SB3113 EnrolledLRB098 19695 NHT 54903 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The School Code is amended by changing Section
511E-105 as follows:
 
6    (105 ILCS 5/11E-105)
7    Sec. 11E-105. Assets, liabilities and bonded indebtedness;
8tax rate.
9    (a) Subject to the terms and provisions of subsections (b)
10and (c) of this Section, whenever a new district is created
11under any of the provisions of this Article, the outstanding
12bonded indebtedness shall be treated as provided in this
13subsection (a) and in Section 19-29 of this Code. The tax rate
14for bonded indebtedness shall be determined in the manner
15provided in Section 19-7 of this Code, and, notwithstanding the
16creation of any such district, the county clerk or clerks shall
17annually extend taxes, for each outstanding bond issue against
18all of the taxable property that was situated within the
19boundaries of the district, as those boundaries existed at the
20time of the issuance of the bond issue, regardless of whether
21the property is still contained in that same district at the
22time of the extension of the taxes by the county clerk or
23clerks; provided that, notwithstanding the provisions of

 

 

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1Section 19-18 of this Code, upon resolution of the school
2board, the county clerk must extend taxes to pay the principal
3of and interest on any general obligation bonds issued by the
4new district exclusively to refund any bonded indebtedness of a
5district organized into the new district against all of the
6taxable property that was situated within the boundaries of the
7previously existing district as the boundaries existed at the
8time of the issuance of the bonded indebtedness being refunded;
9however, (i) the net interest rate on the refunding bonds may
10not exceed the net interest rate on the refunded bonds, (ii)
11the final maturity date of the refunding bonds may not extend
12beyond the final maturity date of the refunded bonds, and (iii)
13the tax levy to pay the refunding bonds in any levy year may
14not exceed the tax levy that would have been required to pay
15the refunded bonds for that levy year. The terms of the proviso
16are applicable to districts that were created pursuant to a
17referendum held in November of 2008. The terms of the proviso,
18other than this sentence, are inoperative after June 30, 2016.
19    (b) For a unit district formation, whenever a part of a
20district is included within the boundaries of a newly created
21unit district, the regional superintendent of schools shall
22cause an accounting to be had between the districts affected by
23the change in boundaries as provided for in Article 11C of this
24Code. Whenever the entire territory of 2 or more school
25districts is organized into a unit district pursuant to a
26petition filed under this Article, the petition may provide

 

 

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1that the entire territory of the new unit district shall assume
2the bonded indebtedness of the previously existing school
3districts. In that case, the tax rate for bonded indebtedness
4shall be determined in the manner provided in Section 19-7 of
5this Code, except that the county clerk shall annually extend
6taxes for each outstanding bond issue against all the taxable
7property situated in the new unit district as it exists after
8the organization.
9    (c)(1) For a high school-unit conversion, unit to dual
10conversion, or multi-unit conversion, upon the effective date
11of the change as provided in Section 11E-70 of this Code and
12subject to the provisions of paragraph (2) of this subsection
13(c), each newly created elementary district shall receive all
14of the assets and assume all of the liabilities and obligations
15of the dissolved unit district forming the boundary of the
16newly created elementary district.
17    (2) Notwithstanding the provisions of paragraph (1) of this
18subsection (c), upon the stipulation of the school board of the
19school district serving a newly created elementary district for
20high school purposes and either (i) the school board of the
21unit district prior to the effective date of its dissolution or
22(ii) thereafter the school board of the newly created
23elementary district and with the approval in either case of the
24regional superintendent of schools of the educational service
25region in which the territory described in the petition filed
26under this Article or the greater percentage of equalized

 

 

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1assessed valuation of the territory is situated, the assets,
2liabilities, and obligations of the dissolved unit district may
3be divided and assumed between and by the newly created
4elementary district and the school district serving the newly
5created elementary district for high school purposes, in
6accordance with the terms and provisions of the stipulation and
7approval. In this event, the provisions of Section 19-29 shall
8be applied to determine the debt incurring power of the newly
9created elementary district and of the school district serving
10the newly created elementary district for high school purposes.
11    (3) Without regard to whether the receipt of assets and the
12assumption of liabilities and obligations of the dissolved unit
13district is determined pursuant to paragraph (1) or (2) of this
14subsection (c), the tax rate for bonded indebtedness shall be
15determined in the manner provided in Section 19-7, and,
16notwithstanding the creation of this new elementary district,
17the county clerk or clerks shall annually extend taxes for each
18outstanding bond issue against all of the taxable property that
19was situated within the boundaries of the dissolved unit
20district as those boundaries existed at the time of the
21issuance of the bond issue, regardless of whether the property
22was still contained in that unit district at the time of its
23dissolution and regardless of whether the property is contained
24in the newly created elementary district at the time of the
25extension of the taxes by the county clerk or clerks.
26(Source: P.A. 94-1019, eff. 7-10-06.)