Rep. Barbara Flynn Currie

Filed: 8/7/2017

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1947

2    AMENDMENT NO. ______. Amend Senate Bill 1947 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. This Act may be referred to as the
5Evidence-Based Funding for Student Success Act.
 
6    Section 5. The Economic Development Area Tax Increment
7Allocation Act is amended by changing Section 7 as follows:
 
8    (20 ILCS 620/7)  (from Ch. 67 1/2, par. 1007)
9    Sec. 7. Creation of special tax allocation fund. If a
10municipality has adopted tax increment allocation financing
11for an economic development project area by ordinance, the
12county clerk has thereafter certified the "total initial
13equalized assessed value" of the taxable real property within
14such economic development project area in the manner provided
15in Section 6 of this Act, and the Department has approved and

 

 

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

 

 

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

 

 

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1distribution by the county collector to those taxing districts
2of real property taxes from real property in the economic
3development project area.
4    Upon the payment of all economic development project costs,
5retirement of obligations and the distribution of any excess
6monies pursuant to this Section the municipality shall adopt an
7ordinance dissolving the special tax allocation fund for the
8economic development project area, terminating the economic
9development project area, and terminating the use of tax
10increment allocation financing for the economic development
11project area. Thereafter the rates of the taxing districts
12shall be extended and taxes levied, collected and distributed
13in the manner applicable in the absence of the adoption of tax
14increment allocation financing.
15    Nothing in this Section shall be construed as relieving
16property in economic development project areas from being
17assessed as provided in the Property Tax Code, or as relieving
18owners of that property from paying a uniform rate of taxes, as
19required by Section 4 of Article IX of the Illinois
20Constitution.
21(Source: P.A. 98-463, eff. 8-16-13.)
 
22    Section 10. The State Finance Act is amended by changing
23Section 13.2 as follows:
 
24    (30 ILCS 105/13.2)  (from Ch. 127, par. 149.2)

 

 

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1    Sec. 13.2. Transfers among line item appropriations.
2    (a) Transfers among line item appropriations from the same
3treasury fund for the objects specified in this Section may be
4made in the manner provided in this Section when the balance
5remaining in one or more such line item appropriations is
6insufficient for the purpose for which the appropriation was
7made.
8    (a-1) No transfers may be made from one agency to another
9agency, nor may transfers be made from one institution of
10higher education to another institution of higher education
11except as provided by subsection (a-4).
12    (a-2) Except as otherwise provided in this Section,
13transfers may be made only among the objects of expenditure
14enumerated in this Section, except that no funds may be
15transferred from any appropriation for personal services, from
16any appropriation for State contributions to the State
17Employees' Retirement System, from any separate appropriation
18for employee retirement contributions paid by the employer, nor
19from any appropriation for State contribution for employee
20group insurance. During State fiscal year 2005, an agency may
21transfer amounts among its appropriations within the same
22treasury fund for personal services, employee retirement
23contributions paid by employer, and State Contributions to
24retirement systems; notwithstanding and in addition to the
25transfers authorized in subsection (c) of this Section, the
26fiscal year 2005 transfers authorized in this sentence may be

 

 

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1made in an amount not to exceed 2% of the aggregate amount
2appropriated to an agency within the same treasury fund. During
3State fiscal year 2007, the Departments of Children and Family
4Services, Corrections, Human Services, and Juvenile Justice
5may transfer amounts among their respective appropriations
6within the same treasury fund for personal services, employee
7retirement contributions paid by employer, and State
8contributions to retirement systems. During State fiscal year
92010, the Department of Transportation may transfer amounts
10among their respective appropriations within the same treasury
11fund for personal services, employee retirement contributions
12paid by employer, and State contributions to retirement
13systems. During State fiscal years 2010 and 2014 only, an
14agency may transfer amounts among its respective
15appropriations within the same treasury fund for personal
16services, employee retirement contributions paid by employer,
17and State contributions to retirement systems.
18Notwithstanding, and in addition to, the transfers authorized
19in subsection (c) of this Section, these transfers may be made
20in an amount not to exceed 2% of the aggregate amount
21appropriated to an agency within the same treasury fund.
22    (a-2.5) During State fiscal year 2015 only, the State's
23Attorneys Appellate Prosecutor may transfer amounts among its
24respective appropriations contained in operational line items
25within the same treasury fund. Notwithstanding, and in addition
26to, the transfers authorized in subsection (c) of this Section,

 

 

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1these transfers may be made in an amount not to exceed 4% of
2the aggregate amount appropriated to the State's Attorneys
3Appellate Prosecutor within the same treasury fund.
4    (a-3) Further, if an agency receives a separate
5appropriation for employee retirement contributions paid by
6the employer, any transfer by that agency into an appropriation
7for personal services must be accompanied by a corresponding
8transfer into the appropriation for employee retirement
9contributions paid by the employer, in an amount sufficient to
10meet the employer share of the employee contributions required
11to be remitted to the retirement system.
12    (a-4) Long-Term Care Rebalancing. The Governor may
13designate amounts set aside for institutional services
14appropriated from the General Revenue Fund or any other State
15fund that receives monies for long-term care services to be
16transferred to all State agencies responsible for the
17administration of community-based long-term care programs,
18including, but not limited to, community-based long-term care
19programs administered by the Department of Healthcare and
20Family Services, the Department of Human Services, and the
21Department on Aging, provided that the Director of Healthcare
22and Family Services first certifies that the amounts being
23transferred are necessary for the purpose of assisting persons
24in or at risk of being in institutional care to transition to
25community-based settings, including the financial data needed
26to prove the need for the transfer of funds. The total amounts

 

 

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1transferred shall not exceed 4% in total of the amounts
2appropriated from the General Revenue Fund or any other State
3fund that receives monies for long-term care services for each
4fiscal year. A notice of the fund transfer must be made to the
5General Assembly and posted at a minimum on the Department of
6Healthcare and Family Services website, the Governor's Office
7of Management and Budget website, and any other website the
8Governor sees fit. These postings shall serve as notice to the
9General Assembly of the amounts to be transferred. Notice shall
10be given at least 30 days prior to transfer.
11    (b) In addition to the general transfer authority provided
12under subsection (c), the following agencies have the specific
13transfer authority granted in this subsection:
14    The Department of Healthcare and Family Services is
15authorized to make transfers representing savings attributable
16to not increasing grants due to the births of additional
17children from line items for payments of cash grants to line
18items for payments for employment and social services for the
19purposes outlined in subsection (f) of Section 4-2 of the
20Illinois Public Aid Code.
21    The Department of Children and Family Services is
22authorized to make transfers not exceeding 2% of the aggregate
23amount appropriated to it within the same treasury fund for the
24following line items among these same line items: Foster Home
25and Specialized Foster Care and Prevention, Institutions and
26Group Homes and Prevention, and Purchase of Adoption and

 

 

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1Guardianship Services.
2    The Department on Aging is authorized to make transfers not
3exceeding 2% of the aggregate amount appropriated to it within
4the same treasury fund for the following Community Care Program
5line items among these same line items: purchase of services
6covered by the Community Care Program and Comprehensive Case
7Coordination.
8    The State Treasurer is authorized to make transfers among
9line item appropriations from the Capital Litigation Trust
10Fund, with respect to costs incurred in fiscal years 2002 and
112003 only, when the balance remaining in one or more such line
12item appropriations is insufficient for the purpose for which
13the appropriation was made, provided that no such transfer may
14be made unless the amount transferred is no longer required for
15the purpose for which that appropriation was made.
16    The State Board of Education is authorized to make
17transfers from line item appropriations within the same
18treasury fund for General State Aid, and General State Aid -
19Hold Harmless, Evidence-Based Funding, provided that no such
20transfer may be made unless the amount transferred is no longer
21required for the purpose for which that appropriation was made,
22to the line item appropriation for Transitional Assistance when
23the balance remaining in such line item appropriation is
24insufficient for the purpose for which the appropriation was
25made.
26    The State Board of Education is authorized to make

 

 

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1transfers between the following line item appropriations
2within the same treasury fund: Disabled Student
3Services/Materials (Section 14-13.01 of the School Code),
4Disabled Student Transportation Reimbursement (Section
514-13.01 of the School Code), Disabled Student Tuition -
6Private Tuition (Section 14-7.02 of the School Code),
7Extraordinary Special Education (Section 14-7.02b of the
8School Code), Reimbursement for Free Lunch/Breakfast Program,
9Summer School Payments (Section 18-4.3 of the School Code), and
10Transportation - Regular/Vocational Reimbursement (Section
1129-5 of the School Code). Such transfers shall be made only
12when the balance remaining in one or more such line item
13appropriations is insufficient for the purpose for which the
14appropriation was made and provided that no such transfer may
15be made unless the amount transferred is no longer required for
16the purpose for which that appropriation was made.
17    The Department of Healthcare and Family Services is
18authorized to make transfers not exceeding 4% of the aggregate
19amount appropriated to it, within the same treasury fund, among
20the various line items appropriated for Medical Assistance.
21    (c) The sum of such transfers for an agency in a fiscal
22year shall not exceed 2% of the aggregate amount appropriated
23to it within the same treasury fund for the following objects:
24Personal Services; Extra Help; Student and Inmate
25Compensation; State Contributions to Retirement Systems; State
26Contributions to Social Security; State Contribution for

 

 

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1Employee Group Insurance; Contractual Services; Travel;
2Commodities; Printing; Equipment; Electronic Data Processing;
3Operation of Automotive Equipment; Telecommunications
4Services; Travel and Allowance for Committed, Paroled and
5Discharged Prisoners; Library Books; Federal Matching Grants
6for Student Loans; Refunds; Workers' Compensation,
7Occupational Disease, and Tort Claims; and, in appropriations
8to institutions of higher education, Awards and Grants.
9Notwithstanding the above, any amounts appropriated for
10payment of workers' compensation claims to an agency to which
11the authority to evaluate, administer and pay such claims has
12been delegated by the Department of Central Management Services
13may be transferred to any other expenditure object where such
14amounts exceed the amount necessary for the payment of such
15claims.
16    (c-1) Special provisions for State fiscal year 2003.
17Notwithstanding any other provision of this Section to the
18contrary, for State fiscal year 2003 only, transfers among line
19item appropriations to an agency from the same treasury fund
20may be made provided that the sum of such transfers for an
21agency in State fiscal year 2003 shall not exceed 3% of the
22aggregate amount appropriated to that State agency for State
23fiscal year 2003 for the following objects: personal services,
24except that no transfer may be approved which reduces the
25aggregate appropriations for personal services within an
26agency; extra help; student and inmate compensation; State

 

 

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

 

 

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1shall not exceed 4% of the aggregate amount appropriated to
2that State agency for operational or lump sum expenses for
3State fiscal year 2015. For the purpose of this subsection,
4"operational or lump sum expenses" includes the following
5objects: personal services; extra help; student and inmate
6compensation; State contributions to retirement systems; State
7contributions to social security; State contributions for
8employee group insurance; contractual services; travel;
9commodities; printing; equipment; electronic data processing;
10operation of automotive equipment; telecommunications
11services; travel and allowance for committed, paroled, and
12discharged prisoners; library books; federal matching grants
13for student loans; refunds; workers' compensation,
14occupational disease, and tort claims; lump sum and other
15purposes; and lump sum operations. For the purpose of this
16subsection (c-3), "State agency" does not include the Attorney
17General, the Secretary of State, the Comptroller, the
18Treasurer, or the legislative or judicial branches.
19    (d) Transfers among appropriations made to agencies of the
20Legislative and Judicial departments and to the
21constitutionally elected officers in the Executive branch
22require the approval of the officer authorized in Section 10 of
23this Act to approve and certify vouchers. Transfers among
24appropriations made to the University of Illinois, Southern
25Illinois University, Chicago State University, Eastern
26Illinois University, Governors State University, Illinois

 

 

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1State University, Northeastern Illinois University, Northern
2Illinois University, Western Illinois University, the Illinois
3Mathematics and Science Academy and the Board of Higher
4Education require the approval of the Board of Higher Education
5and the Governor. Transfers among appropriations to all other
6agencies require the approval of the Governor.
7    The officer responsible for approval shall certify that the
8transfer is necessary to carry out the programs and purposes
9for which the appropriations were made by the General Assembly
10and shall transmit to the State Comptroller a certified copy of
11the approval which shall set forth the specific amounts
12transferred so that the Comptroller may change his records
13accordingly. The Comptroller shall furnish the Governor with
14information copies of all transfers approved for agencies of
15the Legislative and Judicial departments and transfers
16approved by the constitutionally elected officials of the
17Executive branch other than the Governor, showing the amounts
18transferred and indicating the dates such changes were entered
19on the Comptroller's records.
20    (e) The State Board of Education, in consultation with the
21State Comptroller, may transfer line item appropriations for
22General State Aid or Evidence-Based Funding between the Common
23School Fund and the Education Assistance Fund. With the advice
24and consent of the Governor's Office of Management and Budget,
25the State Board of Education, in consultation with the State
26Comptroller, may transfer line item appropriations between the

 

 

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1General Revenue Fund and the Education Assistance Fund for the
2following programs:
3        (1) Disabled Student Personnel Reimbursement (Section
4    14-13.01 of the School Code);
5        (2) Disabled Student Transportation Reimbursement
6    (subsection (b) of Section 14-13.01 of the School Code);
7        (3) Disabled Student Tuition - Private Tuition
8    (Section 14-7.02 of the School Code);
9        (4) Extraordinary Special Education (Section 14-7.02b
10    of the School Code);
11        (5) Reimbursement for Free Lunch/Breakfast Programs;
12        (6) Summer School Payments (Section 18-4.3 of the
13    School Code);
14        (7) Transportation - Regular/Vocational Reimbursement
15    (Section 29-5 of the School Code);
16        (8) Regular Education Reimbursement (Section 18-3 of
17    the School Code); and
18        (9) Special Education Reimbursement (Section 14-7.03
19    of the School Code).
20(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-2,
21eff. 3-26-15.)
 
22    Section 15. The Property Tax Code is amended by changing
23Sections 18-200 and 18-249 as follows:
 
24    (35 ILCS 200/18-200)

 

 

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1    Sec. 18-200. School Code. A school district's State aid
2shall not be reduced under the computation under subsections
35(a) through 5(h) of Part A of Section 18-8 of the School Code
4or under Section 18-8.15 of the School Code due to the
5operating tax rate falling from above the minimum requirement
6of that Section of the School Code to below the minimum
7requirement of that Section of the School Code due to the
8operation of this Law.
9(Source: P.A. 87-17; 88-455.)
 
10    (35 ILCS 200/18-249)
11    Sec. 18-249. Miscellaneous provisions.
12    (a) Certification of new property. For the 1994 levy year,
13the chief county assessment officer shall certify to the county
14clerk, after all changes by the board of review or board of
15appeals, as the case may be, the assessed value of new property
16by taxing district for the 1994 levy year under rules
17promulgated by the Department.
18    (b) School Code. A school district's State aid shall not be
19reduced under the computation under subsections 5(a) through
205(h) of Part A of Section 18-8 of the School Code or under
21Section 18-8.15 of the School Code due to the operating tax
22rate falling from above the minimum requirement of that Section
23of the School Code to below the minimum requirement of that
24Section of the School Code due to the operation of this Law.
25    (c) Rules. The Department shall make and promulgate

 

 

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1reasonable rules relating to the administration of the purposes
2and provisions of Sections 18-246 through 18-249 as may be
3necessary or appropriate.
4(Source: P.A. 89-1, eff. 2-12-95.)
 
5    Section 17. The Illinois Pension Code is amended by
6changing Sections 16-158 and 17-127 as follows:
 
7    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
8    (Text of Section WITHOUT the changes made by P.A. 98-599,
9which has been held unconstitutional)
10    Sec. 16-158. Contributions by State and other employing
11units.
12    (a) The State shall make contributions to the System by
13means of appropriations from the Common School Fund and other
14State funds of amounts which, together with other employer
15contributions, employee contributions, investment income, and
16other income, will be sufficient to meet the cost of
17maintaining and administering the System on a 90% funded basis
18in accordance with actuarial recommendations.
19    The Board shall determine the amount of State contributions
20required for each fiscal year on the basis of the actuarial
21tables and other assumptions adopted by the Board and the
22recommendations of the actuary, using the formula in subsection
23(b-3).
24    (a-1) Annually, on or before November 15 until November 15,

 

 

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12011, the Board shall certify to the Governor the amount of the
2required State contribution for the coming fiscal year. The
3certification under this subsection (a-1) shall include a copy
4of the actuarial recommendations upon which it is based and
5shall specifically identify the System's projected State
6normal cost for that fiscal year.
7    On or before May 1, 2004, the Board shall recalculate and
8recertify to the Governor the amount of the required State
9contribution to the System for State fiscal year 2005, taking
10into account the amounts appropriated to and received by the
11System under subsection (d) of Section 7.2 of the General
12Obligation Bond Act.
13    On or before July 1, 2005, the Board shall recalculate and
14recertify to the Governor the amount of the required State
15contribution to the System for State fiscal year 2006, taking
16into account the changes in required State contributions made
17by this amendatory Act of the 94th General Assembly.
18    On or before April 1, 2011, the Board shall recalculate and
19recertify to the Governor the amount of the required State
20contribution to the System for State fiscal year 2011, applying
21the changes made by Public Act 96-889 to the System's assets
22and liabilities as of June 30, 2009 as though Public Act 96-889
23was approved on that date.
24    (a-5) On or before November 1 of each year, beginning
25November 1, 2012, the Board shall submit to the State Actuary,
26the Governor, and the General Assembly a proposed certification

 

 

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1of the amount of the required State contribution to the System
2for the next fiscal year, along with all of the actuarial
3assumptions, calculations, and data upon which that proposed
4certification is based. On or before January 1 of each year,
5beginning January 1, 2013, the State Actuary shall issue a
6preliminary report concerning the proposed certification and
7identifying, if necessary, recommended changes in actuarial
8assumptions that the Board must consider before finalizing its
9certification of the required State contributions. On or before
10January 15, 2013 and each January 15 thereafter, the Board
11shall certify to the Governor and the General Assembly the
12amount of the required State contribution for the next fiscal
13year. The Board's certification must note any deviations from
14the State Actuary's recommended changes, the reason or reasons
15for not following the State Actuary's recommended changes, and
16the fiscal impact of not following the State Actuary's
17recommended changes on the required State contribution.
18    (b) Through State fiscal year 1995, the State contributions
19shall be paid to the System in accordance with Section 18-7 of
20the School Code.
21    (b-1) Beginning in State fiscal year 1996, on the 15th day
22of each month, or as soon thereafter as may be practicable, the
23Board shall submit vouchers for payment of State contributions
24to the System, in a total monthly amount of one-twelfth of the
25required annual State contribution certified under subsection
26(a-1). From the effective date of this amendatory Act of the

 

 

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193rd General Assembly through June 30, 2004, the Board shall
2not submit vouchers for the remainder of fiscal year 2004 in
3excess of the fiscal year 2004 certified contribution amount
4determined under this Section after taking into consideration
5the transfer to the System under subsection (a) of Section
66z-61 of the State Finance Act. These vouchers shall be paid by
7the State Comptroller and Treasurer by warrants drawn on the
8funds appropriated to the System for that fiscal year.
9    If in any month the amount remaining unexpended from all
10other appropriations to the System for the applicable fiscal
11year (including the appropriations to the System under Section
128.12 of the State Finance Act and Section 1 of the State
13Pension Funds Continuing Appropriation Act) is less than the
14amount lawfully vouchered under this subsection, the
15difference shall be paid from the Common School Fund under the
16continuing appropriation authority provided in Section 1.1 of
17the State Pension Funds Continuing Appropriation Act.
18    (b-2) Allocations from the Common School Fund apportioned
19to school districts not coming under this System shall not be
20diminished or affected by the provisions of this Article.
21    (b-3) For State fiscal years 2012 through 2045, the minimum
22contribution to the System to be made by the State for each
23fiscal year shall be an amount determined by the System to be
24sufficient to bring the total assets of the System up to 90% of
25the total actuarial liabilities of the System by the end of
26State fiscal year 2045. In making these determinations, the

 

 

10000SB1947ham003- 21 -LRB100 09675 MLM 28298 a

1required State contribution shall be calculated each year as a
2level percentage of payroll over the years remaining to and
3including fiscal year 2045 and shall be determined under the
4projected unit credit actuarial cost method.
5    For State fiscal years 1996 through 2005, the State
6contribution to the System, as a percentage of the applicable
7employee payroll, shall be increased in equal annual increments
8so that by State fiscal year 2011, the State is contributing at
9the rate required under this Section; except that in the
10following specified State fiscal years, the State contribution
11to the System shall not be less than the following indicated
12percentages of the applicable employee payroll, even if the
13indicated percentage will produce a State contribution in
14excess of the amount otherwise required under this subsection
15and subsection (a), and notwithstanding any contrary
16certification made under subsection (a-1) before the effective
17date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
18in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
192003; and 13.56% in FY 2004.
20    Notwithstanding any other provision of this Article, the
21total required State contribution for State fiscal year 2006 is
22$534,627,700.
23    Notwithstanding any other provision of this Article, the
24total required State contribution for State fiscal year 2007 is
25$738,014,500.
26    For each of State fiscal years 2008 through 2009, the State

 

 

10000SB1947ham003- 22 -LRB100 09675 MLM 28298 a

1contribution to the System, as a percentage of the applicable
2employee payroll, shall be increased in equal annual increments
3from the required State contribution for State fiscal year
42007, so that by State fiscal year 2011, the State is
5contributing at the rate otherwise required under this Section.
6    Notwithstanding any other provision of this Article, the
7total required State contribution for State fiscal year 2010 is
8$2,089,268,000 and shall be made from the proceeds of bonds
9sold in fiscal year 2010 pursuant to Section 7.2 of the General
10Obligation Bond Act, less (i) the pro rata share of bond sale
11expenses determined by the System's share of total bond
12proceeds, (ii) any amounts received from the Common School Fund
13in fiscal year 2010, and (iii) any reduction in bond proceeds
14due to the issuance of discounted bonds, if applicable.
15    Notwithstanding any other provision of this Article, the
16total required State contribution for State fiscal year 2011 is
17the amount recertified by the System on or before April 1, 2011
18pursuant to subsection (a-1) of this Section and shall be made
19from the proceeds of bonds sold in fiscal year 2011 pursuant to
20Section 7.2 of the General Obligation Bond Act, less (i) the
21pro rata share of bond sale expenses determined by the System's
22share of total bond proceeds, (ii) any amounts received from
23the Common School Fund in fiscal year 2011, and (iii) any
24reduction in bond proceeds due to the issuance of discounted
25bonds, if applicable. This amount shall include, in addition to
26the amount certified by the System, an amount necessary to meet

 

 

10000SB1947ham003- 23 -LRB100 09675 MLM 28298 a

1employer contributions required by the State as an employer
2under paragraph (e) of this Section, which may also be used by
3the System for contributions required by paragraph (a) of
4Section 16-127.
5    Beginning in State fiscal year 2046, the minimum State
6contribution for each fiscal year shall be the amount needed to
7maintain the total assets of the System at 90% of the total
8actuarial liabilities of the System.
9    Amounts received by the System pursuant to Section 25 of
10the Budget Stabilization Act or Section 8.12 of the State
11Finance Act in any fiscal year do not reduce and do not
12constitute payment of any portion of the minimum State
13contribution required under this Article in that fiscal year.
14Such amounts shall not reduce, and shall not be included in the
15calculation of, the required State contributions under this
16Article in any future year until the System has reached a
17funding ratio of at least 90%. A reference in this Article to
18the "required State contribution" or any substantially similar
19term does not include or apply to any amounts payable to the
20System under Section 25 of the Budget Stabilization Act.
21    Notwithstanding any other provision of this Section, the
22required State contribution for State fiscal year 2005 and for
23fiscal year 2008 and each fiscal year thereafter, as calculated
24under this Section and certified under subsection (a-1), shall
25not exceed an amount equal to (i) the amount of the required
26State contribution that would have been calculated under this

 

 

10000SB1947ham003- 24 -LRB100 09675 MLM 28298 a

1Section for that fiscal year if the System had not received any
2payments under subsection (d) of Section 7.2 of the General
3Obligation Bond Act, minus (ii) the portion of the State's
4total debt service payments for that fiscal year on the bonds
5issued in fiscal year 2003 for the purposes of that Section
67.2, as determined and certified by the Comptroller, that is
7the same as the System's portion of the total moneys
8distributed under subsection (d) of Section 7.2 of the General
9Obligation Bond Act. In determining this maximum for State
10fiscal years 2008 through 2010, however, the amount referred to
11in item (i) shall be increased, as a percentage of the
12applicable employee payroll, in equal increments calculated
13from the sum of the required State contribution for State
14fiscal year 2007 plus the applicable portion of the State's
15total debt service payments for fiscal year 2007 on the bonds
16issued in fiscal year 2003 for the purposes of Section 7.2 of
17the General Obligation Bond Act, so that, by State fiscal year
182011, the State is contributing at the rate otherwise required
19under this Section.
20    (c) Payment of the required State contributions and of all
21pensions, retirement annuities, death benefits, refunds, and
22other benefits granted under or assumed by this System, and all
23expenses in connection with the administration and operation
24thereof, are obligations of the State.
25    If members are paid from special trust or federal funds
26which are administered by the employing unit, whether school

 

 

10000SB1947ham003- 25 -LRB100 09675 MLM 28298 a

1district or other unit, the employing unit shall pay to the
2System from such funds the full accruing retirement costs based
3upon that service, which, beginning July 1, 2018 2014, shall be
4at a rate, expressed as a percentage of salary, equal to the
5total employer's minimum contribution to the System to be made
6by the State for that fiscal year, including both normal cost
7and unfunded liability components, expressed as a percentage of
8payroll, as determined by the System under subsection (b-3) of
9this Section. Employer contributions, based on salary paid to
10members from federal funds, may be forwarded by the
11distributing agency of the State of Illinois to the System
12prior to allocation, in an amount determined in accordance with
13guidelines established by such agency and the System. Any
14contribution for fiscal year 2015 collected as a result of the
15change made by this amendatory Act of the 98th General Assembly
16shall be considered a State contribution under subsection (b-3)
17of this Section.
18    (d) Effective July 1, 1986, any employer of a teacher as
19defined in paragraph (8) of Section 16-106 shall pay the
20employer's normal cost of benefits based upon the teacher's
21service, in addition to employee contributions, as determined
22by the System. Such employer contributions shall be forwarded
23monthly in accordance with guidelines established by the
24System.
25    However, with respect to benefits granted under Section
2616-133.4 or 16-133.5 to a teacher as defined in paragraph (8)

 

 

10000SB1947ham003- 26 -LRB100 09675 MLM 28298 a

1of Section 16-106, the employer's contribution shall be 12%
2(rather than 20%) of the member's highest annual salary rate
3for each year of creditable service granted, and the employer
4shall also pay the required employee contribution on behalf of
5the teacher. For the purposes of Sections 16-133.4 and
616-133.5, a teacher as defined in paragraph (8) of Section
716-106 who is serving in that capacity while on leave of
8absence from another employer under this Article shall not be
9considered an employee of the employer from which the teacher
10is on leave.
11    (e) Beginning July 1, 1998, every employer of a teacher
12shall pay to the System an employer contribution computed as
13follows:
14        (1) Beginning July 1, 1998 through June 30, 1999, the
15    employer contribution shall be equal to 0.3% of each
16    teacher's salary.
17        (2) Beginning July 1, 1999 and thereafter, the employer
18    contribution shall be equal to 0.58% of each teacher's
19    salary.
20The school district or other employing unit may pay these
21employer contributions out of any source of funding available
22for that purpose and shall forward the contributions to the
23System on the schedule established for the payment of member
24contributions.
25    These employer contributions are intended to offset a
26portion of the cost to the System of the increases in

 

 

10000SB1947ham003- 27 -LRB100 09675 MLM 28298 a

1retirement benefits resulting from this amendatory Act of 1998.
2    Each employer of teachers is entitled to a credit against
3the contributions required under this subsection (e) with
4respect to salaries paid to teachers for the period January 1,
52002 through June 30, 2003, equal to the amount paid by that
6employer under subsection (a-5) of Section 6.6 of the State
7Employees Group Insurance Act of 1971 with respect to salaries
8paid to teachers for that period.
9    The additional 1% employee contribution required under
10Section 16-152 by this amendatory Act of 1998 is the
11responsibility of the teacher and not the teacher's employer,
12unless the employer agrees, through collective bargaining or
13otherwise, to make the contribution on behalf of the teacher.
14    If an employer is required by a contract in effect on May
151, 1998 between the employer and an employee organization to
16pay, on behalf of all its full-time employees covered by this
17Article, all mandatory employee contributions required under
18this Article, then the employer shall be excused from paying
19the employer contribution required under this subsection (e)
20for the balance of the term of that contract. The employer and
21the employee organization shall jointly certify to the System
22the existence of the contractual requirement, in such form as
23the System may prescribe. This exclusion shall cease upon the
24termination, extension, or renewal of the contract at any time
25after May 1, 1998.
26    (f) If the amount of a teacher's salary for any school year

 

 

10000SB1947ham003- 28 -LRB100 09675 MLM 28298 a

1used to determine final average salary exceeds the member's
2annual full-time salary rate with the same employer for the
3previous school year by more than 6%, the teacher's employer
4shall pay to the System, in addition to all other payments
5required under this Section and in accordance with guidelines
6established by the System, the present value of the increase in
7benefits resulting from the portion of the increase in salary
8that is in excess of 6%. This present value shall be computed
9by the System on the basis of the actuarial assumptions and
10tables used in the most recent actuarial valuation of the
11System that is available at the time of the computation. If a
12teacher's salary for the 2005-2006 school year is used to
13determine final average salary under this subsection (f), then
14the changes made to this subsection (f) by Public Act 94-1057
15shall apply in calculating whether the increase in his or her
16salary is in excess of 6%. For the purposes of this Section,
17change in employment under Section 10-21.12 of the School Code
18on or after June 1, 2005 shall constitute a change in employer.
19The System may require the employer to provide any pertinent
20information or documentation. The changes made to this
21subsection (f) by this amendatory Act of the 94th General
22Assembly apply without regard to whether the teacher was in
23service on or after its effective date.
24    Whenever it determines that a payment is or may be required
25under this subsection, the System shall calculate the amount of
26the payment and bill the employer for that amount. The bill

 

 

10000SB1947ham003- 29 -LRB100 09675 MLM 28298 a

1shall specify the calculations used to determine the amount
2due. If the employer disputes the amount of the bill, it may,
3within 30 days after receipt of the bill, apply to the System
4in writing for a recalculation. The application must specify in
5detail the grounds of the dispute and, if the employer asserts
6that the calculation is subject to subsection (g) or (h) of
7this Section, must include an affidavit setting forth and
8attesting to all facts within the employer's knowledge that are
9pertinent to the applicability of that subsection. Upon
10receiving a timely application for recalculation, the System
11shall review the application and, if appropriate, recalculate
12the amount due.
13    The employer contributions required under this subsection
14(f) may be paid in the form of a lump sum within 90 days after
15receipt of the bill. If the employer contributions are not paid
16within 90 days after receipt of the bill, then interest will be
17charged at a rate equal to the System's annual actuarially
18assumed rate of return on investment compounded annually from
19the 91st day after receipt of the bill. Payments must be
20concluded within 3 years after the employer's receipt of the
21bill.
22    (g) This subsection (g) applies only to payments made or
23salary increases given on or after June 1, 2005 but before July
241, 2011. The changes made by Public Act 94-1057 shall not
25require the System to refund any payments received before July
2631, 2006 (the effective date of Public Act 94-1057).

 

 

10000SB1947ham003- 30 -LRB100 09675 MLM 28298 a

1    When assessing payment for any amount due under subsection
2(f), the System shall exclude salary increases paid to teachers
3under contracts or collective bargaining agreements entered
4into, amended, or renewed before June 1, 2005.
5    When assessing payment for any amount due under subsection
6(f), the System shall exclude salary increases paid to a
7teacher at a time when the teacher is 10 or more years from
8retirement eligibility under Section 16-132 or 16-133.2.
9    When assessing payment for any amount due under subsection
10(f), the System shall exclude salary increases resulting from
11overload work, including summer school, when the school
12district has certified to the System, and the System has
13approved the certification, that (i) the overload work is for
14the sole purpose of classroom instruction in excess of the
15standard number of classes for a full-time teacher in a school
16district during a school year and (ii) the salary increases are
17equal to or less than the rate of pay for classroom instruction
18computed on the teacher's current salary and work schedule.
19    When assessing payment for any amount due under subsection
20(f), the System shall exclude a salary increase resulting from
21a promotion (i) for which the employee is required to hold a
22certificate or supervisory endorsement issued by the State
23Teacher Certification Board that is a different certification
24or supervisory endorsement than is required for the teacher's
25previous position and (ii) to a position that has existed and
26been filled by a member for no less than one complete academic

 

 

10000SB1947ham003- 31 -LRB100 09675 MLM 28298 a

1year and the salary increase from the promotion is an increase
2that results in an amount no greater than the lesser of the
3average salary paid for other similar positions in the district
4requiring the same certification or the amount stipulated in
5the collective bargaining agreement for a similar position
6requiring the same certification.
7    When assessing payment for any amount due under subsection
8(f), the System shall exclude any payment to the teacher from
9the State of Illinois or the State Board of Education over
10which the employer does not have discretion, notwithstanding
11that the payment is included in the computation of final
12average salary.
13    (h) When assessing payment for any amount due under
14subsection (f), the System shall exclude any salary increase
15described in subsection (g) of this Section given on or after
16July 1, 2011 but before July 1, 2014 under a contract or
17collective bargaining agreement entered into, amended, or
18renewed on or after June 1, 2005 but before July 1, 2011.
19Notwithstanding any other provision of this Section, any
20payments made or salary increases given after June 30, 2014
21shall be used in assessing payment for any amount due under
22subsection (f) of this Section.
23    (i) The System shall prepare a report and file copies of
24the report with the Governor and the General Assembly by
25January 1, 2007 that contains all of the following information:
26        (1) The number of recalculations required by the

 

 

10000SB1947ham003- 32 -LRB100 09675 MLM 28298 a

1    changes made to this Section by Public Act 94-1057 for each
2    employer.
3        (2) The dollar amount by which each employer's
4    contribution to the System was changed due to
5    recalculations required by Public Act 94-1057.
6        (3) The total amount the System received from each
7    employer as a result of the changes made to this Section by
8    Public Act 94-4.
9        (4) The increase in the required State contribution
10    resulting from the changes made to this Section by Public
11    Act 94-1057.
12    (j) For purposes of determining the required State
13contribution to the System, the value of the System's assets
14shall be equal to the actuarial value of the System's assets,
15which shall be calculated as follows:
16    As of June 30, 2008, the actuarial value of the System's
17assets shall be equal to the market value of the assets as of
18that date. In determining the actuarial value of the System's
19assets for fiscal years after June 30, 2008, any actuarial
20gains or losses from investment return incurred in a fiscal
21year shall be recognized in equal annual amounts over the
225-year period following that fiscal year.
23    (k) For purposes of determining the required State
24contribution to the system for a particular year, the actuarial
25value of assets shall be assumed to earn a rate of return equal
26to the system's actuarially assumed rate of return.

 

 

10000SB1947ham003- 33 -LRB100 09675 MLM 28298 a

1(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
296-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
36-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
 
4    (40 ILCS 5/17-127)  (from Ch. 108 1/2, par. 17-127)
5    Sec. 17-127. Financing; revenues for the Fund.
6    (a) The revenues for the Fund shall consist of: (1) amounts
7paid into the Fund by contributors thereto and from employer
8contributions and State appropriations in accordance with this
9Article; (2) amounts contributed to the Fund by an Employer;
10(3) amounts contributed to the Fund pursuant to any law now in
11force or hereafter to be enacted; (4) contributions from any
12other source; and (5) the earnings on investments.
13    (b) The General Assembly finds that for many years the
14State has contributed to the Fund an annual amount that is
15between 20% and 30% of the amount of the annual State
16contribution to the Article 16 retirement system, and the
17General Assembly declares that it is its goal and intention to
18continue this level of contribution to the Fund in the future.
19    (c) Beginning in State fiscal year 1999 and ending at the
20end of State fiscal year 2017, the State shall include in its
21annual contribution to the Fund an additional amount equal to
220.544% of the Fund's total teacher payroll; except that this
23additional contribution need not be made in a fiscal year if
24the Board has certified in the previous fiscal year that the
25Fund is at least 90% funded, based on actuarial determinations.

 

 

10000SB1947ham003- 34 -LRB100 09675 MLM 28298 a

1These additional State contributions are intended to offset a
2portion of the cost to the Fund of the increases in retirement
3benefits resulting from this amendatory Act of 1998.
4    (d) In addition to any other contribution required under
5this Article, the State shall contribute to the Fund the
6following amounts:
7        (1) For State fiscal year 2018, the State shall
8    contribute $221,300,000.
9        (2) Beginning in State fiscal year 2019, the State
10    shall contribute for each fiscal year an amount to be
11    determined by the Fund, equal to the employer normal cost
12    for that fiscal year for all teachers hired before the
13    implementation date of the plan created under Section 1-161
14    of the Illinois Pension Code for the retirement system
15    under Article 16 or before the resolution or ordinance date
16    under Section 1-162 of the Illinois Pension Code for the
17    retirement System under Article 17, whichever is earlier,
18    plus the amount allowed pursuant to paragraph (3) of
19    Section 17-142.1, to defray health insurance costs for all
20    employees. The amount contributed under this paragraph (2)
21    shall be reduced by the employer normal cost of the
22    increase in benefits associated with the portion of salary
23    in excess of the amount of the salary set for the Governor.
24    (e) The Board shall determine the amount of State
25contributions required for each fiscal year on the basis of the
26actuarial tables and other assumptions adopted by the Board and

 

 

10000SB1947ham003- 35 -LRB100 09675 MLM 28298 a

1the recommendations of the actuary. On or before November 1 of
2each year, beginning November 1, 2017, the Board shall submit
3to the State Actuary, the Governor, and the General Assembly a
4proposed certification of the amount of the required State
5contribution to the Fund for the next fiscal year, along with
6all of the actuarial assumptions, calculations, and data upon
7which that proposed certification is based. On or before
8January 1 of each year, beginning January 1, 2018, the State
9Actuary shall issue a preliminary report concerning the
10proposed certification and identifying, if necessary,
11recommended changes in actuarial assumptions that the Board
12must consider before finalizing its certification of the
13required State contributions.
14    (f) On or before January 15, 2018 and each January 15
15thereafter, the Board shall certify to the Governor and the
16General Assembly (i) the amount of the required State
17contribution for the next fiscal year and (ii) the amount by
18which the required State contribution was reduced pursuant to
19paragraph (2) of subsection (d) of this Section. The
20certification shall include a copy of the actuarial
21recommendations upon which it is based and shall specifically
22identify the Fund's projected employer normal cost for that
23fiscal year. The Board's certification must note any deviations
24from the State Actuary's recommended changes, the reason or
25reasons for not following the State Actuary's recommended
26changes, and the fiscal impact of not following the State

 

 

10000SB1947ham003- 36 -LRB100 09675 MLM 28298 a

1Actuary's recommended changes on the required State
2contribution. For the purposes of this Article, including
3issuing vouchers, and for the purposes of subsection (h) of
4Section 1.1 of the State Pension Funds Continuing Appropriation
5Act, the State contribution specified for State fiscal year
62018 shall be deemed to have been certified, by operation of
7law and without official action by the Board or the State
8Actuary, in the amount provided in subsection (d) of this
9Section.
10    (g) Beginning in State fiscal year 2018 on the 15th day of
11each month, or as soon thereafter as may be practicable, the
12Board shall submit vouchers for payment of State contributions
13to the Fund, in a total monthly amount of one-twelfth of the
14required annual State contribution under subsection (d). These
15vouchers shall be paid by the State Comptroller and Treasurer
16by warrants drawn on the funds appropriated to the Fund for
17that fiscal year. If in any month the amount remaining
18unexpended from all other State appropriations to the Fund for
19the applicable fiscal year is less than the amount lawfully
20vouchered under this subsection, the difference shall be paid
21from the Common School Fund under the continuing appropriation
22authority provided in Section 1.1 of the State Pension Funds
23Continuing Appropriation Act.
24(Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98;
2590-582, eff. 5-27-98; 90-655, eff. 7-30-98.)
 

 

 

10000SB1947ham003- 37 -LRB100 09675 MLM 28298 a

1    Section 18. The State Pension Funds Continuing
2Appropriation Act is amended by changing Section 1.1 as
3follows:
 
4    (40 ILCS 15/1.1)
5    Sec. 1.1. Appropriations to certain retirement systems.
6    (a) There is hereby appropriated from the General Revenue
7Fund to the General Assembly Retirement System, on a continuing
8monthly basis, the amount, if any, by which the total available
9amount of all other appropriations to that retirement system
10for the payment of State contributions is less than the total
11amount of the vouchers for required State contributions
12lawfully submitted by the retirement system for that month
13under Section 2-134 of the Illinois Pension Code.
14    (b) There is hereby appropriated from the General Revenue
15Fund to the State Universities Retirement System, on a
16continuing monthly basis, the amount, if any, by which the
17total available amount of all other appropriations to that
18retirement system for the payment of State contributions,
19including any deficiency in the required contributions of the
20optional retirement program established under Section 15-158.2
21of the Illinois Pension Code, is less than the total amount of
22the vouchers for required State contributions lawfully
23submitted by the retirement system for that month under Section
2415-165 of the Illinois Pension Code.
25    (c) There is hereby appropriated from the Common School

 

 

10000SB1947ham003- 38 -LRB100 09675 MLM 28298 a

1Fund to the Teachers' Retirement System of the State of
2Illinois, on a continuing monthly basis, the amount, if any, by
3which the total available amount of all other appropriations to
4that retirement system for the payment of State contributions
5is less than the total amount of the vouchers for required
6State contributions lawfully submitted by the retirement
7system for that month under Section 16-158 of the Illinois
8Pension Code.
9    (d) There is hereby appropriated from the General Revenue
10Fund to the Judges Retirement System of Illinois, on a
11continuing monthly basis, the amount, if any, by which the
12total available amount of all other appropriations to that
13retirement system for the payment of State contributions is
14less than the total amount of the vouchers for required State
15contributions lawfully submitted by the retirement system for
16that month under Section 18-140 of the Illinois Pension Code.
17    (e) The continuing appropriations provided by subsections
18(a), (b), (c), and (d) of this Section shall first be available
19in State fiscal year 1996. The continuing appropriations
20provided by subsection (h) of this Section shall first be
21available as provided in that subsection (h).
22    (f) For State fiscal year 2010 only, the continuing
23appropriations provided by this Section are equal to the amount
24certified by each System on or before December 31, 2008, less
25(i) the gross proceeds of the bonds sold in fiscal year 2010
26under the authorization contained in subsection (a) of Section

 

 

10000SB1947ham003- 39 -LRB100 09675 MLM 28298 a

17.2 of the General Obligation Bond Act and (ii) any amounts
2received from the State Pensions Fund.
3    (g) For State fiscal year 2011 only, the continuing
4appropriations provided by this Section are equal to the amount
5certified by each System on or before April 1, 2011, less (i)
6the gross proceeds of the bonds sold in fiscal year 2011 under
7the authorization contained in subsection (a) of Section 7.2 of
8the General Obligation Bond Act and (ii) any amounts received
9from the State Pensions Fund.
10    (h) There is hereby appropriated from the Common School
11Fund to the Public School Teachers' Pension and Retirement Fund
12of Chicago, on a continuing monthly basis, the amount, if any,
13by which the total available amount of all other State
14appropriations to that Retirement Fund for the payment of State
15contributions under subsection (d) of Section 17-127 of the
16Illinois Pension Code is less than the total amount of the
17vouchers for required State contributions lawfully submitted
18by the Retirement Fund for that month under that Section
1917-127.
20(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
2196-1511, eff. 1-27-11.)
 
22    Section 20. The Innovation Development and Economy Act is
23amended by changing Section 33 as follows:
 
24    (50 ILCS 470/33)

 

 

10000SB1947ham003- 40 -LRB100 09675 MLM 28298 a

1    Sec. 33. STAR Bonds School Improvement and Operations Trust
2Fund.
3    (a) The STAR Bonds School Improvement and Operations Trust
4Fund is created as a trust fund in the State treasury. Deposits
5into the Trust Fund shall be made as provided under this
6Section. Moneys in the Trust Fund shall be used by the
7Department of Revenue only for the purpose of making payments
8to school districts in educational service regions that include
9or are adjacent to the STAR bond district. Moneys in the Trust
10Fund are not subject to appropriation and shall be used solely
11as provided in this Section. All deposits into the Trust Fund
12shall be held in the Trust Fund by the State Treasurer as ex
13officio custodian separate and apart from all public moneys or
14funds of this State and shall be administered by the Department
15exclusively for the purposes set forth in this Section. All
16moneys in the Trust Fund shall be invested and reinvested by
17the State Treasurer. All interest accruing from these
18investments shall be deposited in the Trust Fund.
19    (b) Upon approval of a STAR bond district, the political
20subdivision shall immediately transmit to the county clerk of
21the county in which the district is located a certified copy of
22the ordinance creating the district, a legal description of the
23district, a map of the district, identification of the year
24that the county clerk shall use for determining the total
25initial equalized assessed value of the district consistent
26with subsection (c), and a list of the parcel or tax

 

 

10000SB1947ham003- 41 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 42 -LRB100 09675 MLM 28298 a

1district. The county clerk shall immediately, after the written
2request to adjust the total initial equalized value is
3received, determine the total homestead exemptions in the STAR
4bond district as provided under Article 15 of the Property Tax
5Code by adding together the homestead exemptions provided by
6said Article on each lot, block, tract, or parcel of real
7property within the STAR bond district and then shall deduct
8the total of said exemptions from the total initial equalized
9assessed value. The county clerk shall then promptly certify
10that amount as the total initial equalized assessed value as
11adjusted of the taxable real property within the STAR bond
12district.
13    (e) The county clerk or other person authorized by law
14shall compute the tax rates for each taxing district with all
15or a portion of its equalized assessed value located in the
16STAR bond district. The rate per cent of tax determined shall
17be extended to the current equalized assessed value of all
18property in the district in the same manner as the rate per
19cent of tax is extended to all other taxable property in the
20taxing district.
21    (f) Beginning with the assessment year in which the first
22destination user in the first STAR bond project in a STAR bond
23district makes its first retail sales and for each assessment
24year thereafter until final maturity of the last STAR bonds
25issued in the district, the county clerk or other person
26authorized by law shall determine the increase in equalized

 

 

10000SB1947ham003- 43 -LRB100 09675 MLM 28298 a

1assessed value of all real property within the STAR bond
2district by subtracting the initial equalized assessed value of
3all property in the district certified under subsection (c)
4from the current equalized assessed value of all property in
5the district. Each year, the property taxes arising from the
6increase in equalized assessed value in the STAR bond district
7shall be determined for each taxing district and shall be
8certified to the county collector.
9    (g) Beginning with the year in which taxes are collected
10based on the assessment year in which the first destination
11user in the first STAR bond project in a STAR bond district
12makes its first retail sales and for each year thereafter until
13final maturity of the last STAR bonds issued in the district,
14the county collector shall, within 30 days after receipt of
15property taxes, transmit to the Department to be deposited into
16the STAR Bonds School Improvement and Operations Trust Fund 15%
17of property taxes attributable to the increase in equalized
18assessed value within the STAR bond district from each taxing
19district as certified in subsection (f).
20    (h) The Department shall pay to the regional superintendent
21of schools whose educational service region includes Franklin
22and Williamson Counties, for each year for which money is
23remitted to the Department and paid into the STAR Bonds School
24Improvement and Operations Trust Fund, the money in the Fund as
25provided in this Section. The amount paid to each school
26district shall be allocated proportionately, based on each

 

 

10000SB1947ham003- 44 -LRB100 09675 MLM 28298 a

1qualifying school district's fall enrollment for the
2then-current school year, such that the school district with
3the largest fall enrollment receives the largest proportionate
4share of money paid out of the Fund or by any other method or
5formula that the regional superintendent of schools deems fit,
6equitable, and in the public interest. The regional
7superintendent may allocate moneys to school districts that are
8outside of his or her educational service region or to other
9regional superintendents.
10    The Department shall determine the distributions under
11this Section using its best judgment and information. The
12Department shall be held harmless for the distributions made
13under this Section and all distributions shall be final.
14    (i) In any year that an assessment appeal is filed, the
15extension of taxes on any assessment so appealed shall not be
16delayed. In the case of an assessment that is altered, any
17taxes extended upon the unauthorized assessment or part thereof
18shall be abated, or, if already paid, shall be refunded with
19interest as provided in Section 23-20 of the Property Tax Code.
20In the case of an assessment appeal, the county collector shall
21notify the Department that an assessment appeal has been filed
22and the amount of the tax that would have been deposited in the
23STAR Bonds School Improvement and Operations Trust Fund. The
24county collector shall hold that amount in a separate fund
25until the appeal process is final. After the appeal process is
26finalized, the county collector shall transmit to the

 

 

10000SB1947ham003- 45 -LRB100 09675 MLM 28298 a

1Department the amount of tax that remains, if any, after all
2required refunds are made. The Department shall pay any amount
3deposited into the Trust Fund under this Section in the same
4proportion as determined for payments for that taxable year
5under subsection (h).
6    (j) In any year that ad valorem taxes are allocated to the
7STAR Bonds School Improvement and Operations Trust Fund, that
8allocation shall not reduce or otherwise impact the school aid
9provided to any school district under the general State school
10aid formula provided for in Section 18-8.05 of the School Code
11or the evidence-based funding formula provided for in Section
1218-8.15 of the School Code.
13(Source: P.A. 96-939, eff. 6-24-10.)
 
14    Section 25. The County Economic Development Project Area
15Property Tax Allocation Act is amended by changing Section 7 as
16follows:
 
17    (55 ILCS 85/7)  (from Ch. 34, par. 7007)
18    Sec. 7. Creation of special tax allocation fund. If a
19county has adopted property tax allocation financing by
20ordinance for an economic development project area, the
21Department has approved and certified the economic development
22project area, and the county clerk has thereafter certified the
23"total initial equalized value" of the taxable real property
24within such economic development project area in the manner

 

 

10000SB1947ham003- 46 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 47 -LRB100 09675 MLM 28298 a

1    collected shall be paid to the county treasurer, who shall
2    deposit those taxes into a special fund called the special
3    tax allocation fund of the county for the purpose of paying
4    economic development project costs and obligations
5    incurred in the payment thereof.
6    The county, by an ordinance adopting property tax
7allocation financing, may pledge the funds in and to be
8deposited in the special tax allocation fund for the payment of
9obligations issued under this Act and for the payment of
10economic development project costs. No part of the current
11equalized assessed valuation of each property in the economic
12development project area attributable to any increase above the
13total initial equalized assessed value of such properties shall
14be used in calculating the general State school aid formula,
15provided for in Section 18-8 of the School Code, until such
16time as all economic development projects costs have been paid
17as provided for in this Section.
18    Whenever a county issues bonds for the purpose of financing
19economic development project costs, the county may provide by
20ordinance for the appointment of a trustee, which may be any
21trust company within the State, and for the establishment of
22the funds or accounts to be maintained by such trustee as the
23county shall deem necessary to provide for the security and
24payment of the bonds. If the county provides for the
25appointment of a trustee, the trustee shall be considered the
26assignee of any payments assigned by the county pursuant to the

 

 

10000SB1947ham003- 48 -LRB100 09675 MLM 28298 a

1ordinance and this Section. Any amounts paid to the trustee as
2assignee shall be deposited in the funds or accounts
3established pursuant to the trust agreement, and shall be held
4by the trustee in trust for the benefit of the holders of the
5bonds, and the holders shall have a lien on and a security
6interest in those bonds or accounts so long as the bonds remain
7outstanding and unpaid. Upon retirement of the bonds, the
8trustee shall pay over any excess amounts held to the county
9for deposit in the special tax allocation fund.
10    When the economic development project costs, including
11without limitation all county obligations financing economic
12development project costs incurred under this Act, have been
13paid, all surplus funds then remaining in the special tax
14allocation funds shall be distributed by being paid by the
15county treasurer to the county collector, who shall immediately
16thereafter pay those funds to the taxing districts having
17taxable property in the economic development project area in
18the same manner and proportion as the most recent distribution
19by the county collector to those taxing districts of real
20property taxes from real property in the economic development
21project area.
22    Upon the payment of all economic development project costs,
23retirement of obligations and the distribution of any excess
24monies pursuant to this Section and not later than 23 years
25from the date of adoption of the ordinance adopting property
26tax allocation financing, the county shall adopt an ordinance

 

 

10000SB1947ham003- 49 -LRB100 09675 MLM 28298 a

1dissolving the special tax allocation fund for the economic
2development project area and terminating the designation of the
3economic development project area as an economic development
4project area; however, in relation to one or more contiguous
5parcels not exceeding a total area of 120 acres within which an
6electric generating facility is intended to be constructed, and
7with respect to which the owner of that proposed electric
8generating facility has entered into a redevelopment agreement
9with Grundy County on or before July 25, 2017, the ordinance of
10the county required in this paragraph shall not dissolve the
11special tax allocation fund for the existing economic
12development project area and shall only terminate the
13designation of the economic development project area as to
14those portions of the economic development project area
15excluding the area covered by the redevelopment agreement
16between the owner of the proposed electric generating facility
17and Grundy County; the county shall adopt an ordinance
18dissolving the special tax allocation fund for the economic
19development project area and terminating the designation of the
20economic development project area as an economic development
21project area with regard to the electric generating facility
22property not later than 35 years from the date of adoption of
23the ordinance adopting property tax allocation financing.
24Thereafter the rates of the taxing districts shall be extended
25and taxes levied, collected and distributed in the manner
26applicable in the absence of the adoption of property tax

 

 

10000SB1947ham003- 50 -LRB100 09675 MLM 28298 a

1allocation financing.
2    Nothing in this Section shall be construed as relieving
3property in economic development project areas from being
4assessed as provided in the Property Tax Code or as relieving
5owners of that property from paying a uniform rate of taxes, as
6required by Section 4 of Article IX of the Illinois
7Constitution of 1970.
8(Source: P.A. 98-463, eff. 8-16-13; 99-513, eff. 6-30-16.)
 
9    Section 30. The County Economic Development Project Area
10Tax Increment Allocation Act of 1991 is amended by changing
11Section 50 as follows:
 
12    (55 ILCS 90/50)  (from Ch. 34, par. 8050)
13    Sec. 50. Special tax allocation fund.
14    (a) If a county clerk has certified the "total initial
15equalized assessed value" of the taxable real property within
16an economic development project area in the manner provided in
17Section 45, each year after the date of the certification by
18the county clerk of the "total initial equalized assessed
19value", until economic development project costs and all county
20obligations financing economic development project costs have
21been paid, the ad valorem taxes, if any, arising from the
22levies upon the taxable real property in the economic
23development project area by taxing districts and tax rates
24determined in the manner provided in subsection (b) of Section

 

 

10000SB1947ham003- 51 -LRB100 09675 MLM 28298 a

145 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 that is
4    attributable to the lower of the current equalized assessed
5    value or the initial equalized assessed value of each
6    taxable lot, block, tract, or parcel of real property
7    existing at the time tax increment financing was adopted
8    shall be allocated to (and when collected shall be paid by
9    the county collector to) the respective affected taxing
10    districts in the manner required by law in the absence of
11    the adoption of tax increment allocation financing.
12        (2) That portion, if any, of the taxes that 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    area, over and above the initial equalized assessed value
17    of each property existing at the time tax increment
18    financing was adopted, shall be allocated to (and when
19    collected shall be paid to) the county treasurer, who shall
20    deposit the taxes into a special fund (called the special
21    tax allocation fund of the county) for the purpose of
22    paying economic development project costs and obligations
23    incurred in the payment of those costs.
24    (b) The county, by an ordinance adopting tax increment
25allocation financing, may pledge the monies in and to be
26deposited into the special tax allocation fund for the payment

 

 

10000SB1947ham003- 52 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 53 -LRB100 09675 MLM 28298 a

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 of that property from paying a uniform rate of taxes as
10required by Section 4 of Article IX of the Illinois
11Constitution.
12(Source: P.A. 98-463, eff. 8-16-13.)
 
13    Section 35. The Illinois Municipal Code is amended by
14changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as
15follows:
 
16    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
17    Sec. 11-74.4-3. Definitions. The following terms, wherever
18used or referred to in this Division 74.4 shall have the
19following respective meanings, unless in any case a different
20meaning clearly appears from the context.
21    (a) For any redevelopment project area that has been
22designated pursuant to this Section by an ordinance adopted
23prior to November 1, 1999 (the effective date of Public Act
2491-478), "blighted area" shall have the meaning set forth in

 

 

10000SB1947ham003- 54 -LRB100 09675 MLM 28298 a

1this Section prior to that date.
2    On and after November 1, 1999, "blighted area" means any
3improved or vacant area within the boundaries of a
4redevelopment project area located within the territorial
5limits of the municipality where:
6        (1) If improved, industrial, commercial, and
7    residential buildings or improvements are detrimental to
8    the public safety, health, or welfare because of a
9    combination of 5 or more of the following factors, each of
10    which is (i) present, with that presence documented, to a
11    meaningful extent so that a municipality may reasonably
12    find that the factor is clearly present within the intent
13    of the Act and (ii) reasonably distributed throughout the
14    improved part of the redevelopment project area:
15            (A) Dilapidation. An advanced state of disrepair
16        or neglect of necessary repairs to the primary
17        structural components of buildings or improvements in
18        such a combination that a documented building
19        condition analysis determines that major repair is
20        required or the defects are so serious and so extensive
21        that the buildings must be removed.
22            (B) Obsolescence. The condition or process of
23        falling into disuse. Structures have become ill-suited
24        for the original use.
25            (C) Deterioration. With respect to buildings,
26        defects including, but not limited to, major defects in

 

 

10000SB1947ham003- 55 -LRB100 09675 MLM 28298 a

1        the secondary building components such as doors,
2        windows, porches, gutters and downspouts, and fascia.
3        With respect to surface improvements, that the
4        condition of roadways, alleys, curbs, gutters,
5        sidewalks, off-street parking, and surface storage
6        areas evidence deterioration, including, but not
7        limited to, surface cracking, crumbling, potholes,
8        depressions, loose paving material, and weeds
9        protruding through paved surfaces.
10            (D) Presence of structures below minimum code
11        standards. All structures that do not meet the
12        standards of zoning, subdivision, building, fire, and
13        other governmental codes applicable to property, but
14        not including housing and property maintenance codes.
15            (E) Illegal use of individual structures. The use
16        of structures in violation of applicable federal,
17        State, or local laws, exclusive of those applicable to
18        the presence of structures below minimum code
19        standards.
20            (F) Excessive vacancies. The presence of buildings
21        that are unoccupied or under-utilized and that
22        represent an adverse influence on the area because of
23        the frequency, extent, or duration of the vacancies.
24            (G) Lack of ventilation, light, or sanitary
25        facilities. The absence of adequate ventilation for
26        light or air circulation in spaces or rooms without

 

 

10000SB1947ham003- 56 -LRB100 09675 MLM 28298 a

1        windows, or that require the removal of dust, odor,
2        gas, smoke, or other noxious airborne materials.
3        Inadequate natural light and ventilation means the
4        absence of skylights or windows for interior spaces or
5        rooms and improper window sizes and amounts by room
6        area to window area ratios. Inadequate sanitary
7        facilities refers to the absence or inadequacy of
8        garbage storage and enclosure, bathroom facilities,
9        hot water and kitchens, and structural inadequacies
10        preventing ingress and egress to and from all rooms and
11        units within a building.
12            (H) Inadequate utilities. Underground and overhead
13        utilities such as storm sewers and storm drainage,
14        sanitary sewers, water lines, and gas, telephone, and
15        electrical services that are shown to be inadequate.
16        Inadequate utilities are those that are: (i) of
17        insufficient capacity to serve the uses in the
18        redevelopment project area, (ii) deteriorated,
19        antiquated, obsolete, or in disrepair, or (iii)
20        lacking within the redevelopment project area.
21            (I) Excessive land coverage and overcrowding of
22        structures and community facilities. The
23        over-intensive use of property and the crowding of
24        buildings and accessory facilities onto a site.
25        Examples of problem conditions warranting the
26        designation of an area as one exhibiting excessive land

 

 

10000SB1947ham003- 57 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 58 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 59 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 60 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 61 -LRB100 09675 MLM 28298 a

1        agency for 3 of the last 5 calendar years prior to the
2        year in which the redevelopment project area is
3        designated.
4        (3) If vacant, the sound growth of the redevelopment
5    project area is impaired by one of the following factors
6    that (i) is present, with that presence documented, to a
7    meaningful extent so that a municipality may reasonably
8    find that the factor is clearly present within the intent
9    of the Act and (ii) is reasonably distributed throughout
10    the vacant part of the redevelopment project area to which
11    it pertains:
12            (A) The area consists of one or more unused
13        quarries, mines, or strip mine ponds.
14            (B) The area consists of unused rail yards, rail
15        tracks, or railroad rights-of-way.
16            (C) The area, prior to its designation, is subject
17        to (i) chronic flooding that adversely impacts on real
18        property in the area as certified by a registered
19        professional engineer or appropriate regulatory agency
20        or (ii) surface water that discharges from all or a
21        part of the area and contributes to flooding within the
22        same watershed, but only if the redevelopment project
23        provides for facilities or improvements to contribute
24        to the alleviation of all or part of the flooding.
25            (D) The area consists of an unused or illegal
26        disposal site containing earth, stone, building

 

 

10000SB1947ham003- 62 -LRB100 09675 MLM 28298 a

1        debris, or similar materials that were removed from
2        construction, demolition, excavation, or dredge sites.
3            (E) Prior to November 1, 1999, the area is not less
4        than 50 nor more than 100 acres and 75% of which is
5        vacant (notwithstanding that the area has been used for
6        commercial agricultural purposes within 5 years prior
7        to the designation of the redevelopment project area),
8        and the area meets at least one of the factors itemized
9        in paragraph (1) of this subsection, the area has been
10        designated as a town or village center by ordinance or
11        comprehensive plan adopted prior to January 1, 1982,
12        and the area has not been developed for that designated
13        purpose.
14            (F) The area qualified as a blighted improved area
15        immediately prior to becoming vacant, unless there has
16        been substantial private investment in the immediately
17        surrounding area.
18    (b) For any redevelopment project area that has been
19designated pursuant to this Section by an ordinance adopted
20prior to November 1, 1999 (the effective date of Public Act
2191-478), "conservation area" shall have the meaning set forth
22in this Section prior to that date.
23    On and after November 1, 1999, "conservation area" means
24any improved area within the boundaries of a redevelopment
25project area located within the territorial limits of the
26municipality in which 50% or more of the structures in the area

 

 

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1have an age of 35 years or more. Such an area is not yet a
2blighted area but because of a combination of 3 or more of the
3following factors is detrimental to the public safety, health,
4morals or welfare and such an area may become a blighted area:
5        (1) Dilapidation. An advanced state of disrepair or
6    neglect of necessary repairs to the primary structural
7    components of buildings or improvements in such a
8    combination that a documented building condition analysis
9    determines that major repair is required or the defects are
10    so serious and so extensive that the buildings must be
11    removed.
12        (2) Obsolescence. The condition or process of falling
13    into disuse. Structures have become ill-suited for the
14    original use.
15        (3) Deterioration. With respect to buildings, defects
16    including, but not limited to, major defects in the
17    secondary building components such as doors, windows,
18    porches, gutters and downspouts, and fascia. With respect
19    to surface improvements, that the condition of roadways,
20    alleys, curbs, gutters, sidewalks, off-street parking, and
21    surface storage areas evidence deterioration, including,
22    but not limited to, surface cracking, crumbling, potholes,
23    depressions, loose paving material, and weeds protruding
24    through paved surfaces.
25        (4) Presence of structures below minimum code
26    standards. All structures that do not meet the standards of

 

 

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1    zoning, subdivision, building, fire, and other
2    governmental codes applicable to property, but not
3    including housing and property maintenance codes.
4        (5) Illegal use of individual structures. The use of
5    structures in violation of applicable federal, State, or
6    local laws, exclusive of those applicable to the presence
7    of structures below minimum code standards.
8        (6) Excessive vacancies. The presence of buildings
9    that are unoccupied or under-utilized and that represent an
10    adverse influence on the area because of the frequency,
11    extent, or duration of the vacancies.
12        (7) Lack of ventilation, light, or sanitary
13    facilities. The absence of adequate ventilation for light
14    or air circulation in spaces or rooms without windows, or
15    that require the removal of dust, odor, gas, smoke, or
16    other noxious airborne materials. Inadequate natural light
17    and ventilation means the absence or inadequacy of
18    skylights or windows for interior spaces or rooms and
19    improper window sizes and amounts by room area to window
20    area ratios. Inadequate sanitary facilities refers to the
21    absence or inadequacy of garbage storage and enclosure,
22    bathroom facilities, hot water and kitchens, and
23    structural inadequacies preventing ingress and egress to
24    and from all rooms and units within a building.
25        (8) Inadequate utilities. Underground and overhead
26    utilities such as storm sewers and storm drainage, sanitary

 

 

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

 

 

10000SB1947ham003- 66 -LRB100 09675 MLM 28298 a

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

 

 

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

 

 

10000SB1947ham003- 68 -LRB100 09675 MLM 28298 a

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

 

 

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1Service Occupation Tax Act by retailers and servicemen on
2transactions at places located in a State Sales Tax Boundary
3during the calendar year 1985.
4    (g-1) "Revised Initial Sales Tax Amounts" means the amount
5of taxes paid under the Retailers' Occupation Tax Act, Use Tax
6Act, Service Use Tax Act, the Service Occupation Tax Act, the
7Municipal Retailers' Occupation Tax Act, and the Municipal
8Service Occupation Tax Act by retailers and servicemen on
9transactions at places located within the State Sales Tax
10Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
11    (h) "Municipal Sales Tax Increment" means an amount equal
12to the increase in the aggregate amount of taxes paid to a
13municipality from the Local Government Tax Fund arising from
14sales by retailers and servicemen within the redevelopment
15project area or State Sales Tax Boundary, as the case may be,
16for as long as the redevelopment project area or State Sales
17Tax Boundary, as the case may be, exist over and above the
18aggregate amount of taxes as certified by the Illinois
19Department of Revenue and paid under the Municipal Retailers'
20Occupation Tax Act and the Municipal Service Occupation Tax Act
21by retailers and servicemen, on transactions at places of
22business located in the redevelopment project area or State
23Sales Tax Boundary, as the case may be, during the base year
24which shall be the calendar year immediately prior to the year
25in which the municipality adopted tax increment allocation
26financing. For purposes of computing the aggregate amount of

 

 

10000SB1947ham003- 70 -LRB100 09675 MLM 28298 a

1such taxes for base years occurring prior to 1985, the
2Department of Revenue shall determine the Initial Sales Tax
3Amounts for such taxes and deduct therefrom an amount equal to
44% of the aggregate amount of taxes per year for each year the
5base year is prior to 1985, but not to exceed a total deduction
6of 12%. The amount so determined shall be known as the
7"Adjusted Initial Sales Tax Amounts". For purposes of
8determining the Municipal Sales Tax Increment, the Department
9of Revenue shall for each period subtract from the amount paid
10to the municipality from the Local Government Tax Fund arising
11from sales by retailers and servicemen on transactions located
12in the redevelopment project area or the State Sales Tax
13Boundary, as the case may be, the certified Initial Sales Tax
14Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
15Initial Sales Tax Amounts for the Municipal Retailers'
16Occupation Tax Act and the Municipal Service Occupation Tax
17Act. For the State Fiscal Year 1989, this calculation shall be
18made by utilizing the calendar year 1987 to determine the tax
19amounts received. For the State Fiscal Year 1990, this
20calculation shall be made by utilizing the period from January
211, 1988, until September 30, 1988, to determine the tax amounts
22received from retailers and servicemen pursuant to the
23Municipal Retailers' Occupation Tax and the Municipal Service
24Occupation Tax Act, which shall have deducted therefrom
25nine-twelfths of the certified Initial Sales Tax Amounts, the
26Adjusted Initial Sales Tax Amounts or the Revised Initial Sales

 

 

10000SB1947ham003- 71 -LRB100 09675 MLM 28298 a

1Tax Amounts as appropriate. For the State Fiscal Year 1991,
2this calculation shall be made by utilizing the period from
3October 1, 1988, to June 30, 1989, to determine the tax amounts
4received from retailers and servicemen pursuant to the
5Municipal Retailers' Occupation Tax and the Municipal Service
6Occupation Tax Act which shall have deducted therefrom
7nine-twelfths of the certified Initial Sales Tax Amounts,
8Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
9Tax Amounts as appropriate. For every State Fiscal Year
10thereafter, the applicable period shall be the 12 months
11beginning July 1 and ending June 30 to determine the tax
12amounts received which shall have deducted therefrom the
13certified Initial Sales Tax Amounts, the Adjusted Initial Sales
14Tax Amounts or the Revised Initial Sales Tax Amounts, as the
15case may be.
16    (i) "Net State Sales Tax Increment" means the sum of the
17following: (a) 80% of the first $100,000 of State Sales Tax
18Increment annually generated within a State Sales Tax Boundary;
19(b) 60% of the amount in excess of $100,000 but not exceeding
20$500,000 of State Sales Tax Increment annually generated within
21a State Sales Tax Boundary; and (c) 40% of all amounts in
22excess of $500,000 of State Sales Tax Increment annually
23generated within a State Sales Tax Boundary. If, however, a
24municipality established a tax increment financing district in
25a county with a population in excess of 3,000,000 before
26January 1, 1986, and the municipality entered into a contract

 

 

10000SB1947ham003- 72 -LRB100 09675 MLM 28298 a

1or issued bonds after January 1, 1986, but before December 31,
21986, to finance redevelopment project costs within a State
3Sales Tax Boundary, then the Net State Sales Tax Increment
4means, for the fiscal years beginning July 1, 1990, and July 1,
51991, 100% of the State Sales Tax Increment annually generated
6within a State Sales Tax Boundary; and notwithstanding any
7other provision of this Act, for those fiscal years the
8Department of Revenue shall distribute to those municipalities
9100% of their Net State Sales Tax Increment before any
10distribution to any other municipality and regardless of
11whether or not those other municipalities will receive 100% of
12their Net State Sales Tax Increment. For Fiscal Year 1999, and
13every year thereafter until the year 2007, for any municipality
14that has not entered into a contract or has not issued bonds
15prior to June 1, 1988 to finance redevelopment project costs
16within a State Sales Tax Boundary, the Net State Sales Tax
17Increment shall be calculated as follows: By multiplying the
18Net State Sales Tax Increment by 90% in the State Fiscal Year
191999; 80% in the State Fiscal Year 2000; 70% in the State
20Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
21State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
22in the State Fiscal Year 2005; 20% in the State Fiscal Year
232006; and 10% in the State Fiscal Year 2007. No payment shall
24be made for State Fiscal Year 2008 and thereafter.
25    Municipalities that issued bonds in connection with a
26redevelopment project in a redevelopment project area within

 

 

10000SB1947ham003- 73 -LRB100 09675 MLM 28298 a

1the State Sales Tax Boundary prior to July 29, 1991, or that
2entered into contracts in connection with a redevelopment
3project in a redevelopment project area before June 1, 1988,
4shall continue to receive their proportional share of the
5Illinois Tax Increment Fund distribution until the date on
6which the redevelopment project is completed or terminated. If,
7however, a municipality that issued bonds in connection with a
8redevelopment project in a redevelopment project area within
9the State Sales Tax Boundary prior to July 29, 1991 retires the
10bonds prior to June 30, 2007 or a municipality that entered
11into contracts in connection with a redevelopment project in a
12redevelopment project area before June 1, 1988 completes the
13contracts prior to June 30, 2007, then so long as the
14redevelopment project is not completed or is not terminated,
15the Net State Sales Tax Increment shall be calculated,
16beginning on the date on which the bonds are retired or the
17contracts are completed, as follows: By multiplying the Net
18State Sales Tax Increment by 60% in the State Fiscal Year 2002;
1950% in the State Fiscal Year 2003; 40% in the State Fiscal Year
202004; 30% in the State Fiscal Year 2005; 20% in the State
21Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
22payment shall be made for State Fiscal Year 2008 and
23thereafter. Refunding of any bonds issued prior to July 29,
241991, shall not alter the Net State Sales Tax Increment.
25    (j) "State Utility Tax Increment Amount" means an amount
26equal to the aggregate increase in State electric and gas tax

 

 

10000SB1947ham003- 74 -LRB100 09675 MLM 28298 a

1charges imposed on owners and tenants, other than residential
2customers, of properties located within the redevelopment
3project area under Section 9-222 of the Public Utilities Act,
4over and above the aggregate of such charges as certified by
5the Department of Revenue and paid by owners and tenants, other
6than residential customers, of properties within the
7redevelopment project area during the base year, which shall be
8the calendar year immediately prior to the year of the adoption
9of the ordinance authorizing tax increment allocation
10financing.
11    (k) "Net State Utility Tax Increment" means the sum of the
12following: (a) 80% of the first $100,000 of State Utility Tax
13Increment annually generated by a redevelopment project area;
14(b) 60% of the amount in excess of $100,000 but not exceeding
15$500,000 of the State Utility Tax Increment annually generated
16by a redevelopment project area; and (c) 40% of all amounts in
17excess of $500,000 of State Utility Tax Increment annually
18generated by a redevelopment project area. For the State Fiscal
19Year 1999, and every year thereafter until the year 2007, for
20any municipality that has not entered into a contract or has
21not issued bonds prior to June 1, 1988 to finance redevelopment
22project costs within a redevelopment project area, the Net
23State Utility Tax Increment shall be calculated as follows: By
24multiplying the Net State Utility Tax Increment by 90% in the
25State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
26in the State Fiscal Year 2001; 60% in the State Fiscal Year

 

 

10000SB1947ham003- 75 -LRB100 09675 MLM 28298 a

12002; 50% in the State Fiscal Year 2003; 40% in the State
2Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
3State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
4No payment shall be made for the State Fiscal Year 2008 and
5thereafter.
6    Municipalities that issue bonds in connection with the
7redevelopment project during the period from June 1, 1988 until
83 years after the effective date of this Amendatory Act of 1988
9shall receive the Net State Utility Tax Increment, subject to
10appropriation, for 15 State Fiscal Years after the issuance of
11such bonds. For the 16th through the 20th State Fiscal Years
12after issuance of the bonds, the Net State Utility Tax
13Increment shall be calculated as follows: By multiplying the
14Net State Utility Tax Increment by 90% in year 16; 80% in year
1517; 70% in year 18; 60% in year 19; and 50% in year 20.
16Refunding of any bonds issued prior to June 1, 1988, shall not
17alter the revised Net State Utility Tax Increment payments set
18forth above.
19    (l) "Obligations" mean bonds, loans, debentures, notes,
20special certificates or other evidence of indebtedness issued
21by the municipality to carry out a redevelopment project or to
22refund outstanding obligations.
23    (m) "Payment in lieu of taxes" means those estimated tax
24revenues from real property in a redevelopment project area
25derived from real property that has been acquired by a
26municipality which according to the redevelopment project or

 

 

10000SB1947ham003- 76 -LRB100 09675 MLM 28298 a

1plan is to be used for a private use which taxing districts
2would have received had a municipality not acquired the real
3property and adopted tax increment allocation financing and
4which would result from levies made after the time of the
5adoption of tax increment allocation financing to the time the
6current equalized value of real property in the redevelopment
7project area exceeds the total initial equalized value of real
8property in said area.
9    (n) "Redevelopment plan" means the comprehensive program
10of the municipality for development or redevelopment intended
11by the payment of redevelopment project costs to reduce or
12eliminate those conditions the existence of which qualified the
13redevelopment project area as a "blighted area" or
14"conservation area" or combination thereof or "industrial park
15conservation area," and thereby to enhance the tax bases of the
16taxing districts which extend into the redevelopment project
17area, provided that, with respect to redevelopment project
18areas described in subsections (p-1) and (p-2), "redevelopment
19plan" means the comprehensive program of the affected
20municipality for the development of qualifying transit
21facilities. On and after November 1, 1999 (the effective date
22of Public Act 91-478), no redevelopment plan may be approved or
23amended that includes the development of vacant land (i) with a
24golf course and related clubhouse and other facilities or (ii)
25designated by federal, State, county, or municipal government
26as public land for outdoor recreational activities or for

 

 

10000SB1947ham003- 77 -LRB100 09675 MLM 28298 a

1nature preserves and used for that purpose within 5 years prior
2to the adoption of the redevelopment plan. For the purpose of
3this subsection, "recreational activities" is limited to mean
4camping and hunting. Each redevelopment plan shall set forth in
5writing the program to be undertaken to accomplish the
6objectives and shall include but not be limited to:
7        (A) an itemized list of estimated redevelopment
8    project costs;
9        (B) evidence indicating that the redevelopment project
10    area on the whole has not been subject to growth and
11    development through investment by private enterprise,
12    provided that such evidence shall not be required for any
13    redevelopment project area located within a transit
14    facility improvement area established pursuant to Section
15    11-74.4-3.3;
16        (C) an assessment of any financial impact of the
17    redevelopment project area on or any increased demand for
18    services from any taxing district affected by the plan and
19    any program to address such financial impact or increased
20    demand;
21        (D) the sources of funds to pay costs;
22        (E) the nature and term of the obligations to be
23    issued;
24        (F) the most recent equalized assessed valuation of the
25    redevelopment project area;
26        (G) an estimate as to the equalized assessed valuation

 

 

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1    after redevelopment and the general land uses to apply in
2    the redevelopment project area;
3        (H) a commitment to fair employment practices and an
4    affirmative action plan;
5        (I) if it concerns an industrial park conservation
6    area, the plan shall also include a general description of
7    any proposed developer, user and tenant of any property, a
8    description of the type, structure and general character of
9    the facilities to be developed, a description of the type,
10    class and number of new employees to be employed in the
11    operation of the facilities to be developed; and
12        (J) if property is to be annexed to the municipality,
13    the plan shall include the terms of the annexation
14    agreement.
15    The provisions of items (B) and (C) of this subsection (n)
16shall not apply to a municipality that before March 14, 1994
17(the effective date of Public Act 88-537) had fixed, either by
18its corporate authorities or by a commission designated under
19subsection (k) of Section 11-74.4-4, a time and place for a
20public hearing as required by subsection (a) of Section
2111-74.4-5. No redevelopment plan shall be adopted unless a
22municipality complies with all of the following requirements:
23        (1) The municipality finds that the redevelopment
24    project area on the whole has not been subject to growth
25    and development through investment by private enterprise
26    and would not reasonably be anticipated to be developed

 

 

10000SB1947ham003- 79 -LRB100 09675 MLM 28298 a

1    without the adoption of the redevelopment plan, provided,
2    however, that such a finding shall not be required with
3    respect to any redevelopment project area located within a
4    transit facility improvement area established pursuant to
5    Section 11-74.4-3.3.
6        (2) The municipality finds that the redevelopment plan
7    and project conform to the comprehensive plan for the
8    development of the municipality as a whole, or, for
9    municipalities with a population of 100,000 or more,
10    regardless of when the redevelopment plan and project was
11    adopted, the redevelopment plan and project either: (i)
12    conforms to the strategic economic development or
13    redevelopment plan issued by the designated planning
14    authority of the municipality, or (ii) includes land uses
15    that have been approved by the planning commission of the
16    municipality.
17        (3) The redevelopment plan establishes the estimated
18    dates of completion of the redevelopment project and
19    retirement of obligations issued to finance redevelopment
20    project costs. Those dates may not be later than the dates
21    set forth under Section 11-74.4-3.5.
22        A municipality may by municipal ordinance amend an
23    existing redevelopment plan to conform to this paragraph
24    (3) as amended by Public Act 91-478, which municipal
25    ordinance may be adopted without further hearing or notice
26    and without complying with the procedures provided in this

 

 

10000SB1947ham003- 80 -LRB100 09675 MLM 28298 a

1    Act pertaining to an amendment to or the initial approval
2    of a redevelopment plan and project and designation of a
3    redevelopment project area.
4        (3.5) The municipality finds, in the case of an
5    industrial park conservation area, also that the
6    municipality is a labor surplus municipality and that the
7    implementation of the redevelopment plan will reduce
8    unemployment, create new jobs and by the provision of new
9    facilities enhance the tax base of the taxing districts
10    that extend into the redevelopment project area.
11        (4) If any incremental revenues are being utilized
12    under Section 8(a)(1) or 8(a)(2) of this Act in
13    redevelopment project areas approved by ordinance after
14    January 1, 1986, the municipality finds: (a) that the
15    redevelopment project area would not reasonably be
16    developed without the use of such incremental revenues, and
17    (b) that such incremental revenues will be exclusively
18    utilized for the development of the redevelopment project
19    area.
20        (5) If: (a) the redevelopment plan will not result in
21    displacement of residents from 10 or more inhabited
22    residential units, and the municipality certifies in the
23    plan that such displacement will not result from the plan;
24    or (b) the redevelopment plan is for a redevelopment
25    project area located within a transit facility improvement
26    area established pursuant to Section 11-74.4-3.3, and the

 

 

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1    applicable project is subject to the process for evaluation
2    of environmental effects under the National Environmental
3    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a
4    housing impact study need not be performed. If, however,
5    the redevelopment plan would result in the displacement of
6    residents from 10 or more inhabited residential units, or
7    if the redevelopment project area contains 75 or more
8    inhabited residential units and no certification is made,
9    then the municipality shall prepare, as part of the
10    separate feasibility report required by subsection (a) of
11    Section 11-74.4-5, a housing impact study.
12        Part I of the housing impact study shall include (i)
13    data as to whether the residential units are single family
14    or multi-family units, (ii) the number and type of rooms
15    within the units, if that information is available, (iii)
16    whether the units are inhabited or uninhabited, as
17    determined not less than 45 days before the date that the
18    ordinance or resolution required by subsection (a) of
19    Section 11-74.4-5 is passed, and (iv) data as to the racial
20    and ethnic composition of the residents in the inhabited
21    residential units. The data requirement as to the racial
22    and ethnic composition of the residents in the inhabited
23    residential units shall be deemed to be fully satisfied by
24    data from the most recent federal census.
25        Part II of the housing impact study shall identify the
26    inhabited residential units in the proposed redevelopment

 

 

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

 

 

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1    that Act, including the eligibility criteria. Affordable
2    housing may be either existing or newly constructed
3    housing. For purposes of this paragraph (7), "low-income
4    households", "very low-income households", and "affordable
5    housing" have the meanings set forth in the Illinois
6    Affordable Housing Act. The municipality shall make a good
7    faith effort to ensure that this affordable housing is
8    located in or near the redevelopment project area within
9    the municipality.
10        (8) On and after November 1, 1999, if, after the
11    adoption of the redevelopment plan for the redevelopment
12    project area, any municipality desires to amend its
13    redevelopment plan to remove more inhabited residential
14    units than specified in its original redevelopment plan,
15    that change shall be made in accordance with the procedures
16    in subsection (c) of Section 11-74.4-5.
17        (9) For redevelopment project areas designated prior
18    to November 1, 1999, the redevelopment plan may be amended
19    without further joint review board meeting or hearing,
20    provided that the municipality shall give notice of any
21    such changes by mail to each affected taxing district and
22    registrant on the interested party registry, to authorize
23    the municipality to expend tax increment revenues for
24    redevelopment project costs defined by paragraphs (5) and
25    (7.5), subparagraphs (E) and (F) of paragraph (11), and
26    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so

 

 

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1    long as the changes do not increase the total estimated
2    redevelopment project costs set out in the redevelopment
3    plan by more than 5% after adjustment for inflation from
4    the date the plan was adopted.
5    (o) "Redevelopment project" means any public and private
6development project in furtherance of the objectives of a
7redevelopment plan. On and after November 1, 1999 (the
8effective date of Public Act 91-478), no redevelopment plan may
9be approved or amended that includes the development of vacant
10land (i) with a golf course and related clubhouse and other
11facilities or (ii) designated by federal, State, county, or
12municipal government as public land for outdoor recreational
13activities or for nature preserves and used for that purpose
14within 5 years prior to the adoption of the redevelopment plan.
15For the purpose of this subsection, "recreational activities"
16is limited to mean camping and hunting.
17    (p) "Redevelopment project area" means an area designated
18by the municipality, which is not less in the aggregate than 1
191/2 acres and in respect to which the municipality has made a
20finding that there exist conditions which cause the area to be
21classified as an industrial park conservation area or a
22blighted area or a conservation area, or a combination of both
23blighted areas and conservation areas.
24    (p-1) Notwithstanding any provision of this Act to the
25contrary, on and after August 25, 2009 (the effective date of
26Public Act 96-680), a redevelopment project area may include

 

 

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1areas within a one-half mile radius of an existing or proposed
2Regional Transportation Authority Suburban Transit Access
3Route (STAR Line) station without a finding that the area is
4classified as an industrial park conservation area, a blighted
5area, a conservation area, or a combination thereof, but only
6if the municipality receives unanimous consent from the joint
7review board created to review the proposed redevelopment
8project area.
9    (p-2) Notwithstanding any provision of this Act to the
10contrary, on and after the effective date of this amendatory
11Act of the 99th General Assembly, a redevelopment project area
12may include areas within a transit facility improvement area
13that has been established pursuant to Section 11-74.4-3.3
14without a finding that the area is classified as an industrial
15park conservation area, a blighted area, a conservation area,
16or any combination thereof.
17    (q) "Redevelopment project costs", except for
18redevelopment project areas created pursuant to subsection
19subsections (p-1) or (p-2), means and includes the sum total of
20all reasonable or necessary costs incurred or estimated to be
21incurred, and any such costs incidental to a redevelopment plan
22and a redevelopment project. Such costs include, without
23limitation, the following:
24        (1) Costs of studies, surveys, development of plans,
25    and specifications, implementation and administration of
26    the redevelopment plan including but not limited to staff

 

 

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

 

 

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

 

 

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

 

 

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1    pursuant to Section 11-74.4-3.3;
2        (5) Costs of job training and retraining projects,
3    including the cost of "welfare to work" programs
4    implemented by businesses located within the redevelopment
5    project area;
6        (6) Financing costs, including but not limited to all
7    necessary and incidental expenses related to the issuance
8    of obligations and which may include payment of interest on
9    any obligations issued hereunder including interest
10    accruing during the estimated period of construction of any
11    redevelopment project for which such obligations are
12    issued and for not exceeding 36 months thereafter and
13    including reasonable reserves related thereto;
14        (7) To the extent the municipality by written agreement
15    accepts and approves the same, all or a portion of a taxing
16    district's capital costs resulting from the redevelopment
17    project necessarily incurred or to be incurred within a
18    taxing district in furtherance of the objectives of the
19    redevelopment plan and project; .
20        (7.5) For redevelopment project areas designated (or
21    redevelopment project areas amended to add or increase the
22    number of tax-increment-financing assisted housing units)
23    on or after November 1, 1999, an elementary, secondary, or
24    unit school district's increased costs attributable to
25    assisted housing units located within the redevelopment
26    project area for which the developer or redeveloper

 

 

10000SB1947ham003- 90 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 91 -LRB100 09675 MLM 28298 a

1        Section 18-8.15 of the School Code attributable to
2        these added new students subject to the following
3        annual limitations:
4                (i) for unit school districts with a district
5            average 1995-96 Per Capita Tuition Charge of less
6            than $5,900, no more than 25% of the total amount
7            of property tax increment revenue produced by
8            those housing units that have received tax
9            increment finance assistance under this Act;
10                (ii) for elementary school districts with a
11            district average 1995-96 Per Capita Tuition Charge
12            of less than $5,900, no more than 17% of the total
13            amount of property tax increment revenue produced
14            by those housing units that have received tax
15            increment finance assistance under this Act; and
16                (iii) for secondary school districts with a
17            district average 1995-96 Per Capita Tuition Charge
18            of less than $5,900, no more than 8% of the total
19            amount of property tax increment revenue produced
20            by those housing units that have received tax
21            increment finance assistance under this Act.
22            (B) For alternate method districts, flat grant
23        districts, and foundation districts with a district
24        average 1995-96 Per Capita Tuition Charge equal to or
25        more than $5,900, excluding any school district with a
26        population in excess of 1,000,000, by multiplying the

 

 

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

 

 

10000SB1947ham003- 93 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 94 -LRB100 09675 MLM 28298 a

1        with reasonable evidence to support its claim for
2        reimbursement before the municipality shall be
3        required to approve or make the payment to the school
4        district. If the school district fails to provide the
5        information during this period in any year, it shall
6        forfeit any claim to reimbursement for that year.
7        School districts may adopt a resolution waiving the
8        right to all or a portion of the reimbursement
9        otherwise required by this paragraph (7.5). By
10        acceptance of this reimbursement the school district
11        waives the right to directly or indirectly set aside,
12        modify, or contest in any manner the establishment of
13        the redevelopment project area or projects;
14        (7.7) For redevelopment project areas designated (or
15    redevelopment project areas amended to add or increase the
16    number of tax-increment-financing assisted housing units)
17    on or after January 1, 2005 (the effective date of Public
18    Act 93-961), a public library district's increased costs
19    attributable to assisted housing units located within the
20    redevelopment project area for which the developer or
21    redeveloper receives financial assistance through an
22    agreement with the municipality or because the
23    municipality incurs the cost of necessary infrastructure
24    improvements within the boundaries of the assisted housing
25    sites necessary for the completion of that housing as
26    authorized by this Act shall be paid to the library

 

 

10000SB1947ham003- 95 -LRB100 09675 MLM 28298 a

1    district by the municipality from the Special Tax
2    Allocation Fund when the tax increment revenue is received
3    as a result of the assisted housing units. This paragraph
4    (7.7) applies only if (i) the library district is located
5    in a county that is subject to the Property Tax Extension
6    Limitation Law or (ii) the library district is not located
7    in a county that is subject to the Property Tax Extension
8    Limitation Law but the district is prohibited by any other
9    law from increasing its tax levy rate without a prior voter
10    referendum.
11        The amount paid to a library district under this
12    paragraph (7.7) shall be calculated by multiplying (i) the
13    net increase in the number of persons eligible to obtain a
14    library card in that district who reside in housing units
15    within the redevelopment project area that have received
16    financial assistance through an agreement with the
17    municipality or because the municipality incurs the cost of
18    necessary infrastructure improvements within the
19    boundaries of the housing sites necessary for the
20    completion of that housing as authorized by this Act since
21    the designation of the redevelopment project area by (ii)
22    the per-patron cost of providing library services so long
23    as it does not exceed $120. The per-patron cost shall be
24    the Total Operating Expenditures Per Capita for the library
25    in the previous fiscal year. The municipality may deduct
26    from the amount that it must pay to a library district

 

 

10000SB1947ham003- 96 -LRB100 09675 MLM 28298 a

1    under this paragraph any amount that it has voluntarily
2    paid to the library district from the tax increment
3    revenue. The amount paid to a library district under this
4    paragraph (7.7) shall be no more than 2% of the amount
5    produced by the assisted housing units and deposited into
6    the Special Tax Allocation Fund.
7        A library district is not eligible for any payment
8    under this paragraph (7.7) unless the library district has
9    experienced an increase in the number of patrons from the
10    municipality that created the tax-increment-financing
11    district since the designation of the redevelopment
12    project area.
13        Any library district seeking payment under this
14    paragraph (7.7) shall, after July 1 and before September 30
15    of each year, provide the municipality with convincing
16    evidence to support its claim for reimbursement before the
17    municipality shall be required to approve or make the
18    payment to the library district. If the library district
19    fails to provide the information during this period in any
20    year, it shall forfeit any claim to reimbursement for that
21    year. Library districts may adopt a resolution waiving the
22    right to all or a portion of the reimbursement otherwise
23    required by this paragraph (7.7). By acceptance of such
24    reimbursement, the library district shall forfeit any
25    right to directly or indirectly set aside, modify, or
26    contest in any manner whatsoever the establishment of the

 

 

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1    redevelopment project area or projects;
2        (8) Relocation costs to the extent that a municipality
3    determines that relocation costs shall be paid or is
4    required to make payment of relocation costs by federal or
5    State law or in order to satisfy subparagraph (7) of
6    subsection (n);
7        (9) Payment in lieu of taxes;
8        (10) Costs of job training, retraining, advanced
9    vocational education or career education, including but
10    not limited to courses in occupational, semi-technical or
11    technical fields leading directly to employment, incurred
12    by one or more taxing districts, provided that such costs
13    (i) are related to the establishment and maintenance of
14    additional job training, advanced vocational education or
15    career education programs for persons employed or to be
16    employed by employers located in a redevelopment project
17    area; and (ii) when incurred by a taxing district or taxing
18    districts other than the municipality, are set forth in a
19    written agreement by or among the municipality and the
20    taxing district or taxing districts, which agreement
21    describes the program to be undertaken, including but not
22    limited to the number of employees to be trained, a
23    description of the training and services to be provided,
24    the number and type of positions available or to be
25    available, itemized costs of the program and sources of
26    funds to pay for the same, and the term of the agreement.

 

 

10000SB1947ham003- 98 -LRB100 09675 MLM 28298 a

1    Such costs include, specifically, the payment by community
2    college districts of costs pursuant to Sections 3-37, 3-38,
3    3-40 and 3-40.1 of the Public Community College Act and by
4    school districts of costs pursuant to Sections 10-22.20a
5    and 10-23.3a of the The School Code;
6        (11) Interest cost incurred by a redeveloper related to
7    the construction, renovation or rehabilitation of a
8    redevelopment project provided that:
9            (A) such costs are to be paid directly from the
10        special tax allocation fund established pursuant to
11        this Act;
12            (B) such payments in any one year may not exceed
13        30% of the annual interest costs incurred by the
14        redeveloper with regard to the redevelopment project
15        during that year;
16            (C) if there are not sufficient funds available in
17        the special tax allocation fund to make the payment
18        pursuant to this paragraph (11) then the amounts so due
19        shall accrue and be payable when sufficient funds are
20        available in the special tax allocation fund;
21            (D) the total of such interest payments paid
22        pursuant to this Act may not exceed 30% of the total
23        (i) cost paid or incurred by the redeveloper for the
24        redevelopment project plus (ii) redevelopment project
25        costs excluding any property assembly costs and any
26        relocation costs incurred by a municipality pursuant

 

 

10000SB1947ham003- 99 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 100 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 101 -LRB100 09675 MLM 28298 a

1        units. For rental units, the guidelines will provide,
2        at a minimum, for the affordability of rent to low and
3        very low-income households. As units become available,
4        they shall be rented to income-eligible tenants. The
5        municipality may modify these guidelines from time to
6        time; the guidelines, however, shall be in effect for
7        as long as tax increment revenue is being used to pay
8        for costs associated with the units or for the
9        retirement of bonds issued to finance the units or for
10        the life of the redevelopment project area, whichever
11        is later; .
12        (11.5) If the redevelopment project area is located
13    within a municipality with a population of more than
14    100,000, the cost of day care services for children of
15    employees from low-income families working for businesses
16    located within the redevelopment project area and all or a
17    portion of the cost of operation of day care centers
18    established by redevelopment project area businesses to
19    serve employees from low-income families working in
20    businesses located in the redevelopment project area. For
21    the purposes of this paragraph, "low-income families"
22    means families whose annual income does not exceed 80% of
23    the municipal, county, or regional median income, adjusted
24    for family size, as the annual income and municipal,
25    county, or regional median income are determined from time
26    to time by the United States Department of Housing and

 

 

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1    Urban Development.
2    (12) Unless explicitly stated herein the cost of
3construction of new privately-owned buildings shall not be an
4eligible redevelopment project cost.
5    (13) After November 1, 1999 (the effective date of Public
6Act 91-478), none of the redevelopment project costs enumerated
7in this subsection shall be eligible redevelopment project
8costs if those costs would provide direct financial support to
9a retail entity initiating operations in the redevelopment
10project area while terminating operations at another Illinois
11location within 10 miles of the redevelopment project area but
12outside the boundaries of the redevelopment project area
13municipality. For purposes of this paragraph, termination
14means a closing of a retail operation that is directly related
15to the opening of the same operation or like retail entity
16owned or operated by more than 50% of the original ownership in
17a redevelopment project area, but it does not mean closing an
18operation for reasons beyond the control of the retail entity,
19as documented by the retail entity, subject to a reasonable
20finding by the municipality that the current location contained
21inadequate space, had become economically obsolete, or was no
22longer a viable location for the retailer or serviceman.
23    (14) No cost shall be a redevelopment project cost in a
24redevelopment project area if used to demolish, remove, or
25substantially modify a historic resource, after August 26, 2008
26(the effective date of Public Act 95-934), unless no prudent

 

 

10000SB1947ham003- 103 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 104 -LRB100 09675 MLM 28298 a

1construction, reconstruction, rehabilitation, remodeling, or
2repair of any existing or proposed transit facility.
3    (r) "State Sales Tax Boundary" means the redevelopment
4project area or the amended redevelopment project area
5boundaries which are determined pursuant to subsection (9) of
6Section 11-74.4-8a of this Act. The Department of Revenue shall
7certify pursuant to subsection (9) of Section 11-74.4-8a the
8appropriate boundaries eligible for the determination of State
9Sales Tax Increment.
10    (s) "State Sales Tax Increment" means an amount equal to
11the increase in the aggregate amount of taxes paid by retailers
12and servicemen, other than retailers and servicemen subject to
13the Public Utilities Act, on transactions at places of business
14located within a State Sales Tax Boundary pursuant to the
15Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
16Tax Act, and the Service Occupation Tax Act, except such
17portion of such increase that is paid into the State and Local
18Sales Tax Reform Fund, the Local Government Distributive Fund,
19the Local Government Tax Fund and the County and Mass Transit
20District Fund, for as long as State participation exists, over
21and above the Initial Sales Tax Amounts, Adjusted Initial Sales
22Tax Amounts or the Revised Initial Sales Tax Amounts for such
23taxes as certified by the Department of Revenue and paid under
24those Acts by retailers and servicemen on transactions at
25places of business located within the State Sales Tax Boundary
26during the base year which shall be the calendar year

 

 

10000SB1947ham003- 105 -LRB100 09675 MLM 28298 a

1immediately prior to the year in which the municipality adopted
2tax increment allocation financing, less 3.0% of such amounts
3generated under the Retailers' Occupation Tax Act, Use Tax Act
4and Service Use Tax Act and the Service Occupation Tax Act,
5which sum shall be appropriated to the Department of Revenue to
6cover its costs of administering and enforcing this Section.
7For purposes of computing the aggregate amount of such taxes
8for base years occurring prior to 1985, the Department of
9Revenue shall compute the Initial Sales Tax Amount for such
10taxes and deduct therefrom an amount equal to 4% of the
11aggregate amount of taxes per year for each year the base year
12is prior to 1985, but not to exceed a total deduction of 12%.
13The amount so determined shall be known as the "Adjusted
14Initial Sales Tax Amount". For purposes of determining the
15State Sales Tax Increment the Department of Revenue shall for
16each period subtract from the tax amounts received from
17retailers and servicemen on transactions located in the State
18Sales Tax Boundary, the certified Initial Sales Tax Amounts,
19Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
20Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
21the Service Use Tax Act and the Service Occupation Tax Act. For
22the State Fiscal Year 1989 this calculation shall be made by
23utilizing the calendar year 1987 to determine the tax amounts
24received. For the State Fiscal Year 1990, this calculation
25shall be made by utilizing the period from January 1, 1988,
26until September 30, 1988, to determine the tax amounts received

 

 

10000SB1947ham003- 106 -LRB100 09675 MLM 28298 a

1from retailers and servicemen, which shall have deducted
2therefrom nine-twelfths of the certified Initial Sales Tax
3Amounts, Adjusted Initial Sales Tax Amounts or the Revised
4Initial Sales Tax Amounts as appropriate. For the State Fiscal
5Year 1991, this calculation shall be made by utilizing the
6period from October 1, 1988, until June 30, 1989, to determine
7the tax amounts received from retailers and servicemen, which
8shall have deducted therefrom nine-twelfths of the certified
9Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
10Amounts or the Revised Initial Sales Tax Amounts as
11appropriate. For every State Fiscal Year thereafter, the
12applicable period shall be the 12 months beginning July 1 and
13ending on June 30, to determine the tax amounts received which
14shall have deducted therefrom the certified Initial Sales Tax
15Amounts, Adjusted Initial Sales Tax Amounts or the Revised
16Initial Sales Tax Amounts. Municipalities intending to receive
17a distribution of State Sales Tax Increment must report a list
18of retailers to the Department of Revenue by October 31, 1988
19and by July 31, of each year thereafter.
20    (t) "Taxing districts" means counties, townships, cities
21and incorporated towns and villages, school, road, park,
22sanitary, mosquito abatement, forest preserve, public health,
23fire protection, river conservancy, tuberculosis sanitarium
24and any other municipal corporations or districts with the
25power to levy taxes.
26    (u) "Taxing districts' capital costs" means those costs of

 

 

10000SB1947ham003- 107 -LRB100 09675 MLM 28298 a

1taxing districts for capital improvements that are found by the
2municipal corporate authorities to be necessary and directly
3result from the redevelopment project.
4    (v) As used in subsection (a) of Section 11-74.4-3 of this
5Act, "vacant land" means any parcel or combination of parcels
6of real property without industrial, commercial, and
7residential buildings which has not been used for commercial
8agricultural purposes within 5 years prior to the designation
9of the redevelopment project area, unless the parcel is
10included in an industrial park conservation area or the parcel
11has been subdivided; provided that if the parcel was part of a
12larger tract that has been divided into 3 or more smaller
13tracts that were accepted for recording during the period from
141950 to 1990, then the parcel shall be deemed to have been
15subdivided, and all proceedings and actions of the municipality
16taken in that connection with respect to any previously
17approved or designated redevelopment project area or amended
18redevelopment project area are hereby validated and hereby
19declared to be legally sufficient for all purposes of this Act.
20For purposes of this Section and only for land subject to the
21subdivision requirements of the Plat Act, land is subdivided
22when the original plat of the proposed Redevelopment Project
23Area or relevant portion thereof has been properly certified,
24acknowledged, approved, and recorded or filed in accordance
25with the Plat Act and a preliminary plat, if any, for any
26subsequent phases of the proposed Redevelopment Project Area or

 

 

10000SB1947ham003- 108 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 109 -LRB100 09675 MLM 28298 a

1Illinois Enterprise Zone Act unless that municipality,
2pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
3amends the enterprise zone designating ordinance to limit the
4eligibility for tax abatements as provided in Section 5.4.1 of
5the Illinois Enterprise Zone Act. A municipality, at the time a
6redevelopment project area is designated, may adopt tax
7increment allocation financing by passing an ordinance
8providing that the ad valorem taxes, if any, arising from the
9levies upon taxable real property in such redevelopment project
10area by taxing districts and tax rates determined in the manner
11provided in paragraph (c) of Section 11-74.4-9 each year after
12the effective date of the ordinance until redevelopment project
13costs and all municipal obligations financing redevelopment
14project costs incurred under this Division have been paid shall
15be divided as follows, provided, however, that with respect to
16any redevelopment project area located within a transit
17facility improvement area established pursuant to Section
1811-74.4-3.3 in a municipality with a population of 1,000,000 or
19more, ad valorem taxes, if any, arising from the levies upon
20taxable real property in such redevelopment project area shall
21be allocated as specifically provided in this Section:
22        (a) That portion of taxes levied upon each taxable lot,
23    block, tract or parcel of real property which is
24    attributable to the lower of the current equalized assessed
25    value or the initial equalized assessed value of each such
26    taxable lot, block, tract or parcel of real property in the

 

 

10000SB1947ham003- 110 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 111 -LRB100 09675 MLM 28298 a

1    from each taxable lot, block, tract, or parcel of real
2    property within the redevelopment project area and an
3    amount determined by multiplying the rate at which taxes
4    were last extended against the taxable lot, block, track,
5    or parcel of real property in the manner provided in
6    subsection (c) of Section 11-74.4-9 by the initial
7    equalized assessed value of the property divided by the
8    number of installments in which real estate taxes are
9    billed and collected within the county; provided that the
10    payments on or before December 31, 1999 to a municipal
11    treasurer shall be made only if each of the following
12    conditions are met:
13        (1) The total equalized assessed value of the
14        redevelopment project area as last determined was not
15        less than 175% of the total initial equalized assessed
16        value.
17        (2) Not more than 50% of the total equalized assessed
18        value of the redevelopment project area as last
19        determined is attributable to a piece of property
20        assigned a single real estate index number.
21        (3) The municipal clerk has certified to the county
22        clerk that the municipality has issued its obligations
23        to which there has been pledged the incremental
24        property taxes of the redevelopment project area or
25        taxes levied and collected on any or all property in
26        the municipality or the full faith and credit of the

 

 

10000SB1947ham003- 112 -LRB100 09675 MLM 28298 a

1        municipality to pay or secure payment for all or a
2        portion of the redevelopment project costs. The
3        certification shall be filed annually no later than
4        September 1 for the estimated taxes to be distributed
5        in the following year; however, for the year 1992 the
6        certification shall be made at any time on or before
7        March 31, 1992.
8        (4) The municipality has not requested that the total
9        initial equalized assessed value of real property be
10        adjusted as provided in subsection (b) of Section
11        11-74.4-9.
12        The conditions of paragraphs (1) through (4) do not
13    apply after December 31, 1999 to payments to a municipal
14    treasurer made by a county with 3,000,000 or more
15    inhabitants that has adopted an estimated billing
16    procedure for collecting taxes. If a county that has
17    adopted the estimated billing procedure makes an erroneous
18    overpayment of tax revenue to the municipal treasurer, then
19    the county may seek a refund of that overpayment. The
20    county shall send the municipal treasurer a notice of
21    liability for the overpayment on or before the mailing date
22    of the next real estate tax bill within the county. The
23    refund shall be limited to the amount of the overpayment.
24        It is the intent of this Division that after the
25    effective date of this amendatory Act of 1988 a
26    municipality's own ad valorem tax arising from levies on

 

 

10000SB1947ham003- 113 -LRB100 09675 MLM 28298 a

1    taxable real property be included in the determination of
2    incremental revenue in the manner provided in paragraph (c)
3    of Section 11-74.4-9. If the municipality does not extend
4    such a tax, it shall annually deposit in the municipality's
5    Special Tax Increment Fund an amount equal to 10% of the
6    total contributions to the fund from all other taxing
7    districts in that year. The annual 10% deposit required by
8    this paragraph shall be limited to the actual amount of
9    municipally produced incremental tax revenues available to
10    the municipality from taxpayers located in the
11    redevelopment project area in that year if: (a) the plan
12    for the area restricts the use of the property primarily to
13    industrial purposes, (b) the municipality establishing the
14    redevelopment project area is a home-rule community with a
15    1990 population of between 25,000 and 50,000, (c) the
16    municipality is wholly located within a county with a 1990
17    population of over 750,000 and (d) the redevelopment
18    project area was established by the municipality prior to
19    June 1, 1990. This payment shall be in lieu of a
20    contribution of ad valorem taxes on real property. If no
21    such payment is made, any redevelopment project area of the
22    municipality shall be dissolved.
23        If a municipality has adopted tax increment allocation
24    financing by ordinance and the County Clerk thereafter
25    certifies the "total initial equalized assessed value as
26    adjusted" of the taxable real property within such

 

 

10000SB1947ham003- 114 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 115 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 116 -LRB100 09675 MLM 28298 a

1    in the redevelopment project area attributable to any
2    increase above the total initial equalized assessed value,
3    or the total initial equalized assessed value as adjusted,
4    of such properties shall be used in calculating the general
5    State school aid formula, provided for in Section 18-8 of
6    the School Code, until such time as all redevelopment
7    project costs have been paid as provided for in this
8    Section.
9        Whenever a municipality issues bonds for the purpose of
10    financing redevelopment project costs, such municipality
11    may provide by ordinance for the appointment of a trustee,
12    which may be any trust company within the State, and for
13    the establishment of such funds or accounts to be
14    maintained by such trustee as the municipality shall deem
15    necessary to provide for the security and payment of the
16    bonds. If such municipality provides for the appointment of
17    a trustee, such trustee shall be considered the assignee of
18    any payments assigned by the municipality pursuant to such
19    ordinance and this Section. Any amounts paid to such
20    trustee as assignee shall be deposited in the funds or
21    accounts established pursuant to such trust agreement, and
22    shall be held by such trustee in trust for the benefit of
23    the holders of the bonds, and such holders shall have a
24    lien on and a security interest in such funds or accounts
25    so long as the bonds remain outstanding and unpaid. Upon
26    retirement of the bonds, the trustee shall pay over any

 

 

10000SB1947ham003- 117 -LRB100 09675 MLM 28298 a

1    excess amounts held to the municipality for deposit in the
2    special tax allocation fund.
3        When such redevelopment projects costs, including
4    without limitation all municipal obligations financing
5    redevelopment project costs incurred under this Division,
6    have been paid, all surplus funds then remaining in the
7    special tax allocation fund shall be distributed by being
8    paid by the municipal treasurer to the Department of
9    Revenue, the municipality and the county collector; first
10    to the Department of Revenue and the municipality in direct
11    proportion to the tax incremental revenue received from the
12    State and the municipality, but not to exceed the total
13    incremental revenue received from the State or the
14    municipality less any annual surplus distribution of
15    incremental revenue previously made; with any remaining
16    funds to be paid to the County Collector who shall
17    immediately thereafter pay said funds to the taxing
18    districts in the redevelopment project area in the same
19    manner and proportion as the most recent distribution by
20    the county collector to the affected districts of real
21    property taxes from real property in the redevelopment
22    project area.
23        Upon the payment of all redevelopment project costs,
24    the retirement of obligations, the distribution of any
25    excess monies pursuant to this Section, and final closing
26    of the books and records of the redevelopment project area,

 

 

10000SB1947ham003- 118 -LRB100 09675 MLM 28298 a

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

 

 

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

 

 

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1        area, over and above the initial equalized assessed
2        value of each property existing at the time tax
3        increment financing was adopted, minus the total
4        current homestead exemptions pertaining to each piece
5        of property provided by Article 15 of the Property Tax
6        Code in the redevelopment project area, shall be
7        allocated to and when collected shall be paid by the
8        county collector as follows:
9                (A) First, that portion which would be payable
10            to a school district whose boundaries are
11            coterminous with such municipality in the absence
12            of the adoption of tax increment allocation
13            financing, shall be paid to such school district in
14            the manner required by law in the absence of the
15            adoption of tax increment allocation financing;
16            then
17                (B) 80% of the remaining portion shall be paid
18            to the municipal Treasurer, who shall deposit said
19            taxes into a special fund called the special tax
20            allocation fund of the municipality for the
21            purpose of paying redevelopment project costs and
22            obligations incurred in the payment thereof; and
23            then
24                (C) 20% of the remaining portion shall be paid
25            to the respective affected taxing districts, other
26            than the school district described in clause (a)

 

 

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1            above, in the manner required by law in the absence
2            of the adoption of tax increment allocation
3            financing.
4    Nothing in this Section shall be construed as relieving
5property in such redevelopment project areas from being
6assessed as provided in the Property Tax Code or as relieving
7owners of such property from paying a uniform rate of taxes, as
8required by Section 4 of Article IX of the Illinois
9Constitution.
10(Source: P.A. 98-463, eff. 8-16-13; 99-792, eff. 8-12-16.)
 
11    (65 ILCS 5/11-74.6-35)
12    Sec. 11-74.6-35. Ordinance for tax increment allocation
13financing.
14    (a) A municipality, at the time a redevelopment project
15area is designated, may adopt tax increment allocation
16financing by passing an ordinance providing that the ad valorem
17taxes, if any, arising from the levies upon taxable real
18property within the redevelopment project area by taxing
19districts and tax rates determined in the manner provided in
20subsection (b) of Section 11-74.6-40 each year after the
21effective date of the ordinance until redevelopment project
22costs and all municipal obligations financing redevelopment
23project costs incurred under this Act have been paid shall be
24divided as follows:
25        (1) That portion of the taxes levied upon each taxable

 

 

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

 

 

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

 

 

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

 

 

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1    (c) If a municipality has adopted tax increment allocation
2financing for a redevelopment project area by ordinance and the
3county clerk thereafter certifies the total initial equalized
4assessed value or the total updated initial equalized assessed
5value of the taxable real property within such redevelopment
6project area in the manner provided in paragraph (a) or (b) of
7Section 11-74.6-40, each year after the date of the
8certification of the total initial equalized assessed value or
9the total updated initial equalized assessed value until
10redevelopment project costs and all municipal obligations
11financing redevelopment project costs have been paid, the ad
12valorem taxes, if any, arising from the levies upon the taxable
13real property in the redevelopment project area by taxing
14districts and tax rates determined in the manner provided in
15paragraph (b) of Section 11-74.6-40 shall be divided as
16follows:
17        (1) That portion of the taxes levied upon each taxable
18    lot, block, tract or parcel of real property that is
19    attributable to the lower of the current equalized assessed
20    value or the initial equalized assessed value, or the
21    updated initial equalized assessed value of each parcel if
22    the updated initial equalized assessed value of that parcel
23    has been certified in accordance with Section 11-74.6-40,
24    whichever has been most recently certified, of each taxable
25    lot, block, tract, or parcel of real property existing at
26    the time tax increment allocation financing was adopted in

 

 

10000SB1947ham003- 126 -LRB100 09675 MLM 28298 a

1    the redevelopment project area, shall be allocated to and
2    when collected shall be paid by the county collector to the
3    respective affected taxing districts in the manner
4    required by law without regard to the adoption of tax
5    increment allocation financing.
6        (2) That portion, if any, of those taxes that is
7    attributable to the increase in the current equalized
8    assessed value of each taxable lot, block, tract, or parcel
9    of real property in the redevelopment project area, over
10    and above the initial equalized assessed value of each
11    property existing at the time tax increment allocation
12    financing was adopted in the redevelopment project area, or
13    the updated initial equalized assessed value of each parcel
14    if the updated initial equalized assessed value of that
15    parcel has been certified in accordance with Section
16    11-74.6-40, shall be allocated to and when collected shall
17    be paid to the municipal treasurer, who shall deposit those
18    taxes into a special fund called the special tax allocation
19    fund of the municipality for the purpose of paying
20    redevelopment project costs and obligations incurred in
21    the payment thereof.
22    (d) The municipality may pledge in the ordinance the funds
23in and to be deposited in the special tax allocation fund for
24the payment of redevelopment project costs and obligations. No
25part of the current equalized assessed value of each property
26in the redevelopment project area attributable to any increase

 

 

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

 

 

10000SB1947ham003- 128 -LRB100 09675 MLM 28298 a

1limitation all municipal obligations financing redevelopment
2project costs incurred under this Law, have been paid, all
3surplus funds then remaining in the special tax allocation fund
4shall be distributed by being paid by the municipal treasurer
5to the municipality and the county collector; first to the
6municipality in direct proportion to the tax incremental
7revenue received from the municipality, but not to exceed the
8total incremental revenue received from the municipality,
9minus any annual surplus distribution of incremental revenue
10previously made. Any remaining funds shall be paid to the
11county collector who shall immediately distribute that payment
12to the taxing districts in the redevelopment project area in
13the same manner and proportion as the most recent distribution
14by the county collector to the affected districts of real
15property taxes from real property situated in the redevelopment
16project area.
17    Upon the payment of all redevelopment project costs,
18retirement of obligations and the distribution of any excess
19moneys under this Section, the municipality shall adopt an
20ordinance dissolving the special tax allocation fund for the
21redevelopment project area and terminating the designation of
22the redevelopment project area as a redevelopment project area.
23Thereafter the tax levies of taxing districts shall be
24extended, collected and distributed in the same manner
25applicable before the adoption of tax increment allocation
26financing. Municipality shall notify affected taxing districts

 

 

10000SB1947ham003- 129 -LRB100 09675 MLM 28298 a

1prior to November if the redevelopment project area is to be
2terminated by December 31 of that same year.
3    Nothing in this Section shall be construed as relieving
4property in a redevelopment project area from being assessed as
5provided in the Property Tax Code or as relieving owners of
6that property from paying a uniform rate of taxes, as required
7by Section 4 of Article IX of the Illinois Constitution.
8(Source: P.A. 91-474, eff. 11-1-99.)
 
9    Section 40. The Economic Development Project Area Tax
10Increment Allocation Act of 1995 is amended by changing Section
1150 as follows:
 
12    (65 ILCS 110/50)
13    Sec. 50. Special tax allocation fund.
14    (a) If a county clerk has certified the "total initial
15equalized assessed value" of the taxable real property within
16an economic development project area in the manner provided in
17Section 45, each year after the date of the certification by
18the county clerk of the "total initial equalized assessed
19value", until economic development project costs and all
20municipal obligations financing economic development project
21costs have been paid, the ad valorem taxes, if any, arising
22from the levies upon the taxable real property in the economic
23development project area by taxing districts and tax rates
24determined in the manner provided in subsection (b) of Section

 

 

10000SB1947ham003- 130 -LRB100 09675 MLM 28298 a

145 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 that is
4    attributable to the lower of the current equalized assessed
5    value or the initial equalized assessed value of each
6    taxable lot, block, tract, or parcel of real property
7    existing at the time tax increment financing was adopted
8    shall be allocated to (and when collected shall be paid by
9    the county collector to) the respective affected taxing
10    districts in the manner required by law in the absence of
11    the adoption of tax increment allocation financing.
12        (2) That portion, if any, of the taxes that 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    area, over and above the initial equalized assessed value
17    of each property existing at the time tax increment
18    financing was adopted, shall be allocated to (and when
19    collected shall be paid to) the municipal treasurer, who
20    shall deposit the taxes into a special fund (called the
21    special tax allocation fund of the municipality) for the
22    purpose of paying economic development project costs and
23    obligations incurred in the payment of those costs.
24    (b) The municipality, by an ordinance adopting tax
25increment allocation financing, may pledge the monies in and to
26be deposited into the special tax allocation fund for the

 

 

10000SB1947ham003- 131 -LRB100 09675 MLM 28298 a

1payment of obligations issued under this Act and for the
2payment of economic development project costs. No part of the
3current equalized assessed valuation of each property in the
4economic development project area attributable to any increase
5above the total initial equalized assessed value of those
6properties shall be used in calculating the general State
7school aid formula under Section 18-8 of the School Code until
8all economic development projects costs have been paid as
9provided for in this Section.
10    (c) When the economic development projects costs,
11including without limitation all municipal obligations
12financing economic development project costs incurred under
13this Act, have been paid, all surplus monies then remaining in
14the special tax allocation fund shall be distributed by being
15paid by the municipal treasurer to the county collector, who
16shall immediately pay the monies to the taxing districts having
17taxable property in the economic development project area in
18the same manner and proportion as the most recent distribution
19by the county collector to those taxing districts of real
20property taxes from real property in the economic development
21project area.
22    (d) Upon the payment of all economic development project
23costs, retirement of obligations, and distribution of any
24excess monies under this Section and not later than 23 years
25from the date of the adoption of the ordinance establishing the
26economic development project area, the municipality shall

 

 

10000SB1947ham003- 132 -LRB100 09675 MLM 28298 a

1adopt an ordinance dissolving the special tax allocation fund
2for the economic development project area and terminating the
3designation of the economic development project area as an
4economic development project area. Thereafter, the rates of the
5taxing districts shall be extended and taxes shall be levied,
6collected, and distributed in the manner applicable in the
7absence of the adoption of tax increment allocation financing.
8    (e) Nothing in this Section shall be construed as relieving
9property in the economic development project areas from being
10assessed as provided in the Property Tax Code or as relieving
11owners or lessees of that property from paying a uniform rate
12of taxes as required by Section 4 of Article IX of the Illinois
13Constitution.
14(Source: P.A. 98-463, eff. 8-16-13.)
 
15    Section 45. The School Code is amended by changing Sections
161A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1C-2, 1D-1, 1E-20, 1F-20,
171F-62, 1H-20, 1H-70, 2-3.33, 2-3.51.5, 2-3.66, 2-3.66b,
182-3.84, 2-3.109a, 3-14.21, 7-14A, 10-17a, 10-19, 10-22.5a,
1910-22.20, 10-29, 11E-135, 13A-8, 13B-20.20, 13B-45, 13B-50,
2013B-50.10, 13B-50.15, 14-7.02b, 14-13.01, 14C-1, 14C-12, 17-1,
2117-1.2, 17-1.5, 17-2.11, 17-2A, 18-4.3, 18-8.05, 18-8.10,
2218-9, 18-12, 26-16, 27-8.1, 27A-9, 27A-11, 29-5, 34-2.3, 34-18,
2334-18.30, and 34-43.1 and by adding Sections 2-3.170, 17-3.6,
24and 18-8.15 as follows:
 

 

 

10000SB1947ham003- 133 -LRB100 09675 MLM 28298 a

1    (105 ILCS 5/1A-8)  (from Ch. 122, par. 1A-8)
2    Sec. 1A-8. Powers of the Board in Assisting Districts
3Deemed in Financial Difficulties. To promote the financial
4integrity of school districts, the State Board of Education
5shall be provided the necessary powers to promote sound
6financial management and continue operation of the public
7schools.
8    (a) The State Superintendent of Education may require a
9school district, including any district subject to Article 34A
10of this Code, to share financial information relevant to a
11proper investigation of the district's financial condition and
12the delivery of appropriate State financial, technical, and
13consulting services to the district if the district (i) has
14been designated, through the State Board of Education's School
15District Financial Profile System, as on financial warning or
16financial watch status, (ii) has failed to file an annual
17financial report, annual budget, deficit reduction plan, or
18other financial information as required by law, (iii) has been
19identified, through the district's annual audit or other
20financial and management information, as in serious financial
21difficulty in the current or next school year, or (iv) is
22determined to be likely to fail to fully meet any regularly
23scheduled, payroll-period obligations when due or any debt
24service payments when due or both. In addition to financial,
25technical, and consulting services provided by the State Board
26of Education, at the request of a school district, the State

 

 

10000SB1947ham003- 134 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 135 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 136 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 137 -LRB100 09675 MLM 28298 a

1comply with its financial plan.
2    No bonds, notes, teachers orders, tax anticipation
3warrants or other evidences of indebtedness shall be issued or
4sold by a school district or be legally binding upon or
5enforceable against a local board of education of a district
6certified to be in financial difficulty unless and until the
7financial plan required under this Section has been approved by
8the State Board of Education.
9    Any financial profile compiled and distributed by the State
10Board of Education in Fiscal Year 2009 or any fiscal year
11thereafter shall incorporate such adjustments as may be needed
12in the profile scores to reflect the financial effects of the
13inability or refusal of the State of Illinois to make timely
14disbursements of any general State aid, evidence-based
15funding, or mandated categorical aid payments due school
16districts or to fully reimburse school districts for mandated
17categorical programs pursuant to reimbursement formulas
18provided in this School Code.
19(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
2097-429, eff. 8-16-11.)
 
21    (105 ILCS 5/1B-5)  (from Ch. 122, par. 1B-5)
22    Sec. 1B-5. When a petition for emergency financial
23assistance for a school district is allowed by the State Board
24under Section 1B-4, the State Superintendent shall within 10
25days thereafter appoint 3 members to serve at the State

 

 

10000SB1947ham003- 138 -LRB100 09675 MLM 28298 a

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

 

 

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1Meetings Act.
2    Two members of the Panel shall constitute a quorum, and the
3affirmative vote of 2 members shall be necessary for any
4decision or action to be taken by the Panel.
5    The Panel and the State Superintendent shall cooperate with
6each other in the exercise of their respective powers. The
7Panel shall report not later than September 1 annually to the
8State Board and the State Superintendent with respect to its
9activities and the condition of the school district for the
10previous fiscal year.
11    Any Financial Oversight Panel established under this
12Article shall remain in existence for not less than 3 years nor
13more than 10 years from the date the State Board grants the
14petition under Section 1B-4. If after 3 years the school
15district has repaid all of its obligations resulting from
16emergency State financial assistance provided under this
17Article and has improved its financial situation, the board of
18education may, not more frequently than once in any 12 month
19period, petition the State Board to dissolve the Financial
20Oversight Panel, terminate the oversight responsibility, and
21remove the district's certification under Section 1A-8 as a
22district in financial difficulty. In acting on such a petition
23the State Board shall give additional weight to the
24recommendations of the State Superintendent and the Financial
25Oversight Panel.
26(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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1emergency financial assistance grant shall not exceed $1,000
2times the number of such pupils. A district may receive both a
3loan and a grant.
4    The payment of an emergency State financial assistance
5grant or loan shall be subject to appropriation by the General
6Assembly. Payment of the emergency State financial assistance
7loan is subject to the applicable provisions of the Illinois
8Finance Authority Act. Emergency State financial assistance
9allocated and paid to a school district under this Article may
10be applied to any fund or funds from which the local board of
11education of that district is authorized to make expenditures
12by law.
13    Any emergency financial assistance grant proposed by the
14Financial Oversight Panel and approved by the State
15Superintendent may be paid in its entirety during the initial
16year of the Panel's existence or spread in equal or declining
17amounts over a period of years not to exceed the period of the
18Panel's existence. An emergency financial assistance loan
19proposed by the Financial Oversight Panel and approved by the
20Illinois Finance Authority may be paid in its entirety during
21the initial year of the Panel's existence or spread in equal or
22declining amounts over a period of years not to exceed the
23period of the Panel's existence. All loans made by the Illinois
24Finance Authority for a school district shall be required to be
25repaid, with simple interest over the term of the loan at a
26rate equal to 50% of the one-year Constant Maturity Treasury

 

 

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

 

 

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1required. The board of any school district with a tax rate for
2educational purposes for the prior year of less than 120% of
3the maximum rate for educational purposes authorized by Section
417-2 shall provide for a separate tax levy for emergency
5financial assistance repayment purposes. Such tax levy shall
6not be subject to referendum approval. The amount of the levy
7shall be equal to the amount necessary to meet the annual
8repayment obligations of the district as established by the
9Panel, or 20% of the amount levied for educational purposes for
10the prior year, whichever is less. However, no district shall
11be required to levy the tax if the district's operating tax
12rate as determined under Section 18-8, or 18-8.05, or 18-8.15
13exceeds 200% of the district's tax rate for educational
14purposes for the prior year.
15(Source: P.A. 97-429, eff. 8-16-11.)
 
16    (105 ILCS 5/1C-1)
17    Sec. 1C-1. Purpose. The purpose of this Article is to
18permit greater flexibility and efficiency in the distribution
19and use of certain State funds available to local education
20agencies for the improvement of the quality of educational
21services pursuant to locally established priorities.
22    Through fiscal year 2017, this This Article does not apply
23to school districts having a population in excess of 500,000
24inhabitants.
25(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;

 

 

10000SB1947ham003- 150 -LRB100 09675 MLM 28298 a

189-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
 
2    (105 ILCS 5/1C-2)
3    Sec. 1C-2. Block grants.
4    (a) For fiscal year 1999, and each fiscal year thereafter,
5the State Board of Education shall award to school districts
6block grants as described in subsection (c). The State Board of
7Education may adopt rules and regulations necessary to
8implement this Section. In accordance with Section 2-3.32, all
9state block grants are subject to an audit. Therefore, block
10grant receipts and block grant expenditures shall be recorded
11to the appropriate fund code.
12    (b) (Blank).
13    (c) An Early Childhood Education Block Grant shall be
14created by combining the following programs: Preschool
15Education, Parental Training and Prevention Initiative. These
16funds shall be distributed to school districts and other
17entities on a competitive basis, except that the State Board of
18Education shall award to a school district having a population
19exceeding 500,000 inhabitants 37% of the funds in each fiscal
20year. Not less than 14% of the Early Childhood Education Block
21Grant allocation of funds shall be used to fund programs for
22children ages 0-3. Beginning in Fiscal Year 2016, at least 25%
23of any additional Early Childhood Education Block Grant funding
24over and above the previous fiscal year's allocation shall be
25used to fund programs for children ages 0-3. Once the

 

 

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1percentage of Early Childhood Education Block Grant funding
2allocated to programs for children ages 0-3 reaches 20% of the
3overall Early Childhood Education Block Grant allocation for a
4full fiscal year, thereafter in subsequent fiscal years the
5percentage of Early Childhood Education Block Grant funding
6allocated to programs for children ages 0-3 each fiscal year
7shall remain at least 20% of the overall Early Childhood
8Education Block Grant allocation. However, if, in a given
9fiscal year, the amount appropriated for the Early Childhood
10Education Block Grant is insufficient to increase the
11percentage of the grant to fund programs for children ages 0-3
12without reducing the amount of the grant for existing providers
13of preschool education programs, then the percentage of the
14grant to fund programs for children ages 0-3 may be held steady
15instead of increased.
16(Source: P.A. 98-645, eff. 7-1-14; 99-589, eff. 7-21-16.)
 
17    (105 ILCS 5/1D-1)
18    Sec. 1D-1. Block grant funding.
19    (a) For fiscal year 1996 through fiscal year 2017 and each
20fiscal year thereafter, the State Board of Education shall
21award to a school district having a population exceeding
22500,000 inhabitants a general education block grant and an
23educational services block grant, determined as provided in
24this Section, in lieu of distributing to the district separate
25State funding for the programs described in subsections (b) and

 

 

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1(c). The provisions of this Section, however, do not apply to
2any federal funds that the district is entitled to receive. In
3accordance with Section 2-3.32, all block grants are subject to
4an audit. Therefore, block grant receipts and block grant
5expenditures shall be recorded to the appropriate fund code for
6the designated block grant.
7    (b) The general education block grant shall include the
8following programs: REI Initiative, Summer Bridges, Preschool
9At Risk, K-6 Comprehensive Arts, School Improvement Support,
10Urban Education, Scientific Literacy, Substance Abuse
11Prevention, Second Language Planning, Staff Development,
12Outcomes and Assessment, K-6 Reading Improvement, 7-12
13Continued Reading Improvement, Truants' Optional Education,
14Hispanic Programs, Agriculture Education, Parental Education,
15Prevention Initiative, Report Cards, and Criminal Background
16Investigations. Notwithstanding any other provision of law,
17all amounts paid under the general education block grant from
18State appropriations to a school district in a city having a
19population exceeding 500,000 inhabitants shall be appropriated
20and expended by the board of that district for any of the
21programs included in the block grant or any of the board's
22lawful purposes.
23    (c) The educational services block grant shall include the
24following programs: Regular and Vocational Transportation,
25State Lunch and Free Breakfast Program, Special Education
26(Personnel, Transportation, Orphanage, Private Tuition),

 

 

10000SB1947ham003- 153 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 154 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 155 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 156 -LRB100 09675 MLM 28298 a

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

 

 

10000SB1947ham003- 157 -LRB100 09675 MLM 28298 a

1this subsection (h) by a district shall in any way relieve the
2district from or affect any requirements that otherwise would
3apply with respect to the block grant as provided in this
4Section, including any accounting of funds by source, reporting
5expenditures by original source and purpose, reporting
6requirements, or requirements of provision of services.
7(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;
897-813, eff. 7-13-12.)
 
9    (105 ILCS 5/1E-20)
10    (This Section scheduled to be repealed in accordance with
11105 ILCS 5/1E-165)
12    Sec. 1E-20. Members of Authority; meetings.
13    (a) When a petition for a School Finance Authority is
14allowed by the State Board under Section 1E-15 of this Code,
15the State Superintendent shall within 10 days thereafter
16appoint 5 members to serve on a School Finance Authority for
17the district. Of the initial members, 2 shall be appointed to
18serve a term of 2 years and 3 shall be appointed to serve a term
19of 3 years. Thereafter, each member shall serve for a term of 3
20years and until his or her successor has been appointed. The
21State Superintendent shall designate one of the members of the
22Authority to serve as its Chairperson. In the event of vacancy
23or resignation, the State Superintendent shall, within 10 days
24after receiving notice, appoint a successor to serve out that
25member's term. The State Superintendent may remove a member for

 

 

10000SB1947ham003- 158 -LRB100 09675 MLM 28298 a

1incompetence, malfeasance, neglect of duty, or other just
2cause.
3    Members of the Authority shall be selected primarily on the
4basis of their experience and education in financial
5management, with consideration given to persons knowledgeable
6in education finance. Two members of the Authority shall be
7residents of the school district that the Authority serves. A
8member of the Authority may not be a member of the district's
9school board or an employee of the district nor may a member
10have a direct financial interest in the district.
11    Authority members shall serve without compensation, but
12may be reimbursed by the State Board for travel and other
13necessary expenses incurred in the performance of their
14official duties. Unless paid from bonds issued under Section
151E-65 of this Code, the amount reimbursed members for their
16expenses shall be charged to the school district as part of any
17emergency financial assistance and incorporated as a part of
18the terms and conditions for repayment of the assistance or
19shall be deducted from the district's general State aid or
20evidence-based funding as provided in Section 1B-8 of this
21Code.
22    The Authority may elect such officers as it deems
23appropriate.
24    (b) The first meeting of the Authority shall be held at the
25call of the Chairperson. The Authority shall prescribe the
26times and places for its meetings and the manner in which

 

 

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

 

 

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1    Members of the Authority shall be selected primarily on the
2basis of their experience and education in financial
3management, with consideration given to persons knowledgeable
4in education finance. Two members of the Authority shall be
5residents of the school district that the Authority serves. A
6member of the Authority may not be a member of the district's
7school board or an employee of the district nor may a member
8have a direct financial interest in the district.
9    Authority members shall be paid a stipend approved by the
10State Superintendent of not more than $100 per meeting and may
11be reimbursed by the State Board for travel and other necessary
12expenses incurred in the performance of their official duties.
13Unless paid from bonds issued under Section 1F-65 of this Code,
14the amount reimbursed members for their expenses shall be
15charged to the school district as part of any emergency
16financial assistance and incorporated as a part of the terms
17and conditions for repayment of the assistance or shall be
18deducted 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. 94-234, eff. 7-1-06.)
 
7    (105 ILCS 5/1F-62)
8(This Section scheduled to be repealed in accordance with 105
9ILCS 5/1F-165)
10    Sec. 1F-62. School District Emergency Financial Assistance
11Fund; grants and loans.
12    (a) Moneys in the School District Emergency Financial
13Assistance Fund established under Section 1B-8 of this Code may
14be allocated and expended by the State Board as grants to
15provide technical and consulting services to school districts
16to assess their financial condition and by the Illinois Finance
17Authority for emergency financial assistance loans to a School
18Finance Authority that petitions for emergency financial
19assistance. An emergency financial assistance loan to a School
20Finance Authority or borrowing from sources other than the
21State shall not be considered as part of the calculation of a
22district's debt for purposes of the limitation specified in
23Section 19-1 of this Code. From the amount allocated to each
24School Finance Authority, the State Board shall identify a sum
25sufficient to cover all approved costs of the School Finance

 

 

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

 

 

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

 

 

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

 

 

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1(Source: P.A. 94-234, eff. 7-1-06.)
 
2    (105 ILCS 5/1H-20)
3    Sec. 1H-20. Members of Panel; meetings.
4    (a) Upon establishment of a Financial Oversight Panel under
5Section 1H-15 of this Code, the State Superintendent shall
6within 15 working days thereafter appoint 5 members to serve on
7a Financial Oversight Panel for the district. Members appointed
8to the Panel shall serve at the pleasure of the State
9Superintendent. The State Superintendent shall designate one
10of the members of the Panel to serve as its Chairperson. In the
11event of vacancy or resignation, the State Superintendent
12shall, within 10 days after receiving notice, appoint a
13successor to serve out that member's term.
14    (b) Members of the Panel shall be selected primarily on the
15basis of their experience and education in financial
16management, with consideration given to persons knowledgeable
17in education finance. Two members of the Panel shall be
18residents of the school district that the Panel serves. A
19member of the Panel may not be a member of the district's
20school board or an employee of the district nor may a member
21have a direct financial interest in the district.
22    (c) Panel members may be reimbursed by the State Board for
23travel and other necessary expenses incurred in the performance
24of their official duties. The amount reimbursed members for
25their expenses shall be charged to the school district as part

 

 

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1of any emergency financial assistance and incorporated as a
2part of the terms and conditions for repayment of the
3assistance or shall be deducted from the district's general
4State aid or evidence-based funding as provided in Section
51H-65 of this Code.
6    (d) With the exception of the chairperson, who shall be
7designated as provided in subsection (a) of this Section, the
8Panel may elect such officers as it deems appropriate.
9    (e) The first meeting of the Panel shall be held at the
10call of the Chairperson. The Panel shall prescribe the times
11and places for its meetings and the manner in which regular and
12special meetings may be called and shall comply with the Open
13Meetings Act. The Panel shall also comply with the Freedom of
14Information Act.
15    (f) Three members of the Panel shall constitute a quorum. A
16majority of members present is required to pass a measure.
17(Source: P.A. 97-429, eff. 8-16-11.)
 
18    (105 ILCS 5/1H-70)
19    Sec. 1H-70. Tax anticipation warrants, tax anticipation
20notes, revenue anticipation certificates or notes, general
21State aid or evidence-based funding anticipation certificates,
22and lines of credit. With the approval of the State
23Superintendent and provided that the district is unable to
24secure short-term financing after 3 attempts, a Panel shall
25have the same power as a district to do the following:

 

 

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1        (1) issue tax anticipation warrants under the
2    provisions of Section 17-16 of this Code against taxes
3    levied by either the school board or the Panel pursuant to
4    Section 1H-25 of this Code;
5        (2) issue tax anticipation notes under the provisions
6    of the Tax Anticipation Note Act against taxes levied by
7    either the school board or the Panel pursuant to Section
8    1H-25 of this Code;
9        (3) issue revenue anticipation certificates or notes
10    under the provisions of the Revenue Anticipation Act;
11        (4) issue general State aid or evidence-based funding
12    anticipation certificates under the provisions of Section
13    18-18 of this Code; and
14        (5) establish and utilize lines of credit under the
15    provisions of Section 17-17 of this Code.
16    Tax anticipation warrants, tax anticipation notes, revenue
17anticipation certificates or notes, general State aid or
18evidence-based funding anticipation certificates, and lines of
19credit are considered borrowing from sources other than the
20State and are subject to Section 1H-65 of this Code.
21(Source: P.A. 97-429, eff. 8-16-11.)
 
22    (105 ILCS 5/2-3.33)  (from Ch. 122, par. 2-3.33)
23    Sec. 2-3.33. Recomputation of claims. To recompute within
243 years from the final date for filing of a claim any claim for
25general State aid reimbursement to any school district and one

 

 

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1year from the final date for filing of a claim for
2evidence-based funding if the claim has been found to be
3incorrect and to adjust subsequent claims accordingly, and to
4recompute and adjust any such claims within 6 years from the
5final date for filing when there has been an adverse court or
6administrative agency decision on the merits affecting the tax
7revenues of the school district. However, no such adjustment
8shall be made regarding equalized assessed valuation unless the
9district's equalized assessed valuation is changed by greater
10than $250,000 or 2%. Any adjustments for claims recomputed for
11the 2016-2017 school year and prior school years shall be
12applied to the apportionment of evidence-based funding in
13Section 18-8.15 of this Code beginning in the 2017-2018 school
14year and thereafter. However, the recomputation of a claim for
15evidence-based funding for a school district shall not require
16the recomputation of claims for all districts, and the State
17Board of Education shall only make recomputations of
18evidence-based funding for those districts where an adjustment
19is required.
20    Except in the case of an adverse court or administrative
21agency decision, no recomputation of a State aid claim shall be
22made pursuant to this Section as a result of a reduction in the
23assessed valuation of a school district from the assessed
24valuation of the district reported to the State Board of
25Education by the Department of Revenue under Section 18-8.05 or
2618-8.15 of this Code unless the requirements of Section 16-15

 

 

10000SB1947ham003- 169 -LRB100 09675 MLM 28298 a

1of the Property Tax Code and Section 2-3.84 of this Code are
2complied with in all respects.
3    This paragraph applies to all requests for recomputation of
4a general State aid or evidence-based funding claim received
5after June 30, 2003. In recomputing a general State aid or
6evidence-based funding claim that was originally calculated
7using an extension limitation equalized assessed valuation
8under paragraph (3) of subsection (G) of Section 18-8.05 of
9this Code or Section 18-8.15 of this Code, a qualifying
10reduction in equalized assessed valuation shall be deducted
11from the extension limitation equalized assessed valuation
12that was used in calculating the original claim.
13    From the total amount of general State aid or
14evidence-based funding to be provided to districts,
15adjustments as a result of recomputation under this Section
16together with adjustments under Section 2-3.84 must not exceed
17$25 million, in the aggregate for all districts under both
18Sections combined, of the general State aid or evidence-based
19funding appropriation in any fiscal year; if necessary, amounts
20shall be prorated among districts. If it is necessary to
21prorate claims under this paragraph, then that portion of each
22prorated claim that is approved but not paid in the current
23fiscal year may be resubmitted as a valid claim in the
24following fiscal year.
25(Source: P.A. 93-845, eff. 7-30-04.)
 

 

 

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1    (105 ILCS 5/2-3.51.5)
2    Sec. 2-3.51.5. School Safety and Educational Improvement
3Block Grant Program. To improve the level of education and
4safety of students from kindergarten through grade 12 in school
5districts and State-recognized, non-public schools. The State
6Board of Education is authorized to fund a School Safety and
7Educational Improvement Block Grant Program.
8    (1) For school districts, the program shall provide funding
9for school safety, textbooks and software, electronic
10textbooks and the technological equipment necessary to gain
11access to and use electronic textbooks, teacher training and
12curriculum development, school improvements, school report
13cards under Section 10-17a, and criminal history records checks
14under Sections 10-21.9 and 34-18.5. For State-recognized,
15non-public schools, the program shall provide funding for
16secular textbooks and software, criminal history records
17checks, and health and safety mandates to the extent that the
18funds are expended for purely secular purposes. A school
19district or laboratory school as defined in Section 18-8, or
2018-8.05, or 18-8.15 is not required to file an application in
21order to receive the categorical funding to which it is
22entitled under this Section. Funds for the School Safety and
23Educational Improvement Block Grant Program shall be
24distributed to school districts and laboratory schools based on
25the prior year's best 3 months average daily attendance. Funds
26for the School Safety and Educational Improvement Block Grant

 

 

10000SB1947ham003- 171 -LRB100 09675 MLM 28298 a

1Program shall be distributed to State-recognized, non-public
2schools based on the average daily attendance figure for the
3previous school year provided to the State Board of Education.
4The State Board of Education shall develop an application that
5requires State-recognized, non-public schools to submit
6average daily attendance figures. A State-recognized,
7non-public school must submit the application and average daily
8attendance figure prior to receiving funds under this Section.
9The State Board of Education shall promulgate rules and
10regulations necessary for the implementation of this program.
11    (2) Distribution of moneys to school districts and
12State-recognized, non-public schools shall be made in 2
13semi-annual installments, one payment on or before October 30,
14and one payment prior to April 30, of each fiscal year.
15    (3) Grants under the School Safety and Educational
16Improvement Block Grant Program shall be awarded provided there
17is an appropriation for the program, and funding levels for
18each district shall be prorated according to the amount of the
19appropriation.
20    (4) The provisions of this Section are in the public
21interest, are for the public benefit, and serve secular public
22purposes.
23(Source: P.A. 98-972, eff. 8-15-14.)
 
24    (105 ILCS 5/2-3.66)  (from Ch. 122, par. 2-3.66)
25    Sec. 2-3.66. Truants' alternative and optional education

 

 

10000SB1947ham003- 172 -LRB100 09675 MLM 28298 a

1programs. To establish projects to offer modified
2instructional programs or other services designed to prevent
3students from dropping out of school, including programs
4pursuant to Section 2-3.41, and to serve as a part time or full
5time option in lieu of regular school attendance and to award
6grants to local school districts, educational service regions
7or community college districts from appropriated funds to
8assist districts in establishing such projects. The education
9agency may operate its own program or enter into a contract
10with another not-for-profit entity to implement the program.
11The projects shall allow dropouts, up to and including age 21,
12potential dropouts, including truants, uninvolved, unmotivated
13and disaffected students, as defined by State Board of
14Education rules and regulations, to enroll, as an alternative
15to regular school attendance, in an optional education program
16which may be established by school board policy and is in
17conformance with rules adopted by the State Board of Education.
18Truants' Alternative and Optional Education programs funded
19pursuant to this Section shall be planned by a student, the
20student's parents or legal guardians, unless the student is 18
21years or older, and school officials and shall culminate in an
22individualized optional education plan. Such plan shall focus
23on academic or vocational skills, or both, and may include, but
24not be limited to, evening school, summer school, community
25college courses, adult education, preparation courses for high
26school equivalency testing, vocational training, work

 

 

10000SB1947ham003- 173 -LRB100 09675 MLM 28298 a

1experience, programs to enhance self concept and parenting
2courses. School districts which are awarded grants pursuant to
3this Section shall be authorized to provide day care services
4to children of students who are eligible and desire to enroll
5in programs established and funded under this Section, but only
6if and to the extent that such day care is necessary to enable
7those eligible students to attend and participate in the
8programs and courses which are conducted pursuant to this
9Section. School districts and regional offices of education may
10claim general State aid under Section 18-8.05 or evidence-based
11funding under Section 18-8.15 for students enrolled in truants'
12alternative and optional education programs, provided that
13such students are receiving services that are supplemental to a
14program leading to a high school diploma and are otherwise
15eligible to be claimed for general State aid under Section
1618-8.05 or evidence-based funding under Section 18-8.15, as
17applicable.
18(Source: P.A. 98-718, eff. 1-1-15.)
 
19    (105 ILCS 5/2-3.66b)
20    Sec. 2-3.66b. IHOPE Program.
21    (a) There is established the Illinois Hope and Opportunity
22Pathways through Education (IHOPE) Program. The State Board of
23Education shall implement and administer the IHOPE Program. The
24goal of the IHOPE Program is to develop a comprehensive system
25in this State to re-enroll significant numbers of high school

 

 

10000SB1947ham003- 174 -LRB100 09675 MLM 28298 a

1dropouts in programs that will enable them to earn their high
2school diploma.
3    (b) The IHOPE Program shall award grants, subject to
4appropriation for this purpose, to educational service regions
5and a school district organized under Article 34 of this Code
6from appropriated funds to assist in establishing
7instructional programs and other services designed to
8re-enroll high school dropouts. From any funds appropriated for
9the IHOPE Program, the State Board of Education may use up to
105% for administrative costs, including the performance of a
11program evaluation and the hiring of staff to implement and
12administer the program.
13    The IHOPE Program shall provide incentive grant funds for
14regional offices of education and a school district organized
15under Article 34 of this Code to develop partnerships with
16school districts, public community colleges, and community
17groups to build comprehensive plans to re-enroll high school
18dropouts in their regions or districts.
19    Programs funded through the IHOPE Program shall allow high
20school dropouts, up to and including age 21 notwithstanding
21Section 26-2 of this Code, to re-enroll in an educational
22program in conformance with rules adopted by the State Board of
23Education. Programs may include without limitation
24comprehensive year-round programming, evening school, summer
25school, community college courses, adult education, vocational
26training, work experience, programs to enhance self-concept,

 

 

10000SB1947ham003- 175 -LRB100 09675 MLM 28298 a

1and parenting courses. Any student in the IHOPE Program who
2wishes to earn a high school diploma must meet the
3prerequisites to receiving a high school diploma specified in
4Section 27-22 of this Code and any other graduation
5requirements of the student's district of residence. Any
6student who successfully completes the requirements for his or
7her graduation shall receive a diploma identifying the student
8as graduating from his or her district of residence.
9    (c) In order to be eligible for funding under the IHOPE
10Program, an interested regional office of education or a school
11district organized under Article 34 of this Code shall develop
12an IHOPE Plan to be approved by the State Board of Education.
13The State Board of Education shall develop rules for the IHOPE
14Program that shall set forth the requirements for the
15development of the IHOPE Plan. Each Plan shall involve school
16districts, public community colleges, and key community
17programs that work with high school dropouts located in an
18educational service region or the City of Chicago before the
19Plan is sent to the State Board for approval. No funds may be
20distributed to a regional office of education or a school
21district organized under Article 34 of this Code until the
22State Board has approved the Plan.
23    (d) A regional office of education or a school district
24organized under Article 34 of this Code may operate its own
25program funded by the IHOPE Program or enter into a contract
26with other not-for-profit entities, including school

 

 

10000SB1947ham003- 176 -LRB100 09675 MLM 28298 a

1districts, public community colleges, and not-for-profit
2community-based organizations, to operate a program.
3    A regional office of education or a school district
4organized under Article 34 of this Code that receives an IHOPE
5grant from the State Board of Education may provide funds under
6a sub-grant, as specified in the IHOPE Plan, to other
7not-for-profit entities to provide services according to the
8IHOPE Plan that was developed. These other entities may include
9school districts, public community colleges, or not-for-profit
10community-based organizations or a cooperative partnership
11among these entities.
12    (e) In order to distribute funding based upon the need to
13ensure delivery of programs that will have the greatest impact,
14IHOPE Program funding must be distributed based upon the
15proportion of dropouts in the educational service region or
16school district, in the case of a school district organized
17under Article 34 of this Code, to the total number of dropouts
18in this State. This formula shall employ the dropout data
19provided by school districts to the State Board of Education.
20    A regional office of education or a school district
21organized under Article 34 of this Code may claim State aid
22under Section 18-8.05 or 18-8.15 of this Code for students
23enrolled in a program funded by the IHOPE Program, provided
24that the State Board of Education has approved the IHOPE Plan
25and that these students are receiving services that are meeting
26the requirements of Section 27-22 of this Code for receipt of a

 

 

10000SB1947ham003- 177 -LRB100 09675 MLM 28298 a

1high school diploma and are otherwise eligible to be claimed
2for general State aid under Section 18-8.05 of this Code or
3evidence-based funding under Section 18-8.15 of this Code,
4including provisions related to the minimum number of days of
5pupil attendance pursuant to Section 10-19 of this Code and the
6minimum number of daily hours of school work and any exceptions
7thereto as defined by the State Board of Education in rules.
8    (f) IHOPE categories of programming may include the
9following:
10        (1) Full-time programs that are comprehensive,
11    year-round programs.
12        (2) Part-time programs combining work and study
13    scheduled at various times that are flexible to the needs
14    of students.
15        (3) Online programs and courses in which students take
16    courses and complete on-site, supervised tests that
17    measure the student's mastery of a specific course needed
18    for graduation. Students may take courses online and earn
19    credit or students may prepare to take supervised tests for
20    specific courses for credit leading to receipt of a high
21    school diploma.
22        (4) Dual enrollment in which students attend high
23    school classes in combination with community college
24    classes or students attend community college classes while
25    simultaneously earning high school credit and eventually a
26    high school diploma.

 

 

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1    (g) In order to have successful comprehensive programs
2re-enrolling and graduating low-skilled high school dropouts,
3programs funded through the IHOPE Program shall include all of
4the following components:
5        (1) Small programs (70 to 100 students) at a separate
6    school site with a distinct identity. Programs may be
7    larger with specific need and justification, keeping in
8    mind that it is crucial to keep programs small to be
9    effective.
10        (2) Specific performance-based goals and outcomes and
11    measures of enrollment, attendance, skills, credits,
12    graduation, and the transition to college, training, and
13    employment.
14        (3) Strong, experienced leadership and teaching staff
15    who are provided with ongoing professional development.
16        (4) Voluntary enrollment.
17        (5) High standards for student learning, integrating
18    work experience, and education, including during the
19    school year and after school, and summer school programs
20    that link internships, work, and learning.
21        (6) Comprehensive programs providing extensive support
22    services.
23        (7) Small teams of students supported by full-time paid
24    mentors who work to retain and help those students
25    graduate.
26        (8) A comprehensive technology learning center with

 

 

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1    Internet access and broad-based curriculum focusing on
2    academic and career subject areas.
3        (9) Learning opportunities that incorporate action
4    into study.
5    (h) Programs funded through the IHOPE Program must report
6data to the State Board of Education as requested. This
7information shall include, but is not limited to, student
8enrollment figures, attendance information, course completion
9data, graduation information, and post-graduation information,
10as available.
11    (i) Rules must be developed by the State Board of Education
12to set forth the fund distribution process to regional offices
13of education and a school district organized under Article 34
14of this Code, the planning and the conditions upon which an
15IHOPE Plan would be approved by State Board, and other rules to
16develop the IHOPE Program.
17(Source: P.A. 96-106, eff. 7-30-09.)
 
18    (105 ILCS 5/2-3.84)  (from Ch. 122, par. 2-3.84)
19    Sec. 2-3.84. In calculating the amount of State aid to be
20apportioned to the various school districts in this State, the
21State Board of Education shall incorporate and deduct the total
22aggregate adjustments to assessments made by the State Property
23Tax Appeal Board or Cook County Board of Appeals, as reported
24pursuant to Section 16-15 of the Property Tax Code or Section
25129.1 of the Revenue Act of 1939 by the Department of Revenue,

 

 

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1from the equalized assessed valuation that is otherwise to be
2utilized in the initial calculation.
3    From the total amount of general State aid or
4evidence-based funding to be provided to districts,
5adjustments under this Section together with adjustments as a
6result of recomputation under Section 2-3.33 must not exceed
7$25 million, in the aggregate for all districts under both
8Sections combined, of the general State aid or evidence-based
9funding appropriation in any fiscal year; if necessary, amounts
10shall be prorated among districts. If it is necessary to
11prorate claims under this paragraph, then that portion of each
12prorated claim that is approved but not paid in the current
13fiscal year may be resubmitted as a valid claim in the
14following fiscal year.
15(Source: P.A. 93-845, eff. 7-30-04.)
 
16    (105 ILCS 5/2-3.109a)
17    Sec. 2-3.109a. Laboratory schools grant eligibility. A
18laboratory school as defined in Section 18-8 or 18-8.15 may
19apply for and be eligible to receive, subject to the same
20restrictions applicable to school districts, any grant
21administered by the State Board of Education that is available
22for school districts.
23(Source: P.A. 90-566, eff. 1-2-98.)
 
24    (105 ILCS 5/2-3.170 new)

 

 

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1    Sec. 2-3.170. Property tax relief pool grants.
2    (a) As used in this Section,
3    "Property tax multiplier" equals one minus the square of
4the school district's Local Capacity Percentage, as defined in
5Section 18-8.15 of this Code.
6    "State Board" means the State Board of Education.
7    "Unit equivalent tax rate" means the Adjusted Operating Tax
8Rate, as defined in Section 18-8.15 of this Code, multiplied by
9a factor of 1 for unit school district, 13/9 for elementary
10school districts, and 13/4 for high school districts.
11    (b) Subject to appropriation, the State Board shall provide
12grants to eligible school districts that provide tax relief to
13the school district's residents, up to a limit of 1% of the
14school district's equalized assessed value, as provided in this
15Section.
16    (c) By August 1 of each year, the State Board shall publish
17an estimated unit equivalent tax rate above which school
18districts are eligible for relief under this Section. This
19estimated tax rate shall be based on the most recent available
20data provided by school districts pursuant to Section 18-8.15
21of this Code. The State Board shall estimate this property tax
22rate based on the amount appropriated to the grant program and
23the assumption that a set of school districts, based on
24criteria established by the State Board, will apply for grants
25under this Section. The criteria shall be based on reasonable
26assumptions about when school districts will apply for the

 

 

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1grant.
2    (d) School districts seeking grants under this Section
3shall apply to the State Board by October 1 of each year. All
4applications to the State Board for grants shall include the
5amount of the grant requested.
6    (e) By December 1 of each year, based on the most recent
7available data provided by school districts pursuant to Section
818-8.15 of this Code, the State Board shall calculate the unit
9equivalent tax rate, based on the applications received by the
10State Board, above which the appropriations are sufficient to
11provide relief and publish a list of the school districts
12eligible for relief.
13    (f) The State Board shall publish a final list of grant
14recipients and provide payment of the grants by January 15 of
15each year.
16    (g) If payment from the State Board is received by the
17school district on time, the school district shall reduce its
18property tax levy in an amount equal to the grant received
19under this Section.
20    (h) The total grant to a school district under this Section
21shall be calculated based on the total amount of reduction in
22the school district's aggregate extension, up to a limit of 1%
23of a district's equalized assessed value for a unit school
24district, 0.69% for an elementary school district, and 0.31%
25for a high school district, multiplied by the property tax
26multiplier or the amount that the unit equivalent tax rate is

 

 

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1greater than the rate determined by the State Board, whichever
2is less.
3    (i) If the State Board does not expend all appropriations
4allocated pursuant to this Section, then any remaining funds
5shall be allocated pursuant to Section 18-8.15 of this Code.
6    (j) The State Board shall prioritize payments under Section
718-8.15 of this Code over payments under this Section, if
8necessary.
9    (k) Any grants received by a school district shall be
10included in future calculations of that school district's Base
11Funding Minimum under Section 18-8.15 of this Code.
12    (l) In the tax year following receipt of a Property Tax
13Pool Relief Grant, the aggregate levy of any school district
14receiving a grant under this Section, for purposes of the
15Property Tax Extension Limitation Law, shall include the tax
16relief the school district provided in the previous taxable
17year under this Section.
 
18    (105 ILCS 5/3-14.21)  (from Ch. 122, par. 3-14.21)
19    Sec. 3-14.21. Inspection of schools.
20    (a) The regional superintendent shall inspect and survey
21all public schools under his or her supervision and notify the
22board of education, or the trustees of schools in a district
23with trustees, in writing before July 30, whether or not the
24several schools in their district have been kept as required by
25law, using forms provided by the State Board of Education which

 

 

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1are based on the Health/Life Safety Code for Public Schools
2adopted under Section 2-3.12. The regional superintendent
3shall report his or her findings to the State Board of
4Education on forms provided by the State Board of Education.
5    (b) If the regional superintendent determines that a school
6board has failed in a timely manner to correct urgent items
7identified in a previous life-safety report completed under
8Section 2-3.12 or as otherwise previously ordered by the
9regional superintendent, the regional superintendent shall
10order the school board to adopt and submit to the regional
11superintendent a plan for the immediate correction of the
12building violations. This plan shall be adopted following a
13public hearing that is conducted by the school board on the
14violations and the plan and that is preceded by at least 7
15days' prior notice of the hearing published in a newspaper of
16general circulation within the school district. If the regional
17superintendent determines in the next annual inspection that
18the plan has not been completed and that the violations have
19not been corrected, the regional superintendent shall submit a
20report to the State Board of Education with a recommendation
21that the State Board withhold from payments of general State
22aid or evidence-based funding due to the district an amount
23necessary to correct the outstanding violations. The State
24Board, upon notice to the school board and to the regional
25superintendent, shall consider the report at a meeting of the
26State Board, and may order that a sufficient amount of general

 

 

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1State aid or evidence-based funding be withheld from payments
2due to the district to correct the violations. This amount
3shall be paid to the regional superintendent who shall contract
4on behalf of the school board for the correction of the
5outstanding violations.
6    (c) The Office of the State Fire Marshal or a qualified
7fire official, as defined in Section 2-3.12 of this Code, to
8whom the State Fire Marshal has delegated his or her authority
9shall conduct an annual fire safety inspection of each school
10building in this State. The State Fire Marshal or the fire
11official shall coordinate its inspections with the regional
12superintendent. The inspection shall be based on the fire
13safety code authorized in Section 2-3.12 of this Code. Any
14violations shall be reported in writing to the regional
15superintendent and shall reference the specific code sections
16where a discrepancy has been identified within 15 days after
17the inspection has been conducted. The regional superintendent
18shall address those violations that are not corrected in a
19timely manner pursuant to subsection (b) of this Section. The
20inspection must be at no cost to the school district.
21    (d) If a municipality or, in the case of an unincorporated
22area, a county or, if applicable, a fire protection district
23wishes to perform new construction inspections under the
24jurisdiction of a regional superintendent, then the entity must
25register this wish with the regional superintendent. These
26inspections must be based on the building code authorized in

 

 

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1Section 2-3.12 of this Code. The inspections must be at no cost
2to the school district.
3(Source: P.A. 96-734, eff. 8-25-09.)
 
4    (105 ILCS 5/7-14A)  (from Ch. 122, par. 7-14A)
5    Sec. 7-14A. Annexation compensation. There shall be no
6accounting made after a mere change in boundaries when no new
7district is created, except that those districts whose
8enrollment increases by 90% or more as a result of annexing
9territory detached from another district pursuant to this
10Article are eligible for supplementary State aid payments in
11accordance with Section 11E-135 of this Code. Eligible annexing
12districts shall apply to the State Board of Education for
13supplementary State aid payments by submitting enrollment
14figures for the year immediately preceding and the year
15immediately following the effective date of the boundary change
16for both the district gaining territory and the district losing
17territory. Copies of any intergovernmental agreements between
18the district gaining territory and the district losing
19territory detailing any transfer of fund balances and staff
20must also be submitted. In all instances of changes in
21boundaries, the district losing territory shall not count the
22average daily attendance of pupils living in the territory
23during the year preceding the effective date of the boundary
24change in its claim for reimbursement under Section 18-8.05 or
2518-8.15 of this Code for the school year following the

 

 

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1effective date of the change in boundaries and the district
2receiving the territory shall count the average daily
3attendance of pupils living in the territory during the year
4preceding the effective date of the boundary change in its
5claim for reimbursement under Section 18-8.05 or 18-8.15 of
6this Code for the school year following the effective date of
7the change in boundaries. The changes to this Section made by
8this amendatory Act of the 95th General Assembly are intended
9to be retroactive and applicable to any annexation taking
10effect on or after July 1, 2004.
11(Source: P.A. 99-657, eff. 7-28-16.)
 
12    (105 ILCS 5/10-17a)  (from Ch. 122, par. 10-17a)
13    Sec. 10-17a. State, school district, and school report
14cards.
15    (1) By October 31, 2013 and October 31 of each subsequent
16school year, the State Board of Education, through the State
17Superintendent of Education, shall prepare a State report card,
18school district report cards, and school report cards, and
19shall by the most economic means provide to each school
20district in this State, including special charter districts and
21districts subject to the provisions of Article 34, the report
22cards for the school district and each of its schools.
23    (2) In addition to any information required by federal law,
24the State Superintendent shall determine the indicators and
25presentation of the school report card, which must include, at

 

 

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1a minimum, the most current data possessed by the State Board
2of Education related to the following:
3        (A) school characteristics and student demographics,
4    including average class size, average teaching experience,
5    student racial/ethnic breakdown, and the percentage of
6    students classified as low-income; the percentage of
7    students classified as English learners; the percentage of
8    students who have individualized education plans or 504
9    plans that provide for special education services; the
10    percentage of students who annually transferred in or out
11    of the school district; the per-pupil operating
12    expenditure of the school district; and the per-pupil State
13    average operating expenditure for the district type
14    (elementary, high school, or unit);
15        (B) curriculum information, including, where
16    applicable, Advanced Placement, International
17    Baccalaureate or equivalent courses, dual enrollment
18    courses, foreign language classes, school personnel
19    resources (including Career Technical Education teachers),
20    before and after school programs, extracurricular
21    activities, subjects in which elective classes are
22    offered, health and wellness initiatives (including the
23    average number of days of Physical Education per week per
24    student), approved programs of study, awards received,
25    community partnerships, and special programs such as
26    programming for the gifted and talented, students with

 

 

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1    disabilities, and work-study students;
2        (C) student outcomes, including, where applicable, the
3    percentage of students deemed proficient on assessments of
4    State standards, the percentage of students in the eighth
5    grade who pass Algebra, the percentage of students enrolled
6    in post-secondary institutions (including colleges,
7    universities, community colleges, trade/vocational
8    schools, and training programs leading to career
9    certification within 2 semesters of high school
10    graduation), the percentage of students graduating from
11    high school who are college and career ready, and the
12    percentage of graduates enrolled in community colleges,
13    colleges, and universities who are in one or more courses
14    that the community college, college, or university
15    identifies as a developmental course;
16        (D) student progress, including, where applicable, the
17    percentage of students in the ninth grade who have earned 5
18    credits or more without failing more than one core class, a
19    measure of students entering kindergarten ready to learn, a
20    measure of growth, and the percentage of students who enter
21    high school on track for college and career readiness;
22        (E) the school environment, including, where
23    applicable, the percentage of students with less than 10
24    absences in a school year, the percentage of teachers with
25    less than 10 absences in a school year for reasons other
26    than professional development, leaves taken pursuant to

 

 

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1    the federal Family Medical Leave Act of 1993, long-term
2    disability, or parental leaves, the 3-year average of the
3    percentage of teachers returning to the school from the
4    previous year, the number of different principals at the
5    school in the last 6 years, 2 or more indicators from any
6    school climate survey selected or approved by the State and
7    administered pursuant to Section 2-3.153 of this Code, with
8    the same or similar indicators included on school report
9    cards for all surveys selected or approved by the State
10    pursuant to Section 2-3.153 of this Code, and the combined
11    percentage of teachers rated as proficient or excellent in
12    their most recent evaluation; and
13        (F) a school district's and its individual schools'
14    balanced accountability measure, in accordance with
15    Section 2-3.25a of this Code; .
16        (G) a school district's Final Percent of Adequacy, as
17    defined in paragraph (4) of subsection (f) of Section
18    18-8.15 of this Code;
19        (H) a school district's Local Capacity Target, as
20    defined in paragraph (2) of subsection (c) of Section
21    18-8.15 of this Code, displayed as a percentage amount; and
22        (I) a school district's Real Receipts, as defined in
23    paragraph (1) of subsection (d) of Section 18-8.15 of this
24    Code, divided by a school district's Adequacy Target, as
25    defined in paragraph (1) of subsection (b) of Section
26    18-8.15 of this Code, displayed as a percentage amount.

 

 

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1    The school report card shall also provide information that
2allows for comparing the current outcome, progress, and
3environment data to the State average, to the school data from
4the past 5 years, and to the outcomes, progress, and
5environment of similar schools based on the type of school and
6enrollment of low-income students, special education students,
7and English learners.
8    (3) At the discretion of the State Superintendent, the
9school district report card shall include a subset of the
10information identified in paragraphs (A) through (E) of
11subsection (2) of this Section, as well as information relating
12to the operating expense per pupil and other finances of the
13school district, and the State report card shall include a
14subset of the information identified in paragraphs (A) through
15(E) of subsection (2) of this Section.
16    (4) Notwithstanding anything to the contrary in this
17Section, in consultation with key education stakeholders, the
18State Superintendent shall at any time have the discretion to
19amend or update any and all metrics on the school, district, or
20State report card.
21    (5) Annually, no more than 30 calendar days after receipt
22of the school district and school report cards from the State
23Superintendent of Education, each school district, including
24special charter districts and districts subject to the
25provisions of Article 34, shall present such report cards at a
26regular school board meeting subject to applicable notice

 

 

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1requirements, post the report cards on the school district's
2Internet web site, if the district maintains an Internet web
3site, make the report cards available to a newspaper of general
4circulation serving the district, and, upon request, send the
5report cards home to a parent (unless the district does not
6maintain an Internet web site, in which case the report card
7shall be sent home to parents without request). If the district
8posts the report card on its Internet web site, the district
9shall send a written notice home to parents stating (i) that
10the report card is available on the web site, (ii) the address
11of the web site, (iii) that a printed copy of the report card
12will be sent to parents upon request, and (iv) the telephone
13number that parents may call to request a printed copy of the
14report card.
15    (6) Nothing contained in this amendatory Act of the 98th
16General Assembly repeals, supersedes, invalidates, or
17nullifies final decisions in lawsuits pending on the effective
18date of this amendatory Act of the 98th General Assembly in
19Illinois courts involving the interpretation of Public Act
2097-8.
21(Source: P.A. 98-463, eff. 8-16-13; 98-648, eff. 7-1-14; 99-30,
22eff. 7-10-15; 99-193, eff. 7-30-15; 99-642, eff. 7-28-16.)
 
23    (105 ILCS 5/10-19)  (from Ch. 122, par. 10-19)
24    Sec. 10-19. Length of school term - experimental programs.
25Each school board shall annually prepare a calendar for the

 

 

10000SB1947ham003- 193 -LRB100 09675 MLM 28298 a

1school term, specifying the opening and closing dates and
2providing a minimum term of at least 185 days to insure 176
3days of actual pupil attendance, computable under Section
418-8.05 or 18-8.15, except that for the 1980-1981 school year
5only 175 days of actual pupil attendance shall be required
6because of the closing of schools pursuant to Section 24-2 on
7January 29, 1981 upon the appointment by the President of that
8day as a day of thanksgiving for the freedom of the Americans
9who had been held hostage in Iran. Any days allowed by law for
10teachers' institutes but not used as such or used as parental
11institutes as provided in Section 10-22.18d shall increase the
12minimum term by the school days not so used. Except as provided
13in Section 10-19.1, the board may not extend the school term
14beyond such closing date unless that extension of term is
15necessary to provide the minimum number of computable days. In
16case of such necessary extension school employees shall be paid
17for such additional time on the basis of their regular
18contracts. A school board may specify a closing date earlier
19than that set on the annual calendar when the schools of the
20district have provided the minimum number of computable days
21under this Section. Nothing in this Section prevents the board
22from employing superintendents of schools, principals and
23other nonteaching personnel for a period of 12 months, or in
24the case of superintendents for a period in accordance with
25Section 10-23.8, or prevents the board from employing other
26personnel before or after the regular school term with payment

 

 

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1of salary proportionate to that received for comparable work
2during the school term.
3    A school board may make such changes in its calendar for
4the school term as may be required by any changes in the legal
5school holidays prescribed in Section 24-2. A school board may
6make changes in its calendar for the school term as may be
7necessary to reflect the utilization of teachers' institute
8days as parental institute days as provided in Section
910-22.18d.
10    The calendar for the school term and any changes must be
11submitted to and approved by the regional superintendent of
12schools before the calendar or changes may take effect.
13    With the prior approval of the State Board of Education and
14subject to review by the State Board of Education every 3
15years, any school board may, by resolution of its board and in
16agreement with affected exclusive collective bargaining
17agents, establish experimental educational programs, including
18but not limited to programs for e-learning days as authorized
19under Section 10-20.56 of this Code, self-directed learning, or
20outside of formal class periods, which programs when so
21approved shall be considered to comply with the requirements of
22this Section as respects numbers of days of actual pupil
23attendance and with the other requirements of this Act as
24respects courses of instruction.
25(Source: P.A. 98-756, eff. 7-16-14; 99-194, eff. 7-30-15.)
 

 

 

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1    (105 ILCS 5/10-22.5a)  (from Ch. 122, par. 10-22.5a)
2    Sec. 10-22.5a. Attendance by dependents of United States
3military personnel, foreign exchange students, and certain
4nonresident pupils.
5    (a) To enter into written agreements with cultural exchange
6organizations, or with nationally recognized eleemosynary
7institutions that promote excellence in the arts, mathematics,
8or science. The written agreements may provide for tuition free
9attendance at the local district school by foreign exchange
10students, or by nonresident pupils of eleemosynary
11institutions. The local board of education, as part of the
12agreement, may require that the cultural exchange program or
13the eleemosynary institutions provide services to the district
14in exchange for the waiver of nonresident tuition.
15    To enter into written agreements with adjacent school
16districts to provide for tuition free attendance by a student
17of the adjacent district when requested for the student's
18health and safety by the student or parent and both districts
19determine that the student's health or safety will be served by
20such attendance. Districts shall not be required to enter into
21such agreements nor be required to alter existing
22transportation services due to the attendance of such
23non-resident pupils.
24    (a-5) If, at the time of enrollment, a dependent of United
25States military personnel is housed in temporary housing
26located outside of a school district, but will be living within

 

 

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1the district within 60 days after the time of initial
2enrollment, the dependent must be allowed to enroll, subject to
3the requirements of this subsection (a-5), and must not be
4charged tuition. Any United States military personnel
5attempting to enroll a dependent under this subsection (a-5)
6shall provide proof that the dependent will be living within
7the district within 60 days after the time of initial
8enrollment. Proof of residency may include, but is not limited
9to, postmarked mail addressed to the military personnel and
10sent to an address located within the district, a lease
11agreement for occupancy of a residence located within the
12district, or proof of ownership of a residence located within
13the district.
14    (b) Nonresident pupils and foreign exchange students
15attending school on a tuition free basis under such agreements
16and nonresident dependents of United States military personnel
17attending school on a tuition free basis may be counted for the
18purposes of determining the apportionment of State aid provided
19under Section 18-8.05 or 18-8.15 of this Code. No organization
20or institution participating in agreements authorized under
21this Section may exclude any individual for participation in
22its program on account of the person's race, color, sex,
23religion or nationality.
24(Source: P.A. 98-739, eff. 7-16-14.)
 
25    (105 ILCS 5/10-22.20)  (from Ch. 122, par. 10-22.20)

 

 

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1    Sec. 10-22.20. Classes for adults and youths whose
2schooling has been interrupted; conditions for State
3reimbursement; use of child care facilities.
4    (a) To establish special classes for the instruction (1) of
5persons of age 21 years or over and (2) of persons less than
6age 21 and not otherwise in attendance in public school, for
7the purpose of providing adults in the community and youths
8whose schooling has been interrupted with such additional basic
9education, vocational skill training, and other instruction as
10may be necessary to increase their qualifications for
11employment or other means of self-support and their ability to
12meet their responsibilities as citizens, including courses of
13instruction regularly accepted for graduation from elementary
14or high schools and for Americanization and high school
15equivalency testing review classes.
16    The board shall pay the necessary expenses of such classes
17out of school funds of the district, including costs of student
18transportation and such facilities or provision for child-care
19as may be necessary in the judgment of the board to permit
20maximum utilization of the courses by students with children,
21and other special needs of the students directly related to
22such instruction. The expenses thus incurred shall be subject
23to State reimbursement, as provided in this Section. The board
24may make a tuition charge for persons taking instruction who
25are not subject to State reimbursement, such tuition charge not
26to exceed the per capita cost of such classes.

 

 

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1    The cost of such instruction, including the additional
2expenses herein authorized, incurred for recipients of
3financial aid under the Illinois Public Aid Code, or for
4persons for whom education and training aid has been authorized
5under Section 9-8 of that Code, shall be assumed in its
6entirety from funds appropriated by the State to the Illinois
7Community College Board.
8    (b) The Illinois Community College Board shall establish
9the standards for the courses of instruction reimbursed under
10this Section. The Illinois Community College Board shall
11supervise the administration of the programs. The Illinois
12Community College Board shall determine the cost of instruction
13in accordance with standards established by the Illinois
14Community College Board, including therein other incidental
15costs as herein authorized, which shall serve as the basis of
16State reimbursement in accordance with the provisions of this
17Section. In the approval of programs and the determination of
18the cost of instruction, the Illinois Community College Board
19shall provide for the maximum utilization of federal funds for
20such programs. The Illinois Community College Board shall also
21provide for:
22        (1) the development of an index of need for program
23    planning and for area funding allocations, as defined by
24    the Illinois Community College Board;
25        (2) the method for calculating hours of instruction, as
26    defined by the Illinois Community College Board, claimable

 

 

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1    for reimbursement and a method to phase in the calculation
2    and for adjusting the calculations in cases where the
3    services of a program are interrupted due to circumstances
4    beyond the control of the program provider;
5        (3) a plan for the reallocation of funds to increase
6    the amount allocated for grants based upon program
7    performance as set forth in subsection (d) below; and
8        (4) the development of standards for determining
9    grants based upon performance as set forth in subsection
10    (d) below and a plan for the phased-in implementation of
11    those standards.
12    For instruction provided by school districts and community
13college districts beginning July 1, 1996 and thereafter,
14reimbursement provided by the Illinois Community College Board
15for classes authorized by this Section shall be provided from
16funds appropriated for the reimbursement criteria set forth in
17subsection (c) below.
18    (c) Upon the annual approval of the Illinois Community
19College Board, reimbursement shall be first provided for
20transportation, child care services, and other special needs of
21the students directly related to instruction and then from the
22funds remaining an amount equal to the product of the total
23credit hours or units of instruction approved by the Illinois
24Community College Board, multiplied by the following:
25        (1) For adult basic education, the maximum
26    reimbursement per credit hour or per unit of instruction

 

 

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1    shall be equal to (i) through fiscal year 2017, the general
2    state aid per pupil foundation level established in
3    subsection (B) of Section 18-8.05, divided by 60, or (ii)
4    in fiscal year 2018 and thereafter, the prior fiscal year
5    reimbursement level;
6        (2) The maximum reimbursement per credit hour or per
7    unit of instruction in subparagraph (1) above shall be
8    weighted for students enrolled in classes defined as
9    vocational skills and approved by the Illinois Community
10    College Board by 1.25;
11        (3) The maximum reimbursement per credit hour or per
12    unit of instruction in subparagraph (1) above shall be
13    multiplied by .90 for students enrolled in classes defined
14    as adult secondary education programs and approved by the
15    Illinois Community College Board;
16        (4) (Blank); and
17        (5) Funding for program years after 1999-2000 shall be
18    determined by the Illinois Community College Board.
19    (d) Upon its annual approval, the Illinois Community
20College Board shall provide grants to eligible programs for
21supplemental activities to improve or expand services under the
22Adult Education Act. Eligible programs shall be determined
23based upon performance outcomes of students in the programs as
24set by the Illinois Community College Board.
25    (e) Reimbursement under this Section shall not exceed the
26actual costs of the approved program.

 

 

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1    If the amount appropriated to the Illinois Community
2College Board for reimbursement under this Section is less than
3the amount required under this Act, the apportionment shall be
4proportionately reduced.
5    School districts and community college districts may
6assess students up to $3.00 per credit hour, for classes other
7than Adult Basic Education level programs, if needed to meet
8program costs.
9    (f) An education plan shall be established for each adult
10or youth whose schooling has been interrupted and who is
11participating in the instructional programs provided under
12this Section.
13    Each school board and community college shall keep an
14accurate and detailed account of the students assigned to and
15receiving instruction under this Section who are subject to
16State reimbursement and shall submit reports of services
17provided commencing with fiscal year 1997 as required by the
18Illinois Community College Board.
19    For classes authorized under this Section, a credit hour or
20unit of instruction is equal to 15 hours of direct instruction
21for students enrolled in approved adult education programs at
22midterm and making satisfactory progress, in accordance with
23standards established by the Illinois Community College Board.
24    (g) Upon proof submitted to the Illinois Department of
25Human Services of the payment of all claims submitted under
26this Section, that Department shall apply for federal funds

 

 

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1made available therefor and any federal funds so received shall
2be paid into the General Revenue Fund in the State Treasury.
3    School districts or community colleges providing classes
4under this Section shall submit applications to the Illinois
5Community College Board for preapproval in accordance with the
6standards established by the Illinois Community College Board.
7Payments shall be made by the Illinois Community College Board
8based upon approved programs. Interim expenditure reports may
9be required by the Illinois Community College Board. Final
10claims for the school year shall be submitted to the regional
11superintendents for transmittal to the Illinois Community
12College Board. Final adjusted payments shall be made by
13September 30.
14    If a school district or community college district fails to
15provide, or is providing unsatisfactory or insufficient
16classes under this Section, the Illinois Community College
17Board may enter into agreements with public or private
18educational or other agencies other than the public schools for
19the establishment of such classes.
20    (h) If a school district or community college district
21establishes child-care facilities for the children of
22participants in classes established under this Section, it may
23extend the use of these facilities to students who have
24obtained employment and to other persons in the community whose
25children require care and supervision while the parent or other
26person in charge of the children is employed or otherwise

 

 

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1absent from the home during all or part of the day. It may make
2the facilities available before and after as well as during
3regular school hours to school age and preschool age children
4who may benefit thereby, including children who require care
5and supervision pending the return of their parent or other
6person in charge of their care from employment or other
7activity requiring absence from the home.
8    The Illinois Community College Board shall pay to the board
9the cost of care in the facilities for any child who is a
10recipient of financial aid under the Illinois Public Aid Code.
11    The board may charge for care of children for whom it
12cannot make claim under the provisions of this Section. The
13charge shall not exceed per capita cost, and to the extent
14feasible, shall be fixed at a level which will permit
15utilization by employed parents of low or moderate income. It
16may also permit any other State or local governmental agency or
17private agency providing care for children to purchase care.
18    After July 1, 1970 when the provisions of Section 10-20.20
19become operative in the district, children in a child-care
20facility shall be transferred to the kindergarten established
21under that Section for such portion of the day as may be
22required for the kindergarten program, and only the prorated
23costs of care and training provided in the Center for the
24remaining period shall be charged to the Illinois Department of
25Human Services or other persons or agencies paying for such
26care.

 

 

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1    (i) The provisions of this Section shall also apply to
2school districts having a population exceeding 500,000.
3    (j) In addition to claiming reimbursement under this
4Section, a school district may claim general State aid under
5Section 18-8.05 or evidence-based funding under Section
618-8.15 for any student under age 21 who is enrolled in courses
7accepted for graduation from elementary or high school and who
8otherwise meets the requirements of Section 18-8.05 or 18-8.15,
9as applicable.
10(Source: P.A. 98-718, eff. 1-1-15.)
 
11    (105 ILCS 5/10-29)
12    Sec. 10-29. Remote educational programs.
13    (a) For purposes of this Section, "remote educational
14program" means an educational program delivered to students in
15the home or other location outside of a school building that
16meets all of the following criteria:
17        (1) A student may participate in the program only after
18    the school district, pursuant to adopted school board
19    policy, and a person authorized to enroll the student under
20    Section 10-20.12b of this Code determine that a remote
21    educational program will best serve the student's
22    individual learning needs. The adopted school board policy
23    shall include, but not be limited to, all of the following:
24            (A) Criteria for determining that a remote
25        educational program will best serve a student's

 

 

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1        individual learning needs. The criteria must include
2        consideration of, at a minimum, a student's prior
3        attendance, disciplinary record, and academic history.
4            (B) Any limitations on the number of students or
5        grade levels that may participate in a remote
6        educational program.
7            (C) A description of the process that the school
8        district will use to approve participation in the
9        remote educational program. The process must include
10        without limitation a requirement that, for any student
11        who qualifies to receive services pursuant to the
12        federal Individuals with Disabilities Education
13        Improvement Act of 2004, the student's participation
14        in a remote educational program receive prior approval
15        from the student's individualized education program
16        team.
17            (D) A description of the process the school
18        district will use to develop and approve a written
19        remote educational plan that meets the requirements of
20        subdivision (5) of this subsection (a).
21            (E) A description of the system the school district
22        will establish to calculate the number of clock hours a
23        student is participating in instruction in accordance
24        with the remote educational program.
25            (F) A description of the process for renewing a
26        remote educational program at the expiration of its

 

 

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1        term.
2            (G) Such other terms and provisions as the school
3        district deems necessary to provide for the
4        establishment and delivery of a remote educational
5        program.
6        (2) The school district has determined that the remote
7    educational program's curriculum is aligned to State
8    learning standards and that the program offers instruction
9    and educational experiences consistent with those given to
10    students at the same grade level in the district.
11        (3) The remote educational program is delivered by
12    instructors that meet the following qualifications:
13            (A) they are certificated under Article 21 of this
14        Code;
15            (B) they meet applicable highly qualified criteria
16        under the federal No Child Left Behind Act of 2001; and
17            (C) they have responsibility for all of the
18        following elements of the program: planning
19        instruction, diagnosing learning needs, prescribing
20        content delivery through class activities, assessing
21        learning, reporting outcomes to administrators and
22        parents and guardians, and evaluating the effects of
23        instruction.
24        (4) During the period of time from and including the
25    opening date to the closing date of the regular school term
26    of the school district established pursuant to Section

 

 

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1    10-19 of this Code, participation in a remote educational
2    program may be claimed for general State aid purposes under
3    Section 18-8.05 of this Code or evidence-based funding
4    purposes under Section 18-8.15 of this Code on any calendar
5    day, notwithstanding whether the day is a day of pupil
6    attendance or institute day on the school district's
7    calendar or any other provision of law restricting
8    instruction on that day. If the district holds year-round
9    classes in some buildings, the district shall classify each
10    student's participation in a remote educational program as
11    either on a year-round or a non-year-round schedule for
12    purposes of claiming general State aid or evidence-based
13    funding. Outside of the regular school term of the
14    district, the remote educational program may be offered as
15    part of any summer school program authorized by this Code.
16        (5) Each student participating in a remote educational
17    program must have a written remote educational plan that
18    has been approved by the school district and a person
19    authorized to enroll the student under Section 10-20.12b of
20    this Code. The school district and a person authorized to
21    enroll the student under Section 10-20.12b of this Code
22    must approve any amendment to a remote educational plan.
23    The remote educational plan must include, but is not
24    limited to, all of the following:
25            (A) Specific achievement goals for the student
26        aligned to State learning standards.

 

 

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1            (B) A description of all assessments that will be
2        used to measure student progress, which description
3        shall indicate the assessments that will be
4        administered at an attendance center within the school
5        district.
6            (C) A description of the progress reports that will
7        be provided to the school district and the person or
8        persons authorized to enroll the student under Section
9        10-20.12b of this Code.
10            (D) Expectations, processes, and schedules for
11        interaction between a teacher and student.
12            (E) A description of the specific responsibilities
13        of the student's family and the school district with
14        respect to equipment, materials, phone and Internet
15        service, and any other requirements applicable to the
16        home or other location outside of a school building
17        necessary for the delivery of the remote educational
18        program.
19            (F) If applicable, a description of how the remote
20        educational program will be delivered in a manner
21        consistent with the student's individualized education
22        program required by Section 614(d) of the federal
23        Individuals with Disabilities Education Improvement
24        Act of 2004 or plan to ensure compliance with Section
25        504 of the federal Rehabilitation Act of 1973.
26            (G) A description of the procedures and

 

 

10000SB1947ham003- 209 -LRB100 09675 MLM 28298 a

1        opportunities for participation in academic and
2        extra-curricular activities and programs within the
3        school district.
4            (H) The identification of a parent, guardian, or
5        other responsible adult who will provide direct
6        supervision of the program. The plan must include an
7        acknowledgment by the parent, guardian, or other
8        responsible adult that he or she may engage only in
9        non-teaching duties not requiring instructional
10        judgment or the evaluation of a student. The plan shall
11        designate the parent, guardian, or other responsible
12        adult as non-teaching personnel or volunteer personnel
13        under subsection (a) of Section 10-22.34 of this Code.
14            (I) The identification of a school district
15        administrator who will oversee the remote educational
16        program on behalf of the school district and who may be
17        contacted by the student's parents with respect to any
18        issues or concerns with the program.
19            (J) The term of the student's participation in the
20        remote educational program, which may not extend for
21        longer than 12 months, unless the term is renewed by
22        the district in accordance with subdivision (7) of this
23        subsection (a).
24            (K) A description of the specific location or
25        locations in which the program will be delivered. If
26        the remote educational program is to be delivered to a

 

 

10000SB1947ham003- 210 -LRB100 09675 MLM 28298 a

1        student in any location other than the student's home,
2        the plan must include a written determination by the
3        school district that the location will provide a
4        learning environment appropriate for the delivery of
5        the program. The location or locations in which the
6        program will be delivered shall be deemed a long
7        distance teaching reception area under subsection (a)
8        of Section 10-22.34 of this Code.
9            (L) Certification by the school district that the
10        plan meets all other requirements of this Section.
11        (6) Students participating in a remote educational
12    program must be enrolled in a school district attendance
13    center pursuant to the school district's enrollment policy
14    or policies. A student participating in a remote
15    educational program must be tested as part of all
16    assessments administered by the school district pursuant
17    to Section 2-3.64a-5 of this Code at the attendance center
18    in which the student is enrolled and in accordance with the
19    attendance center's assessment policies and schedule. The
20    student must be included within all accountability
21    determinations for the school district and attendance
22    center under State and federal law.
23        (7) The term of a student's participation in a remote
24    educational program may not extend for longer than 12
25    months, unless the term is renewed by the school district.
26    The district may only renew a student's participation in a

 

 

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1    remote educational program following an evaluation of the
2    student's progress in the program, a determination that the
3    student's continuation in the program will best serve the
4    student's individual learning needs, and an amendment to
5    the student's written remote educational plan addressing
6    any changes for the upcoming term of the program.
7    For purposes of this Section, a remote educational program
8does not include instruction delivered to students through an
9e-learning program approved under Section 10-20.56 of this
10Code.
11    (b) A school district may, by resolution of its school
12board, establish a remote educational program.
13    (c) Clock hours of instruction by students in a remote
14educational program meeting the requirements of this Section
15may be claimed by the school district and shall be counted as
16school work for general State aid purposes in accordance with
17and subject to the limitations of Section 18-8.05 of this Code
18or evidence-based funding purposes in accordance with and
19subject to the limitations of Section 18-8.15 of this Code.
20    (d) The impact of remote educational programs on wages,
21hours, and terms and conditions of employment of educational
22employees within the school district shall be subject to local
23collective bargaining agreements.
24    (e) The use of a home or other location outside of a school
25building for a remote educational program shall not cause the
26home or other location to be deemed a public school facility.

 

 

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1    (f) A remote educational program may be used, but is not
2required, for instruction delivered to a student in the home or
3other location outside of a school building that is not claimed
4for general State aid purposes under Section 18-8.05 of this
5Code or evidence-based funding purposes under Section 18-8.15
6of this Code.
7    (g) School districts that, pursuant to this Section, adopt
8a policy for a remote educational program must submit to the
9State Board of Education a copy of the policy and any
10amendments thereto, as well as data on student participation in
11a format specified by the State Board of Education. The State
12Board of Education may perform or contract with an outside
13entity to perform an evaluation of remote educational programs
14in this State.
15    (h) The State Board of Education may adopt any rules
16necessary to ensure compliance by remote educational programs
17with the requirements of this Section and other applicable
18legal requirements.
19(Source: P.A. 98-972, eff. 8-15-14; 99-193, eff. 7-30-15;
2099-194, eff. 7-30-15; 99-642, eff. 7-28-16.)
 
21    (105 ILCS 5/11E-135)
22    Sec. 11E-135. Incentives. For districts reorganizing under
23this Article and for a district or districts that annex all of
24the territory of one or more entire other school districts in
25accordance with Article 7 of this Code, the following payments

 

 

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1shall be made from appropriations made for these purposes:
2    (a)(1) For a combined school district, as defined in
3Section 11E-20 of this Code, or for a unit district, as defined
4in Section 11E-25 of this Code, for its first year of
5existence, the general State aid and supplemental general State
6aid calculated under Section 18-8.05 of this Code or the
7evidence-based funding calculated under Section 18-8.15 of
8this Code, as applicable, shall be computed for the new
9district and for the previously existing districts for which
10property is totally included within the new district. If the
11computation on the basis of the previously existing districts
12is greater, a supplementary payment equal to the difference
13shall be made for the first 4 years of existence of the new
14district.
15    (2) For a school district that annexes all of the territory
16of one or more entire other school districts as defined in
17Article 7 of this Code, for the first year during which the
18change of boundaries attributable to the annexation becomes
19effective for all purposes, as determined under Section 7-9 of
20this Code, the general State aid and supplemental general State
21aid calculated under Section 18-8.05 of this Code or the
22evidence-based funding calculated under Section 18-8.15 of
23this Code, as applicable, shall be computed for the annexing
24district as constituted after the annexation and for the
25annexing and each annexed district as constituted prior to the
26annexation; and if the computation on the basis of the annexing

 

 

10000SB1947ham003- 214 -LRB100 09675 MLM 28298 a

1and annexed districts as constituted prior to the annexation is
2greater, then a supplementary payment equal to the difference
3shall be made for the first 4 years of existence of the
4annexing school district as constituted upon the annexation.
5    (3) For 2 or more school districts that annex all of the
6territory of one or more entire other school districts, as
7defined in Article 7 of this Code, for the first year during
8which the change of boundaries attributable to the annexation
9becomes effective for all purposes, as determined under Section
107-9 of this Code, the general State aid and supplemental
11general State aid calculated under Section 18-8.05 of this Code
12or the evidence-based funding calculated under Section 18-8.15
13of this Code, as applicable, shall be computed for each
14annexing district as constituted after the annexation and for
15each annexing and annexed district as constituted prior to the
16annexation; and if the aggregate of the general State aid and
17supplemental general State aid or evidence-based funding, as
18applicable, as so computed for the annexing districts as
19constituted after the annexation is less than the aggregate of
20the general State aid and supplemental general State aid or
21evidence-based funding, as applicable, as so computed for the
22annexing and annexed districts, as constituted prior to the
23annexation, then a supplementary payment equal to the
24difference shall be made and allocated between or among the
25annexing districts, as constituted upon the annexation, for the
26first 4 years of their existence. The total difference payment

 

 

10000SB1947ham003- 215 -LRB100 09675 MLM 28298 a

1shall be allocated between or among the annexing districts in
2the same ratio as the pupil enrollment from that portion of the
3annexed district or districts that is annexed to each annexing
4district bears to the total pupil enrollment from the entire
5annexed district or districts, as such pupil enrollment is
6determined for the school year last ending prior to the date
7when the change of boundaries attributable to the annexation
8becomes effective for all purposes. The amount of the total
9difference payment and the amount thereof to be allocated to
10the annexing districts shall be computed by the State Board of
11Education on the basis of pupil enrollment and other data that
12shall be certified to the State Board of Education, on forms
13that it shall provide for that purpose, by the regional
14superintendent of schools for each educational service region
15in which the annexing and annexed districts are located.
16    (4) For a school district conversion, as defined in Section
1711E-15 of this Code, or a multi-unit conversion, as defined in
18subsection (b) of Section 11E-30 of this Code, if in their
19first year of existence the newly created elementary districts
20and the newly created high school dist