an amount equal to the 1994 equalized
9assessed value of each taxable lot, block, tract, or parcel of
10real property in the redevelopment project area over and above
11the initial equalized assessed value of each property in the
12redevelopment project area. In the first year after a
13municipality removes a taxable lot, block, tract, or parcel of
14real property from a redevelopment project area established
15under the Tax Increment Allocation Development Act in the
16Illinois Municipal Code, the Industrial Jobs Recovery Law in
17the Illinois Municipal Code, or the Economic Development Area
18Tax Increment Allocation Act, "recovered tax increment value"
19means the amount of the current year's equalized assessed value
20of each taxable lot, block, tract, or parcel of real property
21removed from the redevelopment project area over and above the
22initial equalized assessed value of that real property before
23removal from the redevelopment project area.
24    Except as otherwise provided in this Section, "limiting
25rate" means a fraction the numerator of which is the last
26preceding aggregate extension base times an amount equal to one

 

 

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1plus the extension limitation defined in this Section and the
2denominator of which is the current year's equalized assessed
3value of all real property in the territory under the
4jurisdiction of the taxing district during the prior levy year.
5For those taxing districts that reduced their aggregate
6extension for the last preceding levy year, except for school
7districts that reduced their extension for educational
8purposes pursuant to Section 18-206, the highest aggregate
9extension in any of the last 3 preceding levy years shall be
10used for the purpose of computing the limiting rate. The
11denominator shall not include new property or the recovered tax
12increment value. If a new rate, a rate decrease, or a limiting
13rate increase has been approved at an election held after March
1421, 2006, then (i) the otherwise applicable limiting rate shall
15be increased by the amount of the new rate or shall be reduced
16by the amount of the rate decrease, as the case may be, or (ii)
17in the case of a limiting rate increase, the limiting rate
18shall be equal to the rate set forth in the proposition
19approved by the voters for each of the years specified in the
20proposition, after which the limiting rate of the taxing
21district shall be calculated as otherwise provided. In the case
22of a taxing district that obtained referendum approval for an
23increased limiting rate on March 20, 2012, the limiting rate
24for tax year 2012 shall be the rate that generates the
25approximate total amount of taxes extendable for that tax year,
26as set forth in the proposition approved by the voters; this

 

 

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1rate shall be the final rate applied by the county clerk for
2the aggregate of all capped funds of the district for tax year
32012.
4(Source: P.A. 98-6, eff. 3-29-13; 98-23, eff. 6-17-13; 99-143,
5eff. 7-27-15; 99-521, eff. 6-1-17.)
 
6    (35 ILCS 200/18-200)
7    Sec. 18-200. School Code. A school district's State aid
8shall not be reduced under the computation under subsections
95(a) through 5(h) of Part A of Section 18-8 of the School Code
10or under Section 18-8.15 of the School Code due to the
11operating tax rate falling from above the minimum requirement
12of that Section of the School Code to below the minimum
13requirement of that Section of the School Code due to the
14operation of this Law.
15(Source: P.A. 87-17; 88-455.)
 
16    (35 ILCS 200/18-206 new)
17    Sec. 18-206. Decrease in extension for educational
18purposes.
19    (a) Notwithstanding any other provision of law, for those
20school districts whose adequacy targets, as defined in Section
2118-8.15 of this Code, exceed 110% for the school year that
22begins during the calendar year immediately preceding the levy
23year for which the reduction under this Section is sought, the
24question of whether the school district shall reduce its

 

 

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1extension for educational purposes for the levy year in which
2the election is held to an amount that is less than the
3extension for educational purposes for the immediately
4preceding levy year shall be submitted to the voters of the
5school district at the next consolidated election but only upon
6submission of a petition signed by not fewer than 10% of the
7registered voters in the school district. In no event shall the
8reduced extension be more than 10% lower than the amount
9extended for educational purposes in the previous levy year,
10and in no event shall the reduction cause the school district's
11adequacy target to fall below 110% for the levy year for which
12the reduction is sought.
13    (b) The petition shall be filed with the applicable
14election authority, as defined in Section 1-3 of the Election
15Code, or, in the case of multiple election authorities, with
16the State Board of Elections, not more than 10 months nor less
17than 6 months prior to the election at which the question is to
18be submitted to the voters, and its validity shall be
19determined as provided by Article 28 of the Election Code and
20general election law. The election authority or Board, as
21applicable, shall certify the question and the proper election
22authority or authorities shall submit the question to the
23voters. Except as otherwise provided in this Section, this
24referendum shall be subject to all other general election law
25requirements.
26    (c) The proposition seeking to reduce the extension for

 

 

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1educational purposes shall be in substantially the following
2form:
3        Shall the amount extended for educational purposes by
4    (school district) be reduced from (previous levy year's
5    extension) to (proposed extension) for (levy year), but in
6    no event lower than the amount required to maintain an
7    adequacy target of 110%?
8    Votes shall be recorded as "Yes" or "No".
9    If a majority of all votes cast on the proposition are in
10favor of the proposition, then, for the levy year in which the
11election is held, the amount extended by the school district
12for educational purposes shall be reduced as provided in the
13referendum; however, in no event shall the reduction exceed the
14amount that would cause the school district to have an adequacy
15target of 110% for the applicable school year.
16    Once the question is submitted to the voters, then the
17question may not be submitted again for the same school
18district at any of the next 2 consolidated elections.
19    (d) For school districts that approve a reduction under
20this Section, the county clerk shall extend a rate for
21educational purposes that is no greater than the limiting rate
22for educational purposes. If the school district is otherwise
23subject to this Law for the applicable levy year, then, for the
24levy year in which the reduction occurs, the county clerk shall
25calculate separate limiting rates for educational purposes and
26for the aggregate of the school district's other funds.

 

 

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1    As used in this Section:
2    "School district" means each school district in the State,
3regardless of whether or not that school district is otherwise
4subject to this Law.
5    "Limiting rate for educational purposes" means a fraction
6the numerator of which is the greater of (i) the amount
7approved by the voters in the referendum under subsection (c)
8of this Section or (ii) the amount that would cause the school
9district to have an adequacy target of 110% for the applicable
10school year, but in no event more than the school district's
11extension for educational purposes in the immediately
12preceding levy year, and the denominator of which is the
13current year's equalized assessed value of all real property
14under the jurisdiction of the school district during the prior
15levy year.
 
16    (35 ILCS 200/18-249)
17    Sec. 18-249. Miscellaneous provisions.
18    (a) Certification of new property. For the 1994 levy year,
19the chief county assessment officer shall certify to the county
20clerk, after all changes by the board of review or board of
21appeals, as the case may be, the assessed value of new property
22by taxing district for the 1994 levy year under rules
23promulgated by the Department.
24    (b) School Code. A school district's State aid shall not be
25reduced under the computation under subsections 5(a) through

 

 

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15(h) of Part A of Section 18-8 of the School Code or under
2Section 18-8.15 of the School Code due to the operating tax
3rate falling from above the minimum requirement of that Section
4of the School Code to below the minimum requirement of that
5Section of the School Code due to the operation of this Law.
6    (c) Rules. The Department shall make and promulgate
7reasonable rules relating to the administration of the purposes
8and provisions of Sections 18-246 through 18-249 as may be
9necessary or appropriate.
10(Source: P.A. 89-1, eff. 2-12-95.)
 
11    Section 930. The Illinois Pension Code is amended by
12changing Section 17-127 as follows:
 
13    (40 ILCS 5/17-127)  (from Ch. 108 1/2, par. 17-127)
14    Sec. 17-127. Financing; revenues for the Fund.
15    (a) The revenues for the Fund shall consist of: (1) amounts
16paid into the Fund by contributors thereto and from employer
17contributions and State appropriations in accordance with this
18Article; (2) amounts contributed to the Fund by an Employer;
19(3) amounts contributed to the Fund pursuant to any law now in
20force or hereafter to be enacted; (4) contributions from any
21other source; and (5) the earnings on investments.
22    (b) The General Assembly finds that for many years the
23State has contributed to the Fund an annual amount that is
24between 20% and 30% of the amount of the annual State

 

 

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1contribution to the Article 16 retirement system, and the
2General Assembly declares that it is its goal and intention to
3continue this level of contribution to the Fund in the future.
4    (c) Beginning in State fiscal year 1999, the State shall
5include in its annual contribution to the Fund an additional
6amount equal to 0.544% of the Fund's total teacher payroll;
7except that this additional contribution need not be made in a
8fiscal year if the Board has certified in the previous fiscal
9year that the Fund is at least 90% funded, based on actuarial
10determinations. These additional State contributions are
11intended to offset a portion of the cost to the Fund of the
12increases in retirement benefits resulting from this
13amendatory Act of 1998.
14    (d) In addition to any other contribution required under
15this Article, including the contribution required under
16subsection (c), the State shall contribute to the Fund the
17following amounts:
18        (1) For State fiscal year 2018, the State shall
19    contribute $221,300,000 for the employer normal cost for
20    fiscal year 2018 and the amount allowed under paragraph (3)
21    of Section 17-142.1 of this Code to defray health insurance
22    costs. Funds for this paragraph (1) shall come from funds
23    appropriated for Evidence-Based Funding pursuant to
24    Section 18-8.15 of the School Code.
25        (2) Beginning in State fiscal year 2019, the State
26    shall contribute for each fiscal year an amount to be

 

 

SB1947 Enrolled- 82 -LRB100 09675 MLM 19844 b

1    determined by the Fund, equal to the employer normal cost
2    for that fiscal year, plus the amount allowed pursuant to
3    paragraph (3) of Section 17-142.1 to defray health
4    insurance costs.
5    (e) The Board shall determine the amount of State
6contributions required for each fiscal year on the basis of the
7actuarial tables and other assumptions adopted by the Board and
8the recommendations of the actuary. On or before November 1 of
9each year, beginning November 1, 2017, the Board shall submit
10to the State Actuary, the Governor, and the General Assembly a
11proposed certification of the amount of the required State
12contribution to the Fund for the next fiscal year, along with
13all of the actuarial assumptions, calculations, and data upon
14which that proposed certification is based.
15    On or before January 1 of each year, beginning January 1,
162018, the State Actuary shall issue a preliminary report
17concerning the proposed certification and identifying, if
18necessary, recommended changes in actuarial assumptions that
19the Board must consider before finalizing its certification of
20the required State contributions.
21    (f) On or before January 15, 2018 and each January 15
22thereafter, the Board shall certify to the Governor and the
23General Assembly the amount of the required State contribution
24for the next fiscal year. The certification shall include a
25copy of the actuarial recommendations upon which it is based
26and shall specifically identify the Fund's projected employer

 

 

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1normal cost for that fiscal year. The Board's certification
2must note any deviations from the State Actuary's recommended
3changes, the reason or reasons for not following the State
4Actuary's recommended changes, and the fiscal impact of not
5following the State Actuary's recommended changes on the
6required State contribution.
7    For the purposes of this Article, including issuing
8vouchers, and for the purposes of subsection (h) of Section 1.1
9of the State Pension Funds Continuing Appropriation Act, the
10State contribution specified for State fiscal year 2018 shall
11be deemed to have been certified, by operation of law and
12without official action by the Board or the State Actuary, in
13the amount provided in subsection (c) and subsection (d) of
14this Section.
15    (g) For State fiscal year 2018, the State Board of
16Education shall submit vouchers, as directed by the Board, for
17payment of State contributions to the Fund for the required
18annual State contribution under subsection (d) of this Section.
19These vouchers shall be paid by the State Comptroller and
20Treasurer by warrants drawn on the amount appropriated to the
21State Board of Education from the Common School Fund in Section
225 of Article 97 of Public Act 100-21. If State appropriations
23for State fiscal year 2018 are less than the amount lawfully
24vouchered under this subsection, the difference shall be paid
25from the Common School Fund under the continuing appropriation
26authority provided in Section 1.1 of the State Pension Funds

 

 

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1Continuing Appropriation Act.
2    (h) For State fiscal year 2018, the Board shall submit
3vouchers for the payment of State contributions to the Fund for
4the required annual State contribution under subsection (c) of
5this Section. Beginning in State fiscal year 2019, the Board
6shall submit vouchers for payment of State contributions to the
7Fund for the required annual State contribution under
8subsections (c) and (d) of this Section. These vouchers shall
9be paid by the State Comptroller and Treasurer by warrants
10drawn on the funds appropriated to the Fund for that fiscal
11year. If State appropriations to the Fund for the applicable
12fiscal year are less than the amount lawfully vouchered under
13this subsection, the difference shall be paid from the Common
14School Fund under the continuing appropriation authority
15provided in Section 1.1 of the State Pension Funds Continuing
16Appropriation Act.
17(Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98;
1890-582, eff. 5-27-98; 90-655, eff. 7-30-98.)
 
19    Section 935. The State Pension Funds Continuing
20Appropriation Act is amended by changing Section 1.1 as
21follows:
 
22    (40 ILCS 15/1.1)
23    Sec. 1.1. Appropriations to certain retirement systems.
24    (a) There is hereby appropriated from the General Revenue

 

 

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1Fund to the General Assembly Retirement System, on a continuing
2monthly basis, the amount, if any, by which the total available
3amount of all other appropriations to that retirement system
4for the payment of State contributions is less than the total
5amount of the vouchers for required State contributions
6lawfully submitted by the retirement system for that month
7under Section 2-134 of the Illinois Pension Code.
8    (b) There is hereby appropriated from the General Revenue
9Fund to the State Universities Retirement System, on a
10continuing monthly basis, the amount, if any, by which the
11total available amount of all other appropriations to that
12retirement system for the payment of State contributions,
13including any deficiency in the required contributions of the
14optional retirement program established under Section 15-158.2
15of the Illinois Pension Code, is less than the total amount of
16the vouchers for required State contributions lawfully
17submitted by the retirement system for that month under Section
1815-165 of the Illinois Pension Code.
19    (c) There is hereby appropriated from the Common School
20Fund to the Teachers' Retirement System of the State of
21Illinois, on a continuing monthly basis, the amount, if any, by
22which the total available amount of all other appropriations to
23that retirement system for the payment of State contributions
24is less than the total amount of the vouchers for required
25State contributions lawfully submitted by the retirement
26system for that month under Section 16-158 of the Illinois

 

 

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1Pension Code.
2    (d) There is hereby appropriated from the General Revenue
3Fund to the Judges Retirement System of Illinois, on a
4continuing monthly basis, the amount, if any, by which the
5total available amount of all other appropriations to that
6retirement system for the payment of State contributions is
7less than the total amount of the vouchers for required State
8contributions lawfully submitted by the retirement system for
9that month under Section 18-140 of the Illinois Pension Code.
10    (e) The continuing appropriations provided by subsections
11(a), (b), (c), and (d) of this Section shall first be available
12in State fiscal year 1996. The continuing appropriations
13provided by subsection (h) of this Section shall first be
14available as provided in that subsection (h).
15    (f) For State fiscal year 2010 only, the continuing
16appropriations provided by this Section are equal to the amount
17certified by each System on or before December 31, 2008, less
18(i) the gross proceeds of the bonds sold in fiscal year 2010
19under the authorization contained in subsection (a) of Section
207.2 of the General Obligation Bond Act and (ii) any amounts
21received from the State Pensions Fund.
22    (g) For State fiscal year 2011 only, the continuing
23appropriations provided by this Section are equal to the amount
24certified by each System on or before April 1, 2011, less (i)
25the gross proceeds of the bonds sold in fiscal year 2011 under
26the authorization contained in subsection (a) of Section 7.2 of

 

 

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1the General Obligation Bond Act and (ii) any amounts received
2from the State Pensions Fund.
3    (h) There is hereby appropriated from the Common School
4Fund to the Public School Teachers' Pension and Retirement Fund
5of Chicago, on a continuing basis, the amount, if any, by which
6the total available amount of all other State appropriations to
7that Retirement Fund for the payment of State contributions
8under Section 17-127 of the Illinois Pension Code is less than
9the total amount of the vouchers for required State
10contributions lawfully submitted by the Retirement Fund or the
11State Board of Education, under that Section 17-127.
12(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1396-1511, eff. 1-27-11.)
 
14    Section 940. The Innovation Development and Economy Act is
15amended by changing Section 33 as follows:
 
16    (50 ILCS 470/33)
17    Sec. 33. STAR Bonds School Improvement and Operations Trust
18Fund.
19    (a) The STAR Bonds School Improvement and Operations Trust
20Fund is created as a trust fund in the State treasury. Deposits
21into the Trust Fund shall be made as provided under this
22Section. Moneys in the Trust Fund shall be used by the
23Department of Revenue only for the purpose of making payments
24to school districts in educational service regions that include

 

 

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1or are adjacent to the STAR bond district. Moneys in the Trust
2Fund are not subject to appropriation and shall be used solely
3as provided in this Section. All deposits into the Trust Fund
4shall be held in the Trust Fund by the State Treasurer as ex
5officio custodian separate and apart from all public moneys or
6funds of this State and shall be administered by the Department
7exclusively for the purposes set forth in this Section. All
8moneys in the Trust Fund shall be invested and reinvested by
9the State Treasurer. All interest accruing from these
10investments shall be deposited in the Trust Fund.
11    (b) Upon approval of a STAR bond district, the political
12subdivision shall immediately transmit to the county clerk of
13the county in which the district is located a certified copy of
14the ordinance creating the district, a legal description of the
15district, a map of the district, identification of the year
16that the county clerk shall use for determining the total
17initial equalized assessed value of the district consistent
18with subsection (c), and a list of the parcel or tax
19identification number of each parcel of property included in
20the district.
21    (c) Upon approval of a STAR bond district, the county clerk
22immediately thereafter shall determine (i) the most recently
23ascertained equalized assessed value of each lot, block, tract,
24or parcel of real property within the STAR bond district, from
25which shall be deducted the homestead exemptions under Article
2615 of the Property Tax Code, which value shall be the initial

 

 

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1equalized assessed value of each such piece of property, and
2(ii) the total equalized assessed value of all taxable real
3property within the district by adding together the most
4recently ascertained equalized assessed value of each taxable
5lot, block, tract, or parcel of real property within the
6district, from which shall be deducted the homestead exemptions
7under Article 15 of the Property Tax Code, and shall certify
8that amount as the total initial equalized assessed value of
9the taxable real property within the STAR bond district.
10    (d) In reference to any STAR bond district created within
11any political subdivision, and in respect to which the county
12clerk has certified the total initial equalized assessed value
13of the property in the area, the political subdivision may
14thereafter request the clerk in writing to adjust the initial
15equalized value of all taxable real property within the STAR
16bond district by deducting therefrom the exemptions under
17Article 15 of the Property Tax Code applicable to each lot,
18block, tract, or parcel of real property within the STAR bond
19district. The county clerk shall immediately, after the written
20request to adjust the total initial equalized value is
21received, determine the total homestead exemptions in the STAR
22bond district as provided under Article 15 of the Property Tax
23Code by adding together the homestead exemptions provided by
24said Article on each lot, block, tract, or parcel of real
25property within the STAR bond district and then shall deduct
26the total of said exemptions from the total initial equalized

 

 

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1assessed value. The county clerk shall then promptly certify
2that amount as the total initial equalized assessed value as
3adjusted of the taxable real property within the STAR bond
4district.
5    (e) The county clerk or other person authorized by law
6shall compute the tax rates for each taxing district with all
7or a portion of its equalized assessed value located in the
8STAR bond district. The rate per cent of tax determined shall
9be extended to the current equalized assessed value of all
10property in the district in the same manner as the rate per
11cent of tax is extended to all other taxable property in the
12taxing district.
13    (f) Beginning with the assessment year in which the first
14destination user in the first STAR bond project in a STAR bond
15district makes its first retail sales and for each assessment
16year thereafter until final maturity of the last STAR bonds
17issued in the district, the county clerk or other person
18authorized by law shall determine the increase in equalized
19assessed value of all real property within the STAR bond
20district by subtracting the initial equalized assessed value of
21all property in the district certified under subsection (c)
22from the current equalized assessed value of all property in
23the district. Each year, the property taxes arising from the
24increase in equalized assessed value in the STAR bond district
25shall be determined for each taxing district and shall be
26certified to the county collector.

 

 

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1    (g) Beginning with the year in which taxes are collected
2based on the assessment year in which the first destination
3user in the first STAR bond project in a STAR bond district
4makes its first retail sales and for each year thereafter until
5final maturity of the last STAR bonds issued in the district,
6the county collector shall, within 30 days after receipt of
7property taxes, transmit to the Department to be deposited into
8the STAR Bonds School Improvement and Operations Trust Fund 15%
9of property taxes attributable to the increase in equalized
10assessed value within the STAR bond district from each taxing
11district as certified in subsection (f).
12    (h) The Department shall pay to the regional superintendent
13of schools whose educational service region includes Franklin
14and Williamson Counties, for each year for which money is
15remitted to the Department and paid into the STAR Bonds School
16Improvement and Operations Trust Fund, the money in the Fund as
17provided in this Section. The amount paid to each school
18district shall be allocated proportionately, based on each
19qualifying school district's fall enrollment for the
20then-current school year, such that the school district with
21the largest fall enrollment receives the largest proportionate
22share of money paid out of the Fund or by any other method or
23formula that the regional superintendent of schools deems fit,
24equitable, and in the public interest. The regional
25superintendent may allocate moneys to school districts that are
26outside of his or her educational service region or to other

 

 

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1regional superintendents.
2    The Department shall determine the distributions under
3this Section using its best judgment and information. The
4Department shall be held harmless for the distributions made
5under this Section and all distributions shall be final.
6    (i) In any year that an assessment appeal is filed, the
7extension of taxes on any assessment so appealed shall not be
8delayed. In the case of an assessment that is altered, any
9taxes extended upon the unauthorized assessment or part thereof
10shall be abated, or, if already paid, shall be refunded with
11interest as provided in Section 23-20 of the Property Tax Code.
12In the case of an assessment appeal, the county collector shall
13notify the Department that an assessment appeal has been filed
14and the amount of the tax that would have been deposited in the
15STAR Bonds School Improvement and Operations Trust Fund. The
16county collector shall hold that amount in a separate fund
17until the appeal process is final. After the appeal process is
18finalized, the county collector shall transmit to the
19Department the amount of tax that remains, if any, after all
20required refunds are made. The Department shall pay any amount
21deposited into the Trust Fund under this Section in the same
22proportion as determined for payments for that taxable year
23under subsection (h).
24    (j) In any year that ad valorem taxes are allocated to the
25STAR Bonds School Improvement and Operations Trust Fund, that
26allocation shall not reduce or otherwise impact the school aid

 

 

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1provided to any school district under the general State school
2aid formula provided for in Section 18-8.05 of the School Code
3or the evidence-based funding formula provided for in Section
418-8.15 of the School Code.
5(Source: P.A. 96-939, eff. 6-24-10.)
 
6    Section 945. The County Economic Development Project Area
7Property Tax Allocation Act is amended by changing Section 7 as
8follows:
 
9    (55 ILCS 85/7)  (from Ch. 34, par. 7007)
10    Sec. 7. Creation of special tax allocation fund. If a
11county has adopted property tax allocation financing by
12ordinance for an economic development project area, the
13Department has approved and certified the economic development
14project area, and the county clerk has thereafter certified the
15"total initial equalized value" of the taxable real property
16within such economic development project area in the manner
17provided in subsection (b) of Section 6 of this Act, each year
18after the date of the certification by the county clerk of the
19"initial equalized assessed value" until economic development
20project costs and all county obligations financing economic
21development project costs have been paid, the ad valorem taxes,
22if any, arising from the levies upon the taxable real property
23in the economic development project area by taxing districts
24and tax rates determined in the manner provided in subsection

 

 

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1(b) of Section 6 of this Act shall be divided as follows:
2        (1) That portion of the taxes levied upon each taxable
3    lot, block, tract or parcel of real property which is
4    attributable to the lower of the current equalized assessed
5    value or the initial equalized assessed value of each such
6    taxable lot, block, tract, or parcel of real property
7    existing at the time property tax allocation financing was
8    adopted shall be allocated and when collected shall be paid
9    by the county collector to the respective affected taxing
10    districts in the manner required by the law in the absence
11    of the adoption of property tax allocation financing.
12        (2) That portion, if any, of those taxes which is
13    attributable to the increase in the current equalized
14    assessed valuation of each taxable lot, block, tract, or
15    parcel of real property in the economic development project
16    are, over and above the initial equalized assessed value of
17    each property existing at the time property tax allocation
18    financing was adopted shall be allocated to and when
19    collected shall be paid to the county treasurer, who shall
20    deposit those taxes into a special fund called the special
21    tax allocation fund of the county for the purpose of paying
22    economic development project costs and obligations
23    incurred in the payment thereof.
24    The county, by an ordinance adopting property tax
25allocation financing, may pledge the funds in and to be
26deposited in the special tax allocation fund for the payment of

 

 

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1obligations issued under this Act and for the payment of
2economic development project costs. No part of the current
3equalized assessed valuation of each property in the economic
4development project area attributable to any increase above the
5total initial equalized assessed value of such properties shall
6be used in calculating the general State school aid formula,
7provided for in Section 18-8 of the School Code, or the
8evidence-based funding formula, provided for in Section
918-8.15 of the School Code, until such time as all economic
10development projects costs have been paid as provided for in
11this Section.
12    Whenever a county issues bonds for the purpose of financing
13economic development project costs, the county may provide by
14ordinance for the appointment of a trustee, which may be any
15trust company within the State, and for the establishment of
16the funds or accounts to be maintained by such trustee as the
17county shall deem necessary to provide for the security and
18payment of the bonds. If the county provides for the
19appointment of a trustee, the trustee shall be considered the
20assignee of any payments assigned by the county pursuant to the
21ordinance and this Section. Any amounts paid to the trustee as
22assignee shall be deposited in the funds or accounts
23established pursuant to the trust agreement, and shall be held
24by the trustee in trust for the benefit of the holders of the
25bonds, and the holders shall have a lien on and a security
26interest in those bonds or accounts so long as the bonds remain

 

 

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1outstanding and unpaid. Upon retirement of the bonds, the
2trustee shall pay over any excess amounts held to the county
3for deposit in the special tax allocation fund.
4    When the economic development project costs, including
5without limitation all county obligations financing economic
6development project costs incurred under this Act, have been
7paid, all surplus funds then remaining in the special tax
8allocation funds shall be distributed by being paid by the
9county treasurer to the county collector, who shall immediately
10thereafter pay those funds to the taxing districts having
11taxable property in the economic development project area in
12the same manner and proportion as the most recent distribution
13by the county collector to those taxing districts of real
14property taxes from real property in the economic development
15project area.
16    Upon the payment of all economic development project costs,
17retirement of obligations and the distribution of any excess
18monies pursuant to this Section and not later than 23 years
19from the date of adoption of the ordinance adopting property
20tax allocation financing, the county shall adopt an ordinance
21dissolving the special tax allocation fund for the economic
22development project area and terminating the designation of the
23economic development project area as an economic development
24project area; however, in relation to one or more contiguous
25parcels not exceeding a total area of 120 acres within which an
26electric generating facility is intended to be constructed, and

 

 

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1with respect to which the owner of that proposed electric
2generating facility has entered into a redevelopment agreement
3with Grundy County on or before July 25, 2017, the ordinance of
4the county required in this paragraph shall not dissolve the
5special tax allocation fund for the existing economic
6development project area and shall only terminate the
7designation of the economic development project area as to
8those portions of the economic development project area
9excluding the area covered by the redevelopment agreement
10between the owner of the proposed electric generating facility
11and Grundy County; the county shall adopt an ordinance
12dissolving the special tax allocation fund for the economic
13development project area and terminating the designation of the
14economic development project area as an economic development
15project area with regard to the electric generating facility
16property not later than 35 years from the date of adoption of
17the ordinance adopting property tax allocation financing.
18Thereafter the rates of the taxing districts shall be extended
19and taxes levied, collected and distributed in the manner
20applicable in the absence of the adoption of property tax
21allocation financing.
22    Nothing in this Section shall be construed as relieving
23property in economic development project areas from being
24assessed as provided in the Property Tax Code or as relieving
25owners of that property from paying a uniform rate of taxes, as
26required by Section 4 of Article IX of the Illinois

 

 

SB1947 Enrolled- 98 -LRB100 09675 MLM 19844 b

1Constitution of 1970.
2(Source: P.A. 98-463, eff. 8-16-13; 99-513, eff. 6-30-16.)
 
3    Section 950. The County Economic Development Project Area
4Tax Increment Allocation Act of 1991 is amended by changing
5Section 50 as follows:
 
6    (55 ILCS 90/50)  (from Ch. 34, par. 8050)
7    Sec. 50. Special tax allocation fund.
8    (a) If a county clerk has certified the "total initial
9equalized assessed value" of the taxable real property within
10an economic development project area in the manner provided in
11Section 45, each year after the date of the certification by
12the county clerk of the "total initial equalized assessed
13value", until economic development project costs and all county
14obligations financing economic development project costs have
15been paid, the ad valorem taxes, if any, arising from the
16levies upon the taxable real property in the economic
17development project area by taxing districts and tax rates
18determined in the manner provided in subsection (b) of Section
1945 shall be divided as follows:
20        (1) That portion of the taxes levied upon each taxable
21    lot, block, tract, or parcel of real property that is
22    attributable to the lower of the current equalized assessed
23    value or the initial equalized assessed value of each
24    taxable lot, block, tract, or parcel of real property

 

 

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1    existing at the time tax increment financing was adopted
2    shall be allocated to (and when collected shall be paid by
3    the county collector to) the respective affected taxing
4    districts in the manner required by law in the absence of
5    the adoption of tax increment allocation financing.
6        (2) That portion, if any, of the taxes that is
7    attributable to the increase in the current equalized
8    assessed valuation of each taxable lot, block, tract, or
9    parcel of real property in the economic development project
10    area, over and above the initial equalized assessed value
11    of each property existing at the time tax increment
12    financing was adopted, shall be allocated to (and when
13    collected shall be paid to) the county treasurer, who shall
14    deposit the taxes into a special fund (called the special
15    tax allocation fund of the county) for the purpose of
16    paying economic development project costs and obligations
17    incurred in the payment of those costs.
18    (b) The county, by an ordinance adopting tax increment
19allocation financing, may pledge the monies in and to be
20deposited into the special tax allocation fund for the payment
21of obligations issued under this Act and for the payment of
22economic development project costs. No part of the current
23equalized assessed valuation of each property in the economic
24development project area attributable to any increase above the
25total initial equalized assessed value of those properties
26shall be used in calculating the general State school aid

 

 

SB1947 Enrolled- 100 -LRB100 09675 MLM 19844 b

1formula under Section 18-8 of the School Code or the
2evidence-based funding formula under Section 18-8.15 of the
3School Code until all economic development projects costs have
4been paid as provided for in this Section.
5    (c) When the economic development projects costs,
6including without limitation all county obligations financing
7economic development project costs incurred under this Act,
8have been paid, all surplus monies then remaining in the
9special tax allocation fund shall be distributed by being paid
10by the county treasurer to the county collector, who shall
11immediately pay the monies to the taxing districts having
12taxable property in the economic development project area in
13the same manner and proportion as the most recent distribution
14by the county collector to those taxing districts of real
15property taxes from real property in the economic development
16project area.
17    (d) Upon the payment of all economic development project
18costs, retirement of obligations, and distribution of any
19excess monies under this Section, the county shall adopt an
20ordinance dissolving the special tax allocation fund for the
21economic development project area and terminating the
22designation of the economic development project area as an
23economic development project area. Thereafter, the rates of the
24taxing districts shall be extended and taxes shall be levied,
25collected, and distributed in the manner applicable in the
26absence of the adoption of tax increment allocation financing.

 

 

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1    (e) Nothing in this Section shall be construed as relieving
2property in the economic development project areas from being
3assessed as provided in the Property Tax Code or as relieving
4owners of that property from paying a uniform rate of taxes as
5required by Section 4 of Article IX of the Illinois
6Constitution.
7(Source: P.A. 98-463, eff. 8-16-13.)
 
8    Section 955. The Illinois Municipal Code is amended by
9changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as
10follows:
 
11    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
12    Sec. 11-74.4-3. Definitions. The following terms, wherever
13used or referred to in this Division 74.4 shall have the
14following respective meanings, unless in any case a different
15meaning clearly appears from the context.
16    (a) For any redevelopment project area that has been
17designated pursuant to this Section by an ordinance adopted
18prior to November 1, 1999 (the effective date of Public Act
1991-478), "blighted area" shall have the meaning set forth in
20this Section prior to that date.
21    On and after November 1, 1999, "blighted area" means any
22improved or vacant area within the boundaries of a
23redevelopment project area located within the territorial
24limits of the municipality where:

 

 

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1        (1) If improved, industrial, commercial, and
2    residential buildings or improvements are detrimental to
3    the public safety, health, or welfare because of a
4    combination of 5 or more of the following factors, each of
5    which is (i) present, with that presence documented, to a
6    meaningful extent so that a municipality may reasonably
7    find that the factor is clearly present within the intent
8    of the Act and (ii) reasonably distributed throughout the
9    improved part of the redevelopment project area:
10            (A) Dilapidation. An advanced state of disrepair
11        or neglect of necessary repairs to the primary
12        structural components of buildings or improvements in
13        such a combination that a documented building
14        condition analysis determines that major repair is
15        required or the defects are so serious and so extensive
16        that the buildings must be removed.
17            (B) Obsolescence. The condition or process of
18        falling into disuse. Structures have become ill-suited
19        for the original use.
20            (C) Deterioration. With respect to buildings,
21        defects including, but not limited to, major defects in
22        the secondary building components such as doors,
23        windows, porches, gutters and downspouts, and fascia.
24        With respect to surface improvements, that the
25        condition of roadways, alleys, curbs, gutters,
26        sidewalks, off-street parking, and surface storage

 

 

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1        areas evidence deterioration, including, but not
2        limited to, surface cracking, crumbling, potholes,
3        depressions, loose paving material, and weeds
4        protruding through paved surfaces.
5            (D) Presence of structures below minimum code
6        standards. All structures that do not meet the
7        standards of zoning, subdivision, building, fire, and
8        other governmental codes applicable to property, but
9        not including housing and property maintenance codes.
10            (E) Illegal use of individual structures. The use
11        of structures in violation of applicable federal,
12        State, or local laws, exclusive of those applicable to
13        the presence of structures below minimum code
14        standards.
15            (F) Excessive vacancies. The presence of buildings
16        that are unoccupied or under-utilized and that
17        represent an adverse influence on the area because of
18        the frequency, extent, or duration of the vacancies.
19            (G) Lack of ventilation, light, or sanitary
20        facilities. The absence of adequate ventilation for
21        light or air circulation in spaces or rooms without
22        windows, or that require the removal of dust, odor,
23        gas, smoke, or other noxious airborne materials.
24        Inadequate natural light and ventilation means the
25        absence of skylights or windows for interior spaces or
26        rooms and improper window sizes and amounts by room

 

 

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1        area to window area ratios. Inadequate sanitary
2        facilities refers to the absence or inadequacy of
3        garbage storage and enclosure, bathroom facilities,
4        hot water and kitchens, and structural inadequacies
5        preventing ingress and egress to and from all rooms and
6        units within a building.
7            (H) Inadequate utilities. Underground and overhead
8        utilities such as storm sewers and storm drainage,
9        sanitary sewers, water lines, and gas, telephone, and
10        electrical services that are shown to be inadequate.
11        Inadequate utilities are those that are: (i) of
12        insufficient capacity to serve the uses in the
13        redevelopment project area, (ii) deteriorated,
14        antiquated, obsolete, or in disrepair, or (iii)
15        lacking within the redevelopment project area.
16            (I) Excessive land coverage and overcrowding of
17        structures and community facilities. The
18        over-intensive use of property and the crowding of
19        buildings and accessory facilities onto a site.
20        Examples of problem conditions warranting the
21        designation of an area as one exhibiting excessive land
22        coverage are: (i) the presence of buildings either
23        improperly situated on parcels or located on parcels of
24        inadequate size and shape in relation to present-day
25        standards of development for health and safety and (ii)
26        the presence of multiple buildings on a single parcel.

 

 

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1        For there to be a finding of excessive land coverage,
2        these parcels must exhibit one or more of the following
3        conditions: insufficient provision for light and air
4        within or around buildings, increased threat of spread
5        of fire due to the close proximity of buildings, lack
6        of adequate or proper access to a public right-of-way,
7        lack of reasonably required off-street parking, or
8        inadequate provision for loading and service.
9            (J) Deleterious land use or layout. The existence
10        of incompatible land-use relationships, buildings
11        occupied by inappropriate mixed-uses, or uses
12        considered to be noxious, offensive, or unsuitable for
13        the surrounding area.
14            (K) Environmental clean-up. The proposed
15        redevelopment project area has incurred Illinois
16        Environmental Protection Agency or United States
17        Environmental Protection Agency remediation costs for,
18        or a study conducted by an independent consultant
19        recognized as having expertise in environmental
20        remediation has determined a need for, the clean-up of
21        hazardous waste, hazardous substances, or underground
22        storage tanks required by State or federal law,
23        provided that the remediation costs constitute a
24        material impediment to the development or
25        redevelopment of the redevelopment project area.
26            (L) Lack of community planning. The proposed

 

 

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1        redevelopment project area was developed prior to or
2        without the benefit or guidance of a community plan.
3        This means that the development occurred prior to the
4        adoption by the municipality of a comprehensive or
5        other community plan or that the plan was not followed
6        at the time of the area's development. This factor must
7        be documented by evidence of adverse or incompatible
8        land-use relationships, inadequate street layout,
9        improper subdivision, parcels of inadequate shape and
10        size to meet contemporary development standards, or
11        other evidence demonstrating an absence of effective
12        community planning.
13            (M) The total equalized assessed value of the
14        proposed redevelopment project area has declined for 3
15        of the last 5 calendar years prior to the year in which
16        the redevelopment project area is designated or is
17        increasing at an annual rate that is less than the
18        balance of the municipality for 3 of the last 5
19        calendar years for which information is available or is
20        increasing at an annual rate that is less than the
21        Consumer Price Index for All Urban Consumers published
22        by the United States Department of Labor or successor
23        agency for 3 of the last 5 calendar years prior to the
24        year in which the redevelopment project area is
25        designated.
26        (2) If vacant, the sound growth of the redevelopment

 

 

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1    project area is impaired by a combination of 2 or more of
2    the following factors, each of which is (i) present, with
3    that presence documented, to a meaningful extent so that a
4    municipality may reasonably find that the factor is clearly
5    present within the intent of the Act and (ii) reasonably
6    distributed throughout the vacant part of the
7    redevelopment project area to which it pertains:
8            (A) Obsolete platting of vacant land that results
9        in parcels of limited or narrow size or configurations
10        of parcels of irregular size or shape that would be
11        difficult to develop on a planned basis and in a manner
12        compatible with contemporary standards and
13        requirements, or platting that failed to create
14        rights-of-ways for streets or alleys or that created
15        inadequate right-of-way widths for streets, alleys, or
16        other public rights-of-way or that omitted easements
17        for public utilities.
18            (B) Diversity of ownership of parcels of vacant
19        land sufficient in number to retard or impede the
20        ability to assemble the land for development.
21            (C) Tax and special assessment delinquencies exist
22        or the property has been the subject of tax sales under
23        the Property Tax Code within the last 5 years.
24            (D) Deterioration of structures or site
25        improvements in neighboring areas adjacent to the
26        vacant land.

 

 

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1            (E) The area has incurred Illinois Environmental
2        Protection Agency or United States Environmental
3        Protection Agency remediation costs for, or a study
4        conducted by an independent consultant recognized as
5        having expertise in environmental remediation has
6        determined a need for, the clean-up of hazardous waste,
7        hazardous substances, or underground storage tanks
8        required by State or federal law, provided that the
9        remediation costs constitute a material impediment to
10        the development or redevelopment of the redevelopment
11        project area.
12            (F) The total equalized assessed value of the
13        proposed redevelopment project area has declined for 3
14        of the last 5 calendar years prior to the year in which
15        the redevelopment project area is designated or is
16        increasing at an annual rate that is less than the
17        balance of the municipality for 3 of the last 5
18        calendar years for which information is available or is
19        increasing at an annual rate that is less than the
20        Consumer Price Index for All Urban Consumers published
21        by the United States Department of Labor or successor
22        agency for 3 of the last 5 calendar years prior to the
23        year in which the redevelopment project area is
24        designated.
25        (3) If vacant, the sound growth of the redevelopment
26    project area is impaired by one of the following factors

 

 

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1    that (i) is present, with that presence documented, to a
2    meaningful extent so that a municipality may reasonably
3    find that the factor is clearly present within the intent
4    of the Act and (ii) is reasonably distributed throughout
5    the vacant part of the redevelopment project area to which
6    it pertains:
7            (A) The area consists of one or more unused
8        quarries, mines, or strip mine ponds.
9            (B) The area consists of unused rail yards, rail
10        tracks, or railroad rights-of-way.
11            (C) The area, prior to its designation, is subject
12        to (i) chronic flooding that adversely impacts on real
13        property in the area as certified by a registered
14        professional engineer or appropriate regulatory agency
15        or (ii) surface water that discharges from all or a
16        part of the area and contributes to flooding within the
17        same watershed, but only if the redevelopment project
18        provides for facilities or improvements to contribute
19        to the alleviation of all or part of the flooding.
20            (D) The area consists of an unused or illegal
21        disposal site containing earth, stone, building
22        debris, or similar materials that were removed from
23        construction, demolition, excavation, or dredge sites.
24            (E) Prior to November 1, 1999, the area is not less
25        than 50 nor more than 100 acres and 75% of which is
26        vacant (notwithstanding that the area has been used for

 

 

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1        commercial agricultural purposes within 5 years prior
2        to the designation of the redevelopment project area),
3        and the area meets at least one of the factors itemized
4        in paragraph (1) of this subsection, the area has been
5        designated as a town or village center by ordinance or
6        comprehensive plan adopted prior to January 1, 1982,
7        and the area has not been developed for that designated
8        purpose.
9            (F) The area qualified as a blighted improved area
10        immediately prior to becoming vacant, unless there has
11        been substantial private investment in the immediately
12        surrounding area.
13    (b) For any redevelopment project area that has been
14designated pursuant to this Section by an ordinance adopted
15prior to November 1, 1999 (the effective date of Public Act
1691-478), "conservation area" shall have the meaning set forth
17in this Section prior to that date.
18    On and after November 1, 1999, "conservation area" means
19any improved area within the boundaries of a redevelopment
20project area located within the territorial limits of the
21municipality in which 50% or more of the structures in the area
22have an age of 35 years or more. Such an area is not yet a
23blighted area but because of a combination of 3 or more of the
24following factors is detrimental to the public safety, health,
25morals or welfare and such an area may become a blighted area:
26        (1) Dilapidation. An advanced state of disrepair or

 

 

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1    neglect of necessary repairs to the primary structural
2    components of buildings or improvements in such a
3    combination that a documented building condition analysis
4    determines that major repair is required or the defects are
5    so serious and so extensive that the buildings must be
6    removed.
7        (2) Obsolescence. The condition or process of falling
8    into disuse. Structures have become ill-suited for the
9    original use.
10        (3) Deterioration. With respect to buildings, defects
11    including, but not limited to, major defects in the
12    secondary building components such as doors, windows,
13    porches, gutters and downspouts, and fascia. With respect
14    to surface improvements, that the condition of roadways,
15    alleys, curbs, gutters, sidewalks, off-street parking, and
16    surface storage areas evidence deterioration, including,
17    but not limited to, surface cracking, crumbling, potholes,
18    depressions, loose paving material, and weeds protruding
19    through paved surfaces.
20        (4) Presence of structures below minimum code
21    standards. All structures that do not meet the standards of
22    zoning, subdivision, building, fire, and other
23    governmental codes applicable to property, but not
24    including housing and property maintenance codes.
25        (5) Illegal use of individual structures. The use of
26    structures in violation of applicable federal, State, or

 

 

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1    local laws, exclusive of those applicable to the presence
2    of structures below minimum code standards.
3        (6) Excessive vacancies. The presence of buildings
4    that are unoccupied or under-utilized and that represent an
5    adverse influence on the area because of the frequency,
6    extent, or duration of the vacancies.
7        (7) Lack of ventilation, light, or sanitary
8    facilities. The absence of adequate ventilation for light
9    or air circulation in spaces or rooms without windows, or
10    that require the removal of dust, odor, gas, smoke, or
11    other noxious airborne materials. Inadequate natural light
12    and ventilation means the absence or inadequacy of
13    skylights or windows for interior spaces or rooms and
14    improper window sizes and amounts by room area to window
15    area ratios. Inadequate sanitary facilities refers to the
16    absence or inadequacy of garbage storage and enclosure,
17    bathroom facilities, hot water and kitchens, and
18    structural inadequacies preventing ingress and egress to
19    and from all rooms and units within a building.
20        (8) Inadequate utilities. Underground and overhead
21    utilities such as storm sewers and storm drainage, sanitary
22    sewers, water lines, and gas, telephone, and electrical
23    services that are shown to be inadequate. Inadequate
24    utilities are those that are: (i) of insufficient capacity
25    to serve the uses in the redevelopment project area, (ii)
26    deteriorated, antiquated, obsolete, or in disrepair, or

 

 

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1    (iii) lacking within the redevelopment project area.
2        (9) Excessive land coverage and overcrowding of
3    structures and community facilities. The over-intensive
4    use of property and the crowding of buildings and accessory
5    facilities onto a site. Examples of problem conditions
6    warranting the designation of an area as one exhibiting
7    excessive land coverage are: the presence of buildings
8    either improperly situated on parcels or located on parcels
9    of inadequate size and shape in relation to present-day
10    standards of development for health and safety and the
11    presence of multiple buildings on a single parcel. For
12    there to be a finding of excessive land coverage, these
13    parcels must exhibit one or more of the following
14    conditions: insufficient provision for light and air
15    within or around buildings, increased threat of spread of
16    fire due to the close proximity of buildings, lack of
17    adequate or proper access to a public right-of-way, lack of
18    reasonably required off-street parking, or inadequate
19    provision for loading and service.
20        (10) Deleterious land use or layout. The existence of
21    incompatible land-use relationships, buildings occupied by
22    inappropriate mixed-uses, or uses considered to be
23    noxious, offensive, or unsuitable for the surrounding
24    area.
25        (11) Lack of community planning. The proposed
26    redevelopment project area was developed prior to or

 

 

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1    without the benefit or guidance of a community plan. This
2    means that the development occurred prior to the adoption
3    by the municipality of a comprehensive or other community
4    plan or that the plan was not followed at the time of the
5    area's development. This factor must be documented by
6    evidence of adverse or incompatible land-use
7    relationships, inadequate street layout, improper
8    subdivision, parcels of inadequate shape and size to meet
9    contemporary development standards, or other evidence
10    demonstrating an absence of effective community planning.
11        (12) The area has incurred Illinois Environmental
12    Protection Agency or United States Environmental
13    Protection Agency remediation costs for, or a study
14    conducted by an independent consultant recognized as
15    having expertise in environmental remediation has
16    determined a need for, the clean-up of hazardous waste,
17    hazardous substances, or underground storage tanks
18    required by State or federal law, provided that the
19    remediation costs constitute a material impediment to the
20    development or redevelopment of the redevelopment project
21    area.
22        (13) The total equalized assessed value of the proposed
23    redevelopment project area has declined for 3 of the last 5
24    calendar years for which information is available or is
25    increasing at an annual rate that is less than the balance
26    of the municipality for 3 of the last 5 calendar years for

 

 

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1    which information is available or is increasing at an
2    annual rate that is less than the Consumer Price Index for
3    All Urban Consumers published by the United States
4    Department of Labor or successor agency for 3 of the last 5
5    calendar years for which information is available.
6    (c) "Industrial park" means an area in a blighted or
7conservation area suitable for use by any manufacturing,
8industrial, research or transportation enterprise, of
9facilities to include but not be limited to factories, mills,
10processing plants, assembly plants, packing plants,
11fabricating plants, industrial distribution centers,
12warehouses, repair overhaul or service facilities, freight
13terminals, research facilities, test facilities or railroad
14facilities.
15    (d) "Industrial park conservation area" means an area
16within the boundaries of a redevelopment project area located
17within the territorial limits of a municipality that is a labor
18surplus municipality or within 1 1/2 miles of the territorial
19limits of a municipality that is a labor surplus municipality
20if the area is annexed to the municipality; which area is zoned
21as industrial no later than at the time the municipality by
22ordinance designates the redevelopment project area, and which
23area includes both vacant land suitable for use as an
24industrial park and a blighted area or conservation area
25contiguous to such vacant land.
26    (e) "Labor surplus municipality" means a municipality in

 

 

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1which, at any time during the 6 months before the municipality
2by ordinance designates an industrial park conservation area,
3the unemployment rate was over 6% and was also 100% or more of
4the national average unemployment rate for that same time as
5published in the United States Department of Labor Bureau of
6Labor Statistics publication entitled "The Employment
7Situation" or its successor publication. For the purpose of
8this subsection, if unemployment rate statistics for the
9municipality are not available, the unemployment rate in the
10municipality shall be deemed to be the same as the unemployment
11rate in the principal county in which the municipality is
12located.
13    (f) "Municipality" shall mean a city, village,
14incorporated town, or a township that is located in the
15unincorporated portion of a county with 3 million or more
16inhabitants, if the county adopted an ordinance that approved
17the township's redevelopment plan.
18    (g) "Initial Sales Tax Amounts" means the amount of taxes
19paid under the Retailers' Occupation Tax Act, Use Tax Act,
20Service Use Tax Act, the Service Occupation Tax Act, the
21Municipal Retailers' Occupation Tax Act, and the Municipal
22Service Occupation Tax Act by retailers and servicemen on
23transactions at places located in a State Sales Tax Boundary
24during the calendar year 1985.
25    (g-1) "Revised Initial Sales Tax Amounts" means the amount
26of taxes paid under the Retailers' Occupation Tax Act, Use Tax

 

 

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1Act, Service Use Tax Act, the Service Occupation Tax Act, the
2Municipal Retailers' Occupation Tax Act, and the Municipal
3Service Occupation Tax Act by retailers and servicemen on
4transactions at places located within the State Sales Tax
5Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
6    (h) "Municipal Sales Tax Increment" means an amount equal
7to the increase in the aggregate amount of taxes paid to a
8municipality from the Local Government Tax Fund arising from
9sales by retailers and servicemen within the redevelopment
10project area or State Sales Tax Boundary, as the case may be,
11for as long as the redevelopment project area or State Sales
12Tax Boundary, as the case may be, exist over and above the
13aggregate amount of taxes as certified by the Illinois
14Department of Revenue and paid under the Municipal Retailers'
15Occupation Tax Act and the Municipal Service Occupation Tax Act
16by retailers and servicemen, on transactions at places of
17business located in the redevelopment project area or State
18Sales Tax Boundary, as the case may be, during the base year
19which shall be the calendar year immediately prior to the year
20in which the municipality adopted tax increment allocation
21financing. For purposes of computing the aggregate amount of
22such taxes for base years occurring prior to 1985, the
23Department of Revenue shall determine the Initial Sales Tax
24Amounts for such taxes and deduct therefrom an amount equal to
254% of the aggregate amount of taxes per year for each year the
26base year is prior to 1985, but not to exceed a total deduction

 

 

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1of 12%. The amount so determined shall be known as the
2"Adjusted Initial Sales Tax Amounts". For purposes of
3determining the Municipal Sales Tax Increment, the Department
4of Revenue shall for each period subtract from the amount paid
5to the municipality from the Local Government Tax Fund arising
6from sales by retailers and servicemen on transactions located
7in the redevelopment project area or the State Sales Tax
8Boundary, as the case may be, the certified Initial Sales Tax
9Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
10Initial Sales Tax Amounts for the Municipal Retailers'
11Occupation Tax Act and the Municipal Service Occupation Tax
12Act. For the State Fiscal Year 1989, this calculation shall be
13made by utilizing the calendar year 1987 to determine the tax
14amounts received. For the State Fiscal Year 1990, this
15calculation shall be made by utilizing the period from January
161, 1988, until September 30, 1988, to determine the tax amounts
17received from retailers and servicemen pursuant to the
18Municipal Retailers' Occupation Tax and the Municipal Service
19Occupation Tax Act, which shall have deducted therefrom
20nine-twelfths of the certified Initial Sales Tax Amounts, the
21Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
22Tax Amounts as appropriate. For the State Fiscal Year 1991,
23this calculation shall be made by utilizing the period from
24October 1, 1988, to June 30, 1989, to determine the tax amounts
25received from retailers and servicemen pursuant to the
26Municipal Retailers' Occupation Tax and the Municipal Service

 

 

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1Occupation Tax Act which shall have deducted therefrom
2nine-twelfths of the certified Initial Sales Tax Amounts,
3Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
4Tax Amounts as appropriate. For every State Fiscal Year
5thereafter, the applicable period shall be the 12 months
6beginning July 1 and ending June 30 to determine the tax
7amounts received which shall have deducted therefrom the
8certified Initial Sales Tax Amounts, the Adjusted Initial Sales
9Tax Amounts or the Revised Initial Sales Tax Amounts, as the
10case may be.
11    (i) "Net State Sales Tax Increment" means the sum of the
12following: (a) 80% of the first $100,000 of State Sales Tax
13Increment annually generated within a State Sales Tax Boundary;
14(b) 60% of the amount in excess of $100,000 but not exceeding
15$500,000 of State Sales Tax Increment annually generated within
16a State Sales Tax Boundary; and (c) 40% of all amounts in
17excess of $500,000 of State Sales Tax Increment annually
18generated within a State Sales Tax Boundary. If, however, a
19municipality established a tax increment financing district in
20a county with a population in excess of 3,000,000 before
21January 1, 1986, and the municipality entered into a contract
22or issued bonds after January 1, 1986, but before December 31,
231986, to finance redevelopment project costs within a State
24Sales Tax Boundary, then the Net State Sales Tax Increment
25means, for the fiscal years beginning July 1, 1990, and July 1,
261991, 100% of the State Sales Tax Increment annually generated

 

 

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1within a State Sales Tax Boundary; and notwithstanding any
2other provision of this Act, for those fiscal years the
3Department of Revenue shall distribute to those municipalities
4100% of their Net State Sales Tax Increment before any
5distribution to any other municipality and regardless of
6whether or not those other municipalities will receive 100% of
7their Net State Sales Tax Increment. For Fiscal Year 1999, and
8every year thereafter until the year 2007, for any municipality
9that has not entered into a contract or has not issued bonds
10prior to June 1, 1988 to finance redevelopment project costs
11within a State Sales Tax Boundary, the Net State Sales Tax
12Increment shall be calculated as follows: By multiplying the
13Net State Sales Tax Increment by 90% in the State Fiscal Year
141999; 80% in the State Fiscal Year 2000; 70% in the State
15Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
16State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
17in the State Fiscal Year 2005; 20% in the State Fiscal Year
182006; and 10% in the State Fiscal Year 2007. No payment shall
19be made for State Fiscal Year 2008 and thereafter.
20    Municipalities that issued bonds in connection with a
21redevelopment project in a redevelopment project area within
22the State Sales Tax Boundary prior to July 29, 1991, or that
23entered into contracts in connection with a redevelopment
24project in a redevelopment project area before June 1, 1988,
25shall continue to receive their proportional share of the
26Illinois Tax Increment Fund distribution until the date on

 

 

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1which the redevelopment project is completed or terminated. If,
2however, a municipality that issued bonds in connection with a
3redevelopment project in a redevelopment project area within
4the State Sales Tax Boundary prior to July 29, 1991 retires the
5bonds prior to June 30, 2007 or a municipality that entered
6into contracts in connection with a redevelopment project in a
7redevelopment project area before June 1, 1988 completes the
8contracts prior to June 30, 2007, then so long as the
9redevelopment project is not completed or is not terminated,
10the Net State Sales Tax Increment shall be calculated,
11beginning on the date on which the bonds are retired or the
12contracts are completed, as follows: By multiplying the Net
13State Sales Tax Increment by 60% in the State Fiscal Year 2002;
1450% in the State Fiscal Year 2003; 40% in the State Fiscal Year
152004; 30% in the State Fiscal Year 2005; 20% in the State
16Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
17payment shall be made for State Fiscal Year 2008 and
18thereafter. Refunding of any bonds issued prior to July 29,
191991, shall not alter the Net State Sales Tax Increment.
20    (j) "State Utility Tax Increment Amount" means an amount
21equal to the aggregate increase in State electric and gas tax
22charges imposed on owners and tenants, other than residential
23customers, of properties located within the redevelopment
24project area under Section 9-222 of the Public Utilities Act,
25over and above the aggregate of such charges as certified by
26the Department of Revenue and paid by owners and tenants, other

 

 

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1than residential customers, of properties within the
2redevelopment project area during the base year, which shall be
3the calendar year immediately prior to the year of the adoption
4of the ordinance authorizing tax increment allocation
5financing.
6    (k) "Net State Utility Tax Increment" means the sum of the
7following: (a) 80% of the first $100,000 of State Utility Tax
8Increment annually generated by a redevelopment project area;
9(b) 60% of the amount in excess of $100,000 but not exceeding
10$500,000 of the State Utility Tax Increment annually generated
11by a redevelopment project area; and (c) 40% of all amounts in
12excess of $500,000 of State Utility Tax Increment annually
13generated by a redevelopment project area. For the State Fiscal
14Year 1999, and every year thereafter until the year 2007, for
15any municipality that has not entered into a contract or has
16not issued bonds prior to June 1, 1988 to finance redevelopment
17project costs within a redevelopment project area, the Net
18State Utility Tax Increment shall be calculated as follows: By
19multiplying the Net State Utility Tax Increment by 90% in the
20State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
21in the State Fiscal Year 2001; 60% in the State Fiscal Year
222002; 50% in the State Fiscal Year 2003; 40% in the State
23Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
24State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
25No payment shall be made for the State Fiscal Year 2008 and
26thereafter.

 

 

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1    Municipalities that issue bonds in connection with the
2redevelopment project during the period from June 1, 1988 until
33 years after the effective date of this Amendatory Act of 1988
4shall receive the Net State Utility Tax Increment, subject to
5appropriation, for 15 State Fiscal Years after the issuance of
6such bonds. For the 16th through the 20th State Fiscal Years
7after issuance of the bonds, the Net State Utility Tax
8Increment shall be calculated as follows: By multiplying the
9Net State Utility Tax Increment by 90% in year 16; 80% in year
1017; 70% in year 18; 60% in year 19; and 50% in year 20.
11Refunding of any bonds issued prior to June 1, 1988, shall not
12alter the revised Net State Utility Tax Increment payments set
13forth above.
14    (l) "Obligations" mean bonds, loans, debentures, notes,
15special certificates or other evidence of indebtedness issued
16by the municipality to carry out a redevelopment project or to
17refund outstanding obligations.
18    (m) "Payment in lieu of taxes" means those estimated tax
19revenues from real property in a redevelopment project area
20derived from real property that has been acquired by a
21municipality which according to the redevelopment project or
22plan is to be used for a private use which taxing districts
23would have received had a municipality not acquired the real
24property and adopted tax increment allocation financing and
25which would result from levies made after the time of the
26adoption of tax increment allocation financing to the time the

 

 

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1current equalized value of real property in the redevelopment
2project area exceeds the total initial equalized value of real
3property in said area.
4    (n) "Redevelopment plan" means the comprehensive program
5of the municipality for development or redevelopment intended
6by the payment of redevelopment project costs to reduce or
7eliminate those conditions the existence of which qualified the
8redevelopment project area as a "blighted area" or
9"conservation area" or combination thereof or "industrial park
10conservation area," and thereby to enhance the tax bases of the
11taxing districts which extend into the redevelopment project
12area, provided that, with respect to redevelopment project
13areas described in subsections (p-1) and (p-2), "redevelopment
14plan" means the comprehensive program of the affected
15municipality for the development of qualifying transit
16facilities. On and after November 1, 1999 (the effective date
17of Public Act 91-478), no redevelopment plan may be approved or
18amended that includes the development of vacant land (i) with a
19golf course and related clubhouse and other facilities or (ii)
20designated by federal, State, county, or municipal government
21as public land for outdoor recreational activities or for
22nature preserves and used for that purpose within 5 years prior
23to the adoption of the redevelopment plan. For the purpose of
24this subsection, "recreational activities" is limited to mean
25camping and hunting. Each redevelopment plan shall set forth in
26writing the program to be undertaken to accomplish the

 

 

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1objectives and shall include but not be limited to:
2        (A) an itemized list of estimated redevelopment
3    project costs;
4        (B) evidence indicating that the redevelopment project
5    area on the whole has not been subject to growth and
6    development through investment by private enterprise,
7    provided that such evidence shall not be required for any
8    redevelopment project area located within a transit
9    facility improvement area established pursuant to Section
10    11-74.4-3.3;
11        (C) an assessment of any financial impact of the
12    redevelopment project area on or any increased demand for
13    services from any taxing district affected by the plan and
14    any program to address such financial impact or increased
15    demand;
16        (D) the sources of funds to pay costs;
17        (E) the nature and term of the obligations to be
18    issued;
19        (F) the most recent equalized assessed valuation of the
20    redevelopment project area;
21        (G) an estimate as to the equalized assessed valuation
22    after redevelopment and the general land uses to apply in
23    the redevelopment project area;
24        (H) a commitment to fair employment practices and an
25    affirmative action plan;
26        (I) if it concerns an industrial park conservation

 

 

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1    area, the plan shall also include a general description of
2    any proposed developer, user and tenant of any property, a
3    description of the type, structure and general character of
4    the facilities to be developed, a description of the type,
5    class and number of new employees to be employed in the
6    operation of the facilities to be developed; and
7        (J) if property is to be annexed to the municipality,
8    the plan shall include the terms of the annexation
9    agreement.
10    The provisions of items (B) and (C) of this subsection (n)
11shall not apply to a municipality that before March 14, 1994
12(the effective date of Public Act 88-537) had fixed, either by
13its corporate authorities or by a commission designated under
14subsection (k) of Section 11-74.4-4, a time and place for a
15public hearing as required by subsection (a) of Section
1611-74.4-5. No redevelopment plan shall be adopted unless a
17municipality complies with all of the following requirements:
18        (1) The municipality finds that the redevelopment
19    project area on the whole has not been subject to growth
20    and development through investment by private enterprise
21    and would not reasonably be anticipated to be developed
22    without the adoption of the redevelopment plan, provided,
23    however, that such a finding shall not be required with
24    respect to any redevelopment project area located within a
25    transit facility improvement area established pursuant to
26    Section 11-74.4-3.3.

 

 

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1        (2) The municipality finds that the redevelopment plan
2    and project conform to the comprehensive plan for the
3    development of the municipality as a whole, or, for
4    municipalities with a population of 100,000 or more,
5    regardless of when the redevelopment plan and project was
6    adopted, the redevelopment plan and project either: (i)
7    conforms to the strategic economic development or
8    redevelopment plan issued by the designated planning
9    authority of the municipality, or (ii) includes land uses
10    that have been approved by the planning commission of the
11    municipality.
12        (3) The redevelopment plan establishes the estimated
13    dates of completion of the redevelopment project and
14    retirement of obligations issued to finance redevelopment
15    project costs. Those dates may not be later than the dates
16    set forth under Section 11-74.4-3.5.
17        A municipality may by municipal ordinance amend an
18    existing redevelopment plan to conform to this paragraph
19    (3) as amended by Public Act 91-478, which municipal
20    ordinance may be adopted without further hearing or notice
21    and without complying with the procedures provided in this
22    Act pertaining to an amendment to or the initial approval
23    of a redevelopment plan and project and designation of a
24    redevelopment project area.
25        (3.5) The municipality finds, in the case of an
26    industrial park conservation area, also that the

 

 

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1    municipality is a labor surplus municipality and that the
2    implementation of the redevelopment plan will reduce
3    unemployment, create new jobs and by the provision of new
4    facilities enhance the tax base of the taxing districts
5    that extend into the redevelopment project area.
6        (4) If any incremental revenues are being utilized
7    under Section 8(a)(1) or 8(a)(2) of this Act in
8    redevelopment project areas approved by ordinance after
9    January 1, 1986, the municipality finds: (a) that the
10    redevelopment project area would not reasonably be
11    developed without the use of such incremental revenues, and
12    (b) that such incremental revenues will be exclusively
13    utilized for the development of the redevelopment project
14    area.
15        (5) If: (a) the redevelopment plan will not result in
16    displacement of residents from 10 or more inhabited
17    residential units, and the municipality certifies in the
18    plan that such displacement will not result from the plan;
19    or (b) the redevelopment plan is for a redevelopment
20    project area located within a transit facility improvement
21    area established pursuant to Section 11-74.4-3.3, and the
22    applicable project is subject to the process for evaluation
23    of environmental effects under the National Environmental
24    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a
25    housing impact study need not be performed. If, however,
26    the redevelopment plan would result in the displacement of

 

 

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1    residents from 10 or more inhabited residential units, or
2    if the redevelopment project area contains 75 or more
3    inhabited residential units and no certification is made,
4    then the municipality shall prepare, as part of the
5    separate feasibility report required by subsection (a) of
6    Section 11-74.4-5, a housing impact study.
7        Part I of the housing impact study shall include (i)
8    data as to whether the residential units are single family
9    or multi-family units, (ii) the number and type of rooms
10    within the units, if that information is available, (iii)
11    whether the units are inhabited or uninhabited, as
12    determined not less than 45 days before the date that the
13    ordinance or resolution required by subsection (a) of
14    Section 11-74.4-5 is passed, and (iv) data as to the racial
15    and ethnic composition of the residents in the inhabited
16    residential units. The data requirement as to the racial
17    and ethnic composition of the residents in the inhabited
18    residential units shall be deemed to be fully satisfied by
19    data from the most recent federal census.
20        Part II of the housing impact study shall identify the
21    inhabited residential units in the proposed redevelopment
22    project area that are to be or may be removed. If inhabited
23    residential units are to be removed, then the housing
24    impact study shall identify (i) the number and location of
25    those units that will or may be removed, (ii) the
26    municipality's plans for relocation assistance for those

 

 

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1    residents in the proposed redevelopment project area whose
2    residences are to be removed, (iii) the availability of
3    replacement housing for those residents whose residences
4    are to be removed, and shall identify the type, location,
5    and cost of the housing, and (iv) the type and extent of
6    relocation assistance to be provided.
7        (6) On and after November 1, 1999, the housing impact
8    study required by paragraph (5) shall be incorporated in
9    the redevelopment plan for the redevelopment project area.
10        (7) On and after November 1, 1999, no redevelopment
11    plan shall be adopted, nor an existing plan amended, nor
12    shall residential housing that is occupied by households of
13    low-income and very low-income persons in currently
14    existing redevelopment project areas be removed after
15    November 1, 1999 unless the redevelopment plan provides,
16    with respect to inhabited housing units that are to be
17    removed for households of low-income and very low-income
18    persons, affordable housing and relocation assistance not
19    less than that which would be provided under the federal
20    Uniform Relocation Assistance and Real Property
21    Acquisition Policies Act of 1970 and the regulations under
22    that Act, including the eligibility criteria. Affordable
23    housing may be either existing or newly constructed
24    housing. For purposes of this paragraph (7), "low-income
25    households", "very low-income households", and "affordable
26    housing" have the meanings set forth in the Illinois

 

 

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1    Affordable Housing Act. The municipality shall make a good
2    faith effort to ensure that this affordable housing is
3    located in or near the redevelopment project area within
4    the municipality.
5        (8) On and after November 1, 1999, if, after the
6    adoption of the redevelopment plan for the redevelopment
7    project area, any municipality desires to amend its
8    redevelopment plan to remove more inhabited residential
9    units than specified in its original redevelopment plan,
10    that change shall be made in accordance with the procedures
11    in subsection (c) of Section 11-74.4-5.
12        (9) For redevelopment project areas designated prior
13    to November 1, 1999, the redevelopment plan may be amended
14    without further joint review board meeting or hearing,
15    provided that the municipality shall give notice of any
16    such changes by mail to each affected taxing district and
17    registrant on the interested party registry, to authorize
18    the municipality to expend tax increment revenues for
19    redevelopment project costs defined by paragraphs (5) and
20    (7.5), subparagraphs (E) and (F) of paragraph (11), and
21    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
22    long as the changes do not increase the total estimated
23    redevelopment project costs set out in the redevelopment
24    plan by more than 5% after adjustment for inflation from
25    the date the plan was adopted.
26    (o) "Redevelopment project" means any public and private

 

 

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1development project in furtherance of the objectives of a
2redevelopment plan. On and after November 1, 1999 (the
3effective date of Public Act 91-478), no redevelopment plan may
4be approved or amended that includes the development of vacant
5land (i) with a golf course and related clubhouse and other
6facilities or (ii) designated by federal, State, county, or
7municipal government as public land for outdoor recreational
8activities or for nature preserves and used for that purpose
9within 5 years prior to the adoption of the redevelopment plan.
10For the purpose of this subsection, "recreational activities"
11is limited to mean camping and hunting.
12    (p) "Redevelopment project area" means an area designated
13by the municipality, which is not less in the aggregate than 1
141/2 acres and in respect to which the municipality has made a
15finding that there exist conditions which cause the area to be
16classified as an industrial park conservation area or a
17blighted area or a conservation area, or a combination of both
18blighted areas and conservation areas.
19    (p-1) Notwithstanding any provision of this Act to the
20contrary, on and after August 25, 2009 (the effective date of
21Public Act 96-680), a redevelopment project area may include
22areas within a one-half mile radius of an existing or proposed
23Regional Transportation Authority Suburban Transit Access
24Route (STAR Line) station without a finding that the area is
25classified as an industrial park conservation area, a blighted
26area, a conservation area, or a combination thereof, but only

 

 

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1if the municipality receives unanimous consent from the joint
2review board created to review the proposed redevelopment
3project area.
4    (p-2) Notwithstanding any provision of this Act to the
5contrary, on and after the effective date of this amendatory
6Act of the 99th General Assembly, a redevelopment project area
7may include areas within a transit facility improvement area
8that has been established pursuant to Section 11-74.4-3.3
9without a finding that the area is classified as an industrial
10park conservation area, a blighted area, a conservation area,
11or any combination thereof.
12    (q) "Redevelopment project costs", except for
13redevelopment project areas created pursuant to subsection
14subsections (p-1) or (p-2), means and includes the sum total of
15all reasonable or necessary costs incurred or estimated to be
16incurred, and any such costs incidental to a redevelopment plan
17and a redevelopment project. Such costs include, without
18limitation, the following:
19        (1) Costs of studies, surveys, development of plans,
20    and specifications, implementation and administration of
21    the redevelopment plan including but not limited to staff
22    and professional service costs for architectural,
23    engineering, legal, financial, planning or other services,
24    provided however that no charges for professional services
25    may be based on a percentage of the tax increment
26    collected; except that on and after November 1, 1999 (the

 

 

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1    effective date of Public Act 91-478), no contracts for
2    professional services, excluding architectural and
3    engineering services, may be entered into if the terms of
4    the contract extend beyond a period of 3 years. In
5    addition, "redevelopment project costs" shall not include
6    lobbying expenses. After consultation with the
7    municipality, each tax increment consultant or advisor to a
8    municipality that plans to designate or has designated a
9    redevelopment project area shall inform the municipality
10    in writing of any contracts that the consultant or advisor
11    has entered into with entities or individuals that have
12    received, or are receiving, payments financed by tax
13    increment revenues produced by the redevelopment project
14    area with respect to which the consultant or advisor has
15    performed, or will be performing, service for the
16    municipality. This requirement shall be satisfied by the
17    consultant or advisor before the commencement of services
18    for the municipality and thereafter whenever any other
19    contracts with those individuals or entities are executed
20    by the consultant or advisor;
21        (1.5) After July 1, 1999, annual administrative costs
22    shall not include general overhead or administrative costs
23    of the municipality that would still have been incurred by
24    the municipality if the municipality had not designated a
25    redevelopment project area or approved a redevelopment
26    plan;

 

 

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1        (1.6) The cost of marketing sites within the
2    redevelopment project area to prospective businesses,
3    developers, and investors;
4        (2) Property assembly costs, including but not limited
5    to acquisition of land and other property, real or
6    personal, or rights or interests therein, demolition of
7    buildings, site preparation, site improvements that serve
8    as an engineered barrier addressing ground level or below
9    ground environmental contamination, including, but not
10    limited to parking lots and other concrete or asphalt
11    barriers, and the clearing and grading of land;
12        (3) Costs of rehabilitation, reconstruction or repair
13    or remodeling of existing public or private buildings,
14    fixtures, and leasehold improvements; and the cost of
15    replacing an existing public building if pursuant to the
16    implementation of a redevelopment project the existing
17    public building is to be demolished to use the site for
18    private investment or devoted to a different use requiring
19    private investment; including any direct or indirect costs
20    relating to Green Globes or LEED certified construction
21    elements or construction elements with an equivalent
22    certification;
23        (4) Costs of the construction of public works or
24    improvements, including any direct or indirect costs
25    relating to Green Globes or LEED certified construction
26    elements or construction elements with an equivalent

 

 

SB1947 Enrolled- 136 -LRB100 09675 MLM 19844 b

1    certification, except that on and after November 1, 1999,
2    redevelopment project costs shall not include the cost of
3    constructing a new municipal public building principally
4    used to provide offices, storage space, or conference
5    facilities or vehicle storage, maintenance, or repair for
6    administrative, public safety, or public works personnel
7    and that is not intended to replace an existing public
8    building as provided under paragraph (3) of subsection (q)
9    of Section 11-74.4-3 unless either (i) the construction of
10    the new municipal building implements a redevelopment
11    project that was included in a redevelopment plan that was
12    adopted by the municipality prior to November 1, 1999, (ii)
13    the municipality makes a reasonable determination in the
14    redevelopment plan, supported by information that provides
15    the basis for that determination, that the new municipal
16    building is required to meet an increase in the need for
17    public safety purposes anticipated to result from the
18    implementation of the redevelopment plan, or (iii) the new
19    municipal public building is for the storage, maintenance,
20    or repair of transit vehicles and is located in a transit
21    facility improvement area that has been established
22    pursuant to Section 11-74.4-3.3;
23        (5) Costs of job training and retraining projects,
24    including the cost of "welfare to work" programs
25    implemented by businesses located within the redevelopment
26    project area;

 

 

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1        (6) Financing costs, including but not limited to all
2    necessary and incidental expenses related to the issuance
3    of obligations and which may include payment of interest on
4    any obligations issued hereunder including interest
5    accruing during the estimated period of construction of any
6    redevelopment project for which such obligations are
7    issued and for not exceeding 36 months thereafter and
8    including reasonable reserves related thereto;
9        (7) To the extent the municipality by written agreement
10    accepts and approves the same, all or a portion of a taxing
11    district's capital costs resulting from the redevelopment
12    project necessarily incurred or to be incurred within a
13    taxing district in furtherance of the objectives of the
14    redevelopment plan and project; .
15        (7.5) For redevelopment project areas designated (or
16    redevelopment project areas amended to add or increase the
17    number of tax-increment-financing assisted housing units)
18    on or after November 1, 1999, an elementary, secondary, or
19    unit school district's increased costs attributable to
20    assisted housing units located within the redevelopment
21    project area for which the developer or redeveloper
22    receives financial assistance through an agreement with
23    the municipality or because the municipality incurs the
24    cost of necessary infrastructure improvements within the
25    boundaries of the assisted housing sites necessary for the
26    completion of that housing as authorized by this Act, and

 

 

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1    which costs shall be paid by the municipality from the
2    Special Tax Allocation Fund when the tax increment revenue
3    is received as a result of the assisted housing units and
4    shall be calculated annually as follows:
5            (A) for foundation districts, excluding any school
6        district in a municipality with a population in excess
7        of 1,000,000, by multiplying the district's increase
8        in attendance resulting from the net increase in new
9        students enrolled in that school district who reside in
10        housing units within the redevelopment project area
11        that have received financial assistance through an
12        agreement with the municipality or because the
13        municipality incurs the cost of necessary
14        infrastructure improvements within the boundaries of
15        the housing sites necessary for the completion of that
16        housing as authorized by this Act since the designation
17        of the redevelopment project area by the most recently
18        available per capita tuition cost as defined in Section
19        10-20.12a of the School Code less any increase in
20        general State aid as defined in Section 18-8.05 of the
21        School Code or evidence-based funding as defined in
22        Section 18-8.15 of the School Code attributable to
23        these added new students subject to the following
24        annual limitations:
25                (i) for unit school districts with a district
26            average 1995-96 Per Capita Tuition Charge of less

 

 

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1            than $5,900, no more than 25% of the total amount
2            of property tax increment revenue produced by
3            those housing units that have received tax
4            increment finance assistance under this Act;
5                (ii) for elementary school districts with a
6            district average 1995-96 Per Capita Tuition Charge
7            of less than $5,900, no more than 17% of the total
8            amount of property tax increment revenue produced
9            by those housing units that have received tax
10            increment finance assistance under this Act; and
11                (iii) for secondary school districts with a
12            district average 1995-96 Per Capita Tuition Charge
13            of less than $5,900, no more than 8% of the total
14            amount of property tax increment revenue produced
15            by those housing units that have received tax
16            increment finance assistance under this Act.
17            (B) For alternate method districts, flat grant
18        districts, and foundation districts with a district
19        average 1995-96 Per Capita Tuition Charge equal to or
20        more than $5,900, excluding any school district with a
21        population in excess of 1,000,000, by multiplying the
22        district's increase in attendance resulting from the
23        net increase in new students enrolled in that school
24        district who reside in housing units within the
25        redevelopment project area that have received
26        financial assistance through an agreement with the

 

 

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1        municipality or because the municipality incurs the
2        cost of necessary infrastructure improvements within
3        the boundaries of the housing sites necessary for the
4        completion of that housing as authorized by this Act
5        since the designation of the redevelopment project
6        area by the most recently available per capita tuition
7        cost as defined in Section 10-20.12a of the School Code
8        less any increase in general state aid as defined in
9        Section 18-8.05 of the School Code or evidence-based
10        funding as defined in Section 18-8.15 of the School
11        Code attributable to these added new students subject
12        to the following annual limitations:
13                (i) for unit school districts, no more than 40%
14            of the total amount of property tax increment
15            revenue produced by those housing units that have
16            received tax increment finance assistance under
17            this Act;
18                (ii) for elementary school districts, no more
19            than 27% of the total amount of property tax
20            increment revenue produced by those housing units
21            that have received tax increment finance
22            assistance under this Act; and
23                (iii) for secondary school districts, no more
24            than 13% of the total amount of property tax
25            increment revenue produced by those housing units
26            that have received tax increment finance

 

 

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1            assistance under this Act.
2            (C) For any school district in a municipality with
3        a population in excess of 1,000,000, the following
4        restrictions shall apply to the reimbursement of
5        increased costs under this paragraph (7.5):
6                (i) no increased costs shall be reimbursed
7            unless the school district certifies that each of
8            the schools affected by the assisted housing
9            project is at or over its student capacity;
10                (ii) the amount reimbursable shall be reduced
11            by the value of any land donated to the school
12            district by the municipality or developer, and by
13            the value of any physical improvements made to the
14            schools by the municipality or developer; and
15                (iii) the amount reimbursed may not affect
16            amounts otherwise obligated by the terms of any
17            bonds, notes, or other funding instruments, or the
18            terms of any redevelopment agreement.
19        Any school district seeking payment under this
20        paragraph (7.5) shall, after July 1 and before
21        September 30 of each year, provide the municipality
22        with reasonable evidence to support its claim for
23        reimbursement before the municipality shall be
24        required to approve or make the payment to the school
25        district. If the school district fails to provide the
26        information during this period in any year, it shall

 

 

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1        forfeit any claim to reimbursement for that year.
2        School districts may adopt a resolution waiving the
3        right to all or a portion of the reimbursement
4        otherwise required by this paragraph (7.5). By
5        acceptance of this reimbursement the school district
6        waives the right to directly or indirectly set aside,
7        modify, or contest in any manner the establishment of
8        the redevelopment project area or projects;
9        (7.7) For redevelopment project areas designated (or
10    redevelopment project areas amended to add or increase the
11    number of tax-increment-financing assisted housing units)
12    on or after January 1, 2005 (the effective date of Public
13    Act 93-961), a public library district's increased costs
14    attributable to assisted housing units located within the
15    redevelopment project area for which the developer or
16    redeveloper receives financial assistance through an
17    agreement with the municipality or because the
18    municipality incurs the cost of necessary infrastructure
19    improvements within the boundaries of the assisted housing
20    sites necessary for the completion of that housing as
21    authorized by this Act shall be paid to the library
22    district by the municipality from the Special Tax
23    Allocation Fund when the tax increment revenue is received
24    as a result of the assisted housing units. This paragraph
25    (7.7) applies only if (i) the library district is located
26    in a county that is subject to the Property Tax Extension

 

 

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1    Limitation Law or (ii) the library district is not located
2    in a county that is subject to the Property Tax Extension
3    Limitation Law but the district is prohibited by any other
4    law from increasing its tax levy rate without a prior voter
5    referendum.
6        The amount paid to a library district under this
7    paragraph (7.7) shall be calculated by multiplying (i) the
8    net increase in the number of persons eligible to obtain a
9    library card in that district who reside in housing units
10    within the redevelopment project area that have received
11    financial assistance through an agreement with the
12    municipality or because the municipality incurs the cost of
13    necessary infrastructure improvements within the
14    boundaries of the housing sites necessary for the
15    completion of that housing as authorized by this Act since
16    the designation of the redevelopment project area by (ii)
17    the per-patron cost of providing library services so long
18    as it does not exceed $120. The per-patron cost shall be
19    the Total Operating Expenditures Per Capita for the library
20    in the previous fiscal year. The municipality may deduct
21    from the amount that it must pay to a library district
22    under this paragraph any amount that it has voluntarily
23    paid to the library district from the tax increment
24    revenue. The amount paid to a library district under this
25    paragraph (7.7) shall be no more than 2% of the amount
26    produced by the assisted housing units and deposited into

 

 

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1    the Special Tax Allocation Fund.
2        A library district is not eligible for any payment
3    under this paragraph (7.7) unless the library district has
4    experienced an increase in the number of patrons from the
5    municipality that created the tax-increment-financing
6    district since the designation of the redevelopment
7    project area.
8        Any library district seeking payment under this
9    paragraph (7.7) shall, after July 1 and before September 30
10    of each year, provide the municipality with convincing
11    evidence to support its claim for reimbursement before the
12    municipality shall be required to approve or make the
13    payment to the library district. If the library district
14    fails to provide the information during this period in any
15    year, it shall forfeit any claim to reimbursement for that
16    year. Library districts may adopt a resolution waiving the
17    right to all or a portion of the reimbursement otherwise
18    required by this paragraph (7.7). By acceptance of such
19    reimbursement, the library district shall forfeit any
20    right to directly or indirectly set aside, modify, or
21    contest in any manner whatsoever the establishment of the
22    redevelopment project area or projects;
23        (8) Relocation costs to the extent that a municipality
24    determines that relocation costs shall be paid or is
25    required to make payment of relocation costs by federal or
26    State law or in order to satisfy subparagraph (7) of

 

 

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1    subsection (n);
2        (9) Payment in lieu of taxes;
3        (10) Costs of job training, retraining, advanced
4    vocational education or career education, including but
5    not limited to courses in occupational, semi-technical or
6    technical fields leading directly to employment, incurred
7    by one or more taxing districts, provided that such costs
8    (i) are related to the establishment and maintenance of
9    additional job training, advanced vocational education or
10    career education programs for persons employed or to be
11    employed by employers located in a redevelopment project
12    area; and (ii) when incurred by a taxing district or taxing
13    districts other than the municipality, are set forth in a
14    written agreement by or among the municipality and the
15    taxing district or taxing districts, which agreement
16    describes the program to be undertaken, including but not
17    limited to the number of employees to be trained, a
18    description of the training and services to be provided,
19    the number and type of positions available or to be
20    available, itemized costs of the program and sources of
21    funds to pay for the same, and the term of the agreement.
22    Such costs include, specifically, the payment by community
23    college districts of costs pursuant to Sections 3-37, 3-38,
24    3-40 and 3-40.1 of the Public Community College Act and by
25    school districts of costs pursuant to Sections 10-22.20a
26    and 10-23.3a of the The School Code;

 

 

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1        (11) Interest cost incurred by a redeveloper related to
2    the construction, renovation or rehabilitation of a
3    redevelopment project provided that:
4            (A) such costs are to be paid directly from the
5        special tax allocation fund established pursuant to
6        this Act;
7            (B) such payments in any one year may not exceed
8        30% of the annual interest costs incurred by the
9        redeveloper with regard to the redevelopment project
10        during that year;
11            (C) if there are not sufficient funds available in
12        the special tax allocation fund to make the payment
13        pursuant to this paragraph (11) then the amounts so due
14        shall accrue and be payable when sufficient funds are
15        available in the special tax allocation fund;
16            (D) the total of such interest payments paid
17        pursuant to this Act may not exceed 30% of the total
18        (i) cost paid or incurred by the redeveloper for the
19        redevelopment project plus (ii) redevelopment project
20        costs excluding any property assembly costs and any
21        relocation costs incurred by a municipality pursuant
22        to this Act; and
23            (E) the cost limits set forth in subparagraphs (B)
24        and (D) of paragraph (11) shall be modified for the
25        financing of rehabilitated or new housing units for
26        low-income households and very low-income households,

 

 

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1        as defined in Section 3 of the Illinois Affordable
2        Housing Act. The percentage of 75% shall be substituted
3        for 30% in subparagraphs (B) and (D) of paragraph (11);
4        and .
5            (F) instead Instead of the eligible costs provided
6        by subparagraphs (B) and (D) of paragraph (11), as
7        modified by this subparagraph, and notwithstanding any
8        other provisions of this Act to the contrary, the
9        municipality may pay from tax increment revenues up to
10        50% of the cost of construction of new housing units to
11        be occupied by low-income households and very
12        low-income households as defined in Section 3 of the
13        Illinois Affordable Housing Act. The cost of
14        construction of those units may be derived from the
15        proceeds of bonds issued by the municipality under this
16        Act or other constitutional or statutory authority or
17        from other sources of municipal revenue that may be
18        reimbursed from tax increment revenues or the proceeds
19        of bonds issued to finance the construction of that
20        housing.
21            The eligible costs provided under this
22        subparagraph (F) of paragraph (11) shall be an eligible
23        cost for the construction, renovation, and
24        rehabilitation of all low and very low-income housing
25        units, as defined in Section 3 of the Illinois
26        Affordable Housing Act, within the redevelopment

 

 

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1        project area. If the low and very low-income units are
2        part of a residential redevelopment project that
3        includes units not affordable to low and very
4        low-income households, only the low and very
5        low-income units shall be eligible for benefits under
6        this subparagraph (F) of paragraph (11). The standards
7        for maintaining the occupancy by low-income households
8        and very low-income households, as defined in Section 3
9        of the Illinois Affordable Housing Act, of those units
10        constructed with eligible costs made available under
11        the provisions of this subparagraph (F) of paragraph
12        (11) shall be established by guidelines adopted by the
13        municipality. The responsibility for annually
14        documenting the initial occupancy of the units by
15        low-income households and very low-income households,
16        as defined in Section 3 of the Illinois Affordable
17        Housing Act, shall be that of the then current owner of
18        the property. For ownership units, the guidelines will
19        provide, at a minimum, for a reasonable recapture of
20        funds, or other appropriate methods designed to
21        preserve the original affordability of the ownership
22        units. For rental units, the guidelines will provide,
23        at a minimum, for the affordability of rent to low and
24        very low-income households. As units become available,
25        they shall be rented to income-eligible tenants. The
26        municipality may modify these guidelines from time to

 

 

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1        time; the guidelines, however, shall be in effect for
2        as long as tax increment revenue is being used to pay
3        for costs associated with the units or for the
4        retirement of bonds issued to finance the units or for
5        the life of the redevelopment project area, whichever
6        is later; .
7        (11.5) If the redevelopment project area is located
8    within a municipality with a population of more than
9    100,000, the cost of day care services for children of
10    employees from low-income families working for businesses
11    located within the redevelopment project area and all or a
12    portion of the cost of operation of day care centers
13    established by redevelopment project area businesses to
14    serve employees from low-income families working in
15    businesses located in the redevelopment project area. For
16    the purposes of this paragraph, "low-income families"
17    means families whose annual income does not exceed 80% of
18    the municipal, county, or regional median income, adjusted
19    for family size, as the annual income and municipal,
20    county, or regional median income are determined from time
21    to time by the United States Department of Housing and
22    Urban Development.
23    (12) Unless explicitly stated herein the cost of
24construction of new privately-owned buildings shall not be an
25eligible redevelopment project cost.
26    (13) After November 1, 1999 (the effective date of Public

 

 

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1Act 91-478), none of the redevelopment project costs enumerated
2in this subsection shall be eligible redevelopment project
3costs if those costs would provide direct financial support to
4a retail entity initiating operations in the redevelopment
5project area while terminating operations at another Illinois
6location within 10 miles of the redevelopment project area but
7outside the boundaries of the redevelopment project area
8municipality. For purposes of this paragraph, termination
9means a closing of a retail operation that is directly related
10to the opening of the same operation or like retail entity
11owned or operated by more than 50% of the original ownership in
12a redevelopment project area, but it does not mean closing an
13operation for reasons beyond the control of the retail entity,
14as documented by the retail entity, subject to a reasonable
15finding by the municipality that the current location contained
16inadequate space, had become economically obsolete, or was no
17longer a viable location for the retailer or serviceman.
18    (14) No cost shall be a redevelopment project cost in a
19redevelopment project area if used to demolish, remove, or
20substantially modify a historic resource, after August 26, 2008
21(the effective date of Public Act 95-934), unless no prudent
22and feasible alternative exists. "Historic resource" for the
23purpose of this paragraph item (14) means (i) a place or
24structure that is included or eligible for inclusion on the
25National Register of Historic Places or (ii) a contributing
26structure in a district on the National Register of Historic

 

 

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1Places. This paragraph item (14) does not apply to a place or
2structure for which demolition, removal, or modification is
3subject to review by the preservation agency of a Certified
4Local Government designated as such by the National Park
5Service of the United States Department of the Interior.
6    If a special service area has been established pursuant to
7the Special Service Area Tax Act or Special Service Area Tax
8Law, then any tax increment revenues derived from the tax
9imposed pursuant to the Special Service Area Tax Act or Special
10Service Area Tax Law may be used within the redevelopment
11project area for the purposes permitted by that Act or Law as
12well as the purposes permitted by this Act.
13    (q-1) For redevelopment project areas created pursuant to
14subsection (p-1), redevelopment project costs are limited to
15those costs in paragraph (q) that are related to the existing
16or proposed Regional Transportation Authority Suburban Transit
17Access Route (STAR Line) station.
18    (q-2) For a redevelopment project area located within a
19transit facility improvement area established pursuant to
20Section 11-74.4-3.3, redevelopment project costs means those
21costs described in subsection (q) that are related to the
22construction, reconstruction, rehabilitation, remodeling, or
23repair of any existing or proposed transit facility.
24    (r) "State Sales Tax Boundary" means the redevelopment
25project area or the amended redevelopment project area
26boundaries which are determined pursuant to subsection (9) of

 

 

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1Section 11-74.4-8a of this Act. The Department of Revenue shall
2certify pursuant to subsection (9) of Section 11-74.4-8a the
3appropriate boundaries eligible for the determination of State
4Sales Tax Increment.
5    (s) "State Sales Tax Increment" means an amount equal to
6the increase in the aggregate amount of taxes paid by retailers
7and servicemen, other than retailers and servicemen subject to
8the Public Utilities Act, on transactions at places of business
9located within a State Sales Tax Boundary pursuant to the
10Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
11Tax Act, and the Service Occupation Tax Act, except such
12portion of such increase that is paid into the State and Local
13Sales Tax Reform Fund, the Local Government Distributive Fund,
14the Local Government Tax Fund and the County and Mass Transit
15District Fund, for as long as State participation exists, over
16and above the Initial Sales Tax Amounts, Adjusted Initial Sales
17Tax Amounts or the Revised Initial Sales Tax Amounts for such
18taxes as certified by the Department of Revenue and paid under
19those Acts by retailers and servicemen on transactions at
20places of business located within the State Sales Tax Boundary
21during the base year which shall be the calendar year
22immediately prior to the year in which the municipality adopted
23tax increment allocation financing, less 3.0% of such amounts
24generated under the Retailers' Occupation Tax Act, Use Tax Act
25and Service Use Tax Act and the Service Occupation Tax Act,
26which sum shall be appropriated to the Department of Revenue to

 

 

SB1947 Enrolled- 153 -LRB100 09675 MLM 19844 b

1cover its costs of administering and enforcing this Section.
2For purposes of computing the aggregate amount of such taxes
3for base years occurring prior to 1985, the Department of
4Revenue shall compute the Initial Sales Tax Amount for such
5taxes and deduct therefrom an amount equal to 4% of the
6aggregate amount of taxes per year for each year the base year
7is prior to 1985, but not to exceed a total deduction of 12%.
8The amount so determined shall be known as the "Adjusted
9Initial Sales Tax Amount". For purposes of determining the
10State Sales Tax Increment the Department of Revenue shall for
11each period subtract from the tax amounts received from
12retailers and servicemen on transactions located in the State
13Sales Tax Boundary, the certified Initial Sales Tax Amounts,
14Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
15Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
16the Service Use Tax Act and the Service Occupation Tax Act. For
17the State Fiscal Year 1989 this calculation shall be made by
18utilizing the calendar year 1987 to determine the tax amounts
19received. For the State Fiscal Year 1990, this calculation
20shall be made by utilizing the period from January 1, 1988,
21until September 30, 1988, to determine the tax amounts received
22from retailers and servicemen, which shall have deducted
23therefrom nine-twelfths of the certified Initial Sales Tax
24Amounts, Adjusted Initial Sales Tax Amounts or the Revised
25Initial Sales Tax Amounts as appropriate. For the State Fiscal
26Year 1991, this calculation shall be made by utilizing the

 

 

SB1947 Enrolled- 154 -LRB100 09675 MLM 19844 b

1period from October 1, 1988, until June 30, 1989, to determine
2the tax amounts received from retailers and servicemen, which
3shall have deducted therefrom nine-twelfths of the certified
4Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
5Amounts or the Revised Initial Sales Tax Amounts as
6appropriate. For every State Fiscal Year thereafter, the
7applicable period shall be the 12 months beginning July 1 and
8ending on June 30, to determine the tax amounts received which
9shall have deducted therefrom the certified Initial Sales Tax
10Amounts, Adjusted Initial Sales Tax Amounts or the Revised
11Initial Sales Tax Amounts. Municipalities intending to receive
12a distribution of State Sales Tax Increment must report a list
13of retailers to the Department of Revenue by October 31, 1988
14and by July 31, of each year thereafter.
15    (t) "Taxing districts" means counties, townships, cities
16and incorporated towns and villages, school, road, park,
17sanitary, mosquito abatement, forest preserve, public health,
18fire protection, river conservancy, tuberculosis sanitarium
19and any other municipal corporations or districts with the
20power to levy taxes.
21    (u) "Taxing districts' capital costs" means those costs of
22taxing districts for capital improvements that are found by the
23municipal corporate authorities to be necessary and directly
24result from the redevelopment project.
25    (v) As used in subsection (a) of Section 11-74.4-3 of this
26Act, "vacant land" means any parcel or combination of parcels

 

 

SB1947 Enrolled- 155 -LRB100 09675 MLM 19844 b

1of real property without industrial, commercial, and
2residential buildings which has not been used for commercial
3agricultural purposes within 5 years prior to the designation
4of the redevelopment project area, unless the parcel is
5included in an industrial park conservation area or the parcel
6has been subdivided; provided that if the parcel was part of a
7larger tract that has been divided into 3 or more smaller
8tracts that were accepted for recording during the period from
91950 to 1990, then the parcel shall be deemed to have been
10subdivided, and all proceedings and actions of the municipality
11taken in that connection with respect to any previously
12approved or designated redevelopment project area or amended
13redevelopment project area are hereby validated and hereby
14declared to be legally sufficient for all purposes of this Act.
15For purposes of this Section and only for land subject to the
16subdivision requirements of the Plat Act, land is subdivided
17when the original plat of the proposed Redevelopment Project
18Area or relevant portion thereof has been properly certified,
19acknowledged, approved, and recorded or filed in accordance
20with the Plat Act and a preliminary plat, if any, for any
21subsequent phases of the proposed Redevelopment Project Area or
22relevant portion thereof has been properly approved and filed
23in accordance with the applicable ordinance of the
24municipality.
25    (w) "Annual Total Increment" means the sum of each
26municipality's annual Net Sales Tax Increment and each

 

 

SB1947 Enrolled- 156 -LRB100 09675 MLM 19844 b

1municipality's annual Net Utility Tax Increment. The ratio of
2the Annual Total Increment of each municipality to the Annual
3Total Increment for all municipalities, as most recently
4calculated by the Department, shall determine the proportional
5shares of the Illinois Tax Increment Fund to be distributed to
6each municipality.
7    (x) "LEED certified" means any certification level of
8construction elements by a qualified Leadership in Energy and
9Environmental Design Accredited Professional as determined by
10the U.S. Green Building Council.
11    (y) "Green Globes certified" means any certification level
12of construction elements by a qualified Green Globes
13Professional as determined by the Green Building Initiative.
14(Source: P.A. 99-792, eff. 8-12-16; revised 10-31-16.)
 
15    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
16    Sec. 11-74.4-8. Tax increment allocation financing. A
17municipality may not adopt tax increment financing in a
18redevelopment project area after the effective date of this
19amendatory Act of 1997 that will encompass an area that is
20currently included in an enterprise zone created under the
21Illinois Enterprise Zone Act unless that municipality,
22pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
23amends the enterprise zone designating ordinance to limit the
24eligibility for tax abatements as provided in Section 5.4.1 of
25the Illinois Enterprise Zone Act. A municipality, at the time a

 

 

SB1947 Enrolled- 157 -LRB100 09675 MLM 19844 b

1redevelopment project area is designated, may adopt tax
2increment allocation financing by passing an ordinance
3providing that the ad valorem taxes, if any, arising from the
4levies upon taxable real property in such redevelopment project
5area by taxing districts and tax rates determined in the manner
6provided in paragraph (c) of Section 11-74.4-9 each year after
7the effective date of the ordinance until redevelopment project
8costs and all municipal obligations financing redevelopment
9project costs incurred under this Division have been paid shall
10be divided as follows, provided, however, that with respect to
11any redevelopment project area located within a transit
12facility improvement area established pursuant to Section
1311-74.4-3.3 in a municipality with a population of 1,000,000 or
14more, ad valorem taxes, if any, arising from the levies upon
15taxable real property in such redevelopment project area shall
16be allocated as specifically provided in this Section:
17        (a) That portion of taxes levied upon each taxable lot,
18    block, tract or parcel of real property which is
19    attributable to the lower of the current equalized assessed
20    value or the initial equalized assessed value of each such
21    taxable lot, block, tract or parcel of real property in the
22    redevelopment project area shall be allocated to and when
23    collected shall be paid by the county collector to the
24    respective affected taxing districts in the manner
25    required by law in the absence of the adoption of tax
26    increment allocation financing.

 

 

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1        (b) Except from a tax levied by a township to retire
2    bonds issued to satisfy court-ordered damages, that
3    portion, if any, of such taxes which is attributable to the
4    increase in the current equalized assessed valuation of
5    each taxable lot, block, tract or parcel of real property
6    in the redevelopment project area over and above the
7    initial equalized assessed value of each property in the
8    project area shall be allocated to and when collected shall
9    be paid to the municipal treasurer who shall deposit said
10    taxes into a special fund called the special tax allocation
11    fund of the municipality for the purpose of paying
12    redevelopment project costs and obligations incurred in
13    the payment thereof. In any county with a population of
14    3,000,000 or more that has adopted a procedure for
15    collecting taxes that provides for one or more of the
16    installments of the taxes to be billed and collected on an
17    estimated basis, the municipal treasurer shall be paid for
18    deposit in the special tax allocation fund of the
19    municipality, from the taxes collected from estimated
20    bills issued for property in the redevelopment project
21    area, the difference between the amount actually collected
22    from each taxable lot, block, tract, or parcel of real
23    property within the redevelopment project area and an
24    amount determined by multiplying the rate at which taxes
25    were last extended against the taxable lot, block, track,
26    or parcel of real property in the manner provided in

 

 

SB1947 Enrolled- 159 -LRB100 09675 MLM 19844 b

1    subsection (c) of Section 11-74.4-9 by the initial
2    equalized assessed value of the property divided by the
3    number of installments in which real estate taxes are
4    billed and collected within the county; provided that the
5    payments on or before December 31, 1999 to a municipal
6    treasurer shall be made only if each of the following
7    conditions are met:
8        (1) The total equalized assessed value of the
9        redevelopment project area as last determined was not
10        less than 175% of the total initial equalized assessed
11        value.
12        (2) Not more than 50% of the total equalized assessed
13        value of the redevelopment project area as last
14        determined is attributable to a piece of property
15        assigned a single real estate index number.
16        (3) The municipal clerk has certified to the county
17        clerk that the municipality has issued its obligations
18        to which there has been pledged the incremental
19        property taxes of the redevelopment project area or
20        taxes levied and collected on any or all property in
21        the municipality or the full faith and credit of the
22        municipality to pay or secure payment for all or a
23        portion of the redevelopment project costs. The
24        certification shall be filed annually no later than
25        September 1 for the estimated taxes to be distributed
26        in the following year; however, for the year 1992 the

 

 

SB1947 Enrolled- 160 -LRB100 09675 MLM 19844 b

1        certification shall be made at any time on or before
2        March 31, 1992.
3        (4) The municipality has not requested that the total
4        initial equalized assessed value of real property be
5        adjusted as provided in subsection (b) of Section
6        11-74.4-9.
7        The conditions of paragraphs (1) through (4) do not
8    apply after December 31, 1999 to payments to a municipal
9    treasurer made by a county with 3,000,000 or more
10    inhabitants that has adopted an estimated billing
11    procedure for collecting taxes. If a county that has
12    adopted the estimated billing procedure makes an erroneous
13    overpayment of tax revenue to the municipal treasurer, then
14    the county may seek a refund of that overpayment. The
15    county shall send the municipal treasurer a notice of
16    liability for the overpayment on or before the mailing date
17    of the next real estate tax bill within the county. The
18    refund shall be limited to the amount of the overpayment.
19        It is the intent of this Division that after the
20    effective date of this amendatory Act of 1988 a
21    municipality's own ad valorem tax arising from levies on
22    taxable real property be included in the determination of
23    incremental revenue in the manner provided in paragraph (c)
24    of Section 11-74.4-9. If the municipality does not extend
25    such a tax, it shall annually deposit in the municipality's
26    Special Tax Increment Fund an amount equal to 10% of the

 

 

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1    total contributions to the fund from all other taxing
2    districts in that year. The annual 10% deposit required by
3    this paragraph shall be limited to the actual amount of
4    municipally produced incremental tax revenues available to
5    the municipality from taxpayers located in the
6    redevelopment project area in that year if: (a) the plan
7    for the area restricts the use of the property primarily to
8    industrial purposes, (b) the municipality establishing the
9    redevelopment project area is a home-rule community with a
10    1990 population of between 25,000 and 50,000, (c) the
11    municipality is wholly located within a county with a 1990
12    population of over 750,000 and (d) the redevelopment
13    project area was established by the municipality prior to
14    June 1, 1990. This payment shall be in lieu of a
15    contribution of ad valorem taxes on real property. If no
16    such payment is made, any redevelopment project area of the
17    municipality shall be dissolved.
18        If a municipality has adopted tax increment allocation
19    financing by ordinance and the County Clerk thereafter
20    certifies the "total initial equalized assessed value as
21    adjusted" of the taxable real property within such
22    redevelopment project area in the manner provided in
23    paragraph (b) of Section 11-74.4-9, each year after the
24    date of the certification of the total initial equalized
25    assessed value as adjusted until redevelopment project
26    costs and all municipal obligations financing

 

 

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1    redevelopment project costs have been paid the ad valorem
2    taxes, if any, arising from the levies upon the taxable
3    real property in such redevelopment project area by taxing
4    districts and tax rates determined in the manner provided
5    in paragraph (c) of Section 11-74.4-9 shall be divided as
6    follows, provided, however, that with respect to any
7    redevelopment project area located within a transit
8    facility improvement area established pursuant to Section
9    11-74.4-3.3 in a municipality with a population of
10    1,000,000 or more, ad valorem taxes, if any, arising from
11    the levies upon the taxable real property in such
12    redevelopment project area shall be allocated as
13    specifically provided in this Section:
14        (1) That portion of the taxes levied upon each taxable
15        lot, block, tract or parcel of real property which is
16        attributable to the lower of the current equalized
17        assessed value or "current equalized assessed value as
18        adjusted" or the initial equalized assessed value of
19        each such taxable lot, block, tract, or parcel of real
20        property existing at the time tax increment financing
21        was adopted, minus the total current homestead
22        exemptions under Article 15 of the Property Tax Code in
23        the redevelopment project area shall be allocated to
24        and when collected shall be paid by the county
25        collector to the respective affected taxing districts
26        in the manner required by law in the absence of the

 

 

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1        adoption of tax increment allocation financing.
2        (2) That portion, if any, of such taxes which is
3        attributable to the increase in the current equalized
4        assessed valuation of each taxable lot, block, tract,
5        or parcel of real property in the redevelopment project
6        area, over and above the initial equalized assessed
7        value of each property existing at the time tax
8        increment financing was adopted, minus the total
9        current homestead exemptions pertaining to each piece
10        of property provided by Article 15 of the Property Tax
11        Code in the redevelopment project area, shall be
12        allocated to and when collected shall be paid to the
13        municipal Treasurer, who shall deposit said taxes into
14        a special fund called the special tax allocation fund
15        of the municipality for the purpose of paying
16        redevelopment project costs and obligations incurred
17        in the payment thereof.
18        The municipality may pledge in the ordinance the funds
19    in and to be deposited in the special tax allocation fund
20    for the payment of such costs and obligations. No part of
21    the current equalized assessed valuation of each property
22    in the redevelopment project area attributable to any
23    increase above the total initial equalized assessed value,
24    or the total initial equalized assessed value as adjusted,
25    of such properties shall be used in calculating the general
26    State school aid formula, provided for in Section 18-8 of

 

 

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1    the School Code, or the evidence-based funding formula,
2    provided for in Section 18-8.15 of the School Code, until
3    such time as all redevelopment project costs have been paid
4    as provided for in this Section.
5        Whenever a municipality issues bonds for the purpose of
6    financing redevelopment project costs, such municipality
7    may provide by ordinance for the appointment of a trustee,
8    which may be any trust company within the State, and for
9    the establishment of such funds or accounts to be
10    maintained by such trustee as the municipality shall deem
11    necessary to provide for the security and payment of the
12    bonds. If such municipality provides for the appointment of
13    a trustee, such trustee shall be considered the assignee of
14    any payments assigned by the municipality pursuant to such
15    ordinance and this Section. Any amounts paid to such
16    trustee as assignee shall be deposited in the funds or
17    accounts established pursuant to such trust agreement, and
18    shall be held by such trustee in trust for the benefit of
19    the holders of the bonds, and such holders shall have a
20    lien on and a security interest in such funds or accounts
21    so long as the bonds remain outstanding and unpaid. Upon
22    retirement of the bonds, the trustee shall pay over any
23    excess amounts held to the municipality for deposit in the
24    special tax allocation fund.
25        When such redevelopment projects costs, including
26    without limitation all municipal obligations financing

 

 

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1    redevelopment project costs incurred under this Division,
2    have been paid, all surplus funds then remaining in the
3    special tax allocation fund shall be distributed by being
4    paid by the municipal treasurer to the Department of
5    Revenue, the municipality and the county collector; first
6    to the Department of Revenue and the municipality in direct
7    proportion to the tax incremental revenue received from the
8    State and the municipality, but not to exceed the total
9    incremental revenue received from the State or the
10    municipality less any annual surplus distribution of
11    incremental revenue previously made; with any remaining
12    funds to be paid to the County Collector who shall
13    immediately thereafter pay said funds to the taxing
14    districts in the redevelopment project area in the same
15    manner and proportion as the most recent distribution by
16    the county collector to the affected districts of real
17    property taxes from real property in the redevelopment
18    project area.
19        Upon the payment of all redevelopment project costs,
20    the retirement of obligations, the distribution of any
21    excess monies pursuant to this Section, and final closing
22    of the books and records of the redevelopment project area,
23    the municipality shall adopt an ordinance dissolving the
24    special tax allocation fund for the redevelopment project
25    area and terminating the designation of the redevelopment
26    project area as a redevelopment project area. Title to real

 

 

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1    or personal property and public improvements acquired by or
2    for the municipality as a result of the redevelopment
3    project and plan shall vest in the municipality when
4    acquired and shall continue to be held by the municipality
5    after the redevelopment project area has been terminated.
6    Municipalities shall notify affected taxing districts
7    prior to November 1 if the redevelopment project area is to
8    be terminated by December 31 of that same year. If a
9    municipality extends estimated dates of completion of a
10    redevelopment project and retirement of obligations to
11    finance a redevelopment project, as allowed by this
12    amendatory Act of 1993, that extension shall not extend the
13    property tax increment allocation financing authorized by
14    this Section. Thereafter the rates of the taxing districts
15    shall be extended and taxes levied, collected and
16    distributed in the manner applicable in the absence of the
17    adoption of tax increment allocation financing.
18        If a municipality with a population of 1,000,000 or
19    more has adopted by ordinance tax increment allocation
20    financing for a redevelopment project area located in a
21    transit facility improvement area established pursuant to
22    Section 11-74.4-3.3, for each year after the effective date
23    of the ordinance until redevelopment project costs and all
24    municipal obligations financing redevelopment project
25    costs have been paid, the ad valorem taxes, if any, arising
26    from the levies upon the taxable real property in that

 

 

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1    redevelopment project area by taxing districts and tax
2    rates determined in the manner provided in paragraph (c) of
3    Section 11-74.4-9 shall be divided as follows:
4            (1) That portion of the taxes levied upon each
5        taxable lot, block, tract or parcel of real property
6        which is attributable to the lower of (i) the current
7        equalized assessed value or "current equalized
8        assessed value as adjusted" or (ii) the initial
9        equalized assessed value of each such taxable lot,
10        block, tract, or parcel of real property existing at
11        the time tax increment financing was adopted, minus the
12        total current homestead exemptions under Article 15 of
13        the Property Tax Code in the redevelopment project area
14        shall be allocated to and when collected shall be paid
15        by the county collector to the respective affected
16        taxing districts in the manner required by law in the
17        absence of the adoption of tax increment allocation
18        financing.
19            (2) That portion, if any, of such taxes which is
20        attributable to the increase in the current equalized
21        assessed valuation of each taxable lot, block, tract,
22        or parcel of real property in the redevelopment project
23        area, over and above the initial equalized assessed
24        value of each property existing at the time tax
25        increment financing was adopted, minus the total
26        current homestead exemptions pertaining to each piece

 

 

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1        of property provided by Article 15 of the Property Tax
2        Code in the redevelopment project area, shall be
3        allocated to and when collected shall be paid by the
4        county collector as follows:
5                (A) First, that portion which would be payable
6            to a school district whose boundaries are
7            coterminous with such municipality in the absence
8            of the adoption of tax increment allocation
9            financing, shall be paid to such school district in
10            the manner required by law in the absence of the
11            adoption of tax increment allocation financing;
12            then
13                (B) 80% of the remaining portion shall be paid
14            to the municipal Treasurer, who shall deposit said
15            taxes into a special fund called the special tax
16            allocation fund of the municipality for the
17            purpose of paying redevelopment project costs and
18            obligations incurred in the payment thereof; and
19            then
20                (C) 20% of the remaining portion shall be paid
21            to the respective affected taxing districts, other
22            than the school district described in clause (a)
23            above, in the manner required by law in the absence
24            of the adoption of tax increment allocation
25            financing.
26    Nothing in this Section shall be construed as relieving

 

 

SB1947 Enrolled- 169 -LRB100 09675 MLM 19844 b

1property in such redevelopment project areas from being
2assessed as provided in the Property Tax Code or as relieving
3owners of such property from paying a uniform rate of taxes, as
4required by Section 4 of Article IX of the Illinois
5Constitution.
6(Source: P.A. 98-463, eff. 8-16-13; 99-792, eff. 8-12-16.)
 
7    (65 ILCS 5/11-74.6-35)
8    Sec. 11-74.6-35. Ordinance for tax increment allocation
9financing.
10    (a) A municipality, at the time a redevelopment project
11area is designated, may adopt tax increment allocation
12financing by passing an ordinance providing that the ad valorem
13taxes, if any, arising from the levies upon taxable real
14property within the redevelopment project area by taxing
15districts and tax rates determined in the manner provided in
16subsection (b) of Section 11-74.6-40 each year after the
17effective date of the ordinance until redevelopment project
18costs and all municipal obligations financing redevelopment
19project costs incurred under this Act have been paid shall be
20divided as follows:
21        (1) That portion of the taxes levied upon each taxable
22    lot, block, tract or parcel of real property that is
23    attributable to the lower of the current equalized assessed
24    value or the initial equalized assessed value or the
25    updated initial equalized assessed value of each taxable

 

 

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1    lot, block, tract or parcel of real property in the
2    redevelopment project area shall be allocated to and when
3    collected shall be paid by the county collector to the
4    respective affected taxing districts in the manner
5    required by law without regard to the adoption of tax
6    increment allocation financing.
7        (2) That portion, if any, of those taxes that is
8    attributable to the increase in the current equalized
9    assessed value of each taxable lot, block, tract or parcel
10    of real property in the redevelopment project area, over
11    and above the initial equalized assessed value or the
12    updated initial equalized assessed value of each property
13    in the project area, shall be allocated to and when
14    collected shall be paid by the county collector to the
15    municipal treasurer who shall deposit that portion of those
16    taxes into a special fund called the special tax allocation
17    fund of the municipality for the purpose of paying
18    redevelopment project costs and obligations incurred in
19    the payment of those costs and obligations. In any county
20    with a population of 3,000,000 or more that has adopted a
21    procedure for collecting taxes that provides for one or
22    more of the installments of the taxes to be billed and
23    collected on an estimated basis, the municipal treasurer
24    shall be paid for deposit in the special tax allocation
25    fund of the municipality, from the taxes collected from
26    estimated bills issued for property in the redevelopment

 

 

SB1947 Enrolled- 171 -LRB100 09675 MLM 19844 b

1    project area, the difference between the amount actually
2    collected from each taxable lot, block, tract, or parcel of
3    real property within the redevelopment project area and an
4    amount determined by multiplying the rate at which taxes
5    were last extended against the taxable lot, block, track,
6    or parcel of real property in the manner provided in
7    subsection (b) of Section 11-74.6-40 by the initial
8    equalized assessed value or the updated initial equalized
9    assessed value of the property divided by the number of
10    installments in which real estate taxes are billed and
11    collected within the county, provided that the payments on
12    or before December 31, 1999 to a municipal treasurer shall
13    be made only if each of the following conditions are met:
14            (A) The total equalized assessed value of the
15        redevelopment project area as last determined was not
16        less than 175% of the total initial equalized assessed
17        value.
18            (B) Not more than 50% of the total equalized
19        assessed value of the redevelopment project area as
20        last determined is attributable to a piece of property
21        assigned a single real estate index number.
22            (C) The municipal clerk has certified to the county
23        clerk that the municipality has issued its obligations
24        to which there has been pledged the incremental
25        property taxes of the redevelopment project area or
26        taxes levied and collected on any or all property in

 

 

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1        the municipality or the full faith and credit of the
2        municipality to pay or secure payment for all or a
3        portion of the redevelopment project costs. The
4        certification shall be filed annually no later than
5        September 1 for the estimated taxes to be distributed
6        in the following year.
7    The conditions of paragraphs (A) through (C) do not apply
8after December 31, 1999 to payments to a municipal treasurer
9made by a county with 3,000,000 or more inhabitants that has
10adopted an estimated billing procedure for collecting taxes. If
11a county that has adopted the estimated billing procedure makes
12an erroneous overpayment of tax revenue to the municipal
13treasurer, then the county may seek a refund of that
14overpayment. The county shall send the municipal treasurer a
15notice of liability for the overpayment on or before the
16mailing date of the next real estate tax bill within the
17county. The refund shall be limited to the amount of the
18overpayment.
19    (b) It is the intent of this Act that a municipality's own
20ad valorem tax arising from levies on taxable real property be
21included in the determination of incremental revenue in the
22manner provided in paragraph (b) of Section 11-74.6-40.
23    (c) If a municipality has adopted tax increment allocation
24financing for a redevelopment project area by ordinance and the
25county clerk thereafter certifies the total initial equalized
26assessed value or the total updated initial equalized assessed

 

 

SB1947 Enrolled- 173 -LRB100 09675 MLM 19844 b

1value of the taxable real property within such redevelopment
2project area in the manner provided in paragraph (a) or (b) of
3Section 11-74.6-40, each year after the date of the
4certification of the total initial equalized assessed value or
5the total updated initial equalized assessed value until
6redevelopment project costs and all municipal obligations
7financing redevelopment project costs have been paid, the ad
8valorem taxes, if any, arising from the levies upon the taxable
9real property in the redevelopment project area by taxing
10districts and tax rates determined in the manner provided in
11paragraph (b) of Section 11-74.6-40 shall be divided as
12follows:
13        (1) That portion of the taxes levied upon each taxable
14    lot, block, tract or parcel of real property that is
15    attributable to the lower of the current equalized assessed
16    value or the initial equalized assessed value, or the
17    updated initial equalized assessed value of each parcel if
18    the updated initial equalized assessed value of that parcel
19    has been certified in accordance with Section 11-74.6-40,
20    whichever has been most recently certified, of each taxable
21    lot, block, tract, or parcel of real property existing at
22    the time tax increment allocation financing was adopted in
23    the redevelopment project area, shall be allocated to and
24    when collected shall be paid by the county collector to the
25    respective affected taxing districts in the manner
26    required by law without regard to the adoption of tax

 

 

SB1947 Enrolled- 174 -LRB100 09675 MLM 19844 b

1    increment allocation financing.
2        (2) That portion, if any, of those taxes that is
3    attributable to the increase in the current equalized
4    assessed value of each taxable lot, block, tract, or parcel
5    of real property in the redevelopment project area, over
6    and above the initial equalized assessed value of each
7    property existing at the time tax increment allocation
8    financing was adopted in the redevelopment project area, or
9    the updated initial equalized assessed value of each parcel
10    if the updated initial equalized assessed value of that
11    parcel has been certified in accordance with Section
12    11-74.6-40, shall be allocated to and when collected shall
13    be paid to the municipal treasurer, who shall deposit those
14    taxes into a special fund called the special tax allocation
15    fund of the municipality for the purpose of paying
16    redevelopment project costs and obligations incurred in
17    the payment thereof.
18    (d) The municipality may pledge in the ordinance the funds
19in and to be deposited in the special tax allocation fund for
20the payment of redevelopment project costs and obligations. No
21part of the current equalized assessed value of each property
22in the redevelopment project area attributable to any increase
23above the total initial equalized assessed value or the total
24initial updated equalized assessed value of the property, shall
25be used in calculating the general General State aid formula
26School Aid Formula, provided for in Section 18-8 of the School

 

 

SB1947 Enrolled- 175 -LRB100 09675 MLM 19844 b

1Code, or the evidence-based funding formula, provided for in
2Section 18-8.15 of the School Code, until all redevelopment
3project costs have been paid as provided for in this Section.
4    Whenever a municipality issues bonds for the purpose of
5financing redevelopment project costs, that municipality may
6provide by ordinance for the appointment of a trustee, which
7may be any trust company within the State, and for the
8establishment of any funds or accounts to be maintained by that
9trustee, as the municipality deems necessary to provide for the
10security and payment of the bonds. If the municipality provides
11for the appointment of a trustee, the trustee shall be
12considered the assignee of any payments assigned by the
13municipality under that ordinance and this Section. Any amounts
14paid to the trustee as assignee shall be deposited into the
15funds or accounts established under the trust agreement, and
16shall be held by the trustee in trust for the benefit of the
17holders of the bonds. The holders of those bonds shall have a
18lien on and a security interest in those funds or accounts
19while the bonds remain outstanding and unpaid. Upon retirement
20of the bonds, the trustee shall pay over any excess amounts
21held to the municipality for deposit in the special tax
22allocation fund.
23    When the redevelopment projects costs, including without
24limitation all municipal obligations financing redevelopment
25project costs incurred under this Law, have been paid, all
26surplus funds then remaining in the special tax allocation fund

 

 

SB1947 Enrolled- 176 -LRB100 09675 MLM 19844 b

1shall be distributed by being paid by the municipal treasurer
2to the municipality and the county collector; first to the
3municipality in direct proportion to the tax incremental
4revenue received from the municipality, but not to exceed the
5total incremental revenue received from the municipality,
6minus any annual surplus distribution of incremental revenue
7previously made. Any remaining funds shall be paid to the
8county collector who shall immediately distribute that payment
9to the taxing districts in the redevelopment project area in
10the same manner and proportion as the most recent distribution
11by the county collector to the affected districts of real
12property taxes from real property situated in the redevelopment
13project area.
14    Upon the payment of all redevelopment project costs,
15retirement of obligations and the distribution of any excess
16moneys under this Section, the municipality shall adopt an
17ordinance dissolving the special tax allocation fund for the
18redevelopment project area and terminating the designation of
19the redevelopment project area as a redevelopment project area.
20Thereafter the tax levies of taxing districts shall be
21extended, collected and distributed in the same manner
22applicable before the adoption of tax increment allocation
23financing. Municipality shall notify affected taxing districts
24prior to November if the redevelopment project area is to be
25terminated by December 31 of that same year.
26    Nothing in this Section shall be construed as relieving

 

 

SB1947 Enrolled- 177 -LRB100 09675 MLM 19844 b

1property in a redevelopment project area from being assessed as
2provided in the Property Tax Code or as relieving owners of
3that property from paying a uniform rate of taxes, as required
4by Section 4 of Article IX of the Illinois Constitution.
5(Source: P.A. 91-474, eff. 11-1-99.)
 
6    Section 960. The Economic Development Project Area Tax
7Increment Allocation Act of 1995 is amended by changing Section
850 as follows:
 
9    (65 ILCS 110/50)
10    Sec. 50. Special tax allocation fund.
11    (a) If a county clerk has certified the "total initial
12equalized assessed value" of the taxable real property within
13an economic development project area in the manner provided in
14Section 45, each year after the date of the certification by
15the county clerk of the "total initial equalized assessed
16value", until economic development project costs and all
17municipal obligations financing economic development project
18costs have been paid, the ad valorem taxes, if any, arising
19from the levies upon the taxable real property in the economic
20development project area by taxing districts and tax rates
21determined in the manner provided in subsection (b) of Section
2245 shall be divided as follows:
23        (1) That portion of the taxes levied upon each taxable
24    lot, block, tract, or parcel of real property that is

 

 

SB1947 Enrolled- 178 -LRB100 09675 MLM 19844 b

1    attributable to the lower of the current equalized assessed
2    value or the initial equalized assessed value of each
3    taxable lot, block, tract, or parcel of real property
4    existing at the time tax increment financing was adopted
5    shall be allocated to (and when collected shall be paid by
6    the county collector to) the respective affected taxing
7    districts in the manner required by law in the absence of
8    the adoption of tax increment allocation financing.
9        (2) That portion, if any, of the taxes that is
10    attributable to the increase in the current equalized
11    assessed valuation of each taxable lot, block, tract, or
12    parcel of real property in the economic development project
13    area, over and above the initial equalized assessed value
14    of each property existing at the time tax increment
15    financing was adopted, shall be allocated to (and when
16    collected shall be paid to) the municipal treasurer, who
17    shall deposit the taxes into a special fund (called the
18    special tax allocation fund of the municipality) for the
19    purpose of paying economic development project costs and
20    obligations incurred in the payment of those costs.
21    (b) The municipality, by an ordinance adopting tax
22increment allocation financing, may pledge the monies in and to
23be deposited into the special tax allocation fund for the
24payment of obligations issued under this Act and for the
25payment of economic development project costs. No part of the
26current equalized assessed valuation of each property in the

 

 

SB1947 Enrolled- 179 -LRB100 09675 MLM 19844 b

1economic development project area attributable to any increase
2above the total initial equalized assessed value of those
3properties shall be used in calculating the general State
4school aid formula under Section 18-8 of the School Code or the
5evidence-based funding formula under Section 18-8.15 of the
6School Code, until all economic development projects costs have
7been paid as provided for in this Section.
8    (c) When the economic development projects costs,
9including without limitation all municipal obligations
10financing economic development project costs incurred under
11this Act, have been paid, all surplus monies then remaining in
12the special tax allocation fund shall be distributed by being
13paid by the municipal treasurer to the county collector, who
14shall immediately pay the monies to the taxing districts having
15taxable property in the economic development project area in
16the same manner and proportion as the most recent distribution
17by the county collector to those taxing districts of real
18property taxes from real property in the economic development
19project area.
20    (d) Upon the payment of all economic development project
21costs, retirement of obligations, and distribution of any
22excess monies under this Section and not later than 23 years
23from the date of the adoption of the ordinance establishing the
24economic development project area, the municipality shall
25adopt an ordinance dissolving the special tax allocation fund
26for the economic development project area and terminating the

 

 

SB1947 Enrolled- 180 -LRB100 09675 MLM 19844 b

1designation of the economic development project area as an
2economic development project area. Thereafter, the rates of the
3taxing districts shall be extended and taxes shall be levied,
4collected, and distributed in the manner applicable in the
5absence of the adoption of tax increment allocation financing.
6    (e) Nothing in this Section shall be construed as relieving
7property in the economic development project areas from being
8assessed as provided in the Property Tax Code or as relieving
9owners or lessees of that property from paying a uniform rate
10of taxes as required by Section 4 of Article IX of the Illinois
11Constitution.
12(Source: P.A. 98-463, eff. 8-16-13.)
 
13    Section 965. The School Code is amended by changing
14Sections 1A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1C-2, 1D-1, 1E-20,
151F-20, 1F-62, 1H-20, 1H-70, 2-3.25g, 2-3.33, 2-3.51.5, 2-3.66,
162-3.66b, 2-3.84, 2-3.109a, 3-14.21, 7-14A, 10-17a, 10-19,
1710-22.5a, 10-22.20, 10-29, 11E-135, 13A-8, 13B-20.20, 13B-45,
1813B-50, 13B-50.10, 13B-50.15, 14-7.02b, 14-13.01, 14C-1,
1914C-12, 17-1, 17-1.2, 17-1.5, 17-2.11, 17-2A, 18-4.3, 18-8.05,
2018-8.10, 18-9, 18-12, 26-16, 27-6, 27-7, 27-8.1, 27-24.2,
2127A-9, 27A-11, 29-5, 34-2.3, 34-18, 34-18.30, 34-43.1, and
2234-53 and by adding Sections 2-3.170, 17-3.6, and 18-8.15 as
23follows:
 
24    (105 ILCS 5/1A-8)  (from Ch. 122, par. 1A-8)

 

 

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1    Sec. 1A-8. Powers of the Board in Assisting Districts
2Deemed in Financial Difficulties. To promote the financial
3integrity of school districts, the State Board of Education
4shall be provided the necessary powers to promote sound
5financial management and continue operation of the public
6schools.
7    (a) The State Superintendent of Education may require a
8school district, including any district subject to Article 34A
9of this Code, to share financial information relevant to a
10proper investigation of the district's financial condition and
11the delivery of appropriate State financial, technical, and
12consulting services to the district if the district (i) has
13been designated, through the State Board of Education's School
14District Financial Profile System, as on financial warning or
15financial watch status, (ii) has failed to file an annual
16financial report, annual budget, deficit reduction plan, or
17other financial information as required by law, (iii) has been
18identified, through the district's annual audit or other
19financial and management information, as in serious financial
20difficulty in the current or next school year, or (iv) is
21determined to be likely to fail to fully meet any regularly
22scheduled, payroll-period obligations when due or any debt
23service payments when due or both. In addition to financial,
24technical, and consulting services provided by the State Board
25of Education, at the request of a school district, the State
26Superintendent may provide for an independent financial

 

 

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1consultant to assist the district review its financial
2condition and options.
3    (b) The State Board of Education, after proper
4investigation of a district's financial condition, may certify
5that a district, including any district subject to Article 34A,
6is in financial difficulty when any of the following conditions
7occur:
8        (1) The district has issued school or teacher orders
9    for wages as permitted in Sections 8-16, 32-7.2 and 34-76
10    of this Code.
11        (2) The district has issued tax anticipation warrants
12    or tax anticipation notes in anticipation of a second
13    year's taxes when warrants or notes in anticipation of
14    current year taxes are still outstanding, as authorized by
15    Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has
16    issued short-term debt against 2 future revenue sources,
17    such as, but not limited to, tax anticipation warrants and
18    general State aid or evidence-based funding Aid
19    certificates or tax anticipation warrants and revenue
20    anticipation notes.
21        (3) The district has for 2 consecutive years shown an
22    excess of expenditures and other financing uses over
23    revenues and other financing sources and beginning fund
24    balances on its annual financial report for the aggregate
25    totals of the Educational, Operations and Maintenance,
26    Transportation, and Working Cash Funds.

 

 

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1        (4) The district refuses to provide financial
2    information or cooperate with the State Superintendent in
3    an investigation of the district's financial condition.
4        (5) The district is likely to fail to fully meet any
5    regularly scheduled, payroll-period obligations when due
6    or any debt service payments when due or both.
7    No school district shall be certified by the State Board of
8Education to be in financial difficulty solely by reason of any
9of the above circumstances arising as a result of (i) the
10failure of the county to make any distribution of property tax
11money due the district at the time such distribution is due or
12(ii) the failure of this State to make timely payments of
13general State aid, evidence-based funding, or any of the
14mandated categoricals; or if the district clearly demonstrates
15to the satisfaction of the State Board of Education at the time
16of its determination that such condition no longer exists. If
17the State Board of Education certifies that a district in a
18city with 500,000 inhabitants or more is in financial
19difficulty, the State Board shall so notify the Governor and
20the Mayor of the city in which the district is located. The
21State Board of Education may require school districts certified
22in financial difficulty, except those districts subject to
23Article 34A, to develop, adopt and submit a financial plan
24within 45 days after certification of financial difficulty. The
25financial plan shall be developed according to guidelines
26presented to the district by the State Board of Education

 

 

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1within 14 days of certification. Such guidelines shall address
2the specific nature of each district's financial difficulties.
3Any proposed budget of the district shall be consistent with
4the financial plan submitted to and approved by the State Board
5of Education.
6    A district certified to be in financial difficulty, other
7than a district subject to Article 34A, shall report to the
8State Board of Education at such times and in such manner as
9the State Board may direct, concerning the district's
10compliance with each financial plan. The State Board may review
11the district's operations, obtain budgetary data and financial
12statements, require the district to produce reports, and have
13access to any other information in the possession of the
14district that it deems relevant. The State Board may issue
15recommendations or directives within its powers to the district
16to assist in compliance with the financial plan. The district
17shall produce such budgetary data, financial statements,
18reports and other information and comply with such directives.
19If the State Board of Education determines that a district has
20failed to comply with its financial plan, the State Board of
21Education may rescind approval of the plan and appoint a
22Financial Oversight Panel for the district as provided in
23Section 1B-4. This action shall be taken only after the
24district has been given notice and an opportunity to appear
25before the State Board of Education to discuss its failure to
26comply with its financial plan.

 

 

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1    No bonds, notes, teachers orders, tax anticipation
2warrants or other evidences of indebtedness shall be issued or
3sold by a school district or be legally binding upon or
4enforceable against a local board of education of a district
5certified to be in financial difficulty unless and until the
6financial plan required under this Section has been approved by
7the State Board of Education.
8    Any financial profile compiled and distributed by the State
9Board of Education in Fiscal Year 2009 or any fiscal year
10thereafter shall incorporate such adjustments as may be needed
11in the profile scores to reflect the financial effects of the
12inability or refusal of the State of Illinois to make timely
13disbursements of any general State aid, evidence-based
14funding, or mandated categorical aid payments due school
15districts or to fully reimburse school districts for mandated
16categorical programs pursuant to reimbursement formulas
17provided in this School Code.
18(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
1997-429, eff. 8-16-11.)
 
20    (105 ILCS 5/1B-5)  (from Ch. 122, par. 1B-5)
21    Sec. 1B-5. When a petition for emergency financial
22assistance for a school district is allowed by the State Board
23under Section 1B-4, the State Superintendent shall within 10
24days thereafter appoint 3 members to serve at the State
25Superintendent's pleasure on a Financial Oversight Panel for

 

 

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1the district. The State Superintendent shall designate one of
2the members of the Panel to serve as its Chairman. In the event
3of vacancy or resignation the State Superintendent shall
4appoint a successor within 10 days of receiving notice thereof.
5    Members of the Panel shall be selected primarily on the
6basis of their experience and education in financial
7management, with consideration given to persons knowledgeable
8in education finance. A member of the Panel may not be a board
9member or employee of the district for which the Panel is
10constituted, nor may a member have a direct financial interest
11in that district.
12    Panel members shall serve without compensation, but may be
13reimbursed for travel and other necessary expenses incurred in
14the performance of their official duties by the State Board.
15The amount reimbursed Panel members for their expenses shall be
16charged to the school district as part of any emergency
17financial assistance and incorporated as a part of the terms
18and conditions for repayment of such assistance or shall be
19deducted from the district's general State aid or
20evidence-based funding as provided in Section 1B-8.
21    The first meeting of the Panel shall be held at the call of
22the Chairman. The Panel may elect such other officers as it
23deems appropriate. The Panel shall prescribe the times and
24places for its meetings and the manner in which regular and
25special meetings may be called, and shall comply with the Open
26Meetings Act.

 

 

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1    Two members of the Panel shall constitute a quorum, and the
2affirmative vote of 2 members shall be necessary for any
3decision or action to be taken by the Panel.
4    The Panel and the State Superintendent shall cooperate with
5each other in the exercise of their respective powers. The
6Panel shall report not later than September 1 annually to the
7State Board and the State Superintendent with respect to its
8activities and the condition of the school district for the
9previous fiscal year.
10    Any Financial Oversight Panel established under this
11Article shall remain in existence for not less than 3 years nor
12more than 10 years from the date the State Board grants the
13petition under Section 1B-4. If after 3 years the school
14district has repaid all of its obligations resulting from
15emergency State financial assistance provided under this
16Article and has improved its financial situation, the board of
17education may, not more frequently than once in any 12 month
18period, petition the State Board to dissolve the Financial
19Oversight Panel, terminate the oversight responsibility, and
20remove the district's certification under Section 1A-8 as a
21district in financial difficulty. In acting on such a petition
22the State Board shall give additional weight to the
23recommendations of the State Superintendent and the Financial
24Oversight Panel.
25(Source: P.A. 88-618, eff. 9-9-94.)
 

 

 

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1    (105 ILCS 5/1B-6)  (from Ch. 122, par. 1B-6)
2    Sec. 1B-6. General powers. The purpose of the Financial
3Oversight Panel shall be to exercise financial control over the
4board of education, and, when approved by the State Board and
5the State Superintendent of Education, to furnish financial
6assistance so that the board can provide public education
7within the board's jurisdiction while permitting the board to
8meet its obligations to its creditors and the holders of its
9notes and bonds. Except as expressly limited by this Article,
10the Panel shall have all powers necessary to meet its
11responsibilities and to carry out its purposes and the purposes
12of this Article, including, but not limited to, the following
13powers:
14    (a) to sue and be sued;
15    (b) to provide for its organization and internal
16management;
17    (c) to appoint a Financial Administrator to serve as the
18chief executive officer of the Panel. The Financial
19Administrator may be an individual, partnership, corporation,
20including an accounting firm, or other entity determined by the
21Panel to be qualified to serve; and to appoint other officers,
22agents, and employees of the Panel, define their duties and
23qualifications and fix their compensation and employee
24benefits;
25    (d) to approve the local board of education appointments to
26the positions of treasurer in a Class I county school unit and

 

 

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1in each school district which forms a part of a Class II county
2school unit but which no longer is subject to the jurisdiction
3and authority of a township treasurer or trustees of schools of
4a township because the district has withdrawn from the
5jurisdiction and authority of the township treasurer and the
6trustees of schools of the township or because those offices
7have been abolished as provided in subsection (b) or (c) of
8Section 5-1, and chief school business official, if such
9official is not the superintendent of the district. Either the
10board or the Panel may remove such treasurer or chief school
11business official;
12    (e) to approve any and all bonds, notes, teachers orders,
13tax anticipation warrants, and other evidences of indebtedness
14prior to issuance or sale by the school district; and
15notwithstanding any other provision of The School Code, as now
16or hereafter amended, no bonds, notes, teachers orders, tax
17anticipation warrants or other evidences of indebtedness shall
18be issued or sold by the school district or be legally binding
19upon or enforceable against the local board of education unless
20and until the approval of the Panel has been received;
21    (f) to approve all property tax levies of the school
22district and require adjustments thereto as the Panel deems
23necessary or advisable;
24    (g) to require and approve a school district financial
25plan;
26    (h) to approve and require revisions of the school district

 

 

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1budget;
2    (i) to approve all contracts and other obligations as the
3Panel deems necessary and appropriate;
4    (j) to authorize emergency State financial assistance,
5including requirements regarding the terms and conditions of
6repayment of such assistance, and to require the board of
7education to levy a separate local property tax, subject to the
8limitations of Section 1B-8, sufficient to repay such
9assistance consistent with the terms and conditions of
10repayment and the district's approved financial plan and
11budget;
12    (k) to request the regional superintendent to make
13appointments to fill all vacancies on the local school board as
14provided in Section 10-10;
15    (l) to recommend dissolution or reorganization of the
16school district to the General Assembly if in the Panel's
17judgment the circumstances so require;
18    (m) to direct a phased reduction in the oversight
19responsibilities of the Financial Administrator and of the
20Panel as the circumstances permit;
21    (n) to determine the amount of emergency State financial
22assistance to be made available to the school district, and to
23establish an operating budget for the Panel to be supported by
24funds available from such assistance, with the assistance and
25the budget required to be approved by the State Superintendent;
26    (o) to procure insurance against any loss in such amounts

 

 

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1and from such insurers as it deems necessary;
2    (p) to engage the services of consultants for rendering
3professional and technical assistance and advice on matters
4within the Panel's power;
5    (q) to contract for and to accept any gifts, grants or
6loans of funds or property or financial or other aid in any
7form from the federal government, State government, unit of
8local government, school district or any agency or
9instrumentality thereof, or from any other private or public
10source, and to comply with the terms and conditions thereof;
11    (r) to pay the expenses of its operations based on the
12Panel's budget as approved by the State Superintendent from
13emergency financial assistance funds available to the district
14or from deductions from the district's general State aid or
15evidence-based funding;
16    (s) to do any and all things necessary or convenient to
17carry out its purposes and exercise the powers given to the
18Panel by this Article; and
19    (t) to recommend the creation of a school finance authority
20pursuant to Article 1F of this Code.
21(Source: P.A. 91-357, eff. 7-29-99; 92-855, eff. 12-6-02.)
 
22    (105 ILCS 5/1B-7)  (from Ch. 122, par. 1B-7)
23    Sec. 1B-7. Financial Administrator; Powers and Duties. The
24Financial Administrator appointed by the Financial Oversight
25Panel shall serve as the Panel's chief executive officer. The

 

 

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1Financial Administrator shall exercise the powers and duties
2required by the Panel, including but not limited to the
3following:
4    (a) to provide guidance and recommendations to the local
5board and officials of the school district in developing the
6district's financial plan and budget prior to board action;
7    (b) to direct the local board to reorganize its financial
8accounts, budgetary systems, and internal accounting and
9financial controls, in whatever manner the Panel deems
10appropriate to achieve greater financial responsibility and to
11reduce financial inefficiency, and to provide technical
12assistance to aid the district in accomplishing the
13reorganization;
14    (c) to make recommendations to the Financial Oversight
15Panel concerning the school district's financial plan and
16budget, and all other matters within the scope of the Panel's
17authority;
18    (d) to prepare and recommend to the Panel a proposal for
19emergency State financial assistance for the district,
20including recommended terms and conditions of repayment, and an
21operations budget for the Panel to be funded from the emergency
22assistance or from deductions from the district's general State
23aid or evidence-based funding;
24    (e) to require the local board to prepare and submit
25preliminary staffing and budgetary analyses annually prior to
26February 1 in such manner and form as the Financial

 

 

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1Administrator shall prescribe; and
2    (f) subject to the direction of the Panel, to do all other
3things necessary or convenient to carry out its purposes and
4exercise the powers given to the Panel under this Article.
5(Source: P.A. 88-618, eff. 9-9-94.)
 
6    (105 ILCS 5/1B-8)  (from Ch. 122, par. 1B-8)
7    Sec. 1B-8. There is created in the State Treasury a special
8fund to be known as the School District Emergency Financial
9Assistance Fund (the "Fund"). The School District Emergency
10Financial Assistance Fund shall consist of appropriations,
11loan repayments, grants from the federal government, and
12donations from any public or private source. Moneys in the Fund
13may be appropriated only to the Illinois Finance Authority and
14the State Board for those purposes authorized under this
15Article and Articles 1F and 1H of this Code. The appropriation
16may be allocated and expended by the State Board for
17contractual services to provide technical assistance or
18consultation to school districts to assess their financial
19condition and to Financial Oversight Panels that petition for
20emergency financial assistance grants. The Illinois Finance
21Authority may provide loans to school districts which are the
22subject of an approved petition for emergency financial
23assistance under Section 1B-4, 1F-62, or 1H-65 of this Code.
24Neither the State Board of Education nor the Illinois Finance
25Authority may collect any fees for providing these services.

 

 

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1    From the amount allocated to each such school district
2under this Article the State Board shall identify a sum
3sufficient to cover all approved costs of the Financial
4Oversight Panel established for the respective school
5district. If the State Board and State Superintendent of
6Education have not approved emergency financial assistance in
7conjunction with the appointment of a Financial Oversight
8Panel, the Panel's approved costs shall be paid from deductions
9from the district's general State aid or evidence-based
10funding.
11    The Financial Oversight Panel may prepare and file with the
12State Superintendent a proposal for emergency financial
13assistance for the school district and for its operations
14budget. No expenditures from the Fund shall be authorized by
15the State Superintendent until he or she has approved the
16request of the Panel, either as submitted or in such lesser
17amount determined by the State Superintendent.
18    The maximum amount of an emergency financial assistance
19loan which may be allocated to any school district under this
20Article, including moneys necessary for the operations of the
21Panel, shall not exceed $4,000 times the number of pupils
22enrolled in the school district during the school year ending
23June 30 prior to the date of approval by the State Board of the
24petition for emergency financial assistance, as certified to
25the local board and the Panel by the State Superintendent. An
26emergency financial assistance grant shall not exceed $1,000

 

 

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1times the number of such pupils. A district may receive both a
2loan and a grant.
3    The payment of an emergency State financial assistance
4grant or loan shall be subject to appropriation by the General
5Assembly. Payment of the emergency State financial assistance
6loan is subject to the applicable provisions of the Illinois
7Finance Authority Act. Emergency State financial assistance
8allocated and paid to a school district under this Article may
9be applied to any fund or funds from which the local board of
10education of that district is authorized to make expenditures
11by law.
12    Any emergency financial assistance grant proposed by the
13Financial Oversight Panel and approved by the State
14Superintendent may be paid in its entirety during the initial
15year of the Panel's existence or spread in equal or declining
16amounts over a period of years not to exceed the period of the
17Panel's existence. An emergency financial assistance loan
18proposed by the Financial Oversight Panel and approved by the
19Illinois Finance Authority may be paid in its entirety during
20the initial year of the Panel's existence or spread in equal or
21declining amounts over a period of years not to exceed the
22period of the Panel's existence. All loans made by the Illinois
23Finance Authority for a school district shall be required to be
24repaid, with simple interest over the term of the loan at a
25rate equal to 50% of the one-year Constant Maturity Treasury
26(CMT) yield as last published by the Board of Governors of the

 

 

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1Federal Reserve System before the date on which the district's
2loan is approved by the Illinois Finance Authority, not later
3than the date the Financial Oversight Panel ceases to exist.
4The Panel shall establish and the Illinois Finance Authority
5shall approve the terms and conditions, including the schedule,
6of repayments. The schedule shall provide for repayments
7commencing July 1 of each year or upon each fiscal year's
8receipt of moneys from a tax levy for emergency financial
9assistance. Repayment shall be incorporated into the annual
10budget of the school district and may be made from any fund or
11funds of the district in which there are moneys available. An
12emergency financial assistance loan to the Panel or district
13shall not be considered part of the calculation of a district's
14debt for purposes of the limitation specified in Section 19-1
15of this Code. Default on repayment is subject to the Illinois
16Grant Funds Recovery Act. When moneys are repaid as provided
17herein they shall not be made available to the local board for
18further use as emergency financial assistance under this
19Article at any time thereafter. All repayments required to be
20made by a school district shall be received by the State Board
21and deposited in the School District Emergency Financial
22Assistance Fund.
23    In establishing the terms and conditions for the repayment
24obligation of the school district the Panel shall annually
25determine whether a separate local property tax levy is
26required. The board of any school district with a tax rate for

 

 

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1educational purposes for the prior year of less than 120% of
2the maximum rate for educational purposes authorized by Section
317-2 shall provide for a separate tax levy for emergency
4financial assistance repayment purposes. Such tax levy shall
5not be subject to referendum approval. The amount of the levy
6shall be equal to the amount necessary to meet the annual
7repayment obligations of the district as established by the
8Panel, or 20% of the amount levied for educational purposes for
9the prior year, whichever is less. However, no district shall
10be required to levy the tax if the district's operating tax
11rate as determined under Section 18-8, or 18-8.05, or 18-8.15
12exceeds 200% of the district's tax rate for educational
13purposes for the prior year.
14(Source: P.A. 97-429, eff. 8-16-11.)
 
15    (105 ILCS 5/1C-1)
16    Sec. 1C-1. Purpose. The purpose of this Article is to
17permit greater flexibility and efficiency in the distribution
18and use of certain State funds available to local education
19agencies for the improvement of the quality of educational
20services pursuant to locally established priorities.
21    Through fiscal year 2017, this This Article does not apply
22to school districts having a population in excess of 500,000
23inhabitants.
24(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;
2589-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
 

 

 

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1    (105 ILCS 5/1C-2)
2    Sec. 1C-2. Block grants.
3    (a) For fiscal year 1999, and each fiscal year thereafter,
4the State Board of Education shall award to school districts
5block grants as described in subsection (c). The State Board of
6Education may adopt rules and regulations necessary to
7implement this Section. In accordance with Section 2-3.32, all
8state block grants are subject to an audit. Therefore, block
9grant receipts and block grant expenditures shall be recorded
10to the appropriate fund code.
11    (b) (Blank).
12    (c) An Early Childhood Education Block Grant shall be
13created by combining the following programs: Preschool
14Education, Parental Training and Prevention Initiative. These
15funds shall be distributed to school districts and other
16entities on a competitive basis, except that the State Board of
17Education shall award to a school district having a population
18exceeding 500,000 inhabitants 37% of the funds in each fiscal
19year. Not less than 14% of the Early Childhood Education Block
20Grant allocation of funds shall be used to fund programs for
21children ages 0-3. Beginning in Fiscal Year 2016, at least 25%
22of any additional Early Childhood Education Block Grant funding
23over and above the previous fiscal year's allocation shall be
24used to fund programs for children ages 0-3. Once the
25percentage of Early Childhood Education Block Grant funding

 

 

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1allocated to programs for children ages 0-3 reaches 20% of the
2overall Early Childhood Education Block Grant allocation for a
3full fiscal year, thereafter in subsequent fiscal years the
4percentage of Early Childhood Education Block Grant funding
5allocated to programs for children ages 0-3 each fiscal year
6shall remain at least 20% of the overall Early Childhood
7Education Block Grant allocation. However, if, in a given
8fiscal year, the amount appropriated for the Early Childhood
9Education Block Grant is insufficient to increase the
10percentage of the grant to fund programs for children ages 0-3
11without reducing the amount of the grant for existing providers
12of preschool education programs, then the percentage of the
13grant to fund programs for children ages 0-3 may be held steady
14instead of increased.
15(Source: P.A. 98-645, eff. 7-1-14; 99-589, eff. 7-21-16.)
 
16    (105 ILCS 5/1D-1)
17    Sec. 1D-1. Block grant funding.
18    (a) For fiscal year 1996 through fiscal year 2017 and each
19fiscal year thereafter, the State Board of Education shall
20award to a school district having a population exceeding
21500,000 inhabitants a general education block grant and an
22educational services block grant, determined as provided in
23this Section, in lieu of distributing to the district separate
24State funding for the programs described in subsections (b) and
25(c). The provisions of this Section, however, do not apply to

 

 

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1any federal funds that the district is entitled to receive. In
2accordance with Section 2-3.32, all block grants are subject to
3an audit. Therefore, block grant receipts and block grant
4expenditures shall be recorded to the appropriate fund code for
5the designated block grant.
6    (b) The general education block grant shall include the
7following programs: REI Initiative, Summer Bridges, Preschool
8At Risk, K-6 Comprehensive Arts, School Improvement Support,
9Urban Education, Scientific Literacy, Substance Abuse
10Prevention, Second Language Planning, Staff Development,
11Outcomes and Assessment, K-6 Reading Improvement, 7-12
12Continued Reading Improvement, Truants' Optional Education,
13Hispanic Programs, Agriculture Education, Parental Education,
14Prevention Initiative, Report Cards, and Criminal Background
15Investigations. Notwithstanding any other provision of law,
16all amounts paid under the general education block grant from
17State appropriations to a school district in a city having a
18population exceeding 500,000 inhabitants shall be appropriated
19and expended by the board of that district for any of the
20programs included in the block grant or any of the board's
21lawful purposes.
22    (c) The educational services block grant shall include the
23following programs: Regular and Vocational Transportation,
24State Lunch and Free Breakfast Program, Special Education
25(Personnel, Transportation, Orphanage, Private Tuition),
26funding for children requiring special education services,

 

 

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1Summer School, Educational Service Centers, and
2Administrator's Academy. This subsection (c) does not relieve
3the district of its obligation to provide the services required
4under a program that is included within the educational
5services block grant. It is the intention of the General
6Assembly in enacting the provisions of this subsection (c) to
7relieve the district of the administrative burdens that impede
8efficiency and accompany single-program funding. The General
9Assembly encourages the board to pursue mandate waivers
10pursuant to Section 2-3.25g.
11    The funding program included in the educational services
12block grant for funding for children requiring special
13education services in each fiscal year shall be treated in that
14fiscal year as a payment to the school district in respect of
15services provided or costs incurred in the prior fiscal year,
16calculated in each case as provided in this Section. Nothing in
17this Section shall change the nature of payments for any
18program that, apart from this Section, would be or, prior to
19adoption or amendment of this Section, was on the basis of a
20payment in a fiscal year in respect of services provided or
21costs incurred in the prior fiscal year, calculated in each
22case as provided in this Section.
23    (d) For fiscal year 1996 through fiscal year 2017 and each
24fiscal year thereafter, the amount of the district's block
25grants shall be determined as follows: (i) with respect to each
26program that is included within each block grant, the district

 

 

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1shall receive an amount equal to the same percentage of the
2current fiscal year appropriation made for that program as the
3percentage of the appropriation received by the district from
4the 1995 fiscal year appropriation made for that program, and
5(ii) the total amount that is due the district under the block
6grant shall be the aggregate of the amounts that the district
7is entitled to receive for the fiscal year with respect to each
8program that is included within the block grant that the State
9Board of Education shall award the district under this Section
10for that fiscal year. In the case of the Summer Bridges
11program, the amount of the district's block grant shall be
12equal to 44% of the amount of the current fiscal year
13appropriation made for that program.
14    (e) The district is not required to file any application or
15other claim in order to receive the block grants to which it is
16entitled under this Section. The State Board of Education shall
17make payments to the district of amounts due under the
18district's block grants on a schedule determined by the State
19Board of Education.
20    (f) A school district to which this Section applies shall
21report to the State Board of Education on its use of the block
22grants in such form and detail as the State Board of Education
23may specify. In addition, the report must include the following
24description for the district, which must also be reported to
25the General Assembly: block grant allocation and expenditures
26by program; population and service levels by program; and

 

 

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1administrative expenditures by program. The State Board of
2Education shall ensure that the reporting requirements for the
3district are the same as for all other school districts in this
4State.
5    (g) Through fiscal year 2017, this This paragraph provides
6for the treatment of block grants under Article 1C for purposes
7of calculating the amount of block grants for a district under
8this Section. Those block grants under Article 1C are, for this
9purpose, treated as included in the amount of appropriation for
10the various programs set forth in paragraph (b) above. The
11appropriation in each current fiscal year for each block grant
12under Article 1C shall be treated for these purposes as
13appropriations for the individual program included in that
14block grant. The proportion of each block grant so allocated to
15each such program included in it shall be the proportion which
16the appropriation for that program was of all appropriations
17for such purposes now in that block grant, in fiscal 1995.
18    Payments to the school district under this Section with
19respect to each program for which payments to school districts
20generally, as of the date of this amendatory Act of the 92nd
21General Assembly, are on a reimbursement basis shall continue
22to be made to the district on a reimbursement basis, pursuant
23to the provisions of this Code governing those programs.
24    (h) Notwithstanding any other provision of law, any school
25district receiving a block grant under this Section may
26classify all or a portion of the funds that it receives in a

 

 

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1particular fiscal year from any block grant authorized under
2this Code or from general State aid pursuant to Section 18-8.05
3of this Code (other than supplemental general State aid) as
4funds received in connection with any funding program for which
5it is entitled to receive funds from the State in that fiscal
6year (including, without limitation, any funding program
7referred to in subsection (c) of this Section), regardless of
8the source or timing of the receipt. The district may not
9classify more funds as funds received in connection with the
10funding program than the district is entitled to receive in
11that fiscal year for that program. Any classification by a
12district must be made by a resolution of its board of
13education. The resolution must identify the amount of any block
14grant or general State aid to be classified under this
15subsection (h) and must specify the funding program to which
16the funds are to be treated as received in connection
17therewith. This resolution is controlling as to the
18classification of funds referenced therein. A certified copy of
19the resolution must be sent to the State Superintendent of
20Education. The resolution shall still take effect even though a
21copy of the resolution has not been sent to the State
22Superintendent of Education in a timely manner. No
23classification under this subsection (h) by a district shall
24affect the total amount or timing of money the district is
25entitled to receive under this Code. No classification under
26this subsection (h) by a district shall in any way relieve the

 

 

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1district from or affect any requirements that otherwise would
2apply with respect to the block grant as provided in this
3Section, including any accounting of funds by source, reporting
4expenditures by original source and purpose, reporting
5requirements, or requirements of provision of services.
6(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;
797-813, eff. 7-13-12.)
 
8    (105 ILCS 5/1E-20)
9    (This Section scheduled to be repealed in accordance with
10105 ILCS 5/1E-165)
11    Sec. 1E-20. Members of Authority; meetings.
12    (a) When a petition for a School Finance Authority is
13allowed by the State Board under Section 1E-15 of this Code,
14the State Superintendent shall within 10 days thereafter
15appoint 5 members to serve on a School Finance Authority for
16the district. Of the initial members, 2 shall be appointed to
17serve a term of 2 years and 3 shall be appointed to serve a term
18of 3 years. Thereafter, each member shall serve for a term of 3
19years and until his or her successor has been appointed. The
20State Superintendent shall designate one of the members of the
21Authority to serve as its Chairperson. In the event of vacancy
22or resignation, the State Superintendent shall, within 10 days
23after receiving notice, appoint a successor to serve out that
24member's term. The State Superintendent may remove a member for
25incompetence, malfeasance, neglect of duty, or other just

 

 

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1cause.
2    Members of the Authority shall be selected primarily on the
3basis of their experience and education in financial
4management, with consideration given to persons knowledgeable
5in education finance. Two members of the Authority shall be
6residents of the school district that the Authority serves. A
7member of the Authority may not be a member of the district's
8school board or an employee of the district nor may a member
9have a direct financial interest in the district.
10    Authority members shall serve without compensation, but
11may be reimbursed by the State Board for travel and other
12necessary expenses incurred in the performance of their
13official duties. Unless paid from bonds issued under Section
141E-65 of this Code, the amount reimbursed members for their
15expenses shall be charged to the school district as part of any
16emergency financial assistance and incorporated as a part of
17the terms and conditions for repayment of the assistance or
18shall be deducted from the district's general State aid or
19evidence-based funding as provided in Section 1B-8 of this
20Code.
21    The Authority may elect such officers as it deems
22appropriate.
23    (b) The first meeting of the Authority shall be held at the
24call of the Chairperson. The Authority shall prescribe the
25times and places for its meetings and the manner in which
26regular and special meetings may be called and shall comply

 

 

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1with the Open Meetings Act.
2    Three members of the Authority shall constitute a quorum.
3When a vote is taken upon any measure before the Authority, a
4quorum being present, a majority of the votes of the members
5voting on the measure shall determine the outcome.
6(Source: P.A. 92-547, eff. 6-13-02.)
 
7    (105 ILCS 5/1F-20)
8(This Section scheduled to be repealed in accordance with 105
9ILCS 5/1F-165)
10    Sec. 1F-20. Members of Authority; meetings.
11    (a) Upon establishment of a School Finance Authority under
12Section 1F-15 of this Code, the State Superintendent shall
13within 15 days thereafter appoint 5 members to serve on a
14School Finance Authority for the district. Of the initial
15members, 2 shall be appointed to serve a term of 2 years and 3
16shall be appointed to serve a term of 3 years. Thereafter, each
17member shall serve for a term of 3 years and until his or her
18successor has been appointed. The State Superintendent shall
19designate one of the members of the Authority to serve as its
20Chairperson. In the event of vacancy or resignation, the State
21Superintendent shall, within 10 days after receiving notice,
22appoint a successor to serve out that member's term. The State
23Superintendent may remove a member for incompetence,
24malfeasance, neglect of duty, or other just cause.
25    Members of the Authority shall be selected primarily on the

 

 

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1basis of their experience and education in financial
2management, with consideration given to persons knowledgeable
3in education finance. Two members of the Authority shall be
4residents of the school district that the Authority serves. A
5member of the Authority may not be a member of the district's
6school board or an employee of the district nor may a member
7have a direct financial interest in the district.
8    Authority members shall be paid a stipend approved by the
9State Superintendent of not more than $100 per meeting and may
10be reimbursed by the State Board for travel and other necessary
11expenses incurred in the performance of their official duties.
12Unless paid from bonds issued under Section 1F-65 of this Code,
13the amount reimbursed members for their expenses shall be
14charged to the school district as part of any emergency
15financial assistance and incorporated as a part of the terms
16and conditions for repayment of the assistance or shall be
17deducted from the district's general State aid or
18evidence-based funding as provided in Section 1B-8 of this
19Code.
20    The Authority may elect such officers as it deems
21appropriate.
22    (b) The first meeting of the Authority shall be held at the
23call of the Chairperson. The Authority shall prescribe the
24times and places for its meetings and the manner in which
25regular and special meetings may be called and shall comply
26with the Open Meetings Act.

 

 

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1    Three members of the Authority shall constitute a quorum.
2When a vote is taken upon any measure before the Authority, a
3quorum being present, a majority of the votes of the members
4voting on the measure shall determine the outcome.
5(Source: P.A. 94-234, eff. 7-1-06.)
 
6    (105 ILCS 5/1F-62)
7(This Section scheduled to be repealed in accordance with 105
8ILCS 5/1F-165)
9    Sec. 1F-62. School District Emergency Financial Assistance
10Fund; grants and loans.
11    (a) Moneys in the School District Emergency Financial
12Assistance Fund established under Section 1B-8 of this Code may
13be allocated and expended by the State Board as grants to
14provide technical and consulting services to school districts
15to assess their financial condition and by the Illinois Finance
16Authority for emergency financial assistance loans to a School
17Finance Authority that petitions for emergency financial
18assistance. An emergency financial assistance loan to a School
19Finance Authority or borrowing from sources other than the
20State shall not be considered as part of the calculation of a
21district's debt for purposes of the limitation specified in
22Section 19-1 of this Code. From the amount allocated to each
23School Finance Authority, the State Board shall identify a sum
24sufficient to cover all approved costs of the School Finance
25Authority. If the State Board and State Superintendent have not

 

 

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1approved emergency financial assistance in conjunction with
2the appointment of a School Finance Authority, the Authority's
3approved costs shall be paid from deductions from the
4district's general State aid or evidence-based funding.
5    The School Finance Authority may prepare and file with the
6State Superintendent a proposal for emergency financial
7assistance for the school district and for its operations
8budget. No expenditures shall be authorized by the State
9Superintendent until he or she has approved the proposal of the
10School Finance Authority, either as submitted or in such lesser
11amount determined by the State Superintendent.
12    (b) The amount of an emergency financial assistance loan
13that may be allocated to a School Finance Authority under this
14Article, including moneys necessary for the operations of the
15School Finance Authority, and borrowing from sources other than
16the State shall not exceed, in the aggregate, $4,000 times the
17number of pupils enrolled in the district during the school
18year ending June 30 prior to the date of approval by the State
19Board of the petition for emergency financial assistance, as
20certified to the school board and the School Finance Authority
21by the State Superintendent. However, this limitation does not
22apply to borrowing by the district secured by amounts levied by
23the district prior to establishment of the School Finance
24Authority. An emergency financial assistance grant shall not
25exceed $1,000 times the number of such pupils. A district may
26receive both a loan and a grant.

 

 

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1    (c) The payment of a State emergency financial assistance
2grant or loan shall be subject to appropriation by the General
3Assembly. State emergency financial assistance allocated and
4paid to a School Finance Authority under this Article may be
5applied to any fund or funds from which the School Finance
6Authority is authorized to make expenditures by law.
7    (d) Any State emergency financial assistance proposed by
8the School Finance Authority and approved by the State
9Superintendent may be paid in its entirety during the initial
10year of the School Finance Authority's existence or spread in
11equal or declining amounts over a period of years not to exceed
12the period of the School Finance Authority's existence. The
13State Superintendent shall not approve any loan to the School
14Finance Authority unless the School Finance Authority has been
15unable to borrow sufficient funds to operate the district.
16    All loan payments made from the School District Emergency
17Financial Assistance Fund to a School Finance Authority shall
18be required to be repaid not later than the date the School
19Finance Authority ceases to exist, with simple interest over
20the term of the loan at a rate equal to 50% of the one-year
21Constant Maturity Treasury (CMT) yield as last published by the
22Board of Governors of the Federal Reserve System before the
23date on which the School Finance Authority's loan is approved
24by the State Board.
25    The School Finance Authority shall establish and the
26Illinois Finance Authority shall approve the terms and

 

 

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1conditions of the loan, including the schedule of repayments.
2The schedule shall provide for repayments commencing July 1 of
3each year or upon each fiscal year's receipt of moneys from a
4tax levy for emergency financial assistance. Repayment shall be
5incorporated into the annual budget of the district and may be
6made from any fund or funds of the district in which there are
7moneys available. Default on repayment is subject to the
8Illinois Grant Funds Recovery Act. When moneys are repaid as
9provided in this Section, they shall not be made available to
10the School Finance Authority for further use as emergency
11financial assistance under this Article at any time thereafter.
12All repayments required to be made by a School Finance
13Authority shall be received by the State Board and deposited in
14the School District Emergency Financial Assistance Fund.
15    In establishing the terms and conditions for the repayment
16obligation of the School Finance Authority, the School Finance
17Authority shall annually determine whether a separate local
18property tax levy is required to meet that obligation. The
19School Finance Authority shall provide for a separate tax levy
20for emergency financial assistance repayment purposes. This
21tax levy shall not be subject to referendum approval. The
22amount of the levy shall not exceed the amount necessary to
23meet the annual emergency financial repayment obligations of
24the district, including principal and interest, as established
25by the School Finance Authority.
26(Source: P.A. 94-234, eff. 7-1-06.)
 

 

 

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1    (105 ILCS 5/1H-20)
2    Sec. 1H-20. Members of Panel; meetings.
3    (a) Upon establishment of a Financial Oversight Panel under
4Section 1H-15 of this Code, the State Superintendent shall
5within 15 working days thereafter appoint 5 members to serve on
6a Financial Oversight Panel for the district. Members appointed
7to the Panel shall serve at the pleasure of the State
8Superintendent. The State Superintendent shall designate one
9of the members of the Panel to serve as its Chairperson. In the
10event of vacancy or resignation, the State Superintendent
11shall, within 10 days after receiving notice, appoint a
12successor to serve out that member's term.
13    (b) Members of the Panel shall be selected primarily on the
14basis of their experience and education in financial
15management, with consideration given to persons knowledgeable
16in education finance. Two members of the Panel shall be
17residents of the school district that the Panel serves. A
18member of the Panel may not be a member of the district's
19school board or an employee of the district nor may a member
20have a direct financial interest in the district.
21    (c) Panel members may be reimbursed by the State Board for
22travel and other necessary expenses incurred in the performance
23of their official duties. The amount reimbursed members for
24their expenses shall be charged to the school district as part
25of any emergency financial assistance and incorporated as a

 

 

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1part of the terms and conditions for repayment of the
2assistance or shall be deducted from the district's general
3State aid or evidence-based funding as provided in Section
41H-65 of this Code.
5    (d) With the exception of the chairperson, who shall be
6designated as provided in subsection (a) of this Section, the
7Panel may elect such officers as it deems appropriate.
8    (e) The first meeting of the Panel shall be held at the
9call of the Chairperson. The Panel shall prescribe the times
10and places for its meetings and the manner in which regular and
11special meetings may be called and shall comply with the Open
12Meetings Act. The Panel shall also comply with the Freedom of
13Information Act.
14    (f) Three members of the Panel shall constitute a quorum. A
15majority of members present is required to pass a measure.
16(Source: P.A. 97-429, eff. 8-16-11.)
 
17    (105 ILCS 5/1H-70)
18    Sec. 1H-70. Tax anticipation warrants, tax anticipation
19notes, revenue anticipation certificates or notes, general
20State aid or evidence-based funding anticipation certificates,
21and lines of credit. With the approval of the State
22Superintendent and provided that the district is unable to
23secure short-term financing after 3 attempts, a Panel shall
24have the same power as a district to do the following:
25        (1) issue tax anticipation warrants under the

 

 

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1    provisions of Section 17-16 of this Code against taxes
2    levied by either the school board or the Panel pursuant to
3    Section 1H-25 of this Code;
4        (2) issue tax anticipation notes under the provisions
5    of the Tax Anticipation Note Act against taxes levied by
6    either the school board or the Panel pursuant to Section
7    1H-25 of this Code;
8        (3) issue revenue anticipation certificates or notes
9    under the provisions of the Revenue Anticipation Act;
10        (4) issue general State aid or evidence-based funding
11    anticipation certificates under the provisions of Section
12    18-18 of this Code; and
13        (5) establish and utilize lines of credit under the
14    provisions of Section 17-17 of this Code.
15    Tax anticipation warrants, tax anticipation notes, revenue
16anticipation certificates or notes, general State aid or
17evidence-based funding anticipation certificates, and lines of
18credit are considered borrowing from sources other than the
19State and are subject to Section 1H-65 of this Code.
20