Public Act 100-0465
 
SB1947 EnrolledLRB100 09675 MLM 19844 b

    AN ACT concerning education.
 
    WHEREAS, This Act may be referred to as the Evidence-Based
Funding for Student Success Act; therefore
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Short title. This Act may be cited as the Invest
in Kids Act.
 
    Section 5. Definitions. As used in this Act:
    "Authorized contribution" means the contribution amount
that is listed on the contribution authorization certificate
issued to the taxpayer.
    "Board" means the State Board of Education.
    "Contribution" means a donation made by the taxpayer during
the taxable year for providing scholarships as provided in this
Act.
    "Custodian" means, with respect to eligible students, an
Illinois resident who is a parent or legal guardian of the
eligible student or students.
    "Department" means the Department of Revenue.
    "Eligible student" means a child who:
        (1) is a member of a household whose federal adjusted
    gross income the year before he or she initially receives a
    scholarship under this program, as determined by the
    Department, does not exceed 300% of the federal poverty
    level and, once the child receives a scholarship, does not
    exceed 400% of the federal poverty level;
        (2) is eligible to attend a public elementary school or
    high school in Illinois in the semester immediately
    preceding the semester for which he or she first receives a
    scholarship or is starting school in Illinois for the first
    time when he or she first receives a scholarship; and
        (3) resides in Illinois while receiving a scholarship.
    "Family member" means a parent, child, or sibling, whether
by whole blood, half blood, or adoption; spouse; or stepchild.
    "Focus district" means a school district which has a school
that is either (i) a school that has one or more subgroups in
which the average student performance is at or below the State
average for the lowest 10% of student performance in that
subgroup or (ii) a school with an average graduation rate of
less than 60% and not identified for priority.
    "Necessary costs and fees" includes the customary charge
for instruction and use of facilities in general and the
additional fixed fees charged for specified purposes that are
required generally of non-scholarship recipients for each
academic period for which the scholarship applicant actually
enrolls, including costs associated with student assessments,
but does not include fees payable only once and other
contingent deposits that are refundable in whole or in part.
The Board may prescribe, by rules consistent with this Act,
detailed provisions concerning the computation of necessary
costs and fees.
    "Scholarship granting organization" means an entity that:
        (1) is exempt from taxation under Section 501(c)(3) of
    the Internal Revenue Code;
        (2) uses at least 95% of the qualified contributions
    received during a taxable year for scholarships;
        (3) provides scholarships to students according to the
    guidelines of this Act;
        (4) deposits and holds qualified contributions and any
    income derived from qualified contributions in an account
    that is separate from the organization's operating fund or
    other funds until such qualified contributions or income
    are withdrawn for use; and
        (5) is approved to issue certificates of receipt.
    "Qualified contribution" means the authorized contribution
made by a taxpayer to a scholarship granting organization for
which the taxpayer has received a certificate of receipt from
such organization.
    "Qualified school" means a non-public school located in
Illinois and recognized by the Board pursuant to Section
2-3.25o of the School Code.
    "Scholarship" means an educational scholarship awarded to
an eligible student to attend a qualified school of their
custodians' choice in an amount not exceeding the necessary
costs and fees to attend that school.
    "Taxpayer" means any individual, corporation, partnership,
trust, or other entity subject to the Illinois income tax. For
the purposes of this Act, 2 individuals filing a joint return
shall be considered one taxpayer.
 
    Section 10. Credit awards.
    (a) The Department shall award credits against the tax
imposed under subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act to taxpayers who make qualified
contributions. For contributions made under this Act, the
credit shall be equal to 75% of the total amount of qualified
contributions made by the taxpayer during a taxable year, not
to exceed a credit of $1,000,000 per taxpayer.
    (b) The aggregate amount of all credits the Department may
award under this Act in any calendar year may not exceed
$75,000,000.
    (c) Contributions made by corporations (including
Subchapter S corporations), partnerships, and trusts under
this Act may not be directed to a particular subset of schools,
a particular school, a particular group of students, or a
particular student. Contributions made by individuals under
this Act may be directed to a particular subset of schools or a
particular school but may not be directed to a particular group
of students or a particular student.
    (d) No credit shall be taken under this Act for any
qualified contribution for which the taxpayer claims a federal
income tax deduction.
    (e) Credits shall be awarded in a manner, as determined by
the Department, that is geographically proportionate to
enrollment in recognized non-public schools in Illinois. If the
cap on the aggregate credits that may be awarded by the
Department is not reached by June 1 of a given year, the
Department shall award remaining credits on a first-come,
first-served basis, without regard to the limitation of this
subsection.
 
    Section 15. Approval to issue certificates of receipt.
    (a) A scholarship granting organization shall submit an
application for approval to issue certificates of receipt in
the form and manner prescribed by the Department, provided that
each application shall include:
        (1) documentary evidence that the scholarship granting
    organization has been granted an exemption from taxation
    under Section 501(c)(3) of the Internal Revenue Code;
        (2) certification that all qualified contributions and
    any income derived from qualified contributions are
    deposited and held in an account that is separate from the
    scholarship granting organization's operating or other
    funds until such qualified contributions or income are
    withdrawn for use;
        (3) certification that the scholarship granting
    organization will use at least 95% of its annual revenue
    from qualified contributions for scholarships;
        (4) certification that the scholarship granting
    organization will provide scholarships to eligible
    students;
        (5) a list of the names and addresses of all members of
    the governing board of the scholarship granting
    organization; and
        (6) a copy of the most recent financial audit of the
    scholarship granting organization's accounts and records
    conducted by an independent certified public accountant in
    accordance with auditing standards generally accepted in
    the United States, government auditing standards, and
    rules adopted by the Department.
    (b) A scholarship granting organization whose owner or
operator in the last 7 years has filed for personal bankruptcy
or corporate bankruptcy in a corporation of which he or she
owned more than 20% shall not be eligible to provide
scholarships.
    (c) A scholarship granting organization must not have an
owner or operator who owns or operates a qualified school or
has a family member who is a paid staff or board member of a
participating qualified school.
    (d) A scholarship granting organization shall comply with
the anti-discrimination provisions of 42 U.S.C. 2000d.
    (e) The Department shall review and either approve or deny
each application to issue certificates of receipt pursuant to
this Act. Approval or denial of an application shall be made on
a periodic basis. Applicants shall be notified of the
Department's determination within 30 business days after the
application is received.
    (f) No scholarship granting organization shall issue any
certificates of receipt without first being approved to issue
certificates of receipt.
 
    Section 20. Annual review.
    (a) Each scholarship granting organization that receives
approval to issue certificates of receipt shall file an
application for recertification on an annual basis. Such
application for recertification shall be in the form and manner
prescribed by the Department and shall include:
        (1) certification from the Director or Chief Executive
    Officer of the organization that the organization has
    complied with and continues to comply with the requirements
    of this Act, including evidence of that compliance; and
        (2) a copy of the organization's current financial
    statements.
    (b) The Department may revoke the approval of a scholarship
granting organization to issue certificates of receipt upon a
finding that the organization has violated this Act or any
rules adopted under this Act. These violations shall include,
but need not be limited to, any of the following:
        (1) failure to meet the requirements of this Act;
        (2) failure to maintain full and adequate records with
    respect to the receipt of qualified contributions;
        (3) failure to supply such records to the Department;
    or
        (4) failure to provide notice to the Department of the
    issuance of certificates of receipt pursuant to Section 35
    of this Act.
    (c) Within 5 days after the determination to revoke
approval, the Department shall provide notice of the
determination to the scholarship granting organization and
information regarding the process to request a hearing to
appeal the determination.
 
    Section 25. Contribution authorization certificates.
    (a) A taxpayer shall not be allowed a credit pursuant to
this Act for any contribution to a scholarship granting
organization that was made prior to the Department's issuance
of a contribution authorization certificate for such
contribution to the taxpayer.
    (b) Prior to making a contribution to a scholarship
granting organization, the taxpayer shall apply to the
Department for a contribution authorization certificate.
    (c) A taxpayer who makes more than one contribution to a
scholarship granting organization must make a separate
application for each such contribution authorization
certificate. The application shall be in the form and manner
prescribed by the Department, provided that the application
includes:
        (1) the taxpayer's name and address;
        (2) the amount the taxpayer will contribute; and
        (3) any other information the Department deems
    necessary.
    (d) The Department may allow taxpayers to make multiple
applications on the same form, provided that each application
shall be treated as a separate application.
    (e) The Department shall issue credit authorization
certificates on a first-come, first-served basis based upon the
date that the Department received the taxpayer's application
for the certificate subject to the provisions of subsection (e)
of Section 10 of this Act.
    (f) A taxpayer's aggregate authorized contribution amount
as listed on one or more authorized contribution certificates
issued to the taxpayer shall not exceed the aggregate of the
amounts listed on the taxpayer's applications submitted in
accordance with this Section.
    (g) Each contribution authorization certificate shall
state:
        (1) the date such certificate was issued;
        (2) the date by which the authorized contributions
    listed in the certificate must be made, which shall be 60
    days from the date of the issuance of a credit
    authorization certificate;
        (3) the total amount of authorized contributions; and
        (4) any other information the Department deems
    necessary.
    (h) Credit authorization certificates shall be mailed to
the appropriate taxpayers within 3 business days after their
issuance.
    (i) A taxpayer may rescind all or part of an authorized
contribution approved under this Act by providing written
notice to the Department. Amounts rescinded shall no longer be
deducted from the cap prescribed in Section 10 of this Act.
    (j) The Department shall maintain on its website a running
total of the amount of credits for which taxpayers may make
applications for contribution authorization certification. The
running total shall be updated every business day.
 
    Section 30. Certificates of receipt.
    (a) No scholarship granting organization shall issue a
certificate of receipt for any qualified contribution made by a
taxpayer under this Act unless that scholarship granting
organization has been approved to issue certificates of receipt
pursuant to Section 15 of this Act.
    (b) No scholarship granting organization shall issue a
certificate of receipt for a contribution made by a taxpayer
unless the taxpayer has been issued a credit authorization
certificate by the Department.
    (c) If a taxpayer makes a contribution to a scholarship
granting organization prior to the date by which the authorized
contribution shall be made, the scholarship granting
organization shall, within 30 days of receipt of the authorized
contribution, issue to the taxpayer a written certificate of
receipt.
    (d) If a taxpayer fails to make all or a portion of a
contribution prior to the date by which such authorized
contribution is required to be made, the taxpayer shall not be
entitled to a certificate of receipt for that portion of the
authorized contribution not made.
    (e) Each certificate of receipt shall state:
        (1) the name and address of the issuing scholarship
    granting organization;
        (2) the taxpayer's name and address;
        (3) the date for each qualified contribution;
        (4) the amount of each qualified contribution;
        (5) the total qualified contribution amount; and
        (6) any other information that the Department may deem
    necessary.
    (f) Upon the issuance of a certificate of receipt, the
issuing scholarship granting organization shall, within 10
days after issuing the certificate of receipt, provide the
Department with notification of the issuance of such
certificate in the form and manner prescribed by the
Department, provided that such notification shall include:
        (1) the taxpayer's name and address;
        (2) the date of the issuance of a certificate of
    receipt;
        (3) the qualified contribution date or dates and the
    amounts contributed on such dates;
        (4) the total qualified contribution listed on such
    certificates;
        (5) the issuing scholarship granting organization's
    name and address; and
        (6) any other information the Department may deem
    necessary.
    (g) Any portion of a contribution that a taxpayer fails to
make by the date indicated on the authorized contribution
certificate shall no longer be deducted from the cap prescribed
in Section 10 of this Act.
 
    Section 35. Reports.
    (a) Within 180 days after the end of its fiscal year, each
scholarship granting organization must provide to the
Department a copy of a financial audit of its accounts and
records conducted by an independent certified public
accountant in accordance with auditing standards generally
accepted in the United States, government auditing standards,
and rules adopted by the Department. The audit must include a
report on financial statements presented in accordance with
generally accepted accounting principles. The audit must
include evidence that no less than 95% of qualified
contributions received were used to provide scholarships to
eligible students. The Department shall review all audits
submitted pursuant to this subsection. The Department shall
request any significant items that were omitted in violation of
a rule adopted by the Department. The items must be provided
within 45 days after the date of request. If a scholarship
granting organization does not comply with the Department's
request, the Department may revoke the scholarship granting
organization's ability to issue certificates of receipt.
    (b) A scholarship granting organization that is approved to
receive qualified contributions shall report to the
Department, on a form prescribed by the Department, by January
31 of each calendar year. The report shall include:
        (1) the total number of certificates of receipt issued
    during the immediately preceding calendar year;
        (2) the total dollar amount of qualified contributions
    received, as set forth in the certificates of receipt
    issued during the immediately preceding calendar year;
        (3) the total number of eligible students utilizing
    scholarships for the immediately preceding calendar year
    and the school year in progress and the total dollar value
    of the scholarships;
        (4) the name and address of each qualified school for
    which scholarships using qualified contributions were
    issued during the immediately preceding calendar year,
    detailing the number, grade, race, gender, income level,
    and residency by Zip Code of eligible students and the
    total dollar value of scholarships being utilized at each
    qualified school by priority group, as identified in
    subsection (d) of Section 40 of this Act; and
        (5) any additional information requested by the
    Department.
    (c) On or before the last day of March for each calendar
year, for the immediately preceding calendar year, the
Department shall submit a written report to the Governor, the
President of the Senate, the Speaker of the House of
Representatives, the Minority Leader of the Senate, and the
Minority Leader of the House of Representatives regarding this
Act. The report shall include, but not be limited to, the
following information:
        (1) the names and addresses of all scholarship granting
    organizations approved to issue certificates of receipt;
        (2) the number and aggregate total of certificates of
    receipt issued by each scholarship granting organization;
    and
        (3) the information reported to the Department
    required by subsection (b) of this Section.
    (d) The sharing and reporting of student data under this
Section must be in accordance with the requirements of the
Family Educational Rights and Privacy Act and the Illinois
School Student Records Act. All parties must preserve the
confidentiality of such information as required by law. Data
reported by the Department under subsection (c) of this Section
must not disaggregate data to a level that will disclose
demographic data of individual students.
 
    Section 40. Scholarship granting organization
responsibilities.
    (a) Before granting a scholarship for an academic year, all
scholarship granting organizations shall assess and document
each student's eligibility for the academic year.
    (b) A scholarship granting organization shall grant
scholarships only to eligible students.
    (c) A scholarship granting organization shall allow an
eligible student to attend any qualified school of the
student's choosing, subject to the availability of funds.
    (d) In granting scholarships, a scholarship granting
organization shall give priority to the following priority
groups:
        (1) eligible students who received a scholarship from a
    scholarship granting organization during the previous
    school year;
        (2) eligible students who are members of a household
    whose previous year's total annual income does not exceed
    185% of the federal poverty level;
        (3) eligible students who reside within a focus
    district; and
        (4) eligible students who are siblings of students
    currently receiving a scholarship.
    (d-5) A scholarship granting organization shall begin
granting scholarships no later than February 1 preceding the
school year for which the scholarship is sought. The priority
groups identified in subsection (d) of this Section shall be
eligible to receive scholarships on a first-come, first-served
basis until the April 1 immediately preceding the school year
for which the scholarship is sought. Applications for
scholarships for eligible students meeting the qualifications
of one or more priority groups that are received before April 1
must be either approved or denied within 10 business days after
receipt. Beginning April 1, all eligible students shall be
eligible to receive scholarships without regard to the priority
groups identified in subsection (d) of this Section.
    (e) Except as provided in subsection (e-5) of this Section,
scholarships shall not exceed the lesser of (i) the statewide
average operational expense per student among public schools or
(ii) the necessary costs and fees for attendance at the
qualified school. Scholarships shall be prorated as follows:
        (1) for eligible students whose household income is
    less than 185% of the federal poverty level, the
    scholarship shall be 100% of the amount determined pursuant
    to this subsection (e) and subsection (e-5) of this
    Section;
        (2) for eligible students whose household income is
    185% or more of the federal poverty level but less than
    250% of the federal poverty level, the average of
    scholarships shall be 75% of the amount determined pursuant
    to this subsection (e) and subsection (e-5) of this
    Section; and
        (3) for eligible students whose household income is
    250% or more of the federal poverty level, the average of
    scholarships shall be 50% of the amount determined pursuant
    to this subsection (e) and subsection (e-5) of this
    Section.
    (e-5) The statewide average operational expense per
student among public schools shall be multiplied by the
following factors:
        (1) for students determined eligible to receive
    services under the federal Individuals with Disabilities
    Education Act, 2;
        (2) for students who are English learners, as defined
    in subsection (d) of Section 14C-2 of the School Code, 1.2;
    and
        (3) for students who are gifted and talented children,
    as defined in Section 14A-20 of the School Code, 1.1.
    (f) A scholarship granting organization shall distribute
scholarship payments to the participating school where the
student is enrolled.
    (g) For the 2018-2019 school year through the 2021-2022
school year, each scholarship granting organization shall
expend no less than 75% of the qualified contributions received
during the calendar year in which the qualified contributions
were received. No more than 25% of the qualified contributions
may be carried forward to the following calendar year.
    (h) For the 2022-2023 school year, each scholarship
granting organization shall expend all qualified contributions
received during the calendar year in which the qualified
contributions were received. No qualified contributions may be
carried forward to the following calendar year.
    (i) A scholarship granting organization shall allow an
eligible student to transfer a scholarship during a school year
to any other participating school of the custodian's choice.
Such scholarships shall be prorated.
    (j) With the prior approval of the Department, a
scholarship granting organization may transfer funds to
another scholarship granting organization if additional funds
are required to meet scholarship demands at the receiving
scholarship granting organization. All transferred funds must
be deposited by the receiving scholarship granting
organization into its scholarship accounts. All transferred
amounts received by any scholarship granting organization must
be separately disclosed to the Department.
    (k) If the approval of a scholarship granting organization
is revoked as provided in Section 20 of this Act or the
scholarship granting organization is dissolved, all remaining
qualified contributions of the scholarship granting
organization shall be transferred to another scholarship
granting organization. All transferred funds must be deposited
by the receiving scholarship granting organization into its
scholarship accounts.
    (l) Scholarship granting organizations shall make
reasonable efforts to advertise the availability of
scholarships to eligible students.
 
    Section 45. State Board responsibilities.
    (a) Beginning in the 2019-2020 school year, students who
have been granted a scholarship under this Act shall be
annually assessed at the qualified school where the student
attends school in the same manner in which students that attend
public schools are annually assessed pursuant to Section
2-3.64a-5 of the School Code. Such qualified school shall pay
costs associated with this requirement.
    (b) The Board shall select an independent research
organization, which may be a public or private entity or
university, to which participating qualified schools must
report the scores of students who are receiving scholarships
and are assessed pursuant to subsection (a) of this Section.
Costs associated with the independent research organization
shall be paid by the scholarship granting organizations on a
per-pupil basis or by gifts, grants, or donations received by
the Board under subsection (d) of this Section, as determined
by the Board. The independent research organization must
annually report to the Board on the year-to-year learning gains
of students receiving scholarships on a statewide basis. The
report shall also include, to the extent possible, a comparison
of these learning gains to the statewide learning gains of
public school students with socioeconomic backgrounds similar
to those of students receiving scholarships. The annual report
shall be delivered to the Board and published on its website.
    (c) Beginning within 120 days after the Board first
receives the annual report by the independent research
organization as provided in subsection (b) of this Section and
on an annual basis thereafter, the Board shall submit a written
report to the Governor, the President of the Senate, the
Speaker of the House of Representatives, the Minority Leader of
the Senate, and the Minority Leader of the House of
Representatives regarding this Act. Such report shall include
an evaluation of the academic performance of students receiving
scholarships and recommendations for improving student
performance.
    (d) Subject to the State Officials and Employees Ethics
Act, the Board may receive and expend gifts, grants, and
donations of any kind from any public or private entity to
carry out the purposes of this Section, subject to the terms
and conditions under which the gifts are given, provided that
all such terms and conditions are permissible under law.
    (e) The sharing and reporting of student learning gain data
under this Section must be in accordance with requirements of
the Family Educational Rights and Privacy Act and the Illinois
School Student Records Act. All parties must preserve the
confidentiality of such information as required by law. The
annual report must not disaggregate data to a level that will
disclose the academic level of individual students.
 
    Section 50. Qualified school responsibilities. A qualified
school that accepts scholarship students must do all of the
following:
        (1) provide to a scholarship granting organization,
    upon request, all documentation required for the student's
    participation, including the non-public school's cost and
    student's fee schedules;
        (2) be academically accountable to the custodian for
    meeting the educational needs of the student by:
            (A) at a minimum, annually providing to the
        custodian a written explanation of the student's
        progress; and
            (B) annually administering assessments required by
        subsection (a) of Section 45 of this Act in the same
        manner in which they are administered at public schools
        pursuant to Section 2-3.64a-5 of the School Code; the
        Board shall bill participating qualified schools for
        all costs associated with administering assessments
        required by this paragraph; the participating
        qualified schools shall ensure that all test security
        and assessment administration procedures are followed;
        participating qualified schools must report individual
        student scores to the custodians of the students; the
        independent research organization described in
        subsection (b) of Section 45 of this Act shall be
        provided all student score data in a secure manner by
        the participating qualified school.
    The inability of a qualified school to meet the
requirements of this Section shall constitute a basis for the
ineligibility of the qualified school to participate in the
scholarship program as determined by the Board.
 
    Section 55. Custodian and student responsibilities.
    (a) The custodian must select a qualified school and apply
for the admission of his or her child.
    (b) The custodian shall ensure that the student
participating in the scholarship program takes the assessment
required by subsection (a) of Section 45 of this Act.
    (c) Each custodian and each student has an obligation to
comply with the qualified school's published policies.
    (d) The custodian shall authorize the scholarship granting
organization to access information needed for income
eligibility determinations.
 
    Section 60. Recordkeeping; rulemaking; violations.
    (a) Each taxpayer shall, for each taxable year for which
the tax credit provided for under this Act is claimed, maintain
records of the following information: (i) contribution
authorization certificates obtained under Section 25 of this
Act and (ii) certificates of receipt obtained under Section 30
of this Act.
    (b) The Board and the Department may adopt rules consistent
with and necessary for the implementation of this Act.
    (c) Violations of State laws or rules and complaints
relating to program participation shall be referred to the
Attorney General.
 
    Section 65. Credit period; repeal.
    (a) A taxpayer may take a credit under this Act for tax
years beginning on or after January 1, 2018 and ending before
January 1, 2023. A taxpayer may not take a credit pursuant to
this Act for tax years beginning on or after January 1, 2023.
    (b) This Act is repealed on January 1, 2024.
 
    Section 900. The Open Meetings Act is amended by changing
Section 2 as follows:
 
    (5 ILCS 120/2)  (from Ch. 102, par. 42)
    Sec. 2. Open meetings.
    (a) Openness required. All meetings of public bodies shall
be open to the public unless excepted in subsection (c) and
closed in accordance with Section 2a.
    (b) Construction of exceptions. The exceptions contained
in subsection (c) are in derogation of the requirement that
public bodies meet in the open, and therefore, the exceptions
are to be strictly construed, extending only to subjects
clearly within their scope. The exceptions authorize but do not
require the holding of a closed meeting to discuss a subject
included within an enumerated exception.
    (c) Exceptions. A public body may hold closed meetings to
consider the following subjects:
        (1) The appointment, employment, compensation,
    discipline, performance, or dismissal of specific
    employees of the public body or legal counsel for the
    public body, including hearing testimony on a complaint
    lodged against an employee of the public body or against
    legal counsel for the public body to determine its
    validity. However, a meeting to consider an increase in
    compensation to a specific employee of a public body that
    is subject to the Local Government Wage Increase
    Transparency Act may not be closed and shall be open to the
    public and posted and held in accordance with this Act.
        (2) Collective negotiating matters between the public
    body and its employees or their representatives, or
    deliberations concerning salary schedules for one or more
    classes of employees.
        (3) The selection of a person to fill a public office,
    as defined in this Act, including a vacancy in a public
    office, when the public body is given power to appoint
    under law or ordinance, or the discipline, performance or
    removal of the occupant of a public office, when the public
    body is given power to remove the occupant under law or
    ordinance.
        (4) Evidence or testimony presented in open hearing, or
    in closed hearing where specifically authorized by law, to
    a quasi-adjudicative body, as defined in this Act, provided
    that the body prepares and makes available for public
    inspection a written decision setting forth its
    determinative reasoning.
        (5) The purchase or lease of real property for the use
    of the public body, including meetings held for the purpose
    of discussing whether a particular parcel should be
    acquired.
        (6) The setting of a price for sale or lease of
    property owned by the public body.
        (7) The sale or purchase of securities, investments, or
    investment contracts. This exception shall not apply to the
    investment of assets or income of funds deposited into the
    Illinois Prepaid Tuition Trust Fund.
        (8) Security procedures, school building safety and
    security, and the use of personnel and equipment to respond
    to an actual, a threatened, or a reasonably potential
    danger to the safety of employees, students, staff, the
    public, or public property.
        (9) Student disciplinary cases.
        (10) The placement of individual students in special
    education programs and other matters relating to
    individual students.
        (11) Litigation, when an action against, affecting or
    on behalf of the particular public body has been filed and
    is pending before a court or administrative tribunal, or
    when the public body finds that an action is probable or
    imminent, in which case the basis for the finding shall be
    recorded and entered into the minutes of the closed
    meeting.
        (12) The establishment of reserves or settlement of
    claims as provided in the Local Governmental and
    Governmental Employees Tort Immunity Act, if otherwise the
    disposition of a claim or potential claim might be
    prejudiced, or the review or discussion of claims, loss or
    risk management information, records, data, advice or
    communications from or with respect to any insurer of the
    public body or any intergovernmental risk management
    association or self insurance pool of which the public body
    is a member.
        (13) Conciliation of complaints of discrimination in
    the sale or rental of housing, when closed meetings are
    authorized by the law or ordinance prescribing fair housing
    practices and creating a commission or administrative
    agency for their enforcement.
        (14) Informant sources, the hiring or assignment of
    undercover personnel or equipment, or ongoing, prior or
    future criminal investigations, when discussed by a public
    body with criminal investigatory responsibilities.
        (15) Professional ethics or performance when
    considered by an advisory body appointed to advise a
    licensing or regulatory agency on matters germane to the
    advisory body's field of competence.
        (16) Self evaluation, practices and procedures or
    professional ethics, when meeting with a representative of
    a statewide association of which the public body is a
    member.
        (17) The recruitment, credentialing, discipline or
    formal peer review of physicians or other health care
    professionals, or for the discussion of matters protected
    under the federal Patient Safety and Quality Improvement
    Act of 2005, and the regulations promulgated thereunder,
    including 42 C.F.R. Part 3 (73 FR 70732), or the federal
    Health Insurance Portability and Accountability Act of
    1996, and the regulations promulgated thereunder,
    including 45 C.F.R. Parts 160, 162, and 164, by a hospital,
    or other institution providing medical care, that is
    operated by the public body.
        (18) Deliberations for decisions of the Prisoner
    Review Board.
        (19) Review or discussion of applications received
    under the Experimental Organ Transplantation Procedures
    Act.
        (20) The classification and discussion of matters
    classified as confidential or continued confidential by
    the State Government Suggestion Award Board.
        (21) Discussion of minutes of meetings lawfully closed
    under this Act, whether for purposes of approval by the
    body of the minutes or semi-annual review of the minutes as
    mandated by Section 2.06.
        (22) Deliberations for decisions of the State
    Emergency Medical Services Disciplinary Review Board.
        (23) The operation by a municipality of a municipal
    utility or the operation of a municipal power agency or
    municipal natural gas agency when the discussion involves
    (i) contracts relating to the purchase, sale, or delivery
    of electricity or natural gas or (ii) the results or
    conclusions of load forecast studies.
        (24) Meetings of a residential health care facility
    resident sexual assault and death review team or the
    Executive Council under the Abuse Prevention Review Team
    Act.
        (25) Meetings of an independent team of experts under
    Brian's Law.
        (26) Meetings of a mortality review team appointed
    under the Department of Juvenile Justice Mortality Review
    Team Act.
        (27) (Blank).
        (28) Correspondence and records (i) that may not be
    disclosed under Section 11-9 of the Illinois Public Aid
    Code or (ii) that pertain to appeals under Section 11-8 of
    the Illinois Public Aid Code.
        (29) Meetings between internal or external auditors
    and governmental audit committees, finance committees, and
    their equivalents, when the discussion involves internal
    control weaknesses, identification of potential fraud risk
    areas, known or suspected frauds, and fraud interviews
    conducted in accordance with generally accepted auditing
    standards of the United States of America.
        (30) Those meetings or portions of meetings of a
    fatality review team or the Illinois Fatality Review Team
    Advisory Council during which a review of the death of an
    eligible adult in which abuse or neglect is suspected,
    alleged, or substantiated is conducted pursuant to Section
    15 of the Adult Protective Services Act.
        (31) Meetings and deliberations for decisions of the
    Concealed Carry Licensing Review Board under the Firearm
    Concealed Carry Act.
        (32) Meetings between the Regional Transportation
    Authority Board and its Service Boards when the discussion
    involves review by the Regional Transportation Authority
    Board of employment contracts under Section 28d of the
    Metropolitan Transit Authority Act and Sections 3A.18 and
    3B.26 of the Regional Transportation Authority Act.
        (33) Those meetings or portions of meetings of the
    advisory committee and peer review subcommittee created
    under Section 320 of the Illinois Controlled Substances Act
    during which specific controlled substance prescriber,
    dispenser, or patient information is discussed.
        (34) Meetings of the Tax Increment Financing Reform
    Task Force under Section 2505-800 of the Department of
    Revenue Law of the Civil Administrative Code of Illinois.
    (d) Definitions. For purposes of this Section:
    "Employee" means a person employed by a public body whose
relationship with the public body constitutes an
employer-employee relationship under the usual common law
rules, and who is not an independent contractor.
    "Public office" means a position created by or under the
Constitution or laws of this State, the occupant of which is
charged with the exercise of some portion of the sovereign
power of this State. The term "public office" shall include
members of the public body, but it shall not include
organizational positions filled by members thereof, whether
established by law or by a public body itself, that exist to
assist the body in the conduct of its business.
    "Quasi-adjudicative body" means an administrative body
charged by law or ordinance with the responsibility to conduct
hearings, receive evidence or testimony and make
determinations based thereon, but does not include local
electoral boards when such bodies are considering petition
challenges.
    (e) Final action. No final action may be taken at a closed
meeting. Final action shall be preceded by a public recital of
the nature of the matter being considered and other information
that will inform the public of the business being conducted.
(Source: P.A. 98-49, eff. 7-1-13; 98-63, eff. 7-9-13; 98-756,
eff. 7-16-14; 98-1027, eff. 1-1-15; 98-1039, eff. 8-25-14;
99-78, eff. 7-20-15; 99-235, eff. 1-1-16; 99-480, eff. 9-9-15;
99-642, eff. 7-28-16; 99-646, eff. 7-28-16; 99-687, eff.
1-1-17; revised 9-21-16.)
 
    Section 902. The Freedom of Information Act is amended by
changing Section 7.5 as follows:
 
    (5 ILCS 140/7.5)
    Sec. 7.5. Statutory exemptions. To the extent provided for
by the statutes referenced below, the following shall be exempt
from inspection and copying:
        (a) All information determined to be confidential
    under Section 4002 of the Technology Advancement and
    Development Act.
        (b) Library circulation and order records identifying
    library users with specific materials under the Library
    Records Confidentiality Act.
        (c) Applications, related documents, and medical
    records received by the Experimental Organ Transplantation
    Procedures Board and any and all documents or other records
    prepared by the Experimental Organ Transplantation
    Procedures Board or its staff relating to applications it
    has received.
        (d) Information and records held by the Department of
    Public Health and its authorized representatives relating
    to known or suspected cases of sexually transmissible
    disease or any information the disclosure of which is
    restricted under the Illinois Sexually Transmissible
    Disease Control Act.
        (e) Information the disclosure of which is exempted
    under Section 30 of the Radon Industry Licensing Act.
        (f) Firm performance evaluations under Section 55 of
    the Architectural, Engineering, and Land Surveying
    Qualifications Based Selection Act.
        (g) Information the disclosure of which is restricted
    and exempted under Section 50 of the Illinois Prepaid
    Tuition Act.
        (h) Information the disclosure of which is exempted
    under the State Officials and Employees Ethics Act, and
    records of any lawfully created State or local inspector
    general's office that would be exempt if created or
    obtained by an Executive Inspector General's office under
    that Act.
        (i) Information contained in a local emergency energy
    plan submitted to a municipality in accordance with a local
    emergency energy plan ordinance that is adopted under
    Section 11-21.5-5 of the Illinois Municipal Code.
        (j) Information and data concerning the distribution
    of surcharge moneys collected and remitted by wireless
    carriers under the Wireless Emergency Telephone Safety
    Act.
        (k) Law enforcement officer identification information
    or driver identification information compiled by a law
    enforcement agency or the Department of Transportation
    under Section 11-212 of the Illinois Vehicle Code.
        (l) Records and information provided to a residential
    health care facility resident sexual assault and death
    review team or the Executive Council under the Abuse
    Prevention Review Team Act.
        (m) Information provided to the predatory lending
    database created pursuant to Article 3 of the Residential
    Real Property Disclosure Act, except to the extent
    authorized under that Article.
        (n) Defense budgets and petitions for certification of
    compensation and expenses for court appointed trial
    counsel as provided under Sections 10 and 15 of the Capital
    Crimes Litigation Act. This subsection (n) shall apply
    until the conclusion of the trial of the case, even if the
    prosecution chooses not to pursue the death penalty prior
    to trial or sentencing.
        (o) Information that is prohibited from being
    disclosed under Section 4 of the Illinois Health and
    Hazardous Substances Registry Act.
        (p) Security portions of system safety program plans,
    investigation reports, surveys, schedules, lists, data, or
    information compiled, collected, or prepared by or for the
    Regional Transportation Authority under Section 2.11 of
    the Regional Transportation Authority Act or the St. Clair
    County Transit District under the Bi-State Transit Safety
    Act.
        (q) Information prohibited from being disclosed by the
    Personnel Records Review Act.
        (r) Information prohibited from being disclosed by the
    Illinois School Student Records Act.
        (s) Information the disclosure of which is restricted
    under Section 5-108 of the Public Utilities Act.
        (t) All identified or deidentified health information
    in the form of health data or medical records contained in,
    stored in, submitted to, transferred by, or released from
    the Illinois Health Information Exchange, and identified
    or deidentified health information in the form of health
    data and medical records of the Illinois Health Information
    Exchange in the possession of the Illinois Health
    Information Exchange Authority due to its administration
    of the Illinois Health Information Exchange. The terms
    "identified" and "deidentified" shall be given the same
    meaning as in the Health Insurance Portability and
    Accountability Act of 1996, Public Law 104-191, or any
    subsequent amendments thereto, and any regulations
    promulgated thereunder.
        (u) Records and information provided to an independent
    team of experts under Brian's Law.
        (v) Names and information of people who have applied
    for or received Firearm Owner's Identification Cards under
    the Firearm Owners Identification Card Act or applied for
    or received a concealed carry license under the Firearm
    Concealed Carry Act, unless otherwise authorized by the
    Firearm Concealed Carry Act; and databases under the
    Firearm Concealed Carry Act, records of the Concealed Carry
    Licensing Review Board under the Firearm Concealed Carry
    Act, and law enforcement agency objections under the
    Firearm Concealed Carry Act.
        (w) Personally identifiable information which is
    exempted from disclosure under subsection (g) of Section
    19.1 of the Toll Highway Act.
        (x) Information which is exempted from disclosure
    under Section 5-1014.3 of the Counties Code or Section
    8-11-21 of the Illinois Municipal Code.
        (y) Confidential information under the Adult
    Protective Services Act and its predecessor enabling
    statute, the Elder Abuse and Neglect Act, including
    information about the identity and administrative finding
    against any caregiver of a verified and substantiated
    decision of abuse, neglect, or financial exploitation of an
    eligible adult maintained in the Registry established
    under Section 7.5 of the Adult Protective Services Act.
        (z) Records and information provided to a fatality
    review team or the Illinois Fatality Review Team Advisory
    Council under Section 15 of the Adult Protective Services
    Act.
        (aa) Information which is exempted from disclosure
    under Section 2.37 of the Wildlife Code.
        (bb) Information which is or was prohibited from
    disclosure by the Juvenile Court Act of 1987.
        (cc) Recordings made under the Law Enforcement
    Officer-Worn Body Camera Act, except to the extent
    authorized under that Act.
        (dd) Information that is prohibited from being
    disclosed under Section 45 of the Condominium and Common
    Interest Community Ombudsperson Act.
        (ee) (dd) Information that is exempted from disclosure
    under Section 30.1 of the Pharmacy Practice Act.
        (ff) Information which is exempted from disclosure
    under Section 2505-800 of the Department of Revenue Law of
    the Civil Administrative Code of Illinois.
(Source: P.A. 98-49, eff. 7-1-13; 98-63, eff. 7-9-13; 98-756,
eff. 7-16-14; 98-1039, eff. 8-25-14; 98-1045, eff. 8-25-14;
99-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352, eff. 1-1-16;
99-642, eff. 7-28-16; 99-776, eff. 8-12-16; 99-863, eff.
8-19-16; revised 9-1-16.)
 
    Section 904. The Election Code is amended by changing
Section 28-2 as follows:
 
    (10 ILCS 5/28-2)  (from Ch. 46, par. 28-2)
    Sec. 28-2. (a) Except as otherwise provided in this
Section, petitions for the submission of public questions to
referendum must be filed with the appropriate officer or board
not less than 92 days prior to a regular election to be
eligible for submission on the ballot at such election; and
petitions for the submission of a question under Section 18-120
or Section 18-206 of the Property Tax Code must be filed with
the appropriate officer or board not more than 10 months nor
less than 6 months prior to the election at which such question
is to be submitted to the voters.
    (b) However, petitions for the submission of a public
question to referendum which proposes the creation or formation
of a political subdivision must be filed with the appropriate
officer or board not less than 122 days prior to a regular
election to be eligible for submission on the ballot at such
election.
    (c) Resolutions or ordinances of governing boards of
political subdivisions which initiate the submission of public
questions pursuant to law must be adopted not less than 79 days
before a regularly scheduled election to be eligible for
submission on the ballot at such election.
    (d) A petition, resolution or ordinance initiating the
submission of a public question may specify a regular election
at which the question is to be submitted, and must so specify
if the statute authorizing the public question requires
submission at a particular election. However, no petition,
resolution or ordinance initiating the submission of a public
question, other than a legislative resolution initiating an
amendment to the Constitution, may specify such submission at
an election more than one year, or 15 months in the case of a
back door referendum as defined in subsection (f), after the
date on which it is filed or adopted, as the case may be. A
petition, resolution or ordinance initiating a public question
which specifies a particular election at which the question is
to be submitted shall be so limited, and shall not be valid as
to any other election, other than an emergency referendum
ordered pursuant to Section 2A-1.4.
    (e) If a petition initiating a public question does not
specify a regularly scheduled election, the public question
shall be submitted to referendum at the next regular election
occurring not less than 92 days after the filing of the
petition, or not less than 122 days after the filing of a
petition for referendum to create a political subdivision. If a
resolution or ordinance initiating a public question does not
specify a regularly scheduled election, the public question
shall be submitted to referendum at the next regular election
occurring not less than 79 days after the adoption of the
resolution or ordinance.
    (f) In the case of back door referenda, any limitations in
another statute authorizing such a referendum which restrict
the time in which the initiating petition may be validly filed
shall apply to such petition, in addition to the filing
deadlines specified in this Section for submission at a
particular election. In the case of any back door referendum,
the publication of the ordinance or resolution of the political
subdivision shall include a notice of (1) the specific number
of voters required to sign a petition requesting that a public
question be submitted to the voters of the subdivision; (2) the
time within which the petition must be filed; and (3) the date
of the prospective referendum. The secretary or clerk of the
political subdivision shall provide a petition form to any
individual requesting one. The legal sufficiency of that form,
if provided by the secretary or clerk of the political
subdivision, cannot be the basis of a challenge to placing the
back door referendum on the ballot. As used herein, a "back
door referendum" is the submission of a public question to the
voters of a political subdivision, initiated by a petition of
voters or residents of such political subdivision, to determine
whether an action by the governing body of such subdivision
shall be adopted or rejected.
    (g) A petition for the incorporation or formation of a new
political subdivision whose officers are to be elected rather
than appointed must have attached to it an affidavit attesting
that at least 122 days and no more than 152 days prior to such
election notice of intention to file such petition was
published in a newspaper published within the proposed
political subdivision, or if none, in a newspaper of general
circulation within the territory of the proposed political
subdivision in substantially the following form:
NOTICE OF PETITION TO FORM A NEW........
    Residents of the territory described below are notified
that a petition will or has been filed in the Office
of............requesting a referendum to establish a
new........, to be called the............
    *The officers of the new...........will be elected on the
same day as the referendum. Candidates for the governing board
of the new......may file nominating petitions with the officer
named above until...........
    The territory proposed to comprise the new........is
described as follows:
        (description of territory included in petition)
        (signature)....................................
        Name and address of person or persons proposing
        the new political subdivision.
    * Where applicable.
    Failure to file such affidavit, or failure to publish the
required notice with the correct information contained therein
shall render the petition, and any referendum held pursuant to
such petition, null and void.
    Notwithstanding the foregoing provisions of this
subsection (g) or any other provisions of this Code, the
publication of notice and affidavit requirements of this
subsection (g) shall not apply to any petition filed under
Article 7 or 11E of the School Code nor to any referendum held
pursuant to any such petition, and neither any petition filed
under any of those Articles nor any referendum held pursuant to
any such petition shall be rendered null and void because of
the failure to file an affidavit or publish a notice with
respect to the petition or referendum as required under this
subsection (g) for petitions that are not filed under any of
those Articles of the School Code.
(Source: P.A. 96-1008, eff. 7-6-10.)
 
    Section 905. The Economic Development Area Tax Increment
Allocation Act is amended by changing Section 7 as follows:
 
    (20 ILCS 620/7)  (from Ch. 67 1/2, par. 1007)
    Sec. 7. Creation of special tax allocation fund. If a
municipality has adopted tax increment allocation financing
for an economic development project area by ordinance, the
county clerk has thereafter certified the "total initial
equalized assessed value" of the taxable real property within
such economic development project area in the manner provided
in Section 6 of this Act, and the Department has approved and
certified the economic development project area, each year
after the date of the certification by the county clerk of the
"total initial equalized assessed value" until economic
development project costs and all municipal obligations
financing economic development project costs have been paid,
the ad valorem taxes, if any, arising from the levies upon the
taxable real property in the economic development project area
by taxing districts and tax rates determined in the manner
provided in subsection (b) of Section 6 of this Act shall be
divided as follows:
    (1) That portion of the taxes levied upon each taxable lot,
block, tract or parcel of real property which is attributable
to the lower of the current equalized assessed value or the
initial equalized assessed value of each such taxable lot,
block, tract, or parcel of real property existing at the time
tax increment allocation financing was adopted, shall be
allocated to and when collected shall be paid by the county
collector to the respective affected taxing districts in the
manner required by law in the absence of the adoption of tax
increment allocation financing.
    (2) That portion, if any, of those taxes which is
attributable to the increase in the current equalized assessed
valuation of each taxable lot, block, tract, or parcel of real
property in the economic development project area, over and
above the initial equalized assessed value of each property
existing at the time tax increment allocation financing was
adopted, shall be allocated to and when collected shall be paid
to the municipal treasurer, who shall deposit those taxes into
a special fund called the special tax allocation fund of the
municipality for the purpose of paying economic development
project costs and obligations incurred in the payment thereof.
    The municipality, by an ordinance adopting tax increment
allocation financing, may pledge the funds in and to be
deposited in the special tax allocation fund for the payment of
obligations issued under this Act and for the payment of
economic development project costs. No part of the current
equalized assessed valuation of each property in the economic
development project area attributable to any increase above the
total initial equalized assessed value, of such properties
shall be used in calculating the general State school aid
formula, provided for in Section 18-8 of the School Code, or
the evidence-based funding formula, provided for in Section
18-8.15 of the School Code, until such time as all economic
development projects costs have been paid as provided for in
this Section.
    When the economic development project costs, including
without limitation all municipal obligations financing
economic development project costs incurred under this Act,
have been paid, all surplus funds then remaining in the special
tax allocation fund shall be distributed by being paid by the
municipal treasurer to the county collector, who shall
immediately thereafter pay those funds to the taxing districts
having taxable property in the economic development project
area in the same manner and proportion as the most recent
distribution by the county collector to those taxing districts
of real property taxes from real property in the economic
development project area.
    Upon the payment of all economic development project costs,
retirement of obligations and the distribution of any excess
monies pursuant to this Section the municipality shall adopt an
ordinance dissolving the special tax allocation fund for the
economic development project area, terminating the economic
development project area, and terminating the use of tax
increment allocation financing for the economic development
project area. Thereafter the rates of the taxing districts
shall be extended and taxes levied, collected and distributed
in the manner applicable in the absence of the adoption of tax
increment allocation financing.
    Nothing in this Section shall be construed as relieving
property in economic development project areas from being
assessed as provided in the Property Tax Code, or as relieving
owners of that property from paying a uniform rate of taxes, as
required by Section 4 of Article IX of the Illinois
Constitution.
(Source: P.A. 98-463, eff. 8-16-13.)
 
    Section 910. The Civil Administrative Code of Illinois
(Department of Revenue Law) is amended by adding Section
2505-800 as follows:
 
    (20 ILCS 2505/2505-800 new)
    Sec. 2505-800. Tax Increment Financing Reform Task Force.
    (a) There is hereby created the Tax Increment Financing
Reform Task Force which shall consist of the following members:
        (1) 3 members of the General Assembly, appointed by the
    President of the Senate;
        (2) 3 members of the General Assembly, appointed by the
    Minority Leader of the Senate;
        (3) 3 members of the General Assembly, appointed by the
    Speaker of the House of Representatives; and
        (4) 3 members of the General Assembly, appointed by the
    Minority Leader of the House of Representatives.
    (b) The members of the Task Force shall elect one co-chair
from each legislative caucus, who shall call meetings of the
Task Force to order. The Task Force shall hold an initial
meeting within 60 days after the effective date of this
amendatory Act of the 100th General Assembly.
    (c) The Task Force shall conduct a study examining current
Tax Increment Financing (TIF) laws in this State and issues
that include, but are not limited to:
        (1) the benefits and costs of TIF districts;
        (2) the interaction between TIF law and school funding;
        (3) the expenditure of TIF funds; and
        (4) the expenditure of TIF surplus funds.
    (d) The Task Force shall report the findings of the study
and any recommendations to the General Assembly on or before
April 1, 2018, at which time the Task Force shall be dissolved.
    (e) The Department of Revenue shall provide staff and
administrative support to the Task Force, and shall post on its
website the report under subsection (d) of this Section.
    (f) The Task Force is exempt from any requirements under
the Freedom of Information Act and Open Meetings Act.
    (g) This Section is repealed on April 30, 2018.
 
    Section 915. The State Finance Act is amended by changing
Section 13.2 as follows:
 
    (30 ILCS 105/13.2)  (from Ch. 127, par. 149.2)
    Sec. 13.2. Transfers among line item appropriations.
    (a) Transfers among line item appropriations from the same
treasury fund for the objects specified in this Section may be
made in the manner provided in this Section when the balance
remaining in one or more such line item appropriations is
insufficient for the purpose for which the appropriation was
made.
    (a-1) No transfers may be made from one agency to another
agency, nor may transfers be made from one institution of
higher education to another institution of higher education
except as provided by subsection (a-4).
    (a-2) Except as otherwise provided in this Section,
transfers may be made only among the objects of expenditure
enumerated in this Section, except that no funds may be
transferred from any appropriation for personal services, from
any appropriation for State contributions to the State
Employees' Retirement System, from any separate appropriation
for employee retirement contributions paid by the employer, nor
from any appropriation for State contribution for employee
group insurance. During State fiscal year 2005, an agency may
transfer amounts among its appropriations within the same
treasury fund for personal services, employee retirement
contributions paid by employer, and State Contributions to
retirement systems; notwithstanding and in addition to the
transfers authorized in subsection (c) of this Section, the
fiscal year 2005 transfers authorized in this sentence may be
made in an amount not to exceed 2% of the aggregate amount
appropriated to an agency within the same treasury fund. During
State fiscal year 2007, the Departments of Children and Family
Services, Corrections, Human Services, and Juvenile Justice
may transfer amounts among their respective appropriations
within the same treasury fund for personal services, employee
retirement contributions paid by employer, and State
contributions to retirement systems. During State fiscal year
2010, the Department of Transportation may transfer amounts
among their respective appropriations within the same treasury
fund for personal services, employee retirement contributions
paid by employer, and State contributions to retirement
systems. During State fiscal years 2010 and 2014 only, an
agency may transfer amounts among its respective
appropriations within the same treasury fund for personal
services, employee retirement contributions paid by employer,
and State contributions to retirement systems.
Notwithstanding, and in addition to, the transfers authorized
in subsection (c) of this Section, these transfers may be made
in an amount not to exceed 2% of the aggregate amount
appropriated to an agency within the same treasury fund.
    (a-2.5) During State fiscal year 2015 only, the State's
Attorneys Appellate Prosecutor may transfer amounts among its
respective appropriations contained in operational line items
within the same treasury fund. Notwithstanding, and in addition
to, the transfers authorized in subsection (c) of this Section,
these transfers may be made in an amount not to exceed 4% of
the aggregate amount appropriated to the State's Attorneys
Appellate Prosecutor within the same treasury fund.
    (a-3) Further, if an agency receives a separate
appropriation for employee retirement contributions paid by
the employer, any transfer by that agency into an appropriation
for personal services must be accompanied by a corresponding
transfer into the appropriation for employee retirement
contributions paid by the employer, in an amount sufficient to
meet the employer share of the employee contributions required
to be remitted to the retirement system.
    (a-4) Long-Term Care Rebalancing. The Governor may
designate amounts set aside for institutional services
appropriated from the General Revenue Fund or any other State
fund that receives monies for long-term care services to be
transferred to all State agencies responsible for the
administration of community-based long-term care programs,
including, but not limited to, community-based long-term care
programs administered by the Department of Healthcare and
Family Services, the Department of Human Services, and the
Department on Aging, provided that the Director of Healthcare
and Family Services first certifies that the amounts being
transferred are necessary for the purpose of assisting persons
in or at risk of being in institutional care to transition to
community-based settings, including the financial data needed
to prove the need for the transfer of funds. The total amounts
transferred shall not exceed 4% in total of the amounts
appropriated from the General Revenue Fund or any other State
fund that receives monies for long-term care services for each
fiscal year. A notice of the fund transfer must be made to the
General Assembly and posted at a minimum on the Department of
Healthcare and Family Services website, the Governor's Office
of Management and Budget website, and any other website the
Governor sees fit. These postings shall serve as notice to the
General Assembly of the amounts to be transferred. Notice shall
be given at least 30 days prior to transfer.
    (b) In addition to the general transfer authority provided
under subsection (c), the following agencies have the specific
transfer authority granted in this subsection:
    The Department of Healthcare and Family Services is
authorized to make transfers representing savings attributable
to not increasing grants due to the births of additional
children from line items for payments of cash grants to line
items for payments for employment and social services for the
purposes outlined in subsection (f) of Section 4-2 of the
Illinois Public Aid Code.
    The Department of Children and Family Services is
authorized to make transfers not exceeding 2% of the aggregate
amount appropriated to it within the same treasury fund for the
following line items among these same line items: Foster Home
and Specialized Foster Care and Prevention, Institutions and
Group Homes and Prevention, and Purchase of Adoption and
Guardianship Services.
    The Department on Aging is authorized to make transfers not
exceeding 2% of the aggregate amount appropriated to it within
the same treasury fund for the following Community Care Program
line items among these same line items: purchase of services
covered by the Community Care Program and Comprehensive Case
Coordination.
    The State Treasurer is authorized to make transfers among
line item appropriations from the Capital Litigation Trust
Fund, with respect to costs incurred in fiscal years 2002 and
2003 only, when the balance remaining in one or more such line
item appropriations is insufficient for the purpose for which
the appropriation was made, provided that no such transfer may
be made unless the amount transferred is no longer required for
the purpose for which that appropriation was made.
    The State Board of Education is authorized to make
transfers from line item appropriations within the same
treasury fund for General State Aid, and General State Aid -
Hold Harmless, and Evidence-Based Funding, provided that no
such transfer may be made unless the amount transferred is no
longer required for the purpose for which that appropriation
was made, to the line item appropriation for Transitional
Assistance when the balance remaining in such line item
appropriation is insufficient for the purpose for which the
appropriation was made.
    The State Board of Education is authorized to make
transfers between the following line item appropriations
within the same treasury fund: Disabled Student
Services/Materials (Section 14-13.01 of the School Code),
Disabled Student Transportation Reimbursement (Section
14-13.01 of the School Code), Disabled Student Tuition -
Private Tuition (Section 14-7.02 of the School Code),
Extraordinary Special Education (Section 14-7.02b of the
School Code), Reimbursement for Free Lunch/Breakfast Program,
Summer School Payments (Section 18-4.3 of the School Code), and
Transportation - Regular/Vocational Reimbursement (Section
29-5 of the School Code). Such transfers shall be made only
when the balance remaining in one or more such line item
appropriations is insufficient for the purpose for which the
appropriation was made and provided that no such transfer may
be made unless the amount transferred is no longer required for
the purpose for which that appropriation was made.
    The Department of Healthcare and Family Services is
authorized to make transfers not exceeding 4% of the aggregate
amount appropriated to it, within the same treasury fund, among
the various line items appropriated for Medical Assistance.
    (c) The sum of such transfers for an agency in a fiscal
year shall not exceed 2% of the aggregate amount appropriated
to it within the same treasury fund for the following objects:
Personal Services; Extra Help; Student and Inmate
Compensation; State Contributions to Retirement Systems; State
Contributions to Social Security; State Contribution for
Employee Group Insurance; Contractual Services; Travel;
Commodities; Printing; Equipment; Electronic Data Processing;
Operation of Automotive Equipment; Telecommunications
Services; Travel and Allowance for Committed, Paroled and
Discharged Prisoners; Library Books; Federal Matching Grants
for Student Loans; Refunds; Workers' Compensation,
Occupational Disease, and Tort Claims; and, in appropriations
to institutions of higher education, Awards and Grants.
Notwithstanding the above, any amounts appropriated for
payment of workers' compensation claims to an agency to which
the authority to evaluate, administer and pay such claims has
been delegated by the Department of Central Management Services
may be transferred to any other expenditure object where such
amounts exceed the amount necessary for the payment of such
claims.
    (c-1) Special provisions for State fiscal year 2003.
Notwithstanding any other provision of this Section to the
contrary, for State fiscal year 2003 only, transfers among line
item appropriations to an agency from the same treasury fund
may be made provided that the sum of such transfers for an
agency in State fiscal year 2003 shall not exceed 3% of the
aggregate amount appropriated to that State agency for State
fiscal year 2003 for the following objects: personal services,
except that no transfer may be approved which reduces the
aggregate appropriations for personal services within an
agency; extra help; student and inmate compensation; State
contributions to retirement systems; State contributions to
social security; State contributions for employee group
insurance; contractual services; travel; commodities;
printing; equipment; electronic data processing; operation of
automotive equipment; telecommunications services; travel and
allowance for committed, paroled, and discharged prisoners;
library books; federal matching grants for student loans;
refunds; workers' compensation, occupational disease, and tort
claims; and, in appropriations to institutions of higher
education, awards and grants.
    (c-2) Special provisions for State fiscal year 2005.
Notwithstanding subsections (a), (a-2), and (c), for State
fiscal year 2005 only, transfers may be made among any line
item appropriations from the same or any other treasury fund
for any objects or purposes, without limitation, when the
balance remaining in one or more such line item appropriations
is insufficient for the purpose for which the appropriation was
made, provided that the sum of those transfers by a State
agency shall not exceed 4% of the aggregate amount appropriated
to that State agency for fiscal year 2005.
    (c-3) Special provisions for State fiscal year 2015.
Notwithstanding any other provision of this Section, for State
fiscal year 2015, transfers among line item appropriations to a
State agency from the same State treasury fund may be made for
operational or lump sum expenses only, provided that the sum of
such transfers for a State agency in State fiscal year 2015
shall not exceed 4% of the aggregate amount appropriated to
that State agency for operational or lump sum expenses for
State fiscal year 2015. For the purpose of this subsection,
"operational or lump sum expenses" includes the following
objects: personal services; extra help; student and inmate
compensation; State contributions to retirement systems; State
contributions to social security; State contributions for
employee group insurance; contractual services; travel;
commodities; printing; equipment; electronic data processing;
operation of automotive equipment; telecommunications
services; travel and allowance for committed, paroled, and
discharged prisoners; library books; federal matching grants
for student loans; refunds; workers' compensation,
occupational disease, and tort claims; lump sum and other
purposes; and lump sum operations. For the purpose of this
subsection (c-3), "State agency" does not include the Attorney
General, the Secretary of State, the Comptroller, the
Treasurer, or the legislative or judicial branches.
    (d) Transfers among appropriations made to agencies of the
Legislative and Judicial departments and to the
constitutionally elected officers in the Executive branch
require the approval of the officer authorized in Section 10 of
this Act to approve and certify vouchers. Transfers among
appropriations made to the University of Illinois, Southern
Illinois University, Chicago State University, Eastern
Illinois University, Governors State University, Illinois
State University, Northeastern Illinois University, Northern
Illinois University, Western Illinois University, the Illinois
Mathematics and Science Academy and the Board of Higher
Education require the approval of the Board of Higher Education
and the Governor. Transfers among appropriations to all other
agencies require the approval of the Governor.
    The officer responsible for approval shall certify that the
transfer is necessary to carry out the programs and purposes
for which the appropriations were made by the General Assembly
and shall transmit to the State Comptroller a certified copy of
the approval which shall set forth the specific amounts
transferred so that the Comptroller may change his records
accordingly. The Comptroller shall furnish the Governor with
information copies of all transfers approved for agencies of
the Legislative and Judicial departments and transfers
approved by the constitutionally elected officials of the
Executive branch other than the Governor, showing the amounts
transferred and indicating the dates such changes were entered
on the Comptroller's records.
    (e) The State Board of Education, in consultation with the
State Comptroller, may transfer line item appropriations for
General State Aid or Evidence-Based Funding between the Common
School Fund and the Education Assistance Fund. With the advice
and consent of the Governor's Office of Management and Budget,
the State Board of Education, in consultation with the State
Comptroller, may transfer line item appropriations between the
General Revenue Fund and the Education Assistance Fund for the
following programs:
        (1) Disabled Student Personnel Reimbursement (Section
    14-13.01 of the School Code);
        (2) Disabled Student Transportation Reimbursement
    (subsection (b) of Section 14-13.01 of the School Code);
        (3) Disabled Student Tuition - Private Tuition
    (Section 14-7.02 of the School Code);
        (4) Extraordinary Special Education (Section 14-7.02b
    of the School Code);
        (5) Reimbursement for Free Lunch/Breakfast Programs;
        (6) Summer School Payments (Section 18-4.3 of the
    School Code);
        (7) Transportation - Regular/Vocational Reimbursement
    (Section 29-5 of the School Code);
        (8) Regular Education Reimbursement (Section 18-3 of
    the School Code); and
        (9) Special Education Reimbursement (Section 14-7.03
    of the School Code).
(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-2,
eff. 3-26-15.)
 
    Section 920. The Illinois Income Tax Act is amended by
adding Section 224 as follows:
 
    (35 ILCS 5/224 new)
    Sec. 224. Invest in Kids credit.
    (a) For taxable years beginning on or after January 1, 2018
and ending before January 1, 2023, each taxpayer for whom a tax
credit has been awarded by the Department under the Invest in
Kids Act is entitled to a credit against the tax imposed under
subsections (a) and (b) of Section 201 of this Act in an amount
equal to the amount awarded under the Invest in Kids Act.
    (b) For partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if the
liability company is treated as a partnership for purposes of
federal and State income taxation, the credit under this
Section shall be determined in accordance with the
determination of income and distributive share of income under
Sections 702 and 704 and subchapter S of the Internal Revenue
Code.
    (c) The credit may not be carried back and may not reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset the liability, the earlier credit
shall be applied first.
    (d) A tax credit awarded by the Department under the Invest
in Kids Act may not be claimed for any qualified contribution
for which the taxpayer claims a federal income tax deduction.
 
    Section 925. The Property Tax Code is amended by changing
Sections 18-185, 18-200, and 18-249 and by adding Section
18-206 as follows:
 
    (35 ILCS 200/18-185)
    Sec. 18-185. Short title; definitions. This Division 5 may
be cited as the Property Tax Extension Limitation Law. As used
in this Division 5:
    "Consumer Price Index" means the Consumer Price Index for
All Urban Consumers for all items published by the United
States Department of Labor.
    "Extension limitation" means (a) the lesser of 5% or the
percentage increase in the Consumer Price Index during the
12-month calendar year preceding the levy year or (b) the rate
of increase approved by voters under Section 18-205.
    "Affected county" means a county of 3,000,000 or more
inhabitants or a county contiguous to a county of 3,000,000 or
more inhabitants.
    "Taxing district" has the same meaning provided in Section
1-150, except as otherwise provided in this Section. For the
1991 through 1994 levy years only, "taxing district" includes
only each non-home rule taxing district having the majority of
its 1990 equalized assessed value within any county or counties
contiguous to a county with 3,000,000 or more inhabitants.
Beginning with the 1995 levy year, "taxing district" includes
only each non-home rule taxing district subject to this Law
before the 1995 levy year and each non-home rule taxing
district not subject to this Law before the 1995 levy year
having the majority of its 1994 equalized assessed value in an
affected county or counties. Beginning with the levy year in
which this Law becomes applicable to a taxing district as
provided in Section 18-213, "taxing district" also includes
those taxing districts made subject to this Law as provided in
Section 18-213.
    "Aggregate extension" for taxing districts to which this
Law applied before the 1995 levy year means the annual
corporate extension for the taxing district and those special
purpose extensions that are made annually for the taxing
district, excluding special purpose extensions: (a) made for
the taxing district to pay interest or principal on general
obligation bonds that were approved by referendum; (b) made for
any taxing district to pay interest or principal on general
obligation bonds issued before October 1, 1991; (c) made for
any taxing district to pay interest or principal on bonds
issued to refund or continue to refund those bonds issued
before October 1, 1991; (d) made for any taxing district to pay
interest or principal on bonds issued to refund or continue to
refund bonds issued after October 1, 1991 that were approved by
referendum; (e) made for any taxing district to pay interest or
principal on revenue bonds issued before October 1, 1991 for
payment of which a property tax levy or the full faith and
credit of the unit of local government is pledged; however, a
tax for the payment of interest or principal on those bonds
shall be made only after the governing body of the unit of
local government finds that all other sources for payment are
insufficient to make those payments; (f) made for payments
under a building commission lease when the lease payments are
for the retirement of bonds issued by the commission before
October 1, 1991, to pay for the building project; (g) made for
payments due under installment contracts entered into before
October 1, 1991; (h) made for payments of principal and
interest on bonds issued under the Metropolitan Water
Reclamation District Act to finance construction projects
initiated before October 1, 1991; (i) made for payments of
principal and interest on limited bonds, as defined in Section
3 of the Local Government Debt Reform Act, in an amount not to
exceed the debt service extension base less the amount in items
(b), (c), (e), and (h) of this definition for non-referendum
obligations, except obligations initially issued pursuant to
referendum; (j) made for payments of principal and interest on
bonds issued under Section 15 of the Local Government Debt
Reform Act; (k) made by a school district that participates in
the Special Education District of Lake County, created by
special education joint agreement under Section 10-22.31 of the
School Code, for payment of the school district's share of the
amounts required to be contributed by the Special Education
District of Lake County to the Illinois Municipal Retirement
Fund under Article 7 of the Illinois Pension Code; the amount
of any extension under this item (k) shall be certified by the
school district to the county clerk; (l) made to fund expenses
of providing joint recreational programs for persons with
disabilities under Section 5-8 of the Park District Code or
Section 11-95-14 of the Illinois Municipal Code; (m) made for
temporary relocation loan repayment purposes pursuant to
Sections 2-3.77 and 17-2.2d of the School Code; (n) made for
payment of principal and interest on any bonds issued under the
authority of Section 17-2.2d of the School Code; (o) made for
contributions to a firefighter's pension fund created under
Article 4 of the Illinois Pension Code, to the extent of the
amount certified under item (5) of Section 4-134 of the
Illinois Pension Code; and (p) made for road purposes in the
first year after a township assumes the rights, powers, duties,
assets, property, liabilities, obligations, and
responsibilities of a road district abolished under the
provisions of Section 6-133 of the Illinois Highway Code.
    "Aggregate extension" for the taxing districts to which
this Law did not apply before the 1995 levy year (except taxing
districts subject to this Law in accordance with Section
18-213) means the annual corporate extension for the taxing
district and those special purpose extensions that are made
annually for the taxing district, excluding special purpose
extensions: (a) made for the taxing district to pay interest or
principal on general obligation bonds that were approved by
referendum; (b) made for any taxing district to pay interest or
principal on general obligation bonds issued before March 1,
1995; (c) made for any taxing district to pay interest or
principal on bonds issued to refund or continue to refund those
bonds issued before March 1, 1995; (d) made for any taxing
district to pay interest or principal on bonds issued to refund
or continue to refund bonds issued after March 1, 1995 that
were approved by referendum; (e) made for any taxing district
to pay interest or principal on revenue bonds issued before
March 1, 1995 for payment of which a property tax levy or the
full faith and credit of the unit of local government is
pledged; however, a tax for the payment of interest or
principal on those bonds shall be made only after the governing
body of the unit of local government finds that all other
sources for payment are insufficient to make those payments;
(f) made for payments under a building commission lease when
the lease payments are for the retirement of bonds issued by
the commission before March 1, 1995 to pay for the building
project; (g) made for payments due under installment contracts
entered into before March 1, 1995; (h) made for payments of
principal and interest on bonds issued under the Metropolitan
Water Reclamation District Act to finance construction
projects initiated before October 1, 1991; (h-4) made for
stormwater management purposes by the Metropolitan Water
Reclamation District of Greater Chicago under Section 12 of the
Metropolitan Water Reclamation District Act; (i) made for
payments of principal and interest on limited bonds, as defined
in Section 3 of the Local Government Debt Reform Act, in an
amount not to exceed the debt service extension base less the
amount in items (b), (c), and (e) of this definition for
non-referendum obligations, except obligations initially
issued pursuant to referendum and bonds described in subsection
(h) of this definition; (j) made for payments of principal and
interest on bonds issued under Section 15 of the Local
Government Debt Reform Act; (k) made for payments of principal
and interest on bonds authorized by Public Act 88-503 and
issued under Section 20a of the Chicago Park District Act for
aquarium or museum projects; (l) made for payments of principal
and interest on bonds authorized by Public Act 87-1191 or
93-601 and (i) issued pursuant to Section 21.2 of the Cook
County Forest Preserve District Act, (ii) issued under Section
42 of the Cook County Forest Preserve District Act for
zoological park projects, or (iii) issued under Section 44.1 of
the Cook County Forest Preserve District Act for botanical
gardens projects; (m) made pursuant to Section 34-53.5 of the
School Code, whether levied annually or not; (n) made to fund
expenses of providing joint recreational programs for persons
with disabilities under Section 5-8 of the Park District Code
or Section 11-95-14 of the Illinois Municipal Code; (o) made by
the Chicago Park District for recreational programs for persons
with disabilities under subsection (c) of Section 7.06 of the
Chicago Park District Act; (p) made for contributions to a
firefighter's pension fund created under Article 4 of the
Illinois Pension Code, to the extent of the amount certified
under item (5) of Section 4-134 of the Illinois Pension Code;
(q) made by Ford Heights School District 169 under Section
17-9.02 of the School Code; and (r) made for the purpose of
making employer contributions to the Public School Teachers'
Pension and Retirement Fund of Chicago under Section 34-53 of
the School Code.
    "Aggregate extension" for all taxing districts to which
this Law applies in accordance with Section 18-213, except for
those taxing districts subject to paragraph (2) of subsection
(e) of Section 18-213, means the annual corporate extension for
the taxing district and those special purpose extensions that
are made annually for the taxing district, excluding special
purpose extensions: (a) made for the taxing district to pay
interest or principal on general obligation bonds that were
approved by referendum; (b) made for any taxing district to pay
interest or principal on general obligation bonds issued before
the date on which the referendum making this Law applicable to
the taxing district is held; (c) made for any taxing district
to pay interest or principal on bonds issued to refund or
continue to refund those bonds issued before the date on which
the referendum making this Law applicable to the taxing
district is held; (d) made for any taxing district to pay
interest or principal on bonds issued to refund or continue to
refund bonds issued after the date on which the referendum
making this Law applicable to the taxing district is held if
the bonds were approved by referendum after the date on which
the referendum making this Law applicable to the taxing
district is held; (e) made for any taxing district to pay
interest or principal on revenue bonds issued before the date
on which the referendum making this Law applicable to the
taxing district is held for payment of which a property tax
levy or the full faith and credit of the unit of local
government is pledged; however, a tax for the payment of
interest or principal on those bonds shall be made only after
the governing body of the unit of local government finds that
all other sources for payment are insufficient to make those
payments; (f) made for payments under a building commission
lease when the lease payments are for the retirement of bonds
issued by the commission before the date on which the
referendum making this Law applicable to the taxing district is
held to pay for the building project; (g) made for payments due
under installment contracts entered into before the date on
which the referendum making this Law applicable to the taxing
district is held; (h) made for payments of principal and
interest on limited bonds, as defined in Section 3 of the Local
Government Debt Reform Act, in an amount not to exceed the debt
service extension base less the amount in items (b), (c), and
(e) of this definition for non-referendum obligations, except
obligations initially issued pursuant to referendum; (i) made
for payments of principal and interest on bonds issued under
Section 15 of the Local Government Debt Reform Act; (j) made
for a qualified airport authority to pay interest or principal
on general obligation bonds issued for the purpose of paying
obligations due under, or financing airport facilities
required to be acquired, constructed, installed or equipped
pursuant to, contracts entered into before March 1, 1996 (but
not including any amendments to such a contract taking effect
on or after that date); (k) made to fund expenses of providing
joint recreational programs for persons with disabilities
under Section 5-8 of the Park District Code or Section 11-95-14
of the Illinois Municipal Code; (l) made for contributions to a
firefighter's pension fund created under Article 4 of the
Illinois Pension Code, to the extent of the amount certified
under item (5) of Section 4-134 of the Illinois Pension Code;
and (m) made for the taxing district to pay interest or
principal on general obligation bonds issued pursuant to
Section 19-3.10 of the School Code.
    "Aggregate extension" for all taxing districts to which
this Law applies in accordance with paragraph (2) of subsection
(e) of Section 18-213 means the annual corporate extension for
the taxing district and those special purpose extensions that
are made annually for the taxing district, excluding special
purpose extensions: (a) made for the taxing district to pay
interest or principal on general obligation bonds that were
approved by referendum; (b) made for any taxing district to pay
interest or principal on general obligation bonds issued before
the effective date of this amendatory Act of 1997; (c) made for
any taxing district to pay interest or principal on bonds
issued to refund or continue to refund those bonds issued
before the effective date of this amendatory Act of 1997; (d)
made for any taxing district to pay interest or principal on
bonds issued to refund or continue to refund bonds issued after
the effective date of this amendatory Act of 1997 if the bonds
were approved by referendum after the effective date of this
amendatory Act of 1997; (e) made for any taxing district to pay
interest or principal on revenue bonds issued before the
effective date of this amendatory Act of 1997 for payment of
which a property tax levy or the full faith and credit of the
unit of local government is pledged; however, a tax for the
payment of interest or principal on those bonds shall be made
only after the governing body of the unit of local government
finds that all other sources for payment are insufficient to
make those payments; (f) made for payments under a building
commission lease when the lease payments are for the retirement
of bonds issued by the commission before the effective date of
this amendatory Act of 1997 to pay for the building project;
(g) made for payments due under installment contracts entered
into before the effective date of this amendatory Act of 1997;
(h) made for payments of principal and interest on limited
bonds, as defined in Section 3 of the Local Government Debt
Reform Act, in an amount not to exceed the debt service
extension base less the amount in items (b), (c), and (e) of
this definition for non-referendum obligations, except
obligations initially issued pursuant to referendum; (i) made
for payments of principal and interest on bonds issued under
Section 15 of the Local Government Debt Reform Act; (j) made
for a qualified airport authority to pay interest or principal
on general obligation bonds issued for the purpose of paying
obligations due under, or financing airport facilities
required to be acquired, constructed, installed or equipped
pursuant to, contracts entered into before March 1, 1996 (but
not including any amendments to such a contract taking effect
on or after that date); (k) made to fund expenses of providing
joint recreational programs for persons with disabilities
under Section 5-8 of the Park District Code or Section 11-95-14
of the Illinois Municipal Code; and (l) made for contributions
to a firefighter's pension fund created under Article 4 of the
Illinois Pension Code, to the extent of the amount certified
under item (5) of Section 4-134 of the Illinois Pension Code.
    "Debt service extension base" means an amount equal to that
portion of the extension for a taxing district for the 1994
levy year, or for those taxing districts subject to this Law in
accordance with Section 18-213, except for those subject to
paragraph (2) of subsection (e) of Section 18-213, for the levy
year in which the referendum making this Law applicable to the
taxing district is held, or for those taxing districts subject
to this Law in accordance with paragraph (2) of subsection (e)
of Section 18-213 for the 1996 levy year, constituting an
extension for payment of principal and interest on bonds issued
by the taxing district without referendum, but not including
excluded non-referendum bonds. For park districts (i) that were
first subject to this Law in 1991 or 1995 and (ii) whose
extension for the 1994 levy year for the payment of principal
and interest on bonds issued by the park district without
referendum (but not including excluded non-referendum bonds)
was less than 51% of the amount for the 1991 levy year
constituting an extension for payment of principal and interest
on bonds issued by the park district without referendum (but
not including excluded non-referendum bonds), "debt service
extension base" means an amount equal to that portion of the
extension for the 1991 levy year constituting an extension for
payment of principal and interest on bonds issued by the park
district without referendum (but not including excluded
non-referendum bonds). A debt service extension base
established or increased at any time pursuant to any provision
of this Law, except Section 18-212, shall be increased each
year commencing with the later of (i) the 2009 levy year or
(ii) the first levy year in which this Law becomes applicable
to the taxing district, by the lesser of 5% or the percentage
increase in the Consumer Price Index during the 12-month
calendar year preceding the levy year. The debt service
extension base may be established or increased as provided
under Section 18-212. "Excluded non-referendum bonds" means
(i) bonds authorized by Public Act 88-503 and issued under
Section 20a of the Chicago Park District Act for aquarium and
museum projects; (ii) bonds issued under Section 15 of the
Local Government Debt Reform Act; or (iii) refunding
obligations issued to refund or to continue to refund
obligations initially issued pursuant to referendum.
    "Special purpose extensions" include, but are not limited
to, extensions for levies made on an annual basis for
unemployment and workers' compensation, self-insurance,
contributions to pension plans, and extensions made pursuant to
Section 6-601 of the Illinois Highway Code for a road
district's permanent road fund whether levied annually or not.
The extension for a special service area is not included in the
aggregate extension.
    "Aggregate extension base" means the taxing district's
last preceding aggregate extension as adjusted under Sections
18-135, 18-215, and 18-230, and 18-206. An adjustment under
Section 18-135 shall be made for the 2007 levy year and all
subsequent levy years whenever one or more counties within
which a taxing district is located (i) used estimated
valuations or rates when extending taxes in the taxing district
for the last preceding levy year that resulted in the over or
under extension of taxes, or (ii) increased or decreased the
tax extension for the last preceding levy year as required by
Section 18-135(c). Whenever an adjustment is required under
Section 18-135, the aggregate extension base of the taxing
district shall be equal to the amount that the aggregate
extension of the taxing district would have been for the last
preceding levy year if either or both (i) actual, rather than
estimated, valuations or rates had been used to calculate the
extension of taxes for the last levy year, or (ii) the tax
extension for the last preceding levy year had not been
adjusted as required by subsection (c) of Section 18-135.
    Notwithstanding any other provision of law, for levy year
2012, the aggregate extension base for West Northfield School
District No. 31 in Cook County shall be $12,654,592.
    "Levy year" has the same meaning as "year" under Section
1-155.
    "New property" means (i) the assessed value, after final
board of review or board of appeals action, of new improvements
or additions to existing improvements on any parcel of real
property that increase the assessed value of that real property
during the levy year multiplied by the equalization factor
issued by the Department under Section 17-30, (ii) the assessed
value, after final board of review or board of appeals action,
of real property not exempt from real estate taxation, which
real property was exempt from real estate taxation for any
portion of the immediately preceding levy year, multiplied by
the equalization factor issued by the Department under Section
17-30, including the assessed value, upon final stabilization
of occupancy after new construction is complete, of any real
property located within the boundaries of an otherwise or
previously exempt military reservation that is intended for
residential use and owned by or leased to a private corporation
or other entity, (iii) in counties that classify in accordance
with Section 4 of Article IX of the Illinois Constitution, an
incentive property's additional assessed value resulting from
a scheduled increase in the level of assessment as applied to
the first year final board of review market value, and (iv) any
increase in assessed value due to oil or gas production from an
oil or gas well required to be permitted under the Hydraulic
Fracturing Regulatory Act that was not produced in or accounted
for during the previous levy year. In addition, the county
clerk in a county containing a population of 3,000,000 or more
shall include in the 1997 recovered tax increment value for any
school district, any recovered tax increment value that was
applicable to the 1995 tax year calculations.
    "Qualified airport authority" means an airport authority
organized under the Airport Authorities Act and located in a
county bordering on the State of Wisconsin and having a
population in excess of 200,000 and not greater than 500,000.
    "Recovered tax increment value" means, except as otherwise
provided in this paragraph, the amount of the current year's
equalized assessed value, in the first year after a
municipality terminates the designation of an area as a
redevelopment project area previously established under the
Tax Increment Allocation Development Act in the Illinois
Municipal Code, previously established under the Industrial
Jobs Recovery Law in the Illinois Municipal Code, previously
established under the Economic Development Project Area Tax
Increment Act of 1995, or previously established under the
Economic Development Area Tax Increment Allocation Act, of each
taxable lot, block, tract, or parcel of real property in the
redevelopment project area over and above the initial equalized
assessed value of each property in the redevelopment project
area. For the taxes which are extended for the 1997 levy year,
the recovered tax increment value for a non-home rule taxing
district that first became subject to this Law for the 1995
levy year because a majority of its 1994 equalized assessed
value was in an affected county or counties shall be increased
if a municipality terminated the designation of an area in 1993
as a redevelopment project area previously established under
the Tax Increment Allocation Development Act in the Illinois
Municipal Code, previously established under the Industrial
Jobs Recovery Law in the Illinois Municipal Code, or previously
established under the Economic Development Area Tax Increment
Allocation Act, by an amount equal to the 1994 equalized
assessed value of each taxable lot, block, tract, or parcel of
real property in the redevelopment project area over and above
the initial equalized assessed value of each property in the
redevelopment project area. In the first year after a
municipality removes a taxable lot, block, tract, or parcel of
real property from a redevelopment project area established
under the Tax Increment Allocation Development Act in the
Illinois Municipal Code, the Industrial Jobs Recovery Law in
the Illinois Municipal Code, or the Economic Development Area
Tax Increment Allocation Act, "recovered tax increment value"
means the amount of the current year's equalized assessed value
of each taxable lot, block, tract, or parcel of real property
removed from the redevelopment project area over and above the
initial equalized assessed value of that real property before
removal from the redevelopment project area.
    Except as otherwise provided in this Section, "limiting
rate" means a fraction the numerator of which is the last
preceding aggregate extension base times an amount equal to one
plus the extension limitation defined in this Section and the
denominator of which is the current year's equalized assessed
value of all real property in the territory under the
jurisdiction of the taxing district during the prior levy year.
For those taxing districts that reduced their aggregate
extension for the last preceding levy year, except for school
districts that reduced their extension for educational
purposes pursuant to Section 18-206, the highest aggregate
extension in any of the last 3 preceding levy years shall be
used for the purpose of computing the limiting rate. The
denominator shall not include new property or the recovered tax
increment value. If a new rate, a rate decrease, or a limiting
rate increase has been approved at an election held after March
21, 2006, then (i) the otherwise applicable limiting rate shall
be increased by the amount of the new rate or shall be reduced
by the amount of the rate decrease, as the case may be, or (ii)
in the case of a limiting rate increase, the limiting rate
shall be equal to the rate set forth in the proposition
approved by the voters for each of the years specified in the
proposition, after which the limiting rate of the taxing
district shall be calculated as otherwise provided. In the case
of a taxing district that obtained referendum approval for an
increased limiting rate on March 20, 2012, the limiting rate
for tax year 2012 shall be the rate that generates the
approximate total amount of taxes extendable for that tax year,
as set forth in the proposition approved by the voters; this
rate shall be the final rate applied by the county clerk for
the aggregate of all capped funds of the district for tax year
2012.
(Source: P.A. 98-6, eff. 3-29-13; 98-23, eff. 6-17-13; 99-143,
eff. 7-27-15; 99-521, eff. 6-1-17.)
 
    (35 ILCS 200/18-200)
    Sec. 18-200. School Code. A school district's State aid
shall not be reduced under the computation under subsections
5(a) through 5(h) of Part A of Section 18-8 of the School Code
or under Section 18-8.15 of the School Code due to the
operating tax rate falling from above the minimum requirement
of that Section of the School Code to below the minimum
requirement of that Section of the School Code due to the
operation of this Law.
(Source: P.A. 87-17; 88-455.)
 
    (35 ILCS 200/18-206 new)
    Sec. 18-206. Decrease in extension for educational
purposes.
    (a) Notwithstanding any other provision of law, for those
school districts whose adequacy targets, as defined in Section
18-8.15 of this Code, exceed 110% for the school year that
begins during the calendar year immediately preceding the levy
year for which the reduction under this Section is sought, the
question of whether the school district shall reduce its
extension for educational purposes for the levy year in which
the election is held to an amount that is less than the
extension for educational purposes for the immediately
preceding levy year shall be submitted to the voters of the
school district at the next consolidated election but only upon
submission of a petition signed by not fewer than 10% of the
registered voters in the school district. In no event shall the
reduced extension be more than 10% lower than the amount
extended for educational purposes in the previous levy year,
and in no event shall the reduction cause the school district's
adequacy target to fall below 110% for the levy year for which
the reduction is sought.
    (b) The petition shall be filed with the applicable
election authority, as defined in Section 1-3 of the Election
Code, or, in the case of multiple election authorities, with
the State Board of Elections, not more than 10 months nor less
than 6 months prior to the election at which the question is to
be submitted to the voters, and its validity shall be
determined as provided by Article 28 of the Election Code and
general election law. The election authority or Board, as
applicable, shall certify the question and the proper election
authority or authorities shall submit the question to the
voters. Except as otherwise provided in this Section, this
referendum shall be subject to all other general election law
requirements.
    (c) The proposition seeking to reduce the extension for
educational purposes shall be in substantially the following
form:
        Shall the amount extended for educational purposes by
    (school district) be reduced from (previous levy year's
    extension) to (proposed extension) for (levy year), but in
    no event lower than the amount required to maintain an
    adequacy target of 110%?
    Votes shall be recorded as "Yes" or "No".
    If a majority of all votes cast on the proposition are in
favor of the proposition, then, for the levy year in which the
election is held, the amount extended by the school district
for educational purposes shall be reduced as provided in the
referendum; however, in no event shall the reduction exceed the
amount that would cause the school district to have an adequacy
target of 110% for the applicable school year.
    Once the question is submitted to the voters, then the
question may not be submitted again for the same school
district at any of the next 2 consolidated elections.
    (d) For school districts that approve a reduction under
this Section, the county clerk shall extend a rate for
educational purposes that is no greater than the limiting rate
for educational purposes. If the school district is otherwise
subject to this Law for the applicable levy year, then, for the
levy year in which the reduction occurs, the county clerk shall
calculate separate limiting rates for educational purposes and
for the aggregate of the school district's other funds.
    As used in this Section:
    "School district" means each school district in the State,
regardless of whether or not that school district is otherwise
subject to this Law.
    "Limiting rate for educational purposes" means a fraction
the numerator of which is the greater of (i) the amount
approved by the voters in the referendum under subsection (c)
of this Section or (ii) the amount that would cause the school
district to have an adequacy target of 110% for the applicable
school year, but in no event more than the school district's
extension for educational purposes in the immediately
preceding levy year, and the denominator of which is the
current year's equalized assessed value of all real property
under the jurisdiction of the school district during the prior
levy year.
 
    (35 ILCS 200/18-249)
    Sec. 18-249. Miscellaneous provisions.
    (a) Certification of new property. For the 1994 levy year,
the chief county assessment officer shall certify to the county
clerk, after all changes by the board of review or board of
appeals, as the case may be, the assessed value of new property
by taxing district for the 1994 levy year under rules
promulgated by the Department.
    (b) School Code. A school district's State aid shall not be
reduced under the computation under subsections 5(a) through
5(h) of Part A of Section 18-8 of the School Code or under
Section 18-8.15 of the School Code due to the operating tax
rate falling from above the minimum requirement of that Section
of the School Code to below the minimum requirement of that
Section of the School Code due to the operation of this Law.
    (c) Rules. The Department shall make and promulgate
reasonable rules relating to the administration of the purposes
and provisions of Sections 18-246 through 18-249 as may be
necessary or appropriate.
(Source: P.A. 89-1, eff. 2-12-95.)
 
    Section 930. The Illinois Pension Code is amended by
changing Section 17-127 as follows:
 
    (40 ILCS 5/17-127)  (from Ch. 108 1/2, par. 17-127)
    Sec. 17-127. Financing; revenues for the Fund.
    (a) The revenues for the Fund shall consist of: (1) amounts
paid into the Fund by contributors thereto and from employer
contributions and State appropriations in accordance with this
Article; (2) amounts contributed to the Fund by an Employer;
(3) amounts contributed to the Fund pursuant to any law now in
force or hereafter to be enacted; (4) contributions from any
other source; and (5) the earnings on investments.
    (b) The General Assembly finds that for many years the
State has contributed to the Fund an annual amount that is
between 20% and 30% of the amount of the annual State
contribution to the Article 16 retirement system, and the
General Assembly declares that it is its goal and intention to
continue this level of contribution to the Fund in the future.
    (c) Beginning in State fiscal year 1999, the State shall
include in its annual contribution to the Fund an additional
amount equal to 0.544% of the Fund's total teacher payroll;
except that this additional contribution need not be made in a
fiscal year if the Board has certified in the previous fiscal
year that the Fund is at least 90% funded, based on actuarial
determinations. These additional State contributions are
intended to offset a portion of the cost to the Fund of the
increases in retirement benefits resulting from this
amendatory Act of 1998.
    (d) In addition to any other contribution required under
this Article, including the contribution required under
subsection (c), the State shall contribute to the Fund the
following amounts:
        (1) For State fiscal year 2018, the State shall
    contribute $221,300,000 for the employer normal cost for
    fiscal year 2018 and the amount allowed under paragraph (3)
    of Section 17-142.1 of this Code to defray health insurance
    costs. Funds for this paragraph (1) shall come from funds
    appropriated for Evidence-Based Funding pursuant to
    Section 18-8.15 of the School Code.
        (2) Beginning in State fiscal year 2019, the State
    shall contribute for each fiscal year an amount to be
    determined by the Fund, equal to the employer normal cost
    for that fiscal year, plus the amount allowed pursuant to
    paragraph (3) of Section 17-142.1 to defray health
    insurance costs.
    (e) The Board shall determine the amount of State
contributions required for each fiscal year on the basis of the
actuarial tables and other assumptions adopted by the Board and
the recommendations of the actuary. On or before November 1 of
each year, beginning November 1, 2017, the Board shall submit
to the State Actuary, the Governor, and the General Assembly a
proposed certification of the amount of the required State
contribution to the Fund for the next fiscal year, along with
all of the actuarial assumptions, calculations, and data upon
which that proposed certification is based.
    On or before January 1 of each year, beginning January 1,
2018, the State Actuary shall issue a preliminary report
concerning the proposed certification and identifying, if
necessary, recommended changes in actuarial assumptions that
the Board must consider before finalizing its certification of
the required State contributions.
    (f) On or before January 15, 2018 and each January 15
thereafter, the Board shall certify to the Governor and the
General Assembly the amount of the required State contribution
for the next fiscal year. The certification shall include a
copy of the actuarial recommendations upon which it is based
and shall specifically identify the Fund's projected employer
normal cost for that fiscal year. The Board's certification
must note any deviations from the State Actuary's recommended
changes, the reason or reasons for not following the State
Actuary's recommended changes, and the fiscal impact of not
following the State Actuary's recommended changes on the
required State contribution.
    For the purposes of this Article, including issuing
vouchers, and for the purposes of subsection (h) of Section 1.1
of the State Pension Funds Continuing Appropriation Act, the
State contribution specified for State fiscal year 2018 shall
be deemed to have been certified, by operation of law and
without official action by the Board or the State Actuary, in
the amount provided in subsection (c) and subsection (d) of
this Section.
    (g) For State fiscal year 2018, the State Board of
Education shall submit vouchers, as directed by the Board, for
payment of State contributions to the Fund for the required
annual State contribution under subsection (d) of this Section.
These vouchers shall be paid by the State Comptroller and
Treasurer by warrants drawn on the amount appropriated to the
State Board of Education from the Common School Fund in Section
5 of Article 97 of Public Act 100-21. If State appropriations
for State fiscal year 2018 are less than the amount lawfully
vouchered under this subsection, the difference shall be paid
from the Common School Fund under the continuing appropriation
authority provided in Section 1.1 of the State Pension Funds
Continuing Appropriation Act.
    (h) For State fiscal year 2018, the Board shall submit
vouchers for the payment of State contributions to the Fund for
the required annual State contribution under subsection (c) of
this Section. Beginning in State fiscal year 2019, the Board
shall submit vouchers for payment of State contributions to the
Fund for the required annual State contribution under
subsections (c) and (d) of this Section. These vouchers shall
be paid by the State Comptroller and Treasurer by warrants
drawn on the funds appropriated to the Fund for that fiscal
year. If State appropriations to the Fund for the applicable
fiscal year are less than the amount lawfully vouchered under
this subsection, the difference shall be paid from the Common
School Fund under the continuing appropriation authority
provided in Section 1.1 of the State Pension Funds Continuing
Appropriation Act.
(Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98;
90-582, eff. 5-27-98; 90-655, eff. 7-30-98.)
 
    Section 935. The State Pension Funds Continuing
Appropriation Act is amended by changing Section 1.1 as
follows:
 
    (40 ILCS 15/1.1)
    Sec. 1.1. Appropriations to certain retirement systems.
    (a) There is hereby appropriated from the General Revenue
Fund to the General Assembly Retirement System, on a continuing
monthly basis, the amount, if any, by which the total available
amount of all other appropriations to that retirement system
for the payment of State contributions is less than the total
amount of the vouchers for required State contributions
lawfully submitted by the retirement system for that month
under Section 2-134 of the Illinois Pension Code.
    (b) There is hereby appropriated from the General Revenue
Fund to the State Universities Retirement System, on a
continuing monthly basis, the amount, if any, by which the
total available amount of all other appropriations to that
retirement system for the payment of State contributions,
including any deficiency in the required contributions of the
optional retirement program established under Section 15-158.2
of the Illinois Pension Code, is less than the total amount of
the vouchers for required State contributions lawfully
submitted by the retirement system for that month under Section
15-165 of the Illinois Pension Code.
    (c) There is hereby appropriated from the Common School
Fund to the Teachers' Retirement System of the State of
Illinois, on a continuing monthly basis, the amount, if any, by
which the total available amount of all other appropriations to
that retirement system for the payment of State contributions
is less than the total amount of the vouchers for required
State contributions lawfully submitted by the retirement
system for that month under Section 16-158 of the Illinois
Pension Code.
    (d) There is hereby appropriated from the General Revenue
Fund to the Judges Retirement System of Illinois, on a
continuing monthly basis, the amount, if any, by which the
total available amount of all other appropriations to that
retirement system for the payment of State contributions is
less than the total amount of the vouchers for required State
contributions lawfully submitted by the retirement system for
that month under Section 18-140 of the Illinois Pension Code.
    (e) The continuing appropriations provided by subsections
(a), (b), (c), and (d) of this Section shall first be available
in State fiscal year 1996. The continuing appropriations
provided by subsection (h) of this Section shall first be
available as provided in that subsection (h).
    (f) For State fiscal year 2010 only, the continuing
appropriations provided by this Section are equal to the amount
certified by each System on or before December 31, 2008, less
(i) the gross proceeds of the bonds sold in fiscal year 2010
under the authorization contained in subsection (a) of Section
7.2 of the General Obligation Bond Act and (ii) any amounts
received from the State Pensions Fund.
    (g) For State fiscal year 2011 only, the continuing
appropriations provided by this Section are equal to the amount
certified by each System on or before April 1, 2011, less (i)
the gross proceeds of the bonds sold in fiscal year 2011 under
the authorization contained in subsection (a) of Section 7.2 of
the General Obligation Bond Act and (ii) any amounts received
from the State Pensions Fund.
    (h) There is hereby appropriated from the Common School
Fund to the Public School Teachers' Pension and Retirement Fund
of Chicago, on a continuing basis, the amount, if any, by which
the total available amount of all other State appropriations to
that Retirement Fund for the payment of State contributions
under Section 17-127 of the Illinois Pension Code is less than
the total amount of the vouchers for required State
contributions lawfully submitted by the Retirement Fund or the
State Board of Education, under that Section 17-127.
(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
96-1511, eff. 1-27-11.)
 
    Section 940. The Innovation Development and Economy Act is
amended by changing Section 33 as follows:
 
    (50 ILCS 470/33)
    Sec. 33. STAR Bonds School Improvement and Operations Trust
Fund.
    (a) The STAR Bonds School Improvement and Operations Trust
Fund is created as a trust fund in the State treasury. Deposits
into the Trust Fund shall be made as provided under this
Section. Moneys in the Trust Fund shall be used by the
Department of Revenue only for the purpose of making payments
to school districts in educational service regions that include
or are adjacent to the STAR bond district. Moneys in the Trust
Fund are not subject to appropriation and shall be used solely
as provided in this Section. All deposits into the Trust Fund
shall be held in the Trust Fund by the State Treasurer as ex
officio custodian separate and apart from all public moneys or
funds of this State and shall be administered by the Department
exclusively for the purposes set forth in this Section. All
moneys in the Trust Fund shall be invested and reinvested by
the State Treasurer. All interest accruing from these
investments shall be deposited in the Trust Fund.
    (b) Upon approval of a STAR bond district, the political
subdivision shall immediately transmit to the county clerk of
the county in which the district is located a certified copy of
the ordinance creating the district, a legal description of the
district, a map of the district, identification of the year
that the county clerk shall use for determining the total
initial equalized assessed value of the district consistent
with subsection (c), and a list of the parcel or tax
identification number of each parcel of property included in
the district.
    (c) Upon approval of a STAR bond district, the county clerk
immediately thereafter shall determine (i) the most recently
ascertained equalized assessed value of each lot, block, tract,
or parcel of real property within the STAR bond district, from
which shall be deducted the homestead exemptions under Article
15 of the Property Tax Code, which value shall be the initial
equalized assessed value of each such piece of property, and
(ii) the total equalized assessed value of all taxable real
property within the district by adding together the most
recently ascertained equalized assessed value of each taxable
lot, block, tract, or parcel of real property within the
district, from which shall be deducted the homestead exemptions
under Article 15 of the Property Tax Code, and shall certify
that amount as the total initial equalized assessed value of
the taxable real property within the STAR bond district.
    (d) In reference to any STAR bond district created within
any political subdivision, and in respect to which the county
clerk has certified the total initial equalized assessed value
of the property in the area, the political subdivision may
thereafter request the clerk in writing to adjust the initial
equalized value of all taxable real property within the STAR
bond district by deducting therefrom the exemptions under
Article 15 of the Property Tax Code applicable to each lot,
block, tract, or parcel of real property within the STAR bond
district. The county clerk shall immediately, after the written
request to adjust the total initial equalized value is
received, determine the total homestead exemptions in the STAR
bond district as provided under Article 15 of the Property Tax
Code by adding together the homestead exemptions provided by
said Article on each lot, block, tract, or parcel of real
property within the STAR bond district and then shall deduct
the total of said exemptions from the total initial equalized
assessed value. The county clerk shall then promptly certify
that amount as the total initial equalized assessed value as
adjusted of the taxable real property within the STAR bond
district.
    (e) The county clerk or other person authorized by law
shall compute the tax rates for each taxing district with all
or a portion of its equalized assessed value located in the
STAR bond district. The rate per cent of tax determined shall
be extended to the current equalized assessed value of all
property in the district in the same manner as the rate per
cent of tax is extended to all other taxable property in the
taxing district.
    (f) Beginning with the assessment year in which the first
destination user in the first STAR bond project in a STAR bond
district makes its first retail sales and for each assessment
year thereafter until final maturity of the last STAR bonds
issued in the district, the county clerk or other person
authorized by law shall determine the increase in equalized
assessed value of all real property within the STAR bond
district by subtracting the initial equalized assessed value of
all property in the district certified under subsection (c)
from the current equalized assessed value of all property in
the district. Each year, the property taxes arising from the
increase in equalized assessed value in the STAR bond district
shall be determined for each taxing district and shall be
certified to the county collector.
    (g) Beginning with the year in which taxes are collected
based on the assessment year in which the first destination
user in the first STAR bond project in a STAR bond district
makes its first retail sales and for each year thereafter until
final maturity of the last STAR bonds issued in the district,
the county collector shall, within 30 days after receipt of
property taxes, transmit to the Department to be deposited into
the STAR Bonds School Improvement and Operations Trust Fund 15%
of property taxes attributable to the increase in equalized
assessed value within the STAR bond district from each taxing
district as certified in subsection (f).
    (h) The Department shall pay to the regional superintendent
of schools whose educational service region includes Franklin
and Williamson Counties, for each year for which money is
remitted to the Department and paid into the STAR Bonds School
Improvement and Operations Trust Fund, the money in the Fund as
provided in this Section. The amount paid to each school
district shall be allocated proportionately, based on each
qualifying school district's fall enrollment for the
then-current school year, such that the school district with
the largest fall enrollment receives the largest proportionate
share of money paid out of the Fund or by any other method or
formula that the regional superintendent of schools deems fit,
equitable, and in the public interest. The regional
superintendent may allocate moneys to school districts that are
outside of his or her educational service region or to other
regional superintendents.
    The Department shall determine the distributions under
this Section using its best judgment and information. The
Department shall be held harmless for the distributions made
under this Section and all distributions shall be final.
    (i) In any year that an assessment appeal is filed, the
extension of taxes on any assessment so appealed shall not be
delayed. In the case of an assessment that is altered, any
taxes extended upon the unauthorized assessment or part thereof
shall be abated, or, if already paid, shall be refunded with
interest as provided in Section 23-20 of the Property Tax Code.
In the case of an assessment appeal, the county collector shall
notify the Department that an assessment appeal has been filed
and the amount of the tax that would have been deposited in the
STAR Bonds School Improvement and Operations Trust Fund. The
county collector shall hold that amount in a separate fund
until the appeal process is final. After the appeal process is
finalized, the county collector shall transmit to the
Department the amount of tax that remains, if any, after all
required refunds are made. The Department shall pay any amount
deposited into the Trust Fund under this Section in the same
proportion as determined for payments for that taxable year
under subsection (h).
    (j) In any year that ad valorem taxes are allocated to the
STAR Bonds School Improvement and Operations Trust Fund, that
allocation shall not reduce or otherwise impact the school aid
provided to any school district under the general State school
aid formula provided for in Section 18-8.05 of the School Code
or the evidence-based funding formula provided for in Section
18-8.15 of the School Code.
(Source: P.A. 96-939, eff. 6-24-10.)
 
    Section 945. The County Economic Development Project Area
Property Tax Allocation Act is amended by changing Section 7 as
follows:
 
    (55 ILCS 85/7)  (from Ch. 34, par. 7007)
    Sec. 7. Creation of special tax allocation fund. If a
county has adopted property tax allocation financing by
ordinance for an economic development project area, the
Department has approved and certified the economic development
project area, and the county clerk has thereafter certified the
"total initial equalized value" of the taxable real property
within such economic development project area in the manner
provided in subsection (b) of Section 6 of this Act, each year
after the date of the certification by the county clerk of the
"initial equalized assessed value" until economic development
project costs and all county obligations financing economic
development project costs have been paid, the ad valorem taxes,
if any, arising from the levies upon the taxable real property
in the economic development project area by taxing districts
and tax rates determined in the manner provided in subsection
(b) of Section 6 of this Act shall be divided as follows:
        (1) That portion of the taxes levied upon each taxable
    lot, block, tract or parcel of real property which is
    attributable to the lower of the current equalized assessed
    value or the initial equalized assessed value of each such
    taxable lot, block, tract, or parcel of real property
    existing at the time property tax allocation financing was
    adopted shall be allocated and when collected shall be paid
    by the county collector to the respective affected taxing
    districts in the manner required by the law in the absence
    of the adoption of property tax allocation financing.
        (2) That portion, if any, of those taxes which is
    attributable to the increase in the current equalized
    assessed valuation of each taxable lot, block, tract, or
    parcel of real property in the economic development project
    are, over and above the initial equalized assessed value of
    each property existing at the time property tax allocation
    financing was adopted shall be allocated to and when
    collected shall be paid to the county treasurer, who shall
    deposit those taxes into a special fund called the special
    tax allocation fund of the county for the purpose of paying
    economic development project costs and obligations
    incurred in the payment thereof.
    The county, by an ordinance adopting property tax
allocation financing, may pledge the funds in and to be
deposited in the special tax allocation fund for the payment of
obligations issued under this Act and for the payment of
economic development project costs. No part of the current
equalized assessed valuation of each property in the economic
development project area attributable to any increase above the
total initial equalized assessed value of such properties shall
be used in calculating the general State school aid formula,
provided for in Section 18-8 of the School Code, or the
evidence-based funding formula, provided for in Section
18-8.15 of the School Code, until such time as all economic
development projects costs have been paid as provided for in
this Section.
    Whenever a county issues bonds for the purpose of financing
economic development project costs, the county may provide by
ordinance for the appointment of a trustee, which may be any
trust company within the State, and for the establishment of
the funds or accounts to be maintained by such trustee as the
county shall deem necessary to provide for the security and
payment of the bonds. If the county provides for the
appointment of a trustee, the trustee shall be considered the
assignee of any payments assigned by the county pursuant to the
ordinance and this Section. Any amounts paid to the trustee as
assignee shall be deposited in the funds or accounts
established pursuant to the trust agreement, and shall be held
by the trustee in trust for the benefit of the holders of the
bonds, and the holders shall have a lien on and a security
interest in those bonds or accounts so long as the bonds remain
outstanding and unpaid. Upon retirement of the bonds, the
trustee shall pay over any excess amounts held to the county
for deposit in the special tax allocation fund.
    When the economic development project costs, including
without limitation all county obligations financing economic
development project costs incurred under this Act, have been
paid, all surplus funds then remaining in the special tax
allocation funds shall be distributed by being paid by the
county treasurer to the county collector, who shall immediately
thereafter pay those funds to the taxing districts having
taxable property in the economic development project area in
the same manner and proportion as the most recent distribution
by the county collector to those taxing districts of real
property taxes from real property in the economic development
project area.
    Upon the payment of all economic development project costs,
retirement of obligations and the distribution of any excess
monies pursuant to this Section and not later than 23 years
from the date of adoption of the ordinance adopting property
tax allocation financing, the county shall adopt an ordinance
dissolving the special tax allocation fund for the economic
development project area and terminating the designation of the
economic development project area as an economic development
project area; however, in relation to one or more contiguous
parcels not exceeding a total area of 120 acres within which an
electric generating facility is intended to be constructed, and
with respect to which the owner of that proposed electric
generating facility has entered into a redevelopment agreement
with Grundy County on or before July 25, 2017, the ordinance of
the county required in this paragraph shall not dissolve the
special tax allocation fund for the existing economic
development project area and shall only terminate the
designation of the economic development project area as to
those portions of the economic development project area
excluding the area covered by the redevelopment agreement
between the owner of the proposed electric generating facility
and Grundy County; the county shall adopt an ordinance
dissolving the special tax allocation fund for the economic
development project area and terminating the designation of the
economic development project area as an economic development
project area with regard to the electric generating facility
property not later than 35 years from the date of adoption of
the ordinance adopting property tax allocation financing.
Thereafter the rates of the taxing districts shall be extended
and taxes levied, collected and distributed in the manner
applicable in the absence of the adoption of property tax
allocation financing.
    Nothing in this Section shall be construed as relieving
property in economic development project areas from being
assessed as provided in the Property Tax Code or as relieving
owners of that property from paying a uniform rate of taxes, as
required by Section 4 of Article IX of the Illinois
Constitution of 1970.
(Source: P.A. 98-463, eff. 8-16-13; 99-513, eff. 6-30-16.)
 
    Section 950. The County Economic Development Project Area
Tax Increment Allocation Act of 1991 is amended by changing
Section 50 as follows:
 
    (55 ILCS 90/50)  (from Ch. 34, par. 8050)
    Sec. 50. Special tax allocation fund.
    (a) If a county clerk has certified the "total initial
equalized assessed value" of the taxable real property within
an economic development project area in the manner provided in
Section 45, each year after the date of the certification by
the county clerk of the "total initial equalized assessed
value", until economic development project costs and all county
obligations financing economic development project costs have
been paid, the ad valorem taxes, if any, arising from the
levies upon the taxable real property in the economic
development project area by taxing districts and tax rates
determined in the manner provided in subsection (b) of Section
45 shall be divided as follows:
        (1) That portion of the taxes levied upon each taxable
    lot, block, tract, or parcel of real property that is
    attributable to the lower of the current equalized assessed
    value or the initial equalized assessed value of each
    taxable lot, block, tract, or parcel of real property
    existing at the time tax increment financing was adopted
    shall be allocated to (and when collected shall be paid by
    the county collector to) the respective affected taxing
    districts in the manner required by law in the absence of
    the adoption of tax increment allocation financing.
        (2) That portion, if any, of the taxes that is
    attributable to the increase in the current equalized
    assessed valuation of each taxable lot, block, tract, or
    parcel of real property in the economic development project
    area, over and above the initial equalized assessed value
    of each property existing at the time tax increment
    financing was adopted, shall be allocated to (and when
    collected shall be paid to) the county treasurer, who shall
    deposit the taxes into a special fund (called the special
    tax allocation fund of the county) for the purpose of
    paying economic development project costs and obligations
    incurred in the payment of those costs.
    (b) The county, by an ordinance adopting tax increment
allocation financing, may pledge the monies in and to be
deposited into the special tax allocation fund for the payment
of obligations issued under this Act and for the payment of
economic development project costs. No part of the current
equalized assessed valuation of each property in the economic
development project area attributable to any increase above the
total initial equalized assessed value of those properties
shall be used in calculating the general State school aid
formula under Section 18-8 of the School Code or the
evidence-based funding formula under Section 18-8.15 of the
School Code until all economic development projects costs have
been paid as provided for in this Section.
    (c) When the economic development projects costs,
including without limitation all county obligations financing
economic development project costs incurred under this Act,
have been paid, all surplus monies then remaining in the
special tax allocation fund shall be distributed by being paid
by the county treasurer to the county collector, who shall
immediately pay the monies to the taxing districts having
taxable property in the economic development project area in
the same manner and proportion as the most recent distribution
by the county collector to those taxing districts of real
property taxes from real property in the economic development
project area.
    (d) Upon the payment of all economic development project
costs, retirement of obligations, and distribution of any
excess monies under this Section, the county shall adopt an
ordinance dissolving the special tax allocation fund for the
economic development project area and terminating the
designation of the economic development project area as an
economic development project area. Thereafter, the rates of the
taxing districts shall be extended and taxes shall be levied,
collected, and distributed in the manner applicable in the
absence of the adoption of tax increment allocation financing.
    (e) Nothing in this Section shall be construed as relieving
property in the economic development project areas from being
assessed as provided in the Property Tax Code or as relieving
owners of that property from paying a uniform rate of taxes as
required by Section 4 of Article IX of the Illinois
Constitution.
(Source: P.A. 98-463, eff. 8-16-13.)
 
    Section 955. The Illinois Municipal Code is amended by
changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as
follows:
 
    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
    Sec. 11-74.4-3. Definitions. The following terms, wherever
used or referred to in this Division 74.4 shall have the
following respective meanings, unless in any case a different
meaning clearly appears from the context.
    (a) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "blighted area" shall have the meaning set forth in
this Section prior to that date.
    On and after November 1, 1999, "blighted area" means any
improved or vacant area within the boundaries of a
redevelopment project area located within the territorial
limits of the municipality where:
        (1) If improved, industrial, commercial, and
    residential buildings or improvements are detrimental to
    the public safety, health, or welfare because of a
    combination of 5 or more of the following factors, each of
    which is (i) present, with that presence documented, to a
    meaningful extent so that a municipality may reasonably
    find that the factor is clearly present within the intent
    of the Act and (ii) reasonably distributed throughout the
    improved part of the redevelopment project area:
            (A) Dilapidation. An advanced state of disrepair
        or neglect of necessary repairs to the primary
        structural components of buildings or improvements in
        such a combination that a documented building
        condition analysis determines that major repair is
        required or the defects are so serious and so extensive
        that the buildings must be removed.
            (B) Obsolescence. The condition or process of
        falling into disuse. Structures have become ill-suited
        for the original use.
            (C) Deterioration. With respect to buildings,
        defects including, but not limited to, major defects in
        the secondary building components such as doors,
        windows, porches, gutters and downspouts, and fascia.
        With respect to surface improvements, that the
        condition of roadways, alleys, curbs, gutters,
        sidewalks, off-street parking, and surface storage
        areas evidence deterioration, including, but not
        limited to, surface cracking, crumbling, potholes,
        depressions, loose paving material, and weeds
        protruding through paved surfaces.
            (D) Presence of structures below minimum code
        standards. All structures that do not meet the
        standards of zoning, subdivision, building, fire, and
        other governmental codes applicable to property, but
        not including housing and property maintenance codes.
            (E) Illegal use of individual structures. The use
        of structures in violation of applicable federal,
        State, or local laws, exclusive of those applicable to
        the presence of structures below minimum code
        standards.
            (F) Excessive vacancies. The presence of buildings
        that are unoccupied or under-utilized and that
        represent an adverse influence on the area because of
        the frequency, extent, or duration of the vacancies.
            (G) Lack of ventilation, light, or sanitary
        facilities. The absence of adequate ventilation for
        light or air circulation in spaces or rooms without
        windows, or that require the removal of dust, odor,
        gas, smoke, or other noxious airborne materials.
        Inadequate natural light and ventilation means the
        absence of skylights or windows for interior spaces or
        rooms and improper window sizes and amounts by room
        area to window area ratios. Inadequate sanitary
        facilities refers to the absence or inadequacy of
        garbage storage and enclosure, bathroom facilities,
        hot water and kitchens, and structural inadequacies
        preventing ingress and egress to and from all rooms and
        units within a building.
            (H) Inadequate utilities. Underground and overhead
        utilities such as storm sewers and storm drainage,
        sanitary sewers, water lines, and gas, telephone, and
        electrical services that are shown to be inadequate.
        Inadequate utilities are those that are: (i) of
        insufficient capacity to serve the uses in the
        redevelopment project area, (ii) deteriorated,
        antiquated, obsolete, or in disrepair, or (iii)
        lacking within the redevelopment project area.
            (I) Excessive land coverage and overcrowding of
        structures and community facilities. The
        over-intensive use of property and the crowding of
        buildings and accessory facilities onto a site.
        Examples of problem conditions warranting the
        designation of an area as one exhibiting excessive land
        coverage are: (i) the presence of buildings either
        improperly situated on parcels or located on parcels of
        inadequate size and shape in relation to present-day
        standards of development for health and safety and (ii)
        the presence of multiple buildings on a single parcel.
        For there to be a finding of excessive land coverage,
        these parcels must exhibit one or more of the following
        conditions: insufficient provision for light and air
        within or around buildings, increased threat of spread
        of fire due to the close proximity of buildings, lack
        of adequate or proper access to a public right-of-way,
        lack of reasonably required off-street parking, or
        inadequate provision for loading and service.
            (J) Deleterious land use or layout. The existence
        of incompatible land-use relationships, buildings
        occupied by inappropriate mixed-uses, or uses
        considered to be noxious, offensive, or unsuitable for
        the surrounding area.
            (K) Environmental clean-up. The proposed
        redevelopment project area has incurred Illinois
        Environmental Protection Agency or United States
        Environmental Protection Agency remediation costs for,
        or a study conducted by an independent consultant
        recognized as having expertise in environmental
        remediation has determined a need for, the clean-up of
        hazardous waste, hazardous substances, or underground
        storage tanks required by State or federal law,
        provided that the remediation costs constitute a
        material impediment to the development or
        redevelopment of the redevelopment project area.
            (L) Lack of community planning. The proposed
        redevelopment project area was developed prior to or
        without the benefit or guidance of a community plan.
        This means that the development occurred prior to the
        adoption by the municipality of a comprehensive or
        other community plan or that the plan was not followed
        at the time of the area's development. This factor must
        be documented by evidence of adverse or incompatible
        land-use relationships, inadequate street layout,
        improper subdivision, parcels of inadequate shape and
        size to meet contemporary development standards, or
        other evidence demonstrating an absence of effective
        community planning.
            (M) The total equalized assessed value of the
        proposed redevelopment project area has declined for 3
        of the last 5 calendar years prior to the year in which
        the redevelopment project area is designated or is
        increasing at an annual rate that is less than the
        balance of the municipality for 3 of the last 5
        calendar years for which information is available or is
        increasing at an annual rate that is less than the
        Consumer Price Index for All Urban Consumers published
        by the United States Department of Labor or successor
        agency for 3 of the last 5 calendar years prior to the
        year in which the redevelopment project area is
        designated.
        (2) If vacant, the sound growth of the redevelopment
    project area is impaired by a combination of 2 or more of
    the following factors, each of which is (i) present, with
    that presence documented, to a meaningful extent so that a
    municipality may reasonably find that the factor is clearly
    present within the intent of the Act and (ii) reasonably
    distributed throughout the vacant part of the
    redevelopment project area to which it pertains:
            (A) Obsolete platting of vacant land that results
        in parcels of limited or narrow size or configurations
        of parcels of irregular size or shape that would be
        difficult to develop on a planned basis and in a manner
        compatible with contemporary standards and
        requirements, or platting that failed to create
        rights-of-ways for streets or alleys or that created
        inadequate right-of-way widths for streets, alleys, or
        other public rights-of-way or that omitted easements
        for public utilities.
            (B) Diversity of ownership of parcels of vacant
        land sufficient in number to retard or impede the
        ability to assemble the land for development.
            (C) Tax and special assessment delinquencies exist
        or the property has been the subject of tax sales under
        the Property Tax Code within the last 5 years.
            (D) Deterioration of structures or site
        improvements in neighboring areas adjacent to the
        vacant land.
            (E) The area has incurred Illinois Environmental
        Protection Agency or United States Environmental
        Protection Agency remediation costs for, or a study
        conducted by an independent consultant recognized as
        having expertise in environmental remediation has
        determined a need for, the clean-up of hazardous waste,
        hazardous substances, or underground storage tanks
        required by State or federal law, provided that the
        remediation costs constitute a material impediment to
        the development or redevelopment of the redevelopment
        project area.
            (F) The total equalized assessed value of the
        proposed redevelopment project area has declined for 3
        of the last 5 calendar years prior to the year in which
        the redevelopment project area is designated or is
        increasing at an annual rate that is less than the
        balance of the municipality for 3 of the last 5
        calendar years for which information is available or is
        increasing at an annual rate that is less than the
        Consumer Price Index for All Urban Consumers published
        by the United States Department of Labor or successor
        agency for 3 of the last 5 calendar years prior to the
        year in which the redevelopment project area is
        designated.
        (3) If vacant, the sound growth of the redevelopment
    project area is impaired by one of the following factors
    that (i) is present, with that presence documented, to a
    meaningful extent so that a municipality may reasonably
    find that the factor is clearly present within the intent
    of the Act and (ii) is reasonably distributed throughout
    the vacant part of the redevelopment project area to which
    it pertains:
            (A) The area consists of one or more unused
        quarries, mines, or strip mine ponds.
            (B) The area consists of unused rail yards, rail
        tracks, or railroad rights-of-way.
            (C) The area, prior to its designation, is subject
        to (i) chronic flooding that adversely impacts on real
        property in the area as certified by a registered
        professional engineer or appropriate regulatory agency
        or (ii) surface water that discharges from all or a
        part of the area and contributes to flooding within the
        same watershed, but only if the redevelopment project
        provides for facilities or improvements to contribute
        to the alleviation of all or part of the flooding.
            (D) The area consists of an unused or illegal
        disposal site containing earth, stone, building
        debris, or similar materials that were removed from
        construction, demolition, excavation, or dredge sites.
            (E) Prior to November 1, 1999, the area is not less
        than 50 nor more than 100 acres and 75% of which is
        vacant (notwithstanding that the area has been used for
        commercial agricultural purposes within 5 years prior
        to the designation of the redevelopment project area),
        and the area meets at least one of the factors itemized
        in paragraph (1) of this subsection, the area has been
        designated as a town or village center by ordinance or
        comprehensive plan adopted prior to January 1, 1982,
        and the area has not been developed for that designated
        purpose.
            (F) The area qualified as a blighted improved area
        immediately prior to becoming vacant, unless there has
        been substantial private investment in the immediately
        surrounding area.
    (b) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "conservation area" shall have the meaning set forth
in this Section prior to that date.
    On and after November 1, 1999, "conservation area" means
any improved area within the boundaries of a redevelopment
project area located within the territorial limits of the
municipality in which 50% or more of the structures in the area
have an age of 35 years or more. Such an area is not yet a
blighted area but because of a combination of 3 or more of the
following factors is detrimental to the public safety, health,
morals or welfare and such an area may become a blighted area:
        (1) Dilapidation. An advanced state of disrepair or
    neglect of necessary repairs to the primary structural
    components of buildings or improvements in such a
    combination that a documented building condition analysis
    determines that major repair is required or the defects are
    so serious and so extensive that the buildings must be
    removed.
        (2) Obsolescence. The condition or process of falling
    into disuse. Structures have become ill-suited for the
    original use.
        (3) Deterioration. With respect to buildings, defects
    including, but not limited to, major defects in the
    secondary building components such as doors, windows,
    porches, gutters and downspouts, and fascia. With respect
    to surface improvements, that the condition of roadways,
    alleys, curbs, gutters, sidewalks, off-street parking, and
    surface storage areas evidence deterioration, including,
    but not limited to, surface cracking, crumbling, potholes,
    depressions, loose paving material, and weeds protruding
    through paved surfaces.
        (4) Presence of structures below minimum code
    standards. All structures that do not meet the standards of
    zoning, subdivision, building, fire, and other
    governmental codes applicable to property, but not
    including housing and property maintenance codes.
        (5) Illegal use of individual structures. The use of
    structures in violation of applicable federal, State, or
    local laws, exclusive of those applicable to the presence
    of structures below minimum code standards.
        (6) Excessive vacancies. The presence of buildings
    that are unoccupied or under-utilized and that represent an
    adverse influence on the area because of the frequency,
    extent, or duration of the vacancies.
        (7) Lack of ventilation, light, or sanitary
    facilities. The absence of adequate ventilation for light
    or air circulation in spaces or rooms without windows, or
    that require the removal of dust, odor, gas, smoke, or
    other noxious airborne materials. Inadequate natural light
    and ventilation means the absence or inadequacy of
    skylights or windows for interior spaces or rooms and
    improper window sizes and amounts by room area to window
    area ratios. Inadequate sanitary facilities refers to the
    absence or inadequacy of garbage storage and enclosure,
    bathroom facilities, hot water and kitchens, and
    structural inadequacies preventing ingress and egress to
    and from all rooms and units within a building.
        (8) Inadequate utilities. Underground and overhead
    utilities such as storm sewers and storm drainage, sanitary
    sewers, water lines, and gas, telephone, and electrical
    services that are shown to be inadequate. Inadequate
    utilities are those that are: (i) of insufficient capacity
    to serve the uses in the redevelopment project area, (ii)
    deteriorated, antiquated, obsolete, or in disrepair, or
    (iii) lacking within the redevelopment project area.
        (9) Excessive land coverage and overcrowding of
    structures and community facilities. The over-intensive
    use of property and the crowding of buildings and accessory
    facilities onto a site. Examples of problem conditions
    warranting the designation of an area as one exhibiting
    excessive land coverage are: the presence of buildings
    either improperly situated on parcels or located on parcels
    of inadequate size and shape in relation to present-day
    standards of development for health and safety and the
    presence of multiple buildings on a single parcel. For
    there to be a finding of excessive land coverage, these
    parcels must exhibit one or more of the following
    conditions: insufficient provision for light and air
    within or around buildings, increased threat of spread of
    fire due to the close proximity of buildings, lack of
    adequate or proper access to a public right-of-way, lack of
    reasonably required off-street parking, or inadequate
    provision for loading and service.
        (10) Deleterious land use or layout. The existence of
    incompatible land-use relationships, buildings occupied by
    inappropriate mixed-uses, or uses considered to be
    noxious, offensive, or unsuitable for the surrounding
    area.
        (11) Lack of community planning. The proposed
    redevelopment project area was developed prior to or
    without the benefit or guidance of a community plan. This
    means that the development occurred prior to the adoption
    by the municipality of a comprehensive or other community
    plan or that the plan was not followed at the time of the
    area's development. This factor must be documented by
    evidence of adverse or incompatible land-use
    relationships, inadequate street layout, improper
    subdivision, parcels of inadequate shape and size to meet
    contemporary development standards, or other evidence
    demonstrating an absence of effective community planning.
        (12) The area has incurred Illinois Environmental
    Protection Agency or United States Environmental
    Protection Agency remediation costs for, or a study
    conducted by an independent consultant recognized as
    having expertise in environmental remediation has
    determined a need for, the clean-up of hazardous waste,
    hazardous substances, or underground storage tanks
    required by State or federal law, provided that the
    remediation costs constitute a material impediment to the
    development or redevelopment of the redevelopment project
    area.
        (13) The total equalized assessed value of the proposed
    redevelopment project area has declined for 3 of the last 5
    calendar years for which information is available or is
    increasing at an annual rate that is less than the balance
    of the municipality for 3 of the last 5 calendar years for
    which information is available or is increasing at an
    annual rate that is less than the Consumer Price Index for
    All Urban Consumers published by the United States
    Department of Labor or successor agency for 3 of the last 5
    calendar years for which information is available.
    (c) "Industrial park" means an area in a blighted or
conservation area suitable for use by any manufacturing,
industrial, research or transportation enterprise, of
facilities to include but not be limited to factories, mills,
processing plants, assembly plants, packing plants,
fabricating plants, industrial distribution centers,
warehouses, repair overhaul or service facilities, freight
terminals, research facilities, test facilities or railroad
facilities.
    (d) "Industrial park conservation area" means an area
within the boundaries of a redevelopment project area located
within the territorial limits of a municipality that is a labor
surplus municipality or within 1 1/2 miles of the territorial
limits of a municipality that is a labor surplus municipality
if the area is annexed to the municipality; which area is zoned
as industrial no later than at the time the municipality by
ordinance designates the redevelopment project area, and which
area includes both vacant land suitable for use as an
industrial park and a blighted area or conservation area
contiguous to such vacant land.
    (e) "Labor surplus municipality" means a municipality in
which, at any time during the 6 months before the municipality
by ordinance designates an industrial park conservation area,
the unemployment rate was over 6% and was also 100% or more of
the national average unemployment rate for that same time as
published in the United States Department of Labor Bureau of
Labor Statistics publication entitled "The Employment
Situation" or its successor publication. For the purpose of
this subsection, if unemployment rate statistics for the
municipality are not available, the unemployment rate in the
municipality shall be deemed to be the same as the unemployment
rate in the principal county in which the municipality is
located.
    (f) "Municipality" shall mean a city, village,
incorporated town, or a township that is located in the
unincorporated portion of a county with 3 million or more
inhabitants, if the county adopted an ordinance that approved
the township's redevelopment plan.
    (g) "Initial Sales Tax Amounts" means the amount of taxes
paid under the Retailers' Occupation Tax Act, Use Tax Act,
Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on
transactions at places located in a State Sales Tax Boundary
during the calendar year 1985.
    (g-1) "Revised Initial Sales Tax Amounts" means the amount
of taxes paid under the Retailers' Occupation Tax Act, Use Tax
Act, Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on
transactions at places located within the State Sales Tax
Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
    (h) "Municipal Sales Tax Increment" means an amount equal
to the increase in the aggregate amount of taxes paid to a
municipality from the Local Government Tax Fund arising from
sales by retailers and servicemen within the redevelopment
project area or State Sales Tax Boundary, as the case may be,
for as long as the redevelopment project area or State Sales
Tax Boundary, as the case may be, exist over and above the
aggregate amount of taxes as certified by the Illinois
Department of Revenue and paid under the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax Act
by retailers and servicemen, on transactions at places of
business located in the redevelopment project area or State
Sales Tax Boundary, as the case may be, during the base year
which shall be the calendar year immediately prior to the year
in which the municipality adopted tax increment allocation
financing. For purposes of computing the aggregate amount of
such taxes for base years occurring prior to 1985, the
Department of Revenue shall determine the Initial Sales Tax
Amounts for such taxes and deduct therefrom an amount equal to
4% of the aggregate amount of taxes per year for each year the
base year is prior to 1985, but not to exceed a total deduction
of 12%. The amount so determined shall be known as the
"Adjusted Initial Sales Tax Amounts". For purposes of
determining the Municipal Sales Tax Increment, the Department
of Revenue shall for each period subtract from the amount paid
to the municipality from the Local Government Tax Fund arising
from sales by retailers and servicemen on transactions located
in the redevelopment project area or the State Sales Tax
Boundary, as the case may be, the certified Initial Sales Tax
Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts for the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax
Act. For the State Fiscal Year 1989, this calculation shall be
made by utilizing the calendar year 1987 to determine the tax
amounts received. For the State Fiscal Year 1990, this
calculation shall be made by utilizing the period from January
1, 1988, until September 30, 1988, to determine the tax amounts
received from retailers and servicemen pursuant to the
Municipal Retailers' Occupation Tax and the Municipal Service
Occupation Tax Act, which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts, the
Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
Tax Amounts as appropriate. For the State Fiscal Year 1991,
this calculation shall be made by utilizing the period from
October 1, 1988, to June 30, 1989, to determine the tax amounts
received from retailers and servicemen pursuant to the
Municipal Retailers' Occupation Tax and the Municipal Service
Occupation Tax Act which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts,
Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
Tax Amounts as appropriate. For every State Fiscal Year
thereafter, the applicable period shall be the 12 months
beginning July 1 and ending June 30 to determine the tax
amounts received which shall have deducted therefrom the
certified Initial Sales Tax Amounts, the Adjusted Initial Sales
Tax Amounts or the Revised Initial Sales Tax Amounts, as the
case may be.
    (i) "Net State Sales Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Sales Tax
Increment annually generated within a State Sales Tax Boundary;
(b) 60% of the amount in excess of $100,000 but not exceeding
$500,000 of State Sales Tax Increment annually generated within
a State Sales Tax Boundary; and (c) 40% of all amounts in
excess of $500,000 of State Sales Tax Increment annually
generated within a State Sales Tax Boundary. If, however, a
municipality established a tax increment financing district in
a county with a population in excess of 3,000,000 before
January 1, 1986, and the municipality entered into a contract
or issued bonds after January 1, 1986, but before December 31,
1986, to finance redevelopment project costs within a State
Sales Tax Boundary, then the Net State Sales Tax Increment
means, for the fiscal years beginning July 1, 1990, and July 1,
1991, 100% of the State Sales Tax Increment annually generated
within a State Sales Tax Boundary; and notwithstanding any
other provision of this Act, for those fiscal years the
Department of Revenue shall distribute to those municipalities
100% of their Net State Sales Tax Increment before any
distribution to any other municipality and regardless of
whether or not those other municipalities will receive 100% of
their Net State Sales Tax Increment. For Fiscal Year 1999, and
every year thereafter until the year 2007, for any municipality
that has not entered into a contract or has not issued bonds
prior to June 1, 1988 to finance redevelopment project costs
within a State Sales Tax Boundary, the Net State Sales Tax
Increment shall be calculated as follows: By multiplying the
Net State Sales Tax Increment by 90% in the State Fiscal Year
1999; 80% in the State Fiscal Year 2000; 70% in the State
Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
in the State Fiscal Year 2005; 20% in the State Fiscal Year
2006; and 10% in the State Fiscal Year 2007. No payment shall
be made for State Fiscal Year 2008 and thereafter.
    Municipalities that issued bonds in connection with a
redevelopment project in a redevelopment project area within
the State Sales Tax Boundary prior to July 29, 1991, or that
entered into contracts in connection with a redevelopment
project in a redevelopment project area before June 1, 1988,
shall continue to receive their proportional share of the
Illinois Tax Increment Fund distribution until the date on
which the redevelopment project is completed or terminated. If,
however, a municipality that issued bonds in connection with a
redevelopment project in a redevelopment project area within
the State Sales Tax Boundary prior to July 29, 1991 retires the
bonds prior to June 30, 2007 or a municipality that entered
into contracts in connection with a redevelopment project in a
redevelopment project area before June 1, 1988 completes the
contracts prior to June 30, 2007, then so long as the
redevelopment project is not completed or is not terminated,
the Net State Sales Tax Increment shall be calculated,
beginning on the date on which the bonds are retired or the
contracts are completed, as follows: By multiplying the Net
State Sales Tax Increment by 60% in the State Fiscal Year 2002;
50% in the State Fiscal Year 2003; 40% in the State Fiscal Year
2004; 30% in the State Fiscal Year 2005; 20% in the State
Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
payment shall be made for State Fiscal Year 2008 and
thereafter. Refunding of any bonds issued prior to July 29,
1991, shall not alter the Net State Sales Tax Increment.
    (j) "State Utility Tax Increment Amount" means an amount
equal to the aggregate increase in State electric and gas tax
charges imposed on owners and tenants, other than residential
customers, of properties located within the redevelopment
project area under Section 9-222 of the Public Utilities Act,
over and above the aggregate of such charges as certified by
the Department of Revenue and paid by owners and tenants, other
than residential customers, of properties within the
redevelopment project area during the base year, which shall be
the calendar year immediately prior to the year of the adoption
of the ordinance authorizing tax increment allocation
financing.
    (k) "Net State Utility Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Utility Tax
Increment annually generated by a redevelopment project area;
(b) 60% of the amount in excess of $100,000 but not exceeding
$500,000 of the State Utility Tax Increment annually generated
by a redevelopment project area; and (c) 40% of all amounts in
excess of $500,000 of State Utility Tax Increment annually
generated by a redevelopment project area. For the State Fiscal
Year 1999, and every year thereafter until the year 2007, for
any municipality that has not entered into a contract or has
not issued bonds prior to June 1, 1988 to finance redevelopment
project costs within a redevelopment project area, the Net
State Utility Tax Increment shall be calculated as follows: By
multiplying the Net State Utility Tax Increment by 90% in the
State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
in the State Fiscal Year 2001; 60% in the State Fiscal Year
2002; 50% in the State Fiscal Year 2003; 40% in the State
Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
No payment shall be made for the State Fiscal Year 2008 and
thereafter.
    Municipalities that issue bonds in connection with the
redevelopment project during the period from June 1, 1988 until
3 years after the effective date of this Amendatory Act of 1988
shall receive the Net State Utility Tax Increment, subject to
appropriation, for 15 State Fiscal Years after the issuance of
such bonds. For the 16th through the 20th State Fiscal Years
after issuance of the bonds, the Net State Utility Tax
Increment shall be calculated as follows: By multiplying the
Net State Utility Tax Increment by 90% in year 16; 80% in year
17; 70% in year 18; 60% in year 19; and 50% in year 20.
Refunding of any bonds issued prior to June 1, 1988, shall not
alter the revised Net State Utility Tax Increment payments set
forth above.
    (l) "Obligations" mean bonds, loans, debentures, notes,
special certificates or other evidence of indebtedness issued
by the municipality to carry out a redevelopment project or to
refund outstanding obligations.
    (m) "Payment in lieu of taxes" means those estimated tax
revenues from real property in a redevelopment project area
derived from real property that has been acquired by a
municipality which according to the redevelopment project or
plan is to be used for a private use which taxing districts
would have received had a municipality not acquired the real
property and adopted tax increment allocation financing and
which would result from levies made after the time of the
adoption of tax increment allocation financing to the time the
current equalized value of real property in the redevelopment
project area exceeds the total initial equalized value of real
property in said area.
    (n) "Redevelopment plan" means the comprehensive program
of the municipality for development or redevelopment intended
by the payment of redevelopment project costs to reduce or
eliminate those conditions the existence of which qualified the
redevelopment project area as a "blighted area" or
"conservation area" or combination thereof or "industrial park
conservation area," and thereby to enhance the tax bases of the
taxing districts which extend into the redevelopment project
area, provided that, with respect to redevelopment project
areas described in subsections (p-1) and (p-2), "redevelopment
plan" means the comprehensive program of the affected
municipality for the development of qualifying transit
facilities. On and after November 1, 1999 (the effective date
of Public Act 91-478), no redevelopment plan may be approved or
amended that includes the development of vacant land (i) with a
golf course and related clubhouse and other facilities or (ii)
designated by federal, State, county, or municipal government
as public land for outdoor recreational activities or for
nature preserves and used for that purpose within 5 years prior
to the adoption of the redevelopment plan. For the purpose of
this subsection, "recreational activities" is limited to mean
camping and hunting. Each redevelopment plan shall set forth in
writing the program to be undertaken to accomplish the
objectives and shall include but not be limited to:
        (A) an itemized list of estimated redevelopment
    project costs;
        (B) evidence indicating that the redevelopment project
    area on the whole has not been subject to growth and
    development through investment by private enterprise,
    provided that such evidence shall not be required for any
    redevelopment project area located within a transit
    facility improvement area established pursuant to Section
    11-74.4-3.3;
        (C) an assessment of any financial impact of the
    redevelopment project area on or any increased demand for
    services from any taxing district affected by the plan and
    any program to address such financial impact or increased
    demand;
        (D) the sources of funds to pay costs;
        (E) the nature and term of the obligations to be
    issued;
        (F) the most recent equalized assessed valuation of the
    redevelopment project area;
        (G) an estimate as to the equalized assessed valuation
    after redevelopment and the general land uses to apply in
    the redevelopment project area;
        (H) a commitment to fair employment practices and an
    affirmative action plan;
        (I) if it concerns an industrial park conservation
    area, the plan shall also include a general description of
    any proposed developer, user and tenant of any property, a
    description of the type, structure and general character of
    the facilities to be developed, a description of the type,
    class and number of new employees to be employed in the
    operation of the facilities to be developed; and
        (J) if property is to be annexed to the municipality,
    the plan shall include the terms of the annexation
    agreement.
    The provisions of items (B) and (C) of this subsection (n)
shall not apply to a municipality that before March 14, 1994
(the effective date of Public Act 88-537) had fixed, either by
its corporate authorities or by a commission designated under
subsection (k) of Section 11-74.4-4, a time and place for a
public hearing as required by subsection (a) of Section
11-74.4-5. No redevelopment plan shall be adopted unless a
municipality complies with all of the following requirements:
        (1) The municipality finds that the redevelopment
    project area on the whole has not been subject to growth
    and development through investment by private enterprise
    and would not reasonably be anticipated to be developed
    without the adoption of the redevelopment plan, provided,
    however, that such a finding shall not be required with
    respect to any redevelopment project area located within a
    transit facility improvement area established pursuant to
    Section 11-74.4-3.3.
        (2) The municipality finds that the redevelopment plan
    and project conform to the comprehensive plan for the
    development of the municipality as a whole, or, for
    municipalities with a population of 100,000 or more,
    regardless of when the redevelopment plan and project was
    adopted, the redevelopment plan and project either: (i)
    conforms to the strategic economic development or
    redevelopment plan issued by the designated planning
    authority of the municipality, or (ii) includes land uses
    that have been approved by the planning commission of the
    municipality.
        (3) The redevelopment plan establishes the estimated
    dates of completion of the redevelopment project and
    retirement of obligations issued to finance redevelopment
    project costs. Those dates may not be later than the dates
    set forth under Section 11-74.4-3.5.
        A municipality may by municipal ordinance amend an
    existing redevelopment plan to conform to this paragraph
    (3) as amended by Public Act 91-478, which municipal
    ordinance may be adopted without further hearing or notice
    and without complying with the procedures provided in this
    Act pertaining to an amendment to or the initial approval
    of a redevelopment plan and project and designation of a
    redevelopment project area.
        (3.5) The municipality finds, in the case of an
    industrial park conservation area, also that the
    municipality is a labor surplus municipality and that the
    implementation of the redevelopment plan will reduce
    unemployment, create new jobs and by the provision of new
    facilities enhance the tax base of the taxing districts
    that extend into the redevelopment project area.
        (4) If any incremental revenues are being utilized
    under Section 8(a)(1) or 8(a)(2) of this Act in
    redevelopment project areas approved by ordinance after
    January 1, 1986, the municipality finds: (a) that the
    redevelopment project area would not reasonably be
    developed without the use of such incremental revenues, and
    (b) that such incremental revenues will be exclusively
    utilized for the development of the redevelopment project
    area.
        (5) If: (a) the redevelopment plan will not result in
    displacement of residents from 10 or more inhabited
    residential units, and the municipality certifies in the
    plan that such displacement will not result from the plan;
    or (b) the redevelopment plan is for a redevelopment
    project area located within a transit facility improvement
    area established pursuant to Section 11-74.4-3.3, and the
    applicable project is subject to the process for evaluation
    of environmental effects under the National Environmental
    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a
    housing impact study need not be performed. If, however,
    the redevelopment plan would result in the displacement of
    residents from 10 or more inhabited residential units, or
    if the redevelopment project area contains 75 or more
    inhabited residential units and no certification is made,
    then the municipality shall prepare, as part of the
    separate feasibility report required by subsection (a) of
    Section 11-74.4-5, a housing impact study.
        Part I of the housing impact study shall include (i)
    data as to whether the residential units are single family
    or multi-family units, (ii) the number and type of rooms
    within the units, if that information is available, (iii)
    whether the units are inhabited or uninhabited, as
    determined not less than 45 days before the date that the
    ordinance or resolution required by subsection (a) of
    Section 11-74.4-5 is passed, and (iv) data as to the racial
    and ethnic composition of the residents in the inhabited
    residential units. The data requirement as to the racial
    and ethnic composition of the residents in the inhabited
    residential units shall be deemed to be fully satisfied by
    data from the most recent federal census.
        Part II of the housing impact study shall identify the
    inhabited residential units in the proposed redevelopment
    project area that are to be or may be removed. If inhabited
    residential units are to be removed, then the housing
    impact study shall identify (i) the number and location of
    those units that will or may be removed, (ii) the
    municipality's plans for relocation assistance for those
    residents in the proposed redevelopment project area whose
    residences are to be removed, (iii) the availability of
    replacement housing for those residents whose residences
    are to be removed, and shall identify the type, location,
    and cost of the housing, and (iv) the type and extent of
    relocation assistance to be provided.
        (6) On and after November 1, 1999, the housing impact
    study required by paragraph (5) shall be incorporated in
    the redevelopment plan for the redevelopment project area.
        (7) On and after November 1, 1999, no redevelopment
    plan shall be adopted, nor an existing plan amended, nor
    shall residential housing that is occupied by households of
    low-income and very low-income persons in currently
    existing redevelopment project areas be removed after
    November 1, 1999 unless the redevelopment plan provides,
    with respect to inhabited housing units that are to be
    removed for households of low-income and very low-income
    persons, affordable housing and relocation assistance not
    less than that which would be provided under the federal
    Uniform Relocation Assistance and Real Property
    Acquisition Policies Act of 1970 and the regulations under
    that Act, including the eligibility criteria. Affordable
    housing may be either existing or newly constructed
    housing. For purposes of this paragraph (7), "low-income
    households", "very low-income households", and "affordable
    housing" have the meanings set forth in the Illinois
    Affordable Housing Act. The municipality shall make a good
    faith effort to ensure that this affordable housing is
    located in or near the redevelopment project area within
    the municipality.
        (8) On and after November 1, 1999, if, after the
    adoption of the redevelopment plan for the redevelopment
    project area, any municipality desires to amend its
    redevelopment plan to remove more inhabited residential
    units than specified in its original redevelopment plan,
    that change shall be made in accordance with the procedures
    in subsection (c) of Section 11-74.4-5.
        (9) For redevelopment project areas designated prior
    to November 1, 1999, the redevelopment plan may be amended
    without further joint review board meeting or hearing,
    provided that the municipality shall give notice of any
    such changes by mail to each affected taxing district and
    registrant on the interested party registry, to authorize
    the municipality to expend tax increment revenues for
    redevelopment project costs defined by paragraphs (5) and
    (7.5), subparagraphs (E) and (F) of paragraph (11), and
    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
    long as the changes do not increase the total estimated
    redevelopment project costs set out in the redevelopment
    plan by more than 5% after adjustment for inflation from
    the date the plan was adopted.
    (o) "Redevelopment project" means any public and private
development project in furtherance of the objectives of a
redevelopment plan. On and after November 1, 1999 (the
effective date of Public Act 91-478), no redevelopment plan may
be approved or amended that includes the development of vacant
land (i) with a golf course and related clubhouse and other
facilities or (ii) designated by federal, State, county, or
municipal government as public land for outdoor recreational
activities or for nature preserves and used for that purpose
within 5 years prior to the adoption of the redevelopment plan.
For the purpose of this subsection, "recreational activities"
is limited to mean camping and hunting.
    (p) "Redevelopment project area" means an area designated
by the municipality, which is not less in the aggregate than 1
1/2 acres and in respect to which the municipality has made a
finding that there exist conditions which cause the area to be
classified as an industrial park conservation area or a
blighted area or a conservation area, or a combination of both
blighted areas and conservation areas.
    (p-1) Notwithstanding any provision of this Act to the
contrary, on and after August 25, 2009 (the effective date of
Public Act 96-680), a redevelopment project area may include
areas within a one-half mile radius of an existing or proposed
Regional Transportation Authority Suburban Transit Access
Route (STAR Line) station without a finding that the area is
classified as an industrial park conservation area, a blighted
area, a conservation area, or a combination thereof, but only
if the municipality receives unanimous consent from the joint
review board created to review the proposed redevelopment
project area.
    (p-2) Notwithstanding any provision of this Act to the
contrary, on and after the effective date of this amendatory
Act of the 99th General Assembly, a redevelopment project area
may include areas within a transit facility improvement area
that has been established pursuant to Section 11-74.4-3.3
without a finding that the area is classified as an industrial
park conservation area, a blighted area, a conservation area,
or any combination thereof.
    (q) "Redevelopment project costs", except for
redevelopment project areas created pursuant to subsection
subsections (p-1) or (p-2), means and includes the sum total of
all reasonable or necessary costs incurred or estimated to be
incurred, and any such costs incidental to a redevelopment plan
and a redevelopment project. Such costs include, without
limitation, the following:
        (1) Costs of studies, surveys, development of plans,
    and specifications, implementation and administration of
    the redevelopment plan including but not limited to staff
    and professional service costs for architectural,
    engineering, legal, financial, planning or other services,
    provided however that no charges for professional services
    may be based on a percentage of the tax increment
    collected; except that on and after November 1, 1999 (the
    effective date of Public Act 91-478), no contracts for
    professional services, excluding architectural and
    engineering services, may be entered into if the terms of
    the contract extend beyond a period of 3 years. In
    addition, "redevelopment project costs" shall not include
    lobbying expenses. After consultation with the
    municipality, each tax increment consultant or advisor to a
    municipality that plans to designate or has designated a
    redevelopment project area shall inform the municipality
    in writing of any contracts that the consultant or advisor
    has entered into with entities or individuals that have
    received, or are receiving, payments financed by tax
    increment revenues produced by the redevelopment project
    area with respect to which the consultant or advisor has
    performed, or will be performing, service for the
    municipality. This requirement shall be satisfied by the
    consultant or advisor before the commencement of services
    for the municipality and thereafter whenever any other
    contracts with those individuals or entities are executed
    by the consultant or advisor;
        (1.5) After July 1, 1999, annual administrative costs
    shall not include general overhead or administrative costs
    of the municipality that would still have been incurred by
    the municipality if the municipality had not designated a
    redevelopment project area or approved a redevelopment
    plan;
        (1.6) The cost of marketing sites within the
    redevelopment project area to prospective businesses,
    developers, and investors;
        (2) Property assembly costs, including but not limited
    to acquisition of land and other property, real or
    personal, or rights or interests therein, demolition of
    buildings, site preparation, site improvements that serve
    as an engineered barrier addressing ground level or below
    ground environmental contamination, including, but not
    limited to parking lots and other concrete or asphalt
    barriers, and the clearing and grading of land;
        (3) Costs of rehabilitation, reconstruction or repair
    or remodeling of existing public or private buildings,
    fixtures, and leasehold improvements; and the cost of
    replacing an existing public building if pursuant to the
    implementation of a redevelopment project the existing
    public building is to be demolished to use the site for
    private investment or devoted to a different use requiring
    private investment; including any direct or indirect costs
    relating to Green Globes or LEED certified construction
    elements or construction elements with an equivalent
    certification;
        (4) Costs of the construction of public works or
    improvements, including any direct or indirect costs
    relating to Green Globes or LEED certified construction
    elements or construction elements with an equivalent
    certification, except that on and after November 1, 1999,
    redevelopment project costs shall not include the cost of
    constructing a new municipal public building principally
    used to provide offices, storage space, or conference
    facilities or vehicle storage, maintenance, or repair for
    administrative, public safety, or public works personnel
    and that is not intended to replace an existing public
    building as provided under paragraph (3) of subsection (q)
    of Section 11-74.4-3 unless either (i) the construction of
    the new municipal building implements a redevelopment
    project that was included in a redevelopment plan that was
    adopted by the municipality prior to November 1, 1999, (ii)
    the municipality makes a reasonable determination in the
    redevelopment plan, supported by information that provides
    the basis for that determination, that the new municipal
    building is required to meet an increase in the need for
    public safety purposes anticipated to result from the
    implementation of the redevelopment plan, or (iii) the new
    municipal public building is for the storage, maintenance,
    or repair of transit vehicles and is located in a transit
    facility improvement area that has been established
    pursuant to Section 11-74.4-3.3;
        (5) Costs of job training and retraining projects,
    including the cost of "welfare to work" programs
    implemented by businesses located within the redevelopment
    project area;
        (6) Financing costs, including but not limited to all
    necessary and incidental expenses related to the issuance
    of obligations and which may include payment of interest on
    any obligations issued hereunder including interest
    accruing during the estimated period of construction of any
    redevelopment project for which such obligations are
    issued and for not exceeding 36 months thereafter and
    including reasonable reserves related thereto;
        (7) To the extent the municipality by written agreement
    accepts and approves the same, all or a portion of a taxing
    district's capital costs resulting from the redevelopment
    project necessarily incurred or to be incurred within a
    taxing district in furtherance of the objectives of the
    redevelopment plan and project; .
        (7.5) For redevelopment project areas designated (or
    redevelopment project areas amended to add or increase the
    number of tax-increment-financing assisted housing units)
    on or after November 1, 1999, an elementary, secondary, or
    unit school district's increased costs attributable to
    assisted housing units located within the redevelopment
    project area for which the developer or redeveloper
    receives financial assistance through an agreement with
    the municipality or because the municipality incurs the
    cost of necessary infrastructure improvements within the
    boundaries of the assisted housing sites necessary for the
    completion of that housing as authorized by this Act, and
    which costs shall be paid by the municipality from the
    Special Tax Allocation Fund when the tax increment revenue
    is received as a result of the assisted housing units and
    shall be calculated annually as follows:
            (A) for foundation districts, excluding any school
        district in a municipality with a population in excess
        of 1,000,000, by multiplying the district's increase
        in attendance resulting from the net increase in new
        students enrolled in that school district who reside in
        housing units within the redevelopment project area
        that have received financial assistance through an
        agreement with the municipality or because the
        municipality incurs the cost of necessary
        infrastructure improvements within the boundaries of
        the housing sites necessary for the completion of that
        housing as authorized by this Act since the designation
        of the redevelopment project area by the most recently
        available per capita tuition cost as defined in Section
        10-20.12a of the School Code less any increase in
        general State aid as defined in Section 18-8.05 of the
        School Code or evidence-based funding as defined in
        Section 18-8.15 of the School Code attributable to
        these added new students subject to the following
        annual limitations:
                (i) for unit school districts with a district
            average 1995-96 Per Capita Tuition Charge of less
            than $5,900, no more than 25% of the total amount
            of property tax increment revenue produced by
            those housing units that have received tax
            increment finance assistance under this Act;
                (ii) for elementary school districts with a
            district average 1995-96 Per Capita Tuition Charge
            of less than $5,900, no more than 17% of the total
            amount of property tax increment revenue produced
            by those housing units that have received tax
            increment finance assistance under this Act; and
                (iii) for secondary school districts with a
            district average 1995-96 Per Capita Tuition Charge
            of less than $5,900, no more than 8% of the total
            amount of property tax increment revenue produced
            by those housing units that have received tax
            increment finance assistance under this Act.
            (B) For alternate method districts, flat grant
        districts, and foundation districts with a district
        average 1995-96 Per Capita Tuition Charge equal to or
        more than $5,900, excluding any school district with a
        population in excess of 1,000,000, by multiplying the
        district's increase in attendance resulting from the
        net increase in new students enrolled in that school
        district who reside in housing units within the
        redevelopment project area that have received
        financial assistance through an agreement with the
        municipality or because the municipality incurs the
        cost of necessary infrastructure improvements within
        the boundaries of the housing sites necessary for the
        completion of that housing as authorized by this Act
        since the designation of the redevelopment project
        area by the most recently available per capita tuition
        cost as defined in Section 10-20.12a of the School Code
        less any increase in general state aid as defined in
        Section 18-8.05 of the School Code or evidence-based
        funding as defined in Section 18-8.15 of the School
        Code attributable to these added new students subject
        to the following annual limitations:
                (i) for unit school districts, no more than 40%
            of the total amount of property tax increment
            revenue produced by those housing units that have
            received tax increment finance assistance under
            this Act;
                (ii) for elementary school districts, no more
            than 27% of the total amount of property tax
            increment revenue produced by those housing units
            that have received tax increment finance
            assistance under this Act; and
                (iii) for secondary school districts, no more
            than 13% of the total amount of property tax
            increment revenue produced by those housing units
            that have received tax increment finance
            assistance under this Act.
            (C) For any school district in a municipality with
        a population in excess of 1,000,000, the following
        restrictions shall apply to the reimbursement of
        increased costs under this paragraph (7.5):
                (i) no increased costs shall be reimbursed
            unless the school district certifies that each of
            the schools affected by the assisted housing
            project is at or over its student capacity;
                (ii) the amount reimbursable shall be reduced
            by the value of any land donated to the school
            district by the municipality or developer, and by
            the value of any physical improvements made to the
            schools by the municipality or developer; and
                (iii) the amount reimbursed may not affect
            amounts otherwise obligated by the terms of any
            bonds, notes, or other funding instruments, or the
            terms of any redevelopment agreement.
        Any school district seeking payment under this
        paragraph (7.5) shall, after July 1 and before
        September 30 of each year, provide the municipality
        with reasonable evidence to support its claim for
        reimbursement before the municipality shall be
        required to approve or make the payment to the school
        district. If the school district fails to provide the
        information during this period in any year, it shall
        forfeit any claim to reimbursement for that year.
        School districts may adopt a resolution waiving the
        right to all or a portion of the reimbursement
        otherwise required by this paragraph (7.5). By
        acceptance of this reimbursement the school district
        waives the right to directly or indirectly set aside,
        modify, or contest in any manner the establishment of
        the redevelopment project area or projects;
        (7.7) For redevelopment project areas designated (or
    redevelopment project areas amended to add or increase the
    number of tax-increment-financing assisted housing units)
    on or after January 1, 2005 (the effective date of Public
    Act 93-961), a public library district's increased costs
    attributable to assisted housing units located within the
    redevelopment project area for which the developer or
    redeveloper receives financial assistance through an
    agreement with the municipality or because the
    municipality incurs the cost of necessary infrastructure
    improvements within the boundaries of the assisted housing
    sites necessary for the completion of that housing as
    authorized by this Act shall be paid to the library
    district by the municipality from the Special Tax
    Allocation Fund when the tax increment revenue is received
    as a result of the assisted housing units. This paragraph
    (7.7) applies only if (i) the library district is located
    in a county that is subject to the Property Tax Extension
    Limitation Law or (ii) the library district is not located
    in a county that is subject to the Property Tax Extension
    Limitation Law but the district is prohibited by any other
    law from increasing its tax levy rate without a prior voter
    referendum.
        The amount paid to a library district under this
    paragraph (7.7) shall be calculated by multiplying (i) the
    net increase in the number of persons eligible to obtain a
    library card in that district who reside in housing units
    within the redevelopment project area that have received
    financial assistance through an agreement with the
    municipality or because the municipality incurs the cost of
    necessary infrastructure improvements within the
    boundaries of the housing sites necessary for the
    completion of that housing as authorized by this Act since
    the designation of the redevelopment project area by (ii)
    the per-patron cost of providing library services so long
    as it does not exceed $120. The per-patron cost shall be
    the Total Operating Expenditures Per Capita for the library
    in the previous fiscal year. The municipality may deduct
    from the amount that it must pay to a library district
    under this paragraph any amount that it has voluntarily
    paid to the library district from the tax increment
    revenue. The amount paid to a library district under this
    paragraph (7.7) shall be no more than 2% of the amount
    produced by the assisted housing units and deposited into
    the Special Tax Allocation Fund.
        A library district is not eligible for any payment
    under this paragraph (7.7) unless the library district has
    experienced an increase in the number of patrons from the
    municipality that created the tax-increment-financing
    district since the designation of the redevelopment
    project area.
        Any library district seeking payment under this
    paragraph (7.7) shall, after July 1 and before September 30
    of each year, provide the municipality with convincing
    evidence to support its claim for reimbursement before the
    municipality shall be required to approve or make the
    payment to the library district. If the library district
    fails to provide the information during this period in any
    year, it shall forfeit any claim to reimbursement for that
    year. Library districts may adopt a resolution waiving the
    right to all or a portion of the reimbursement otherwise
    required by this paragraph (7.7). By acceptance of such
    reimbursement, the library district shall forfeit any
    right to directly or indirectly set aside, modify, or
    contest in any manner whatsoever the establishment of the
    redevelopment project area or projects;
        (8) Relocation costs to the extent that a municipality
    determines that relocation costs shall be paid or is
    required to make payment of relocation costs by federal or
    State law or in order to satisfy subparagraph (7) of
    subsection (n);
        (9) Payment in lieu of taxes;
        (10) Costs of job training, retraining, advanced
    vocational education or career education, including but
    not limited to courses in occupational, semi-technical or
    technical fields leading directly to employment, incurred
    by one or more taxing districts, provided that such costs
    (i) are related to the establishment and maintenance of
    additional job training, advanced vocational education or
    career education programs for persons employed or to be
    employed by employers located in a redevelopment project
    area; and (ii) when incurred by a taxing district or taxing
    districts other than the municipality, are set forth in a
    written agreement by or among the municipality and the
    taxing district or taxing districts, which agreement
    describes the program to be undertaken, including but not
    limited to the number of employees to be trained, a
    description of the training and services to be provided,
    the number and type of positions available or to be
    available, itemized costs of the program and sources of
    funds to pay for the same, and the term of the agreement.
    Such costs include, specifically, the payment by community
    college districts of costs pursuant to Sections 3-37, 3-38,
    3-40 and 3-40.1 of the Public Community College Act and by
    school districts of costs pursuant to Sections 10-22.20a
    and 10-23.3a of the The School Code;
        (11) Interest cost incurred by a redeveloper related to
    the construction, renovation or rehabilitation of a
    redevelopment project provided that:
            (A) such costs are to be paid directly from the
        special tax allocation fund established pursuant to
        this Act;
            (B) such payments in any one year may not exceed
        30% of the annual interest costs incurred by the
        redeveloper with regard to the redevelopment project
        during that year;
            (C) if there are not sufficient funds available in
        the special tax allocation fund to make the payment
        pursuant to this paragraph (11) then the amounts so due
        shall accrue and be payable when sufficient funds are
        available in the special tax allocation fund;
            (D) the total of such interest payments paid
        pursuant to this Act may not exceed 30% of the total
        (i) cost paid or incurred by the redeveloper for the
        redevelopment project plus (ii) redevelopment project
        costs excluding any property assembly costs and any
        relocation costs incurred by a municipality pursuant
        to this Act; and
            (E) the cost limits set forth in subparagraphs (B)
        and (D) of paragraph (11) shall be modified for the
        financing of rehabilitated or new housing units for
        low-income households and very low-income households,
        as defined in Section 3 of the Illinois Affordable
        Housing Act. The percentage of 75% shall be substituted
        for 30% in subparagraphs (B) and (D) of paragraph (11);
        and .
            (F) instead Instead of the eligible costs provided
        by subparagraphs (B) and (D) of paragraph (11), as
        modified by this subparagraph, and notwithstanding any
        other provisions of this Act to the contrary, the
        municipality may pay from tax increment revenues up to
        50% of the cost of construction of new housing units to
        be occupied by low-income households and very
        low-income households as defined in Section 3 of the
        Illinois Affordable Housing Act. The cost of
        construction of those units may be derived from the
        proceeds of bonds issued by the municipality under this
        Act or other constitutional or statutory authority or
        from other sources of municipal revenue that may be
        reimbursed from tax increment revenues or the proceeds
        of bonds issued to finance the construction of that
        housing.
            The eligible costs provided under this
        subparagraph (F) of paragraph (11) shall be an eligible
        cost for the construction, renovation, and
        rehabilitation of all low and very low-income housing
        units, as defined in Section 3 of the Illinois
        Affordable Housing Act, within the redevelopment
        project area. If the low and very low-income units are
        part of a residential redevelopment project that
        includes units not affordable to low and very
        low-income households, only the low and very
        low-income units shall be eligible for benefits under
        this subparagraph (F) of paragraph (11). The standards
        for maintaining the occupancy by low-income households
        and very low-income households, as defined in Section 3
        of the Illinois Affordable Housing Act, of those units
        constructed with eligible costs made available under
        the provisions of this subparagraph (F) of paragraph
        (11) shall be established by guidelines adopted by the
        municipality. The responsibility for annually
        documenting the initial occupancy of the units by
        low-income households and very low-income households,
        as defined in Section 3 of the Illinois Affordable
        Housing Act, shall be that of the then current owner of
        the property. For ownership units, the guidelines will
        provide, at a minimum, for a reasonable recapture of
        funds, or other appropriate methods designed to
        preserve the original affordability of the ownership
        units. For rental units, the guidelines will provide,
        at a minimum, for the affordability of rent to low and
        very low-income households. As units become available,
        they shall be rented to income-eligible tenants. The
        municipality may modify these guidelines from time to
        time; the guidelines, however, shall be in effect for
        as long as tax increment revenue is being used to pay
        for costs associated with the units or for the
        retirement of bonds issued to finance the units or for
        the life of the redevelopment project area, whichever
        is later; .
        (11.5) If the redevelopment project area is located
    within a municipality with a population of more than
    100,000, the cost of day care services for children of
    employees from low-income families working for businesses
    located within the redevelopment project area and all or a
    portion of the cost of operation of day care centers
    established by redevelopment project area businesses to
    serve employees from low-income families working in
    businesses located in the redevelopment project area. For
    the purposes of this paragraph, "low-income families"
    means families whose annual income does not exceed 80% of
    the municipal, county, or regional median income, adjusted
    for family size, as the annual income and municipal,
    county, or regional median income are determined from time
    to time by the United States Department of Housing and
    Urban Development.
    (12) Unless explicitly stated herein the cost of
construction of new privately-owned buildings shall not be an
eligible redevelopment project cost.
    (13) After November 1, 1999 (the effective date of Public
Act 91-478), none of the redevelopment project costs enumerated
in this subsection shall be eligible redevelopment project
costs if those costs would provide direct financial support to
a retail entity initiating operations in the redevelopment
project area while terminating operations at another Illinois
location within 10 miles of the redevelopment project area but
outside the boundaries of the redevelopment project area
municipality. For purposes of this paragraph, termination
means a closing of a retail operation that is directly related
to the opening of the same operation or like retail entity
owned or operated by more than 50% of the original ownership in
a redevelopment project area, but it does not mean closing an
operation for reasons beyond the control of the retail entity,
as documented by the retail entity, subject to a reasonable
finding by the municipality that the current location contained
inadequate space, had become economically obsolete, or was no
longer a viable location for the retailer or serviceman.
    (14) No cost shall be a redevelopment project cost in a
redevelopment project area if used to demolish, remove, or
substantially modify a historic resource, after August 26, 2008
(the effective date of Public Act 95-934), unless no prudent
and feasible alternative exists. "Historic resource" for the
purpose of this paragraph item (14) means (i) a place or
structure that is included or eligible for inclusion on the
National Register of Historic Places or (ii) a contributing
structure in a district on the National Register of Historic
Places. This paragraph item (14) does not apply to a place or
structure for which demolition, removal, or modification is
subject to review by the preservation agency of a Certified
Local Government designated as such by the National Park
Service of the United States Department of the Interior.
    If a special service area has been established pursuant to
the Special Service Area Tax Act or Special Service Area Tax
Law, then any tax increment revenues derived from the tax
imposed pursuant to the Special Service Area Tax Act or Special
Service Area Tax Law may be used within the redevelopment
project area for the purposes permitted by that Act or Law as
well as the purposes permitted by this Act.
    (q-1) For redevelopment project areas created pursuant to
subsection (p-1), redevelopment project costs are limited to
those costs in paragraph (q) that are related to the existing
or proposed Regional Transportation Authority Suburban Transit
Access Route (STAR Line) station.
    (q-2) For a redevelopment project area located within a
transit facility improvement area established pursuant to
Section 11-74.4-3.3, redevelopment project costs means those
costs described in subsection (q) that are related to the
construction, reconstruction, rehabilitation, remodeling, or
repair of any existing or proposed transit facility.
    (r) "State Sales Tax Boundary" means the redevelopment
project area or the amended redevelopment project area
boundaries which are determined pursuant to subsection (9) of
Section 11-74.4-8a of this Act. The Department of Revenue shall
certify pursuant to subsection (9) of Section 11-74.4-8a the
appropriate boundaries eligible for the determination of State
Sales Tax Increment.
    (s) "State Sales Tax Increment" means an amount equal to
the increase in the aggregate amount of taxes paid by retailers
and servicemen, other than retailers and servicemen subject to
the Public Utilities Act, on transactions at places of business
located within a State Sales Tax Boundary pursuant to the
Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
Tax Act, and the Service Occupation Tax Act, except such
portion of such increase that is paid into the State and Local
Sales Tax Reform Fund, the Local Government Distributive Fund,
the Local Government Tax Fund and the County and Mass Transit
District Fund, for as long as State participation exists, over
and above the Initial Sales Tax Amounts, Adjusted Initial Sales
Tax Amounts or the Revised Initial Sales Tax Amounts for such
taxes as certified by the Department of Revenue and paid under
those Acts by retailers and servicemen on transactions at
places of business located within the State Sales Tax Boundary
during the base year which shall be the calendar year
immediately prior to the year in which the municipality adopted
tax increment allocation financing, less 3.0% of such amounts
generated under the Retailers' Occupation Tax Act, Use Tax Act
and Service Use Tax Act and the Service Occupation Tax Act,
which sum shall be appropriated to the Department of Revenue to
cover its costs of administering and enforcing this Section.
For purposes of computing the aggregate amount of such taxes
for base years occurring prior to 1985, the Department of
Revenue shall compute the Initial Sales Tax Amount for such
taxes and deduct therefrom an amount equal to 4% of the
aggregate amount of taxes per year for each year the base year
is prior to 1985, but not to exceed a total deduction of 12%.
The amount so determined shall be known as the "Adjusted
Initial Sales Tax Amount". For purposes of determining the
State Sales Tax Increment the Department of Revenue shall for
each period subtract from the tax amounts received from
retailers and servicemen on transactions located in the State
Sales Tax Boundary, the certified Initial Sales Tax Amounts,
Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
the Service Use Tax Act and the Service Occupation Tax Act. For
the State Fiscal Year 1989 this calculation shall be made by
utilizing the calendar year 1987 to determine the tax amounts
received. For the State Fiscal Year 1990, this calculation
shall be made by utilizing the period from January 1, 1988,
until September 30, 1988, to determine the tax amounts received
from retailers and servicemen, which shall have deducted
therefrom nine-twelfths of the certified Initial Sales Tax
Amounts, Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts as appropriate. For the State Fiscal
Year 1991, this calculation shall be made by utilizing the
period from October 1, 1988, until June 30, 1989, to determine
the tax amounts received from retailers and servicemen, which
shall have deducted therefrom nine-twelfths of the certified
Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
Amounts or the Revised Initial Sales Tax Amounts as
appropriate. For every State Fiscal Year thereafter, the
applicable period shall be the 12 months beginning July 1 and
ending on June 30, to determine the tax amounts received which
shall have deducted therefrom the certified Initial Sales Tax
Amounts, Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts. Municipalities intending to receive
a distribution of State Sales Tax Increment must report a list
of retailers to the Department of Revenue by October 31, 1988
and by July 31, of each year thereafter.
    (t) "Taxing districts" means counties, townships, cities
and incorporated towns and villages, school, road, park,
sanitary, mosquito abatement, forest preserve, public health,
fire protection, river conservancy, tuberculosis sanitarium
and any other municipal corporations or districts with the
power to levy taxes.
    (u) "Taxing districts' capital costs" means those costs of
taxing districts for capital improvements that are found by the
municipal corporate authorities to be necessary and directly
result from the redevelopment project.
    (v) As used in subsection (a) of Section 11-74.4-3 of this
Act, "vacant land" means any parcel or combination of parcels
of real property without industrial, commercial, and
residential buildings which has not been used for commercial
agricultural purposes within 5 years prior to the designation
of the redevelopment project area, unless the parcel is
included in an industrial park conservation area or the parcel
has been subdivided; provided that if the parcel was part of a
larger tract that has been divided into 3 or more smaller
tracts that were accepted for recording during the period from
1950 to 1990, then the parcel shall be deemed to have been
subdivided, and all proceedings and actions of the municipality
taken in that connection with respect to any previously
approved or designated redevelopment project area or amended
redevelopment project area are hereby validated and hereby
declared to be legally sufficient for all purposes of this Act.
For purposes of this Section and only for land subject to the
subdivision requirements of the Plat Act, land is subdivided
when the original plat of the proposed Redevelopment Project
Area or relevant portion thereof has been properly certified,
acknowledged, approved, and recorded or filed in accordance
with the Plat Act and a preliminary plat, if any, for any
subsequent phases of the proposed Redevelopment Project Area or
relevant portion thereof has been properly approved and filed
in accordance with the applicable ordinance of the
municipality.
    (w) "Annual Total Increment" means the sum of each
municipality's annual Net Sales Tax Increment and each
municipality's annual Net Utility Tax Increment. The ratio of
the Annual Total Increment of each municipality to the Annual
Total Increment for all municipalities, as most recently
calculated by the Department, shall determine the proportional
shares of the Illinois Tax Increment Fund to be distributed to
each municipality.
    (x) "LEED certified" means any certification level of
construction elements by a qualified Leadership in Energy and
Environmental Design Accredited Professional as determined by
the U.S. Green Building Council.
    (y) "Green Globes certified" means any certification level
of construction elements by a qualified Green Globes
Professional as determined by the Green Building Initiative.
(Source: P.A. 99-792, eff. 8-12-16; revised 10-31-16.)
 
    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
    Sec. 11-74.4-8. Tax increment allocation financing. A
municipality may not adopt tax increment financing in a
redevelopment project area after the effective date of this
amendatory Act of 1997 that will encompass an area that is
currently included in an enterprise zone created under the
Illinois Enterprise Zone Act unless that municipality,
pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
amends the enterprise zone designating ordinance to limit the
eligibility for tax abatements as provided in Section 5.4.1 of
the Illinois Enterprise Zone Act. A municipality, at the time a
redevelopment project area is designated, may adopt tax
increment allocation financing by passing an ordinance
providing that the ad valorem taxes, if any, arising from the
levies upon taxable real property in such redevelopment project
area by taxing districts and tax rates determined in the manner
provided in paragraph (c) of Section 11-74.4-9 each year after
the effective date of the ordinance until redevelopment project
costs and all municipal obligations financing redevelopment
project costs incurred under this Division have been paid shall
be divided as follows, provided, however, that with respect to
any redevelopment project area located within a transit
facility improvement area established pursuant to Section
11-74.4-3.3 in a municipality with a population of 1,000,000 or
more, ad valorem taxes, if any, arising from the levies upon
taxable real property in such redevelopment project area shall
be allocated as specifically provided in this Section:
        (a) That portion of taxes levied upon each taxable lot,
    block, tract or parcel of real property which is
    attributable to the lower of the current equalized assessed
    value or the initial equalized assessed value of each such
    taxable lot, block, tract or parcel of real property in the
    redevelopment project area shall be allocated to and when
    collected shall be paid by the county collector to the
    respective affected taxing districts in the manner
    required by law in the absence of the adoption of tax
    increment allocation financing.
        (b) Except from a tax levied by a township to retire
    bonds issued to satisfy court-ordered damages, that
    portion, if any, of such taxes which is attributable to the
    increase in the current equalized assessed valuation of
    each taxable lot, block, tract or parcel of real property
    in the redevelopment project area over and above the
    initial equalized assessed value of each property in the
    project area shall be allocated to and when collected shall
    be paid to the municipal treasurer who shall deposit said
    taxes into a special fund called the special tax allocation
    fund of the municipality for the purpose of paying
    redevelopment project costs and obligations incurred in
    the payment thereof. In any county with a population of
    3,000,000 or more that has adopted a procedure for
    collecting taxes that provides for one or more of the
    installments of the taxes to be billed and collected on an
    estimated basis, the municipal treasurer shall be paid for
    deposit in the special tax allocation fund of the
    municipality, from the taxes collected from estimated
    bills issued for property in the redevelopment project
    area, the difference between the amount actually collected
    from each taxable lot, block, tract, or parcel of real
    property within the redevelopment project area and an
    amount determined by multiplying the rate at which taxes
    were last extended against the taxable lot, block, track,
    or parcel of real property in the manner provided in
    subsection (c) of Section 11-74.4-9 by the initial
    equalized assessed value of the property divided by the
    number of installments in which real estate taxes are
    billed and collected within the county; provided that the
    payments on or before December 31, 1999 to a municipal
    treasurer shall be made only if each of the following
    conditions are met:
        (1) The total equalized assessed value of the
        redevelopment project area as last determined was not
        less than 175% of the total initial equalized assessed
        value.
        (2) Not more than 50% of the total equalized assessed
        value of the redevelopment project area as last
        determined is attributable to a piece of property
        assigned a single real estate index number.
        (3) The municipal clerk has certified to the county
        clerk that the municipality has issued its obligations
        to which there has been pledged the incremental
        property taxes of the redevelopment project area or
        taxes levied and collected on any or all property in
        the municipality or the full faith and credit of the
        municipality to pay or secure payment for all or a
        portion of the redevelopment project costs. The
        certification shall be filed annually no later than
        September 1 for the estimated taxes to be distributed
        in the following year; however, for the year 1992 the
        certification shall be made at any time on or before
        March 31, 1992.
        (4) The municipality has not requested that the total
        initial equalized assessed value of real property be
        adjusted as provided in subsection (b) of Section
        11-74.4-9.
        The conditions of paragraphs (1) through (4) do not
    apply after December 31, 1999 to payments to a municipal
    treasurer made by a county with 3,000,000 or more
    inhabitants that has adopted an estimated billing
    procedure for collecting taxes. If a county that has
    adopted the estimated billing procedure makes an erroneous
    overpayment of tax revenue to the municipal treasurer, then
    the county may seek a refund of that overpayment. The
    county shall send the municipal treasurer a notice of
    liability for the overpayment on or before the mailing date
    of the next real estate tax bill within the county. The
    refund shall be limited to the amount of the overpayment.
        It is the intent of this Division that after the
    effective date of this amendatory Act of 1988 a
    municipality's own ad valorem tax arising from levies on
    taxable real property be included in the determination of
    incremental revenue in the manner provided in paragraph (c)
    of Section 11-74.4-9. If the municipality does not extend
    such a tax, it shall annually deposit in the municipality's
    Special Tax Increment Fund an amount equal to 10% of the
    total contributions to the fund from all other taxing
    districts in that year. The annual 10% deposit required by
    this paragraph shall be limited to the actual amount of
    municipally produced incremental tax revenues available to
    the municipality from taxpayers located in the
    redevelopment project area in that year if: (a) the plan
    for the area restricts the use of the property primarily to
    industrial purposes, (b) the municipality establishing the
    redevelopment project area is a home-rule community with a
    1990 population of between 25,000 and 50,000, (c) the
    municipality is wholly located within a county with a 1990
    population of over 750,000 and (d) the redevelopment
    project area was established by the municipality prior to
    June 1, 1990. This payment shall be in lieu of a
    contribution of ad valorem taxes on real property. If no
    such payment is made, any redevelopment project area of the
    municipality shall be dissolved.
        If a municipality has adopted tax increment allocation
    financing by ordinance and the County Clerk thereafter
    certifies the "total initial equalized assessed value as
    adjusted" of the taxable real property within such
    redevelopment project area in the manner provided in
    paragraph (b) of Section 11-74.4-9, each year after the
    date of the certification of the total initial equalized
    assessed value as adjusted until redevelopment project
    costs and all municipal obligations financing
    redevelopment project costs have been paid the ad valorem
    taxes, if any, arising from the levies upon the taxable
    real property in such redevelopment project area by taxing
    districts and tax rates determined in the manner provided
    in paragraph (c) of Section 11-74.4-9 shall be divided as
    follows, provided, however, that with respect to any
    redevelopment project area located within a transit
    facility improvement area established pursuant to Section
    11-74.4-3.3 in a municipality with a population of
    1,000,000 or more, ad valorem taxes, if any, arising from
    the levies upon the taxable real property in such
    redevelopment project area shall be allocated as
    specifically provided in this Section:
        (1) That portion of the taxes levied upon each taxable
        lot, block, tract or parcel of real property which is
        attributable to the lower of the current equalized
        assessed value or "current equalized assessed value as
        adjusted" or the initial equalized assessed value of
        each such taxable lot, block, tract, or parcel of real
        property existing at the time tax increment financing
        was adopted, minus the total current homestead
        exemptions under Article 15 of the Property Tax Code in
        the redevelopment project area shall be allocated to
        and when collected shall be paid by the county
        collector to the respective affected taxing districts
        in the manner required by law in the absence of the
        adoption of tax increment allocation financing.
        (2) That portion, if any, of such taxes which is
        attributable to the increase in the current equalized
        assessed valuation of each taxable lot, block, tract,
        or parcel of real property in the redevelopment project
        area, over and above the initial equalized assessed
        value of each property existing at the time tax
        increment financing was adopted, minus the total
        current homestead exemptions pertaining to each piece
        of property provided by Article 15 of the Property Tax
        Code in the redevelopment project area, shall be
        allocated to and when collected shall be paid to the
        municipal Treasurer, who shall deposit said taxes into
        a special fund called the special tax allocation fund
        of the municipality for the purpose of paying
        redevelopment project costs and obligations incurred
        in the payment thereof.
        The municipality may pledge in the ordinance the funds
    in and to be deposited in the special tax allocation fund
    for the payment of such costs and obligations. No part of
    the current equalized assessed valuation of each property
    in the redevelopment project area attributable to any
    increase above the total initial equalized assessed value,
    or the total initial equalized assessed value as adjusted,
    of such properties shall be used in calculating the general
    State school aid formula, provided for in Section 18-8 of
    the School Code, or the evidence-based funding formula,
    provided for in Section 18-8.15 of the School Code, until
    such time as all redevelopment project costs have been paid
    as provided for in this Section.
        Whenever a municipality issues bonds for the purpose of
    financing redevelopment project costs, such municipality
    may provide by ordinance for the appointment of a trustee,
    which may be any trust company within the State, and for
    the establishment of such funds or accounts to be
    maintained by such trustee as the municipality shall deem
    necessary to provide for the security and payment of the
    bonds. If such municipality provides for the appointment of
    a trustee, such trustee shall be considered the assignee of
    any payments assigned by the municipality pursuant to such
    ordinance and this Section. Any amounts paid to such
    trustee as assignee shall be deposited in the funds or
    accounts established pursuant to such trust agreement, and
    shall be held by such trustee in trust for the benefit of
    the holders of the bonds, and such holders shall have a
    lien on and a security interest in such funds or accounts
    so long as the bonds remain outstanding and unpaid. Upon
    retirement of the bonds, the trustee shall pay over any
    excess amounts held to the municipality for deposit in the
    special tax allocation fund.
        When such redevelopment projects costs, including
    without limitation all municipal obligations financing
    redevelopment project costs incurred under this Division,
    have been paid, all surplus funds then remaining in the
    special tax allocation fund shall be distributed by being
    paid by the municipal treasurer to the Department of
    Revenue, the municipality and the county collector; first
    to the Department of Revenue and the municipality in direct
    proportion to the tax incremental revenue received from the
    State and the municipality, but not to exceed the total
    incremental revenue received from the State or the
    municipality less any annual surplus distribution of
    incremental revenue previously made; with any remaining
    funds to be paid to the County Collector who shall
    immediately thereafter pay said funds to the taxing
    districts in the redevelopment project area in the same
    manner and proportion as the most recent distribution by
    the county collector to the affected districts of real
    property taxes from real property in the redevelopment
    project area.
        Upon the payment of all redevelopment project costs,
    the retirement of obligations, the distribution of any
    excess monies pursuant to this Section, and final closing
    of the books and records of the redevelopment project area,
    the municipality shall adopt an ordinance dissolving the
    special tax allocation fund for the redevelopment project
    area and terminating the designation of the redevelopment
    project area as a redevelopment project area. Title to real
    or personal property and public improvements acquired by or
    for the municipality as a result of the redevelopment
    project and plan shall vest in the municipality when
    acquired and shall continue to be held by the municipality
    after the redevelopment project area has been terminated.
    Municipalities shall notify affected taxing districts
    prior to November 1 if the redevelopment project area is to
    be terminated by December 31 of that same year. If a
    municipality extends estimated dates of completion of a
    redevelopment project and retirement of obligations to
    finance a redevelopment project, as allowed by this
    amendatory Act of 1993, that extension shall not extend the
    property tax increment allocation financing authorized by
    this Section. Thereafter the rates of the taxing districts
    shall be extended and taxes levied, collected and
    distributed in the manner applicable in the absence of the
    adoption of tax increment allocation financing.
        If a municipality with a population of 1,000,000 or
    more has adopted by ordinance tax increment allocation
    financing for a redevelopment project area located in a
    transit facility improvement area established pursuant to
    Section 11-74.4-3.3, for each year after the effective date
    of the ordinance until redevelopment project costs and all
    municipal obligations financing redevelopment project
    costs have been paid, the ad valorem taxes, if any, arising
    from the levies upon the taxable real property in that
    redevelopment project area by taxing districts and tax
    rates determined in the manner provided in paragraph (c) of
    Section 11-74.4-9 shall be divided as follows:
            (1) That portion of the taxes levied upon each
        taxable lot, block, tract or parcel of real property
        which is attributable to the lower of (i) the current
        equalized assessed value or "current equalized
        assessed value as adjusted" or (ii) the initial
        equalized assessed value of each such taxable lot,
        block, tract, or parcel of real property existing at
        the time tax increment financing was adopted, minus the
        total current homestead exemptions under Article 15 of
        the Property Tax Code in the redevelopment project area
        shall be allocated to and when collected shall be paid
        by the county collector to the respective affected
        taxing districts in the manner required by law in the
        absence of the adoption of tax increment allocation
        financing.
            (2) That portion, if any, of such taxes which is
        attributable to the increase in the current equalized
        assessed valuation of each taxable lot, block, tract,
        or parcel of real property in the redevelopment project
        area, over and above the initial equalized assessed
        value of each property existing at the time tax
        increment financing was adopted, minus the total
        current homestead exemptions pertaining to each piece
        of property provided by Article 15 of the Property Tax
        Code in the redevelopment project area, shall be
        allocated to and when collected shall be paid by the
        county collector as follows:
                (A) First, that portion which would be payable
            to a school district whose boundaries are
            coterminous with such municipality in the absence
            of the adoption of tax increment allocation
            financing, shall be paid to such school district in
            the manner required by law in the absence of the
            adoption of tax increment allocation financing;
            then
                (B) 80% of the remaining portion shall be paid
            to the municipal Treasurer, who shall deposit said
            taxes into a special fund called the special tax
            allocation fund of the municipality for the
            purpose of paying redevelopment project costs and
            obligations incurred in the payment thereof; and
            then
                (C) 20% of the remaining portion shall be paid
            to the respective affected taxing districts, other
            than the school district described in clause (a)
            above, in the manner required by law in the absence
            of the adoption of tax increment allocation
            financing.
    Nothing in this Section shall be construed as relieving
property in such redevelopment project areas from being
assessed as provided in the Property Tax Code or as relieving
owners of such property from paying a uniform rate of taxes, as
required by Section 4 of Article IX of the Illinois
Constitution.
(Source: P.A. 98-463, eff. 8-16-13; 99-792, eff. 8-12-16.)
 
    (65 ILCS 5/11-74.6-35)
    Sec. 11-74.6-35. Ordinance for tax increment allocation
financing.
    (a) A municipality, at the time a redevelopment project
area is designated, may adopt tax increment allocation
financing by passing an ordinance providing that the ad valorem
taxes, if any, arising from the levies upon taxable real
property within the redevelopment project area by taxing
districts and tax rates determined in the manner provided in
subsection (b) of Section 11-74.6-40 each year after the
effective date of the ordinance until redevelopment project
costs and all municipal obligations financing redevelopment
project costs incurred under this Act have been paid shall be
divided as follows:
        (1) That portion of the taxes levied upon each taxable
    lot, block, tract or parcel of real property that is
    attributable to the lower of the current equalized assessed
    value or the initial equalized assessed value or the
    updated initial equalized assessed value of each taxable
    lot, block, tract or parcel of real property in the
    redevelopment project area shall be allocated to and when
    collected shall be paid by the county collector to the
    respective affected taxing districts in the manner
    required by law without regard to the adoption of tax
    increment allocation financing.
        (2) That portion, if any, of those taxes that is
    attributable to the increase in the current equalized
    assessed value of each taxable lot, block, tract or parcel
    of real property in the redevelopment project area, over
    and above the initial equalized assessed value or the
    updated initial equalized assessed value of each property
    in the project area, shall be allocated to and when
    collected shall be paid by the county collector to the
    municipal treasurer who shall deposit that portion of those
    taxes into a special fund called the special tax allocation
    fund of the municipality for the purpose of paying
    redevelopment project costs and obligations incurred in
    the payment of those costs and obligations. In any county
    with a population of 3,000,000 or more that has adopted a
    procedure for collecting taxes that provides for one or
    more of the installments of the taxes to be billed and
    collected on an estimated basis, the municipal treasurer
    shall be paid for deposit in the special tax allocation
    fund of the municipality, from the taxes collected from
    estimated bills issued for property in the redevelopment
    project area, the difference between the amount actually
    collected from each taxable lot, block, tract, or parcel of
    real property within the redevelopment project area and an
    amount determined by multiplying the rate at which taxes
    were last extended against the taxable lot, block, track,
    or parcel of real property in the manner provided in
    subsection (b) of Section 11-74.6-40 by the initial
    equalized assessed value or the updated initial equalized
    assessed value of the property divided by the number of
    installments in which real estate taxes are billed and
    collected within the county, provided that the payments on
    or before December 31, 1999 to a municipal treasurer shall
    be made only if each of the following conditions are met:
            (A) The total equalized assessed value of the
        redevelopment project area as last determined was not
        less than 175% of the total initial equalized assessed
        value.
            (B) Not more than 50% of the total equalized
        assessed value of the redevelopment project area as
        last determined is attributable to a piece of property
        assigned a single real estate index number.
            (C) The municipal clerk has certified to the county
        clerk that the municipality has issued its obligations
        to which there has been pledged the incremental
        property taxes of the redevelopment project area or
        taxes levied and collected on any or all property in
        the municipality or the full faith and credit of the
        municipality to pay or secure payment for all or a
        portion of the redevelopment project costs. The
        certification shall be filed annually no later than
        September 1 for the estimated taxes to be distributed
        in the following year.
    The conditions of paragraphs (A) through (C) do not apply
after December 31, 1999 to payments to a municipal treasurer
made by a county with 3,000,000 or more inhabitants that has
adopted an estimated billing procedure for collecting taxes. If
a county that has adopted the estimated billing procedure makes
an erroneous overpayment of tax revenue to the municipal
treasurer, then the county may seek a refund of that
overpayment. The county shall send the municipal treasurer a
notice of liability for the overpayment on or before the
mailing date of the next real estate tax bill within the
county. The refund shall be limited to the amount of the
overpayment.
    (b) It is the intent of this Act that a municipality's own
ad valorem tax arising from levies on taxable real property be
included in the determination of incremental revenue in the
manner provided in paragraph (b) of Section 11-74.6-40.
    (c) If a municipality has adopted tax increment allocation
financing for a redevelopment project area by ordinance and the
county clerk thereafter certifies the total initial equalized
assessed value or the total updated initial equalized assessed
value of the taxable real property within such redevelopment
project area in the manner provided in paragraph (a) or (b) of
Section 11-74.6-40, each year after the date of the
certification of the total initial equalized assessed value or
the total updated initial equalized assessed value until
redevelopment project costs and all municipal obligations
financing redevelopment project costs have been paid, the ad
valorem taxes, if any, arising from the levies upon the taxable
real property in the redevelopment project area by taxing
districts and tax rates determined in the manner provided in
paragraph (b) of Section 11-74.6-40 shall be divided as
follows:
        (1) That portion of the taxes levied upon each taxable
    lot, block, tract or parcel of real property that is
    attributable to the lower of the current equalized assessed
    value or the initial equalized assessed value, or the
    updated initial equalized assessed value of each parcel if
    the updated initial equalized assessed value of that parcel
    has been certified in accordance with Section 11-74.6-40,
    whichever has been most recently certified, of each taxable
    lot, block, tract, or parcel of real property existing at
    the time tax increment allocation financing was adopted in
    the redevelopment project area, shall be allocated to and
    when collected shall be paid by the county collector to the
    respective affected taxing districts in the manner
    required by law without regard to the adoption of tax
    increment allocation financing.
        (2) That portion, if any, of those taxes that is
    attributable to the increase in the current equalized
    assessed value of each taxable lot, block, tract, or parcel
    of real property in the redevelopment project area, over
    and above the initial equalized assessed value of each
    property existing at the time tax increment allocation
    financing was adopted in the redevelopment project area, or
    the updated initial equalized assessed value of each parcel
    if the updated initial equalized assessed value of that
    parcel has been certified in accordance with Section
    11-74.6-40, shall be allocated to and when collected shall
    be paid to the municipal treasurer, who shall deposit those
    taxes into a special fund called the special tax allocation
    fund of the municipality for the purpose of paying
    redevelopment project costs and obligations incurred in
    the payment thereof.
    (d) The municipality may pledge in the ordinance the funds
in and to be deposited in the special tax allocation fund for
the payment of redevelopment project costs and obligations. No
part of the current equalized assessed value of each property
in the redevelopment project area attributable to any increase
above the total initial equalized assessed value or the total
initial updated equalized assessed value of the property, shall
be used in calculating the general General State aid formula
School Aid Formula, provided for in Section 18-8 of the School
Code, or the evidence-based funding formula, provided for in
Section 18-8.15 of the School Code, until all redevelopment
project costs have been paid as provided for in this Section.
    Whenever a municipality issues bonds for the purpose of
financing redevelopment project costs, that municipality may
provide by ordinance for the appointment of a trustee, which
may be any trust company within the State, and for the
establishment of any funds or accounts to be maintained by that
trustee, as the municipality deems necessary to provide for the
security and payment of the bonds. If the municipality provides
for the appointment of a trustee, the trustee shall be
considered the assignee of any payments assigned by the
municipality under that ordinance and this Section. Any amounts
paid to the trustee as assignee shall be deposited into the
funds or accounts established under the trust agreement, and
shall be held by the trustee in trust for the benefit of the
holders of the bonds. The holders of those bonds shall have a
lien on and a security interest in those funds or accounts
while the bonds remain outstanding and unpaid. Upon retirement
of the bonds, the trustee shall pay over any excess amounts
held to the municipality for deposit in the special tax
allocation fund.
    When the redevelopment projects costs, including without
limitation all municipal obligations financing redevelopment
project costs incurred under this Law, have been paid, all
surplus funds then remaining in the special tax allocation fund
shall be distributed by being paid by the municipal treasurer
to the municipality and the county collector; first to the
municipality in direct proportion to the tax incremental
revenue received from the municipality, but not to exceed the
total incremental revenue received from the municipality,
minus any annual surplus distribution of incremental revenue
previously made. Any remaining funds shall be paid to the
county collector who shall immediately distribute that payment
to the taxing districts in the redevelopment project area in
the same manner and proportion as the most recent distribution
by the county collector to the affected districts of real
property taxes from real property situated in the redevelopment
project area.
    Upon the payment of all redevelopment project costs,
retirement of obligations and the distribution of any excess
moneys under this Section, the municipality shall adopt an
ordinance dissolving the special tax allocation fund for the
redevelopment project area and terminating the designation of
the redevelopment project area as a redevelopment project area.
Thereafter the tax levies of taxing districts shall be
extended, collected and distributed in the same manner
applicable before the adoption of tax increment allocation
financing. Municipality shall notify affected taxing districts
prior to November if the redevelopment project area is to be
terminated by December 31 of that same year.
    Nothing in this Section shall be construed as relieving
property in a redevelopment project area from being assessed as
provided in the Property Tax Code or as relieving owners of
that property from paying a uniform rate of taxes, as required
by Section 4 of Article IX of the Illinois Constitution.
(Source: P.A. 91-474, eff. 11-1-99.)
 
    Section 960. The Economic Development Project Area Tax
Increment Allocation Act of 1995 is amended by changing Section
50 as follows:
 
    (65 ILCS 110/50)
    Sec. 50. Special tax allocation fund.
    (a) If a county clerk has certified the "total initial
equalized assessed value" of the taxable real property within
an economic development project area in the manner provided in
Section 45, each year after the date of the certification by
the county clerk of the "total initial equalized assessed
value", until economic development project costs and all
municipal obligations financing economic development project
costs have been paid, the ad valorem taxes, if any, arising
from the levies upon the taxable real property in the economic
development project area by taxing districts and tax rates
determined in the manner provided in subsection (b) of Section
45 shall be divided as follows:
        (1) That portion of the taxes levied upon each taxable
    lot, block, tract, or parcel of real property that is
    attributable to the lower of the current equalized assessed
    value or the initial equalized assessed value of each
    taxable lot, block, tract, or parcel of real property
    existing at the time tax increment financing was adopted
    shall be allocated to (and when collected shall be paid by
    the county collector to) the respective affected taxing
    districts in the manner required by law in the absence of
    the adoption of tax increment allocation financing.
        (2) That portion, if any, of the taxes that is
    attributable to the increase in the current equalized
    assessed valuation of each taxable lot, block, tract, or
    parcel of real property in the economic development project
    area, over and above the initial equalized assessed value
    of each property existing at the time tax increment
    financing was adopted, shall be allocated to (and when
    collected shall be paid to) the municipal treasurer, who
    shall deposit the taxes into a special fund (called the
    special tax allocation fund of the municipality) for the
    purpose of paying economic development project costs and
    obligations incurred in the payment of those costs.
    (b) The municipality, by an ordinance adopting tax
increment allocation financing, may pledge the monies in and to
be deposited into the special tax allocation fund for the
payment of obligations issued under this Act and for the
payment of economic development project costs. No part of the
current equalized assessed valuation of each property in the
economic development project area attributable to any increase
above the total initial equalized assessed value of those
properties shall be used in calculating the general State
school aid formula under Section 18-8 of the School Code or the
evidence-based funding formula under Section 18-8.15 of the
School Code, until all economic development projects costs have
been paid as provided for in this Section.
    (c) When the economic development projects costs,
including without limitation all municipal obligations
financing economic development project costs incurred under
this Act, have been paid, all surplus monies then remaining in
the special tax allocation fund shall be distributed by being
paid by the municipal treasurer to the county collector, who
shall immediately pay the monies to the taxing districts having
taxable property in the economic development project area in
the same manner and proportion as the most recent distribution
by the county collector to those taxing districts of real
property taxes from real property in the economic development
project area.
    (d) Upon the payment of all economic development project
costs, retirement of obligations, and distribution of any
excess monies under this Section and not later than 23 years
from the date of the adoption of the ordinance establishing the
economic development project area, the municipality shall
adopt an ordinance dissolving the special tax allocation fund
for the economic development project area and terminating the
designation of the economic development project area as an
economic development project area. Thereafter, the rates of the
taxing districts shall be extended and taxes shall be levied,
collected, and distributed in the manner applicable in the
absence of the adoption of tax increment allocation financing.
    (e) Nothing in this Section shall be construed as relieving
property in the economic development project areas from being
assessed as provided in the Property Tax Code or as relieving
owners or lessees of that property from paying a uniform rate
of taxes as required by Section 4 of Article IX of the Illinois
Constitution.
(Source: P.A. 98-463, eff. 8-16-13.)
 
    Section 965. The School Code is amended by changing
Sections 1A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1C-2, 1D-1, 1E-20,
1F-20, 1F-62, 1H-20, 1H-70, 2-3.25g, 2-3.33, 2-3.51.5, 2-3.66,
2-3.66b, 2-3.84, 2-3.109a, 3-14.21, 7-14A, 10-17a, 10-19,
10-22.5a, 10-22.20, 10-29, 11E-135, 13A-8, 13B-20.20, 13B-45,
13B-50, 13B-50.10, 13B-50.15, 14-7.02b, 14-13.01, 14C-1,
14C-12, 17-1, 17-1.2, 17-1.5, 17-2.11, 17-2A, 18-4.3, 18-8.05,
18-8.10, 18-9, 18-12, 26-16, 27-6, 27-7, 27-8.1, 27-24.2,
27A-9, 27A-11, 29-5, 34-2.3, 34-18, 34-18.30, 34-43.1, and
34-53 and by adding Sections 2-3.170, 17-3.6, and 18-8.15 as
follows:
 
    (105 ILCS 5/1A-8)  (from Ch. 122, par. 1A-8)
    Sec. 1A-8. Powers of the Board in Assisting Districts
Deemed in Financial Difficulties. To promote the financial
integrity of school districts, the State Board of Education
shall be provided the necessary powers to promote sound
financial management and continue operation of the public
schools.
    (a) The State Superintendent of Education may require a
school district, including any district subject to Article 34A
of this Code, to share financial information relevant to a
proper investigation of the district's financial condition and
the delivery of appropriate State financial, technical, and
consulting services to the district if the district (i) has
been designated, through the State Board of Education's School
District Financial Profile System, as on financial warning or
financial watch status, (ii) has failed to file an annual
financial report, annual budget, deficit reduction plan, or
other financial information as required by law, (iii) has been
identified, through the district's annual audit or other
financial and management information, as in serious financial
difficulty in the current or next school year, or (iv) is
determined to be likely to fail to fully meet any regularly
scheduled, payroll-period obligations when due or any debt
service payments when due or both. In addition to financial,
technical, and consulting services provided by the State Board
of Education, at the request of a school district, the State
Superintendent may provide for an independent financial
consultant to assist the district review its financial
condition and options.
    (b) The State Board of Education, after proper
investigation of a district's financial condition, may certify
that a district, including any district subject to Article 34A,
is in financial difficulty when any of the following conditions
occur:
        (1) The district has issued school or teacher orders
    for wages as permitted in Sections 8-16, 32-7.2 and 34-76
    of this Code.
        (2) The district has issued tax anticipation warrants
    or tax anticipation notes in anticipation of a second
    year's taxes when warrants or notes in anticipation of
    current year taxes are still outstanding, as authorized by
    Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has
    issued short-term debt against 2 future revenue sources,
    such as, but not limited to, tax anticipation warrants and
    general State aid or evidence-based funding Aid
    certificates or tax anticipation warrants and revenue
    anticipation notes.
        (3) The district has for 2 consecutive years shown an
    excess of expenditures and other financing uses over
    revenues and other financing sources and beginning fund
    balances on its annual financial report for the aggregate
    totals of the Educational, Operations and Maintenance,
    Transportation, and Working Cash Funds.
        (4) The district refuses to provide financial
    information or cooperate with the State Superintendent in
    an investigation of the district's financial condition.
        (5) The district is likely to fail to fully meet any
    regularly scheduled, payroll-period obligations when due
    or any debt service payments when due or both.
    No school district shall be certified by the State Board of
Education to be in financial difficulty solely by reason of any
of the above circumstances arising as a result of (i) the
failure of the county to make any distribution of property tax
money due the district at the time such distribution is due or
(ii) the failure of this State to make timely payments of
general State aid, evidence-based funding, or any of the
mandated categoricals; or if the district clearly demonstrates
to the satisfaction of the State Board of Education at the time
of its determination that such condition no longer exists. If
the State Board of Education certifies that a district in a
city with 500,000 inhabitants or more is in financial
difficulty, the State Board shall so notify the Governor and
the Mayor of the city in which the district is located. The
State Board of Education may require school districts certified
in financial difficulty, except those districts subject to
Article 34A, to develop, adopt and submit a financial plan
within 45 days after certification of financial difficulty. The
financial plan shall be developed according to guidelines
presented to the district by the State Board of Education
within 14 days of certification. Such guidelines shall address
the specific nature of each district's financial difficulties.
Any proposed budget of the district shall be consistent with
the financial plan submitted to and approved by the State Board
of Education.
    A district certified to be in financial difficulty, other
than a district subject to Article 34A, shall report to the
State Board of Education at such times and in such manner as
the State Board may direct, concerning the district's
compliance with each financial plan. The State Board may review
the district's operations, obtain budgetary data and financial
statements, require the district to produce reports, and have
access to any other information in the possession of the
district that it deems relevant. The State Board may issue
recommendations or directives within its powers to the district
to assist in compliance with the financial plan. The district
shall produce such budgetary data, financial statements,
reports and other information and comply with such directives.
If the State Board of Education determines that a district has
failed to comply with its financial plan, the State Board of
Education may rescind approval of the plan and appoint a
Financial Oversight Panel for the district as provided in
Section 1B-4. This action shall be taken only after the
district has been given notice and an opportunity to appear
before the State Board of Education to discuss its failure to
comply with its financial plan.
    No bonds, notes, teachers orders, tax anticipation
warrants or other evidences of indebtedness shall be issued or
sold by a school district or be legally binding upon or
enforceable against a local board of education of a district
certified to be in financial difficulty unless and until the
financial plan required under this Section has been approved by
the State Board of Education.
    Any financial profile compiled and distributed by the State
Board of Education in Fiscal Year 2009 or any fiscal year
thereafter shall incorporate such adjustments as may be needed
in the profile scores to reflect the financial effects of the
inability or refusal of the State of Illinois to make timely
disbursements of any general State aid, evidence-based
funding, or mandated categorical aid payments due school
districts or to fully reimburse school districts for mandated
categorical programs pursuant to reimbursement formulas
provided in this School Code.
(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
97-429, eff. 8-16-11.)
 
    (105 ILCS 5/1B-5)  (from Ch. 122, par. 1B-5)
    Sec. 1B-5. When a petition for emergency financial
assistance for a school district is allowed by the State Board
under Section 1B-4, the State Superintendent shall within 10
days thereafter appoint 3 members to serve at the State
Superintendent's pleasure on a Financial Oversight Panel for
the district. The State Superintendent shall designate one of
the members of the Panel to serve as its Chairman. In the event
of vacancy or resignation the State Superintendent shall
appoint a successor within 10 days of receiving notice thereof.
    Members of the Panel shall be selected primarily on the
basis of their experience and education in financial
management, with consideration given to persons knowledgeable
in education finance. A member of the Panel may not be a board
member or employee of the district for which the Panel is
constituted, nor may a member have a direct financial interest
in that district.
    Panel members shall serve without compensation, but may be
reimbursed for travel and other necessary expenses incurred in
the performance of their official duties by the State Board.
The amount reimbursed Panel members for their expenses shall be
charged to the school district as part of any emergency
financial assistance and incorporated as a part of the terms
and conditions for repayment of such assistance or shall be
deducted from the district's general State aid or
evidence-based funding as provided in Section 1B-8.
    The first meeting of the Panel shall be held at the call of
the Chairman. The Panel may elect such other officers as it
deems appropriate. The Panel shall prescribe the times and
places for its meetings and the manner in which regular and
special meetings may be called, and shall comply with the Open
Meetings Act.
    Two members of the Panel shall constitute a quorum, and the
affirmative vote of 2 members shall be necessary for any
decision or action to be taken by the Panel.
    The Panel and the State Superintendent shall cooperate with
each other in the exercise of their respective powers. The
Panel shall report not later than September 1 annually to the
State Board and the State Superintendent with respect to its
activities and the condition of the school district for the
previous fiscal year.
    Any Financial Oversight Panel established under this
Article shall remain in existence for not less than 3 years nor
more than 10 years from the date the State Board grants the
petition under Section 1B-4. If after 3 years the school
district has repaid all of its obligations resulting from
emergency State financial assistance provided under this
Article and has improved its financial situation, the board of
education may, not more frequently than once in any 12 month
period, petition the State Board to dissolve the Financial
Oversight Panel, terminate the oversight responsibility, and
remove the district's certification under Section 1A-8 as a
district in financial difficulty. In acting on such a petition
the State Board shall give additional weight to the
recommendations of the State Superintendent and the Financial
Oversight Panel.
(Source: P.A. 88-618, eff. 9-9-94.)
 
    (105 ILCS 5/1B-6)  (from Ch. 122, par. 1B-6)
    Sec. 1B-6. General powers. The purpose of the Financial
Oversight Panel shall be to exercise financial control over the
board of education, and, when approved by the State Board and
the State Superintendent of Education, to furnish financial
assistance so that the board can provide public education
within the board's jurisdiction while permitting the board to
meet its obligations to its creditors and the holders of its
notes and bonds. Except as expressly limited by this Article,
the Panel shall have all powers necessary to meet its
responsibilities and to carry out its purposes and the purposes
of this Article, including, but not limited to, the following
powers:
    (a) to sue and be sued;
    (b) to provide for its organization and internal
management;
    (c) to appoint a Financial Administrator to serve as the
chief executive officer of the Panel. The Financial
Administrator may be an individual, partnership, corporation,
including an accounting firm, or other entity determined by the
Panel to be qualified to serve; and to appoint other officers,
agents, and employees of the Panel, define their duties and
qualifications and fix their compensation and employee
benefits;
    (d) to approve the local board of education appointments to
the positions of treasurer in a Class I county school unit and
in each school district which forms a part of a Class II county
school unit but which no longer is subject to the jurisdiction
and authority of a township treasurer or trustees of schools of
a township because the district has withdrawn from the
jurisdiction and authority of the township treasurer and the
trustees of schools of the township or because those offices
have been abolished as provided in subsection (b) or (c) of
Section 5-1, and chief school business official, if such
official is not the superintendent of the district. Either the
board or the Panel may remove such treasurer or chief school
business official;
    (e) to approve any and all bonds, notes, teachers orders,
tax anticipation warrants, and other evidences of indebtedness
prior to issuance or sale by the school district; and
notwithstanding any other provision of The School Code, as now
or hereafter amended, no bonds, notes, teachers orders, tax
anticipation warrants or other evidences of indebtedness shall
be issued or sold by the school district or be legally binding
upon or enforceable against the local board of education unless
and until the approval of the Panel has been received;
    (f) to approve all property tax levies of the school
district and require adjustments thereto as the Panel deems
necessary or advisable;
    (g) to require and approve a school district financial
plan;
    (h) to approve and require revisions of the school district
budget;
    (i) to approve all contracts and other obligations as the
Panel deems necessary and appropriate;
    (j) to authorize emergency State financial assistance,
including requirements regarding the terms and conditions of
repayment of such assistance, and to require the board of
education to levy a separate local property tax, subject to the
limitations of Section 1B-8, sufficient to repay such
assistance consistent with the terms and conditions of
repayment and the district's approved financial plan and
budget;
    (k) to request the regional superintendent to make
appointments to fill all vacancies on the local school board as
provided in Section 10-10;
    (l) to recommend dissolution or reorganization of the
school district to the General Assembly if in the Panel's
judgment the circumstances so require;
    (m) to direct a phased reduction in the oversight
responsibilities of the Financial Administrator and of the
Panel as the circumstances permit;
    (n) to determine the amount of emergency State financial
assistance to be made available to the school district, and to
establish an operating budget for the Panel to be supported by
funds available from such assistance, with the assistance and
the budget required to be approved by the State Superintendent;
    (o) to procure insurance against any loss in such amounts
and from such insurers as it deems necessary;
    (p) to engage the services of consultants for rendering
professional and technical assistance and advice on matters
within the Panel's power;
    (q) to contract for and to accept any gifts, grants or
loans of funds or property or financial or other aid in any
form from the federal government, State government, unit of
local government, school district or any agency or
instrumentality thereof, or from any other private or public
source, and to comply with the terms and conditions thereof;
    (r) to pay the expenses of its operations based on the
Panel's budget as approved by the State Superintendent from
emergency financial assistance funds available to the district
or from deductions from the district's general State aid or
evidence-based funding;
    (s) to do any and all things necessary or convenient to
carry out its purposes and exercise the powers given to the
Panel by this Article; and
    (t) to recommend the creation of a school finance authority
pursuant to Article 1F of this Code.
(Source: P.A. 91-357, eff. 7-29-99; 92-855, eff. 12-6-02.)
 
    (105 ILCS 5/1B-7)  (from Ch. 122, par. 1B-7)
    Sec. 1B-7. Financial Administrator; Powers and Duties. The
Financial Administrator appointed by the Financial Oversight
Panel shall serve as the Panel's chief executive officer. The
Financial Administrator shall exercise the powers and duties
required by the Panel, including but not limited to the
following:
    (a) to provide guidance and recommendations to the local
board and officials of the school district in developing the
district's financial plan and budget prior to board action;
    (b) to direct the local board to reorganize its financial
accounts, budgetary systems, and internal accounting and
financial controls, in whatever manner the Panel deems
appropriate to achieve greater financial responsibility and to
reduce financial inefficiency, and to provide technical
assistance to aid the district in accomplishing the
reorganization;
    (c) to make recommendations to the Financial Oversight
Panel concerning the school district's financial plan and
budget, and all other matters within the scope of the Panel's
authority;
    (d) to prepare and recommend to the Panel a proposal for
emergency State financial assistance for the district,
including recommended terms and conditions of repayment, and an
operations budget for the Panel to be funded from the emergency
assistance or from deductions from the district's general State
aid or evidence-based funding;
    (e) to require the local board to prepare and submit
preliminary staffing and budgetary analyses annually prior to
February 1 in such manner and form as the Financial
Administrator shall prescribe; and
    (f) subject to the direction of the Panel, to do all other
things necessary or convenient to carry out its purposes and
exercise the powers given to the Panel under this Article.
(Source: P.A. 88-618, eff. 9-9-94.)
 
    (105 ILCS 5/1B-8)  (from Ch. 122, par. 1B-8)
    Sec. 1B-8. There is created in the State Treasury a special
fund to be known as the School District Emergency Financial
Assistance Fund (the "Fund"). The School District Emergency
Financial Assistance Fund shall consist of appropriations,
loan repayments, grants from the federal government, and
donations from any public or private source. Moneys in the Fund
may be appropriated only to the Illinois Finance Authority and
the State Board for those purposes authorized under this
Article and Articles 1F and 1H of this Code. The appropriation
may be allocated and expended by the State Board for
contractual services to provide technical assistance or
consultation to school districts to assess their financial
condition and to Financial Oversight Panels that petition for
emergency financial assistance grants. The Illinois Finance
Authority may provide loans to school districts which are the
subject of an approved petition for emergency financial
assistance under Section 1B-4, 1F-62, or 1H-65 of this Code.
Neither the State Board of Education nor the Illinois Finance
Authority may collect any fees for providing these services.
    From the amount allocated to each such school district
under this Article the State Board shall identify a sum
sufficient to cover all approved costs of the Financial
Oversight Panel established for the respective school
district. If the State Board and State Superintendent of
Education have not approved emergency financial assistance in
conjunction with the appointment of a Financial Oversight
Panel, the Panel's approved costs shall be paid from deductions
from the district's general State aid or evidence-based
funding.
    The Financial Oversight Panel may prepare and file with the
State Superintendent a proposal for emergency financial
assistance for the school district and for its operations
budget. No expenditures from the Fund shall be authorized by
the State Superintendent until he or she has approved the
request of the Panel, either as submitted or in such lesser
amount determined by the State Superintendent.
    The maximum amount of an emergency financial assistance
loan which may be allocated to any school district under this
Article, including moneys necessary for the operations of the
Panel, shall not exceed $4,000 times the number of pupils
enrolled in the school district during the school year ending
June 30 prior to the date of approval by the State Board of the
petition for emergency financial assistance, as certified to
the local board and the Panel by the State Superintendent. An
emergency financial assistance grant shall not exceed $1,000
times the number of such pupils. A district may receive both a
loan and a grant.
    The payment of an emergency State financial assistance
grant or loan shall be subject to appropriation by the General
Assembly. Payment of the emergency State financial assistance
loan is subject to the applicable provisions of the Illinois
Finance Authority Act. Emergency State financial assistance
allocated and paid to a school district under this Article may
be applied to any fund or funds from which the local board of
education of that district is authorized to make expenditures
by law.
    Any emergency financial assistance grant proposed by the
Financial Oversight Panel and approved by the State
Superintendent may be paid in its entirety during the initial
year of the Panel's existence or spread in equal or declining
amounts over a period of years not to exceed the period of the
Panel's existence. An emergency financial assistance loan
proposed by the Financial Oversight Panel and approved by the
Illinois Finance Authority may be paid in its entirety during
the initial year of the Panel's existence or spread in equal or
declining amounts over a period of years not to exceed the
period of the Panel's existence. All loans made by the Illinois
Finance Authority for a school district shall be required to be
repaid, with simple interest over the term of the loan at a
rate equal to 50% of the one-year Constant Maturity Treasury
(CMT) yield as last published by the Board of Governors of the
Federal Reserve System before the date on which the district's
loan is approved by the Illinois Finance Authority, not later
than the date the Financial Oversight Panel ceases to exist.
The Panel shall establish and the Illinois Finance Authority
shall approve the terms and conditions, including the schedule,
of repayments. The schedule shall provide for repayments
commencing July 1 of each year or upon each fiscal year's
receipt of moneys from a tax levy for emergency financial
assistance. Repayment shall be incorporated into the annual
budget of the school district and may be made from any fund or
funds of the district in which there are moneys available. An
emergency financial assistance loan to the Panel or district
shall not be considered part of the calculation of a district's
debt for purposes of the limitation specified in Section 19-1
of this Code. Default on repayment is subject to the Illinois
Grant Funds Recovery Act. When moneys are repaid as provided
herein they shall not be made available to the local board for
further use as emergency financial assistance under this
Article at any time thereafter. All repayments required to be
made by a school district shall be received by the State Board
and deposited in the School District Emergency Financial
Assistance Fund.
    In establishing the terms and conditions for the repayment
obligation of the school district the Panel shall annually
determine whether a separate local property tax levy is
required. The board of any school district with a tax rate for
educational purposes for the prior year of less than 120% of
the maximum rate for educational purposes authorized by Section
17-2 shall provide for a separate tax levy for emergency
financial assistance repayment purposes. Such tax levy shall
not be subject to referendum approval. The amount of the levy
shall be equal to the amount necessary to meet the annual
repayment obligations of the district as established by the
Panel, or 20% of the amount levied for educational purposes for
the prior year, whichever is less. However, no district shall
be required to levy the tax if the district's operating tax
rate as determined under Section 18-8, or 18-8.05, or 18-8.15
exceeds 200% of the district's tax rate for educational
purposes for the prior year.
(Source: P.A. 97-429, eff. 8-16-11.)
 
    (105 ILCS 5/1C-1)
    Sec. 1C-1. Purpose. The purpose of this Article is to
permit greater flexibility and efficiency in the distribution
and use of certain State funds available to local education
agencies for the improvement of the quality of educational
services pursuant to locally established priorities.
    Through fiscal year 2017, this This Article does not apply
to school districts having a population in excess of 500,000
inhabitants.
(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;
89-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
 
    (105 ILCS 5/1C-2)
    Sec. 1C-2. Block grants.
    (a) For fiscal year 1999, and each fiscal year thereafter,
the State Board of Education shall award to school districts
block grants as described in subsection (c). The State Board of
Education may adopt rules and regulations necessary to
implement this Section. In accordance with Section 2-3.32, all
state block grants are subject to an audit. Therefore, block
grant receipts and block grant expenditures shall be recorded
to the appropriate fund code.
    (b) (Blank).
    (c) An Early Childhood Education Block Grant shall be
created by combining the following programs: Preschool
Education, Parental Training and Prevention Initiative. These
funds shall be distributed to school districts and other
entities on a competitive basis, except that the State Board of
Education shall award to a school district having a population
exceeding 500,000 inhabitants 37% of the funds in each fiscal
year. Not less than 14% of the Early Childhood Education Block
Grant allocation of funds shall be used to fund programs for
children ages 0-3. Beginning in Fiscal Year 2016, at least 25%
of any additional Early Childhood Education Block Grant funding
over and above the previous fiscal year's allocation shall be
used to fund programs for children ages 0-3. Once the
percentage of Early Childhood Education Block Grant funding
allocated to programs for children ages 0-3 reaches 20% of the
overall Early Childhood Education Block Grant allocation for a
full fiscal year, thereafter in subsequent fiscal years the
percentage of Early Childhood Education Block Grant funding
allocated to programs for children ages 0-3 each fiscal year
shall remain at least 20% of the overall Early Childhood
Education Block Grant allocation. However, if, in a given
fiscal year, the amount appropriated for the Early Childhood
Education Block Grant is insufficient to increase the
percentage of the grant to fund programs for children ages 0-3
without reducing the amount of the grant for existing providers
of preschool education programs, then the percentage of the
grant to fund programs for children ages 0-3 may be held steady
instead of increased.
(Source: P.A. 98-645, eff. 7-1-14; 99-589, eff. 7-21-16.)
 
    (105 ILCS 5/1D-1)
    Sec. 1D-1. Block grant funding.
    (a) For fiscal year 1996 through fiscal year 2017 and each
fiscal year thereafter, the State Board of Education shall
award to a school district having a population exceeding
500,000 inhabitants a general education block grant and an
educational services block grant, determined as provided in
this Section, in lieu of distributing to the district separate
State funding for the programs described in subsections (b) and
(c). The provisions of this Section, however, do not apply to
any federal funds that the district is entitled to receive. In
accordance with Section 2-3.32, all block grants are subject to
an audit. Therefore, block grant receipts and block grant
expenditures shall be recorded to the appropriate fund code for
the designated block grant.
    (b) The general education block grant shall include the
following programs: REI Initiative, Summer Bridges, Preschool
At Risk, K-6 Comprehensive Arts, School Improvement Support,
Urban Education, Scientific Literacy, Substance Abuse
Prevention, Second Language Planning, Staff Development,
Outcomes and Assessment, K-6 Reading Improvement, 7-12
Continued Reading Improvement, Truants' Optional Education,
Hispanic Programs, Agriculture Education, Parental Education,
Prevention Initiative, Report Cards, and Criminal Background
Investigations. Notwithstanding any other provision of law,
all amounts paid under the general education block grant from
State appropriations to a school district in a city having a
population exceeding 500,000 inhabitants shall be appropriated
and expended by the board of that district for any of the
programs included in the block grant or any of the board's
lawful purposes.
    (c) The educational services block grant shall include the
following programs: Regular and Vocational Transportation,
State Lunch and Free Breakfast Program, Special Education
(Personnel, Transportation, Orphanage, Private Tuition),
funding for children requiring special education services,
Summer School, Educational Service Centers, and
Administrator's Academy. This subsection (c) does not relieve
the district of its obligation to provide the services required
under a program that is included within the educational
services block grant. It is the intention of the General
Assembly in enacting the provisions of this subsection (c) to
relieve the district of the administrative burdens that impede
efficiency and accompany single-program funding. The General
Assembly encourages the board to pursue mandate waivers
pursuant to Section 2-3.25g.
    The funding program included in the educational services
block grant for funding for children requiring special
education services in each fiscal year shall be treated in that
fiscal year as a payment to the school district in respect of
services provided or costs incurred in the prior fiscal year,
calculated in each case as provided in this Section. Nothing in
this Section shall change the nature of payments for any
program that, apart from this Section, would be or, prior to
adoption or amendment of this Section, was on the basis of a
payment in a fiscal year in respect of services provided or
costs incurred in the prior fiscal year, calculated in each
case as provided in this Section.
    (d) For fiscal year 1996 through fiscal year 2017 and each
fiscal year thereafter, the amount of the district's block
grants shall be determined as follows: (i) with respect to each
program that is included within each block grant, the district
shall receive an amount equal to the same percentage of the
current fiscal year appropriation made for that program as the
percentage of the appropriation received by the district from
the 1995 fiscal year appropriation made for that program, and
(ii) the total amount that is due the district under the block
grant shall be the aggregate of the amounts that the district
is entitled to receive for the fiscal year with respect to each
program that is included within the block grant that the State
Board of Education shall award the district under this Section
for that fiscal year. In the case of the Summer Bridges
program, the amount of the district's block grant shall be
equal to 44% of the amount of the current fiscal year
appropriation made for that program.
    (e) The district is not required to file any application or
other claim in order to receive the block grants to which it is
entitled under this Section. The State Board of Education shall
make payments to the district of amounts due under the
district's block grants on a schedule determined by the State
Board of Education.
    (f) A school district to which this Section applies shall
report to the State Board of Education on its use of the block
grants in such form and detail as the State Board of Education
may specify. In addition, the report must include the following
description for the district, which must also be reported to
the General Assembly: block grant allocation and expenditures
by program; population and service levels by program; and
administrative expenditures by program. The State Board of
Education shall ensure that the reporting requirements for the
district are the same as for all other school districts in this
State.
    (g) Through fiscal year 2017, this This paragraph provides
for the treatment of block grants under Article 1C for purposes
of calculating the amount of block grants for a district under
this Section. Those block grants under Article 1C are, for this
purpose, treated as included in the amount of appropriation for
the various programs set forth in paragraph (b) above. The
appropriation in each current fiscal year for each block grant
under Article 1C shall be treated for these purposes as
appropriations for the individual program included in that
block grant. The proportion of each block grant so allocated to
each such program included in it shall be the proportion which
the appropriation for that program was of all appropriations
for such purposes now in that block grant, in fiscal 1995.
    Payments to the school district under this Section with
respect to each program for which payments to school districts
generally, as of the date of this amendatory Act of the 92nd
General Assembly, are on a reimbursement basis shall continue
to be made to the district on a reimbursement basis, pursuant
to the provisions of this Code governing those programs.
    (h) Notwithstanding any other provision of law, any school
district receiving a block grant under this Section may
classify all or a portion of the funds that it receives in a
particular fiscal year from any block grant authorized under
this Code or from general State aid pursuant to Section 18-8.05
of this Code (other than supplemental general State aid) as
funds received in connection with any funding program for which
it is entitled to receive funds from the State in that fiscal
year (including, without limitation, any funding program
referred to in subsection (c) of this Section), regardless of
the source or timing of the receipt. The district may not
classify more funds as funds received in connection with the
funding program than the district is entitled to receive in
that fiscal year for that program. Any classification by a
district must be made by a resolution of its board of
education. The resolution must identify the amount of any block
grant or general State aid to be classified under this
subsection (h) and must specify the funding program to which
the funds are to be treated as received in connection
therewith. This resolution is controlling as to the
classification of funds referenced therein. A certified copy of
the resolution must be sent to the State Superintendent of
Education. The resolution shall still take effect even though a
copy of the resolution has not been sent to the State
Superintendent of Education in a timely manner. No
classification under this subsection (h) by a district shall
affect the total amount or timing of money the district is
entitled to receive under this Code. No classification under
this subsection (h) by a district shall in any way relieve the
district from or affect any requirements that otherwise would
apply with respect to the block grant as provided in this
Section, including any accounting of funds by source, reporting
expenditures by original source and purpose, reporting
requirements, or requirements of provision of services.
(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;
97-813, eff. 7-13-12.)
 
    (105 ILCS 5/1E-20)
    (This Section scheduled to be repealed in accordance with
105 ILCS 5/1E-165)
    Sec. 1E-20. Members of Authority; meetings.
    (a) When a petition for a School Finance Authority is
allowed by the State Board under Section 1E-15 of this Code,
the State Superintendent shall within 10 days thereafter
appoint 5 members to serve on a School Finance Authority for
the district. Of the initial members, 2 shall be appointed to
serve a term of 2 years and 3 shall be appointed to serve a term
of 3 years. Thereafter, each member shall serve for a term of 3
years and until his or her successor has been appointed. The
State Superintendent shall designate one of the members of the
Authority to serve as its Chairperson. In the event of vacancy
or resignation, the State Superintendent shall, within 10 days
after receiving notice, appoint a successor to serve out that
member's term. The State Superintendent may remove a member for
incompetence, malfeasance, neglect of duty, or other just
cause.
    Members of the Authority shall be selected primarily on the
basis of their experience and education in financial
management, with consideration given to persons knowledgeable
in education finance. Two members of the Authority shall be
residents of the school district that the Authority serves. A
member of the Authority may not be a member of the district's
school board or an employee of the district nor may a member
have a direct financial interest in the district.
    Authority members shall serve without compensation, but
may be reimbursed by the State Board for travel and other
necessary expenses incurred in the performance of their
official duties. Unless paid from bonds issued under Section
1E-65 of this Code, the amount reimbursed members for their
expenses shall be charged to the school district as part of any
emergency financial assistance and incorporated as a part of
the terms and conditions for repayment of the assistance or
shall be deducted from the district's general State aid or
evidence-based funding as provided in Section 1B-8 of this
Code.
    The Authority may elect such officers as it deems
appropriate.
    (b) The first meeting of the Authority shall be held at the
call of the Chairperson. The Authority shall prescribe the
times and places for its meetings and the manner in which
regular and special meetings may be called and shall comply
with the Open Meetings Act.
    Three members of the Authority shall constitute a quorum.
When a vote is taken upon any measure before the Authority, a
quorum being present, a majority of the votes of the members
voting on the measure shall determine the outcome.
(Source: P.A. 92-547, eff. 6-13-02.)
 
    (105 ILCS 5/1F-20)
(This Section scheduled to be repealed in accordance with 105
ILCS 5/1F-165)
    Sec. 1F-20. Members of Authority; meetings.
    (a) Upon establishment of a School Finance Authority under
Section 1F-15 of this Code, the State Superintendent shall
within 15 days thereafter appoint 5 members to serve on a
School Finance Authority for the district. Of the initial
members, 2 shall be appointed to serve a term of 2 years and 3
shall be appointed to serve a term of 3 years. Thereafter, each
member shall serve for a term of 3 years and until his or her
successor has been appointed. The State Superintendent shall
designate one of the members of the Authority to serve as its
Chairperson. In the event of vacancy or resignation, the State
Superintendent shall, within 10 days after receiving notice,
appoint a successor to serve out that member's term. The State
Superintendent may remove a member for incompetence,
malfeasance, neglect of duty, or other just cause.
    Members of the Authority shall be selected primarily on the
basis of their experience and education in financial
management, with consideration given to persons knowledgeable
in education finance. Two members of the Authority shall be
residents of the school district that the Authority serves. A
member of the Authority may not be a member of the district's
school board or an employee of the district nor may a member
have a direct financial interest in the district.
    Authority members shall be paid a stipend approved by the
State Superintendent of not more than $100 per meeting and may
be reimbursed by the State Board for travel and other necessary
expenses incurred in the performance of their official duties.
Unless paid from bonds issued under Section 1F-65 of this Code,
the amount reimbursed members for their expenses shall be
charged to the school district as part of any emergency
financial assistance and incorporated as a part of the terms
and conditions for repayment of the assistance or shall be
deducted from the district's general State aid or
evidence-based funding as provided in Section 1B-8 of this
Code.
    The Authority may elect such officers as it deems
appropriate.
    (b) The first meeting of the Authority shall be held at the
call of the Chairperson. The Authority shall prescribe the
times and places for its meetings and the manner in which
regular and special meetings may be called and shall comply
with the Open Meetings Act.
    Three members of the Authority shall constitute a quorum.
When a vote is taken upon any measure before the Authority, a
quorum being present, a majority of the votes of the members
voting on the measure shall determine the outcome.
(Source: P.A. 94-234, eff. 7-1-06.)
 
    (105 ILCS 5/1F-62)
(This Section scheduled to be repealed in accordance with 105
ILCS 5/1F-165)
    Sec. 1F-62. School District Emergency Financial Assistance
Fund; grants and loans.
    (a) Moneys in the School District Emergency Financial
Assistance Fund established under Section 1B-8 of this Code may
be allocated and expended by the State Board as grants to
provide technical and consulting services to school districts
to assess their financial condition and by the Illinois Finance
Authority for emergency financial assistance loans to a School
Finance Authority that petitions for emergency financial
assistance. An emergency financial assistance loan to a School
Finance Authority or borrowing from sources other than the
State shall not be considered as part of the calculation of a
district's debt for purposes of the limitation specified in
Section 19-1 of this Code. From the amount allocated to each
School Finance Authority, the State Board shall identify a sum
sufficient to cover all approved costs of the School Finance
Authority. If the State Board and State Superintendent have not
approved emergency financial assistance in conjunction with
the appointment of a School Finance Authority, the Authority's
approved costs shall be paid from deductions from the
district's general State aid or evidence-based funding.
    The School Finance Authority may prepare and file with the
State Superintendent a proposal for emergency financial
assistance for the school district and for its operations
budget. No expenditures shall be authorized by the State
Superintendent until he or she has approved the proposal of the
School Finance Authority, either as submitted or in such lesser
amount determined by the State Superintendent.
    (b) The amount of an emergency financial assistance loan
that may be allocated to a School Finance Authority under this
Article, including moneys necessary for the operations of the
School Finance Authority, and borrowing from sources other than
the State shall not exceed, in the aggregate, $4,000 times the
number of pupils enrolled in the district during the school
year ending June 30 prior to the date of approval by the State
Board of the petition for emergency financial assistance, as
certified to the school board and the School Finance Authority
by the State Superintendent. However, this limitation does not
apply to borrowing by the district secured by amounts levied by
the district prior to establishment of the School Finance
Authority. An emergency financial assistance grant shall not
exceed $1,000 times the number of such pupils. A district may
receive both a loan and a grant.
    (c) The payment of a State emergency financial assistance
grant or loan shall be subject to appropriation by the General
Assembly. State emergency financial assistance allocated and
paid to a School Finance Authority under this Article may be
applied to any fund or funds from which the School Finance
Authority is authorized to make expenditures by law.
    (d) Any State emergency financial assistance proposed by
the School Finance Authority and approved by the State
Superintendent may be paid in its entirety during the initial
year of the School Finance Authority's existence or spread in
equal or declining amounts over a period of years not to exceed
the period of the School Finance Authority's existence. The
State Superintendent shall not approve any loan to the School
Finance Authority unless the School Finance Authority has been
unable to borrow sufficient funds to operate the district.
    All loan payments made from the School District Emergency
Financial Assistance Fund to a School Finance Authority shall
be required to be repaid not later than the date the School
Finance Authority ceases to exist, with simple interest over
the term of the loan at a rate equal to 50% of the one-year
Constant Maturity Treasury (CMT) yield as last published by the
Board of Governors of the Federal Reserve System before the
date on which the School Finance Authority's loan is approved
by the State Board.
    The School Finance Authority shall establish and the
Illinois Finance Authority shall approve the terms and
conditions of the loan, including the schedule of repayments.
The schedule shall provide for repayments commencing July 1 of
each year or upon each fiscal year's receipt of moneys from a
tax levy for emergency financial assistance. Repayment shall be
incorporated into the annual budget of the district and may be
made from any fund or funds of the district in which there are
moneys available. Default on repayment is subject to the
Illinois Grant Funds Recovery Act. When moneys are repaid as
provided in this Section, they shall not be made available to
the School Finance Authority for further use as emergency
financial assistance under this Article at any time thereafter.
All repayments required to be made by a School Finance
Authority shall be received by the State Board and deposited in
the School District Emergency Financial Assistance Fund.
    In establishing the terms and conditions for the repayment
obligation of the School Finance Authority, the School Finance
Authority shall annually determine whether a separate local
property tax levy is required to meet that obligation. The
School Finance Authority shall provide for a separate tax levy
for emergency financial assistance repayment purposes. This
tax levy shall not be subject to referendum approval. The
amount of the levy shall not exceed the amount necessary to
meet the annual emergency financial repayment obligations of
the district, including principal and interest, as established
by the School Finance Authority.
(Source: P.A. 94-234, eff. 7-1-06.)
 
    (105 ILCS 5/1H-20)
    Sec. 1H-20. Members of Panel; meetings.
    (a) Upon establishment of a Financial Oversight Panel under
Section 1H-15 of this Code, the State Superintendent shall
within 15 working days thereafter appoint 5 members to serve on
a Financial Oversight Panel for the district. Members appointed
to the Panel shall serve at the pleasure of the State
Superintendent. The State Superintendent shall designate one
of the members of the Panel to serve as its Chairperson. In the
event of vacancy or resignation, the State Superintendent
shall, within 10 days after receiving notice, appoint a
successor to serve out that member's term.
    (b) Members of the Panel shall be selected primarily on the
basis of their experience and education in financial
management, with consideration given to persons knowledgeable
in education finance. Two members of the Panel shall be
residents of the school district that the Panel serves. A
member of the Panel may not be a member of the district's
school board or an employee of the district nor may a member
have a direct financial interest in the district.
    (c) Panel members may be reimbursed by the State Board for
travel and other necessary expenses incurred in the performance
of their official duties. The amount reimbursed members for
their expenses shall be charged to the school district as part
of any emergency financial assistance and incorporated as a
part of the terms and conditions for repayment of the
assistance or shall be deducted from the district's general
State aid or evidence-based funding as provided in Section
1H-65 of this Code.
    (d) With the exception of the chairperson, who shall be
designated as provided in subsection (a) of this Section, the
Panel may elect such officers as it deems appropriate.
    (e) The first meeting of the Panel shall be held at the
call of the Chairperson. The Panel shall prescribe the times
and places for its meetings and the manner in which regular and
special meetings may be called and shall comply with the Open
Meetings Act. The Panel shall also comply with the Freedom of
Information Act.
    (f) Three members of the Panel shall constitute a quorum. A
majority of members present is required to pass a measure.
(Source: P.A. 97-429, eff. 8-16-11.)
 
    (105 ILCS 5/1H-70)
    Sec. 1H-70. Tax anticipation warrants, tax anticipation
notes, revenue anticipation certificates or notes, general
State aid or evidence-based funding anticipation certificates,
and lines of credit. With the approval of the State
Superintendent and provided that the district is unable to
secure short-term financing after 3 attempts, a Panel shall
have the same power as a district to do the following:
        (1) issue tax anticipation warrants under the
    provisions of Section 17-16 of this Code against taxes
    levied by either the school board or the Panel pursuant to
    Section 1H-25 of this Code;
        (2) issue tax anticipation notes under the provisions
    of the Tax Anticipation Note Act against taxes levied by
    either the school board or the Panel pursuant to Section
    1H-25 of this Code;
        (3) issue revenue anticipation certificates or notes
    under the provisions of the Revenue Anticipation Act;
        (4) issue general State aid or evidence-based funding
    anticipation certificates under the provisions of Section
    18-18 of this Code; and
        (5) establish and utilize lines of credit under the
    provisions of Section 17-17 of this Code.
    Tax anticipation warrants, tax anticipation notes, revenue
anticipation certificates or notes, general State aid or
evidence-based funding anticipation certificates, and lines of
credit are considered borrowing from sources other than the
State and are subject to Section 1H-65 of this Code.
(Source: P.A. 97-429, eff. 8-16-11.)
 
    (105 ILCS 5/2-3.25g)  (from Ch. 122, par. 2-3.25g)
    Sec. 2-3.25g. Waiver or modification of mandates within the
School Code and administrative rules and regulations.
    (a) In this Section:
        "Board" means a school board or the governing board or
    administrative district, as the case may be, for a joint
    agreement.
        "Eligible applicant" means a school district, joint
    agreement made up of school districts, or regional
    superintendent of schools on behalf of schools and programs
    operated by the regional office of education.
        "Implementation date" has the meaning set forth in
    Section 24A-2.5 of this Code.
        "State Board" means the State Board of Education.
    (b) Notwithstanding any other provisions of this School
Code or any other law of this State to the contrary, eligible
applicants may petition the State Board of Education for the
waiver or modification of the mandates of this School Code or
of the administrative rules and regulations promulgated by the
State Board of Education. Waivers or modifications of
administrative rules and regulations and modifications of
mandates of this School Code may be requested when an eligible
applicant demonstrates that it can address the intent of the
rule or mandate in a more effective, efficient, or economical
manner or when necessary to stimulate innovation or improve
student performance. Waivers of mandates of the School Code may
be requested when the waivers are necessary to stimulate
innovation or improve student performance or when the applicant
demonstrates that it can address the intent of the mandate of
the School Code in a more effective, efficient, or economical
manner. Waivers may not be requested from laws, rules, and
regulations pertaining to special education, teacher educator
licensure, teacher tenure and seniority, or Section 5-2.1 of
this Code or from compliance with the Every Student Succeeds
Act (Public Law 114-95) No Child Left Behind Act of 2001
(Public Law 107-110). Eligible applicants may not seek a waiver
or seek a modification of a mandate regarding the requirements
for (i) student performance data to be a significant factor in
teacher or principal evaluations or (ii) teachers and
principals to be rated using the 4 categories of "excellent",
"proficient", "needs improvement", or "unsatisfactory". On
September 1, 2014, any previously authorized waiver or
modification from such requirements shall terminate.
    (c) Eligible applicants, as a matter of inherent managerial
policy, and any Independent Authority established under
Section 2-3.25f-5 of this Code may submit an application for a
waiver or modification authorized under this Section. Each
application must include a written request by the eligible
applicant or Independent Authority and must demonstrate that
the intent of the mandate can be addressed in a more effective,
efficient, or economical manner or be based upon a specific
plan for improved student performance and school improvement.
Any eligible applicant requesting a waiver or modification for
the reason that intent of the mandate can be addressed in a
more economical manner shall include in the application a
fiscal analysis showing current expenditures on the mandate and
projected savings resulting from the waiver or modification.
Applications and plans developed by eligible applicants must be
approved by the board or regional superintendent of schools
applying on behalf of schools or programs operated by the
regional office of education following a public hearing on the
application and plan and the opportunity for the board or
regional superintendent to hear testimony from staff directly
involved in its implementation, parents, and students. The time
period for such testimony shall be separate from the time
period established by the eligible applicant for public comment
on other matters. If the applicant is a school district or
joint agreement requesting a waiver or modification of Section
27-6 of this Code, the public hearing shall be held on a day
other than the day on which a regular meeting of the board is
held.
    (c-5) If the applicant is a school district, then the
district shall post information that sets forth the time, date,
place, and general subject matter of the public hearing on its
Internet website at least 14 days prior to the hearing. If the
district is requesting to increase the fee charged for driver
education authorized pursuant to Section 27-24.2 of this Code,
the website information shall include the proposed amount of
the fee the district will request. All school districts must
publish a notice of the public hearing at least 7 days prior to
the hearing in a newspaper of general circulation within the
school district that sets forth the time, date, place, and
general subject matter of the hearing. Districts requesting to
increase the fee charged for driver education shall include in
the published notice the proposed amount of the fee the
district will request. If the applicant is a joint agreement or
regional superintendent, then the joint agreement or regional
superintendent shall post information that sets forth the time,
date, place, and general subject matter of the public hearing
on its Internet website at least 14 days prior to the hearing.
If the joint agreement or regional superintendent is requesting
to increase the fee charged for driver education authorized
pursuant to Section 27-24.2 of this Code, the website
information shall include the proposed amount of the fee the
applicant will request. All joint agreements and regional
superintendents must publish a notice of the public hearing at
least 7 days prior to the hearing in a newspaper of general
circulation in each school district that is a member of the
joint agreement or that is served by the educational service
region that sets forth the time, date, place, and general
subject matter of the hearing, provided that a notice appearing
in a newspaper generally circulated in more than one school
district shall be deemed to fulfill this requirement with
respect to all of the affected districts. Joint agreements or
regional superintendents requesting to increase the fee
charged for driver education shall include in the published
notice the proposed amount of the fee the applicant will
request. The eligible applicant must notify in writing the
affected exclusive collective bargaining agent and those State
legislators representing the eligible applicant's territory of
its intent to seek approval of a waiver or modification and of
the hearing to be held to take testimony from staff. The
affected exclusive collective bargaining agents shall be
notified of such public hearing at least 7 days prior to the
date of the hearing and shall be allowed to attend such public
hearing. The eligible applicant shall attest to compliance with
all of the notification and procedural requirements set forth
in this Section.
    (d) A request for a waiver or modification of
administrative rules and regulations or for a modification of
mandates contained in this School Code shall be submitted to
the State Board of Education within 15 days after approval by
the board or regional superintendent of schools. The
application as submitted to the State Board of Education shall
include a description of the public hearing. Except with
respect to contracting for adaptive driver education, an
eligible applicant wishing to request a modification or waiver
of administrative rules of the State Board of Education
regarding contracting with a commercial driver training school
to provide the course of study authorized under Section 27-24.2
of this Code must provide evidence with its application that
the commercial driver training school with which it will
contract holds a license issued by the Secretary of State under
Article IV of Chapter 6 of the Illinois Vehicle Code and that
each instructor employed by the commercial driver training
school to provide instruction to students served by the school
district holds a valid teaching certificate or teaching
license, as applicable, issued under the requirements of this
Code and rules of the State Board of Education. Such evidence
must include, but need not be limited to, a list of each
instructor assigned to teach students served by the school
district, which list shall include the instructor's name,
personal identification number as required by the State Board
of Education, birth date, and driver's license number. If the
modification or waiver is granted, then the eligible applicant
shall notify the State Board of Education of any changes in the
personnel providing instruction within 15 calendar days after
an instructor leaves the program or a new instructor is hired.
Such notification shall include the instructor's name,
personal identification number as required by the State Board
of Education, birth date, and driver's license number. If a
school district maintains an Internet website, then the
district shall post a copy of the final contract between the
district and the commercial driver training school on the
district's Internet website. If no Internet website exists,
then the district shall make available the contract upon
request. A record of all materials in relation to the
application for contracting must be maintained by the school
district and made available to parents and guardians upon
request. The instructor's date of birth and driver's license
number and any other personally identifying information as
deemed by the federal Driver's Privacy Protection Act of 1994
must be redacted from any public materials. Following receipt
of the waiver or modification request, the State Board shall
have 45 days to review the application and request. If the
State Board fails to disapprove the application within that 45
day period, the waiver or modification shall be deemed granted.
The State Board may disapprove any request if it is not based
upon sound educational practices, endangers the health or
safety of students or staff, compromises equal opportunities
for learning, or fails to demonstrate that the intent of the
rule or mandate can be addressed in a more effective,
efficient, or economical manner or have improved student
performance as a primary goal. Any request disapproved by the
State Board may be appealed to the General Assembly by the
eligible applicant as outlined in this Section.
    A request for a waiver from mandates contained in this
School Code shall be submitted to the State Board within 15
days after approval by the board or regional superintendent of
schools. The application as submitted to the State Board of
Education shall include a description of the public hearing.
The description shall include, but need not be limited to, the
means of notice, the number of people in attendance, the number
of people who spoke as proponents or opponents of the waiver, a
brief description of their comments, and whether there were any
written statements submitted. The State Board shall review the
applications and requests for completeness and shall compile
the requests in reports to be filed with the General Assembly.
The State Board shall file reports outlining the waivers
requested by eligible applicants and appeals by eligible
applicants of requests disapproved by the State Board with the
Senate and the House of Representatives before each March 1 and
October 1.
    The report shall be reviewed by a panel of 4 members
consisting of:
        (1) the Speaker of the House of Representatives;
        (2) the Minority Leader of the House of
    Representatives;
        (3) the President of the Senate; and
        (4) the Minority Leader of the Senate.
The State Board of Education may provide the panel
recommendations on waiver requests. The members of the panel
shall review the report submitted by the State Board of
Education and submit to the State Board of Education any notice
of further consideration to any waiver request within 14 days
after the member receives the report. If 3 or more of the panel
members submit a notice of further consideration to any waiver
request contained within the report, the State Board of
Education shall submit the waiver request to the General
Assembly for consideration. If less than 3 panel members submit
a notice of further consideration to a waiver request, the
waiver may be approved, denied, or modified by the State Board.
If the State Board does not act on a waiver request within 10
days, then the waiver request is approved. If the waiver
request is denied by the State Board, it shall submit the
waiver request to the General Assembly for consideration.
    The General Assembly may disapprove any waiver request
submitted to the General Assembly pursuant to this subsection
(d) the report of the State Board in whole or in part within 60
calendar days after each house of the General Assembly next
convenes after the waiver request is submitted report is filed
by adoption of a resolution by a record vote of the majority of
members elected in each house. If the General Assembly fails to
disapprove any waiver request or appealed request within such
60 day period, the waiver or modification shall be deemed
granted. Any resolution adopted by the General Assembly
disapproving a report of the State Board in whole or in part
shall be binding on the State Board.
    (e) An approved waiver or modification (except a waiver
from or modification to a physical education mandate) may
remain in effect for a period not to exceed 5 school years and
may be renewed upon application by the eligible applicant.
However, such waiver or modification may be changed within that
5-year period by a board or regional superintendent of schools
applying on behalf of schools or programs operated by the
regional office of education following the procedure as set
forth in this Section for the initial waiver or modification
request. If neither the State Board of Education nor the
General Assembly disapproves, the change is deemed granted.
    An approved waiver from or modification to a physical
education mandate may remain in effect for a period not to
exceed 2 school years and may be renewed no more than 2 times
upon application by the eligible applicant. An approved waiver
from or modification to a physical education mandate may be
changed within the 2-year period by the board or regional
superintendent of schools, whichever is applicable, following
the procedure set forth in this Section for the initial waiver
or modification request. If neither the State Board of
Education nor the General Assembly disapproves, the change is
deemed granted.
    (f) (Blank).
(Source: P.A. 98-513, eff. 1-1-14; 98-739, eff. 7-16-14;
98-1155, eff. 1-9-15; 99-78, eff. 7-20-15.)
 
    (105 ILCS 5/2-3.33)  (from Ch. 122, par. 2-3.33)
    Sec. 2-3.33. Recomputation of claims. To recompute within
3 years from the final date for filing of a claim any claim for
general State aid reimbursement to any school district and one
year from the final date for filing of a claim for
evidence-based funding if the claim has been found to be
incorrect and to adjust subsequent claims accordingly, and to
recompute and adjust any such claims within 6 years from the
final date for filing when there has been an adverse court or
administrative agency decision on the merits affecting the tax
revenues of the school district. However, no such adjustment
shall be made regarding equalized assessed valuation unless the
district's equalized assessed valuation is changed by greater
than $250,000 or 2%. Any adjustments for claims recomputed for
the 2016-2017 school year and prior school years shall be
applied to the apportionment of evidence-based funding in
Section 18-8.15 of this Code beginning in the 2017-2018 school
year and thereafter. However, the recomputation of a claim for
evidence-based funding for a school district shall not require
the recomputation of claims for all districts, and the State
Board of Education shall only make recomputations of
evidence-based funding for those districts where an adjustment
is required.
    Except in the case of an adverse court or administrative
agency decision, no recomputation of a State aid claim shall be
made pursuant to this Section as a result of a reduction in the
assessed valuation of a school district from the assessed
valuation of the district reported to the State Board of
Education by the Department of Revenue under Section 18-8.05 or
18-8.15 of this Code unless the requirements of Section 16-15
of the Property Tax Code and Section 2-3.84 of this Code are
complied with in all respects.
    This paragraph applies to all requests for recomputation of
a general State aid or evidence-based funding claim received
after June 30, 2003. In recomputing a general State aid or
evidence-based funding claim that was originally calculated
using an extension limitation equalized assessed valuation
under paragraph (3) of subsection (G) of Section 18-8.05 of
this Code or Section 18-8.15 of this Code, a qualifying
reduction in equalized assessed valuation shall be deducted
from the extension limitation equalized assessed valuation
that was used in calculating the original claim.
    From the total amount of general State aid or
evidence-based funding to be provided to districts,
adjustments as a result of recomputation under this Section
together with adjustments under Section 2-3.84 must not exceed
$25 million, in the aggregate for all districts under both
Sections combined, of the general State aid or evidence-based
funding appropriation in any fiscal year; if necessary, amounts
shall be prorated among districts. If it is necessary to
prorate claims under this paragraph, then that portion of each
prorated claim that is approved but not paid in the current
fiscal year may be resubmitted as a valid claim in the
following fiscal year.
(Source: P.A. 93-845, eff. 7-30-04.)
 
    (105 ILCS 5/2-3.51.5)
    Sec. 2-3.51.5. School Safety and Educational Improvement
Block Grant Program. To improve the level of education and
safety of students from kindergarten through grade 12 in school
districts and State-recognized, non-public schools. The State
Board of Education is authorized to fund a School Safety and
Educational Improvement Block Grant Program.
    (1) For school districts, the program shall provide funding
for school safety, textbooks and software, electronic
textbooks and the technological equipment necessary to gain
access to and use electronic textbooks, teacher training and
curriculum development, school improvements, school report
cards under Section 10-17a, and criminal history records checks
under Sections 10-21.9 and 34-18.5. For State-recognized,
non-public schools, the program shall provide funding for
secular textbooks and software, criminal history records
checks, and health and safety mandates to the extent that the
funds are expended for purely secular purposes. A school
district or laboratory school as defined in Section 18-8, or
18-8.05, or 18-8.15 is not required to file an application in
order to receive the categorical funding to which it is
entitled under this Section. Funds for the School Safety and
Educational Improvement Block Grant Program shall be
distributed to school districts and laboratory schools based on
the prior year's best 3 months average daily attendance. Funds
for the School Safety and Educational Improvement Block Grant
Program shall be distributed to State-recognized, non-public
schools based on the average daily attendance figure for the
previous school year provided to the State Board of Education.
The State Board of Education shall develop an application that
requires State-recognized, non-public schools to submit
average daily attendance figures. A State-recognized,
non-public school must submit the application and average daily
attendance figure prior to receiving funds under this Section.
The State Board of Education shall promulgate rules and
regulations necessary for the implementation of this program.
    (2) Distribution of moneys to school districts and
State-recognized, non-public schools shall be made in 2
semi-annual installments, one payment on or before October 30,
and one payment prior to April 30, of each fiscal year.
    (3) Grants under the School Safety and Educational
Improvement Block Grant Program shall be awarded provided there
is an appropriation for the program, and funding levels for
each district shall be prorated according to the amount of the
appropriation.
    (4) The provisions of this Section are in the public
interest, are for the public benefit, and serve secular public
purposes.
(Source: P.A. 98-972, eff. 8-15-14.)
 
    (105 ILCS 5/2-3.66)  (from Ch. 122, par. 2-3.66)
    Sec. 2-3.66. Truants' alternative and optional education
programs. To establish projects to offer modified
instructional programs or other services designed to prevent
students from dropping out of school, including programs
pursuant to Section 2-3.41, and to serve as a part time or full
time option in lieu of regular school attendance and to award
grants to local school districts, educational service regions
or community college districts from appropriated funds to
assist districts in establishing such projects. The education
agency may operate its own program or enter into a contract
with another not-for-profit entity to implement the program.
The projects shall allow dropouts, up to and including age 21,
potential dropouts, including truants, uninvolved, unmotivated
and disaffected students, as defined by State Board of
Education rules and regulations, to enroll, as an alternative
to regular school attendance, in an optional education program
which may be established by school board policy and is in
conformance with rules adopted by the State Board of Education.
Truants' Alternative and Optional Education programs funded
pursuant to this Section shall be planned by a student, the
student's parents or legal guardians, unless the student is 18
years or older, and school officials and shall culminate in an
individualized optional education plan. Such plan shall focus
on academic or vocational skills, or both, and may include, but
not be limited to, evening school, summer school, community
college courses, adult education, preparation courses for high
school equivalency testing, vocational training, work
experience, programs to enhance self concept and parenting
courses. School districts which are awarded grants pursuant to
this Section shall be authorized to provide day care services
to children of students who are eligible and desire to enroll
in programs established and funded under this Section, but only
if and to the extent that such day care is necessary to enable
those eligible students to attend and participate in the
programs and courses which are conducted pursuant to this
Section. School districts and regional offices of education may
claim general State aid under Section 18-8.05 or evidence-based
funding under Section 18-8.15 for students enrolled in truants'
alternative and optional education programs, provided that
such students are receiving services that are supplemental to a
program leading to a high school diploma and are otherwise
eligible to be claimed for general State aid under Section
18-8.05 or evidence-based funding under Section 18-8.15, as
applicable.
(Source: P.A. 98-718, eff. 1-1-15.)
 
    (105 ILCS 5/2-3.66b)
    Sec. 2-3.66b. IHOPE Program.
    (a) There is established the Illinois Hope and Opportunity
Pathways through Education (IHOPE) Program. The State Board of
Education shall implement and administer the IHOPE Program. The
goal of the IHOPE Program is to develop a comprehensive system
in this State to re-enroll significant numbers of high school
dropouts in programs that will enable them to earn their high
school diploma.
    (b) The IHOPE Program shall award grants, subject to
appropriation for this purpose, to educational service regions
and a school district organized under Article 34 of this Code
from appropriated funds to assist in establishing
instructional programs and other services designed to
re-enroll high school dropouts. From any funds appropriated for
the IHOPE Program, the State Board of Education may use up to
5% for administrative costs, including the performance of a
program evaluation and the hiring of staff to implement and
administer the program.
    The IHOPE Program shall provide incentive grant funds for
regional offices of education and a school district organized
under Article 34 of this Code to develop partnerships with
school districts, public community colleges, and community
groups to build comprehensive plans to re-enroll high school
dropouts in their regions or districts.
    Programs funded through the IHOPE Program shall allow high
school dropouts, up to and including age 21 notwithstanding
Section 26-2 of this Code, to re-enroll in an educational
program in conformance with rules adopted by the State Board of
Education. Programs may include without limitation
comprehensive year-round programming, evening school, summer
school, community college courses, adult education, vocational
training, work experience, programs to enhance self-concept,
and parenting courses. Any student in the IHOPE Program who
wishes to earn a high school diploma must meet the
prerequisites to receiving a high school diploma specified in
Section 27-22 of this Code and any other graduation
requirements of the student's district of residence. Any
student who successfully completes the requirements for his or
her graduation shall receive a diploma identifying the student
as graduating from his or her district of residence.
    (c) In order to be eligible for funding under the IHOPE
Program, an interested regional office of education or a school
district organized under Article 34 of this Code shall develop
an IHOPE Plan to be approved by the State Board of Education.
The State Board of Education shall develop rules for the IHOPE
Program that shall set forth the requirements for the
development of the IHOPE Plan. Each Plan shall involve school
districts, public community colleges, and key community
programs that work with high school dropouts located in an
educational service region or the City of Chicago before the
Plan is sent to the State Board for approval. No funds may be
distributed to a regional office of education or a school
district organized under Article 34 of this Code until the
State Board has approved the Plan.
    (d) A regional office of education or a school district
organized under Article 34 of this Code may operate its own
program funded by the IHOPE Program or enter into a contract
with other not-for-profit entities, including school
districts, public community colleges, and not-for-profit
community-based organizations, to operate a program.
    A regional office of education or a school district
organized under Article 34 of this Code that receives an IHOPE
grant from the State Board of Education may provide funds under
a sub-grant, as specified in the IHOPE Plan, to other
not-for-profit entities to provide services according to the
IHOPE Plan that was developed. These other entities may include
school districts, public community colleges, or not-for-profit
community-based organizations or a cooperative partnership
among these entities.
    (e) In order to distribute funding based upon the need to
ensure delivery of programs that will have the greatest impact,
IHOPE Program funding must be distributed based upon the
proportion of dropouts in the educational service region or
school district, in the case of a school district organized
under Article 34 of this Code, to the total number of dropouts
in this State. This formula shall employ the dropout data
provided by school districts to the State Board of Education.
    A regional office of education or a school district
organized under Article 34 of this Code may claim State aid
under Section 18-8.05 or 18-8.15 of this Code for students
enrolled in a program funded by the IHOPE Program, provided
that the State Board of Education has approved the IHOPE Plan
and that these students are receiving services that are meeting
the requirements of Section 27-22 of this Code for receipt of a
high school diploma and are otherwise eligible to be claimed
for general State aid under Section 18-8.05 of this Code or
evidence-based funding under Section 18-8.15 of this Code,
including provisions related to the minimum number of days of
pupil attendance pursuant to Section 10-19 of this Code and the
minimum number of daily hours of school work and any exceptions
thereto as defined by the State Board of Education in rules.
    (f) IHOPE categories of programming may include the
following:
        (1) Full-time programs that are comprehensive,
    year-round programs.
        (2) Part-time programs combining work and study
    scheduled at various times that are flexible to the needs
    of students.
        (3) Online programs and courses in which students take
    courses and complete on-site, supervised tests that
    measure the student's mastery of a specific course needed
    for graduation. Students may take courses online and earn
    credit or students may prepare to take supervised tests for
    specific courses for credit leading to receipt of a high
    school diploma.
        (4) Dual enrollment in which students attend high
    school classes in combination with community college
    classes or students attend community college classes while
    simultaneously earning high school credit and eventually a
    high school diploma.
    (g) In order to have successful comprehensive programs
re-enrolling and graduating low-skilled high school dropouts,
programs funded through the IHOPE Program shall include all of
the following components:
        (1) Small programs (70 to 100 students) at a separate
    school site with a distinct identity. Programs may be
    larger with specific need and justification, keeping in
    mind that it is crucial to keep programs small to be
    effective.
        (2) Specific performance-based goals and outcomes and
    measures of enrollment, attendance, skills, credits,
    graduation, and the transition to college, training, and
    employment.
        (3) Strong, experienced leadership and teaching staff
    who are provided with ongoing professional development.
        (4) Voluntary enrollment.
        (5) High standards for student learning, integrating
    work experience, and education, including during the
    school year and after school, and summer school programs
    that link internships, work, and learning.
        (6) Comprehensive programs providing extensive support
    services.
        (7) Small teams of students supported by full-time paid
    mentors who work to retain and help those students
    graduate.
        (8) A comprehensive technology learning center with
    Internet access and broad-based curriculum focusing on
    academic and career subject areas.
        (9) Learning opportunities that incorporate action
    into study.
    (h) Programs funded through the IHOPE Program must report
data to the State Board of Education as requested. This
information shall include, but is not limited to, student
enrollment figures, attendance information, course completion
data, graduation information, and post-graduation information,
as available.
    (i) Rules must be developed by the State Board of Education
to set forth the fund distribution process to regional offices
of education and a school district organized under Article 34
of this Code, the planning and the conditions upon which an
IHOPE Plan would be approved by State Board, and other rules to
develop the IHOPE Program.
(Source: P.A. 96-106, eff. 7-30-09.)
 
    (105 ILCS 5/2-3.84)  (from Ch. 122, par. 2-3.84)
    Sec. 2-3.84. In calculating the amount of State aid to be
apportioned to the various school districts in this State, the
State Board of Education shall incorporate and deduct the total
aggregate adjustments to assessments made by the State Property
Tax Appeal Board or Cook County Board of Appeals, as reported
pursuant to Section 16-15 of the Property Tax Code or Section
129.1 of the Revenue Act of 1939 by the Department of Revenue,
from the equalized assessed valuation that is otherwise to be
utilized in the initial calculation.
    From the total amount of general State aid or
evidence-based funding to be provided to districts,
adjustments under this Section together with adjustments as a
result of recomputation under Section 2-3.33 must not exceed
$25 million, in the aggregate for all districts under both
Sections combined, of the general State aid or evidence-based
funding appropriation in any fiscal year; if necessary, amounts
shall be prorated among districts. If it is necessary to
prorate claims under this paragraph, then that portion of each
prorated claim that is approved but not paid in the current
fiscal year may be resubmitted as a valid claim in the
following fiscal year.
(Source: P.A. 93-845, eff. 7-30-04.)
 
    (105 ILCS 5/2-3.109a)
    Sec. 2-3.109a. Laboratory schools grant eligibility. A
laboratory school as defined in Section 18-8 or 18-8.15 may
apply for and be eligible to receive, subject to the same
restrictions applicable to school districts, any grant
administered by the State Board of Education that is available
for school districts.
(Source: P.A. 90-566, eff. 1-2-98.)
 
    (105 ILCS 5/2-3.170 new)
    Sec. 2-3.170. Property tax relief pool grants.
    (a) As used in this Section,
    "Property tax multiplier" equals one minus the square of
the school district's Local Capacity Percentage, as defined in
Section 18-8.15 of this Code.
    "State Board" means the State Board of Education.
    "Unit equivalent tax rate" means the Adjusted Operating Tax
Rate, as defined in Section 18-8.15 of this Code, multiplied by
a factor of 1 for unit school districts, 13/9 for elementary
school districts, and 13/4 for high school districts.
    (b) Subject to appropriation, the State Board shall provide
grants to eligible school districts that provide tax relief to
the school district's residents, up to a limit of 1% of the
school district's equalized assessed value, as provided in this
Section.
    (c) By August 1 of each year, the State Board shall publish
an estimated threshold unit equivalent tax rate. School
districts whose adjusted operating tax rate, as defined in this
Section, is greater than the estimated threshold unit
equivalent tax rate are eligible for relief under this Section.
This estimated tax rate shall be based on the most recent
available data provided by school districts pursuant to Section
18-8.15 of this Code. The State Board shall estimate this
property tax rate based on the amount appropriated to the grant
program and the assumption that a set of school districts,
based on criteria established by the State Board, will apply
for grants under this Section. The criteria shall be based on
reasonable assumptions about when school districts will apply
for the grant.
    (d) School districts seeking grants under this Section
shall apply to the State Board by October 1 of each year. All
applications to the State Board for grants shall include the
amount of the grant requested.
    (e) By December 1 of each year, based on the most recent
available data provided by school districts pursuant to Section
18-8.15 of this Code, the State Board shall calculate the unit
equivalent tax rate, based on the applications received by the
State Board, above which the appropriations are sufficient to
provide relief and publish a list of the school districts
eligible for relief.
    (f) The State Board shall publish a final list of grant
recipients and provide payment of the grants by January 15 of
each year.
    (g) If payment from the State Board is received by the
school district on time, the school district shall reduce its
property tax levy in an amount equal to the grant received
under this Section.
    (h) The total grant to a school district under this Section
shall be calculated based on the total amount of reduction in
the school district's aggregate extension, up to a limit of 1%
of a district's equalized assessed value for a unit school
district, 0.69% for an elementary school district, and 0.31%
for a high school district, multiplied by the property tax
multiplier or the amount that the unit equivalent tax rate is
greater than the rate determined by the State Board, whichever
is less.
    (i) If the State Board does not expend all appropriations
allocated pursuant to this Section, then any remaining funds
shall be allocated pursuant to Section 18-8.15 of this Code.
    (j) The State Board shall prioritize payments under Section
18-8.15 of this Code over payments under this Section, if
necessary.
    (k) Any grants received by a school district shall be
included in future calculations of that school district's Base
Funding Minimum under Section 18-8.15 of this Code.
    (l) In the tax year following receipt of a Property Tax
Pool Relief Grant, the aggregate levy of any school district
receiving a grant under this Section, for purposes of the
Property Tax Extension Limitation Law, shall include the tax
relief the school district provided in the previous taxable
year under this Section.
 
    (105 ILCS 5/3-14.21)  (from Ch. 122, par. 3-14.21)
    Sec. 3-14.21. Inspection of schools.
    (a) The regional superintendent shall inspect and survey
all public schools under his or her supervision and notify the
board of education, or the trustees of schools in a district
with trustees, in writing before July 30, whether or not the
several schools in their district have been kept as required by
law, using forms provided by the State Board of Education which
are based on the Health/Life Safety Code for Public Schools
adopted under Section 2-3.12. The regional superintendent
shall report his or her findings to the State Board of
Education on forms provided by the State Board of Education.
    (b) If the regional superintendent determines that a school
board has failed in a timely manner to correct urgent items
identified in a previous life-safety report completed under
Section 2-3.12 or as otherwise previously ordered by the
regional superintendent, the regional superintendent shall
order the school board to adopt and submit to the regional
superintendent a plan for the immediate correction of the
building violations. This plan shall be adopted following a
public hearing that is conducted by the school board on the
violations and the plan and that is preceded by at least 7
days' prior notice of the hearing published in a newspaper of
general circulation within the school district. If the regional
superintendent determines in the next annual inspection that
the plan has not been completed and that the violations have
not been corrected, the regional superintendent shall submit a
report to the State Board of Education with a recommendation
that the State Board withhold from payments of general State
aid or evidence-based funding due to the district an amount
necessary to correct the outstanding violations. The State
Board, upon notice to the school board and to the regional
superintendent, shall consider the report at a meeting of the
State Board, and may order that a sufficient amount of general
State aid or evidence-based funding be withheld from payments
due to the district to correct the violations. This amount
shall be paid to the regional superintendent who shall contract
on behalf of the school board for the correction of the
outstanding violations.
    (c) The Office of the State Fire Marshal or a qualified
fire official, as defined in Section 2-3.12 of this Code, to
whom the State Fire Marshal has delegated his or her authority
shall conduct an annual fire safety inspection of each school
building in this State. The State Fire Marshal or the fire
official shall coordinate its inspections with the regional
superintendent. The inspection shall be based on the fire
safety code authorized in Section 2-3.12 of this Code. Any
violations shall be reported in writing to the regional
superintendent and shall reference the specific code sections
where a discrepancy has been identified within 15 days after
the inspection has been conducted. The regional superintendent
shall address those violations that are not corrected in a
timely manner pursuant to subsection (b) of this Section. The
inspection must be at no cost to the school district.
    (d) If a municipality or, in the case of an unincorporated
area, a county or, if applicable, a fire protection district
wishes to perform new construction inspections under the
jurisdiction of a regional superintendent, then the entity must
register this wish with the regional superintendent. These
inspections must be based on the building code authorized in
Section 2-3.12 of this Code. The inspections must be at no cost
to the school district.
(Source: P.A. 96-734, eff. 8-25-09.)
 
    (105 ILCS 5/7-14A)  (from Ch. 122, par. 7-14A)
    Sec. 7-14A. Annexation compensation. There shall be no
accounting made after a mere change in boundaries when no new
district is created, except that those districts whose
enrollment increases by 90% or more as a result of annexing
territory detached from another district pursuant to this
Article are eligible for supplementary State aid payments in
accordance with Section 11E-135 of this Code. Eligible annexing
districts shall apply to the State Board of Education for
supplementary State aid payments by submitting enrollment
figures for the year immediately preceding and the year
immediately following the effective date of the boundary change
for both the district gaining territory and the district losing
territory. Copies of any intergovernmental agreements between
the district gaining territory and the district losing
territory detailing any transfer of fund balances and staff
must also be submitted. In all instances of changes in
boundaries, the district losing territory shall not count the
average daily attendance of pupils living in the territory
during the year preceding the effective date of the boundary
change in its claim for reimbursement under Section 18-8.05 or
18-8.15 of this Code for the school year following the
effective date of the change in boundaries and the district
receiving the territory shall count the average daily
attendance of pupils living in the territory during the year
preceding the effective date of the boundary change in its
claim for reimbursement under Section 18-8.05 or 18-8.15 of
this Code for the school year following the effective date of
the change in boundaries. The changes to this Section made by
this amendatory Act of the 95th General Assembly are intended
to be retroactive and applicable to any annexation taking
effect on or after July 1, 2004.
(Source: P.A. 99-657, eff. 7-28-16.)
 
    (105 ILCS 5/10-17a)  (from Ch. 122, par. 10-17a)
    Sec. 10-17a. State, school district, and school report
cards.
    (1) By October 31, 2013 and October 31 of each subsequent
school year, the State Board of Education, through the State
Superintendent of Education, shall prepare a State report card,
school district report cards, and school report cards, and
shall by the most economic means provide to each school
district in this State, including special charter districts and
districts subject to the provisions of Article 34, the report
cards for the school district and each of its schools.
    (2) In addition to any information required by federal law,
the State Superintendent shall determine the indicators and
presentation of the school report card, which must include, at
a minimum, the most current data possessed by the State Board
of Education related to the following:
        (A) school characteristics and student demographics,
    including average class size, average teaching experience,
    student racial/ethnic breakdown, and the percentage of
    students classified as low-income; the percentage of
    students classified as English learners; the percentage of
    students who have individualized education plans or 504
    plans that provide for special education services; the
    percentage of students who annually transferred in or out
    of the school district; the per-pupil operating
    expenditure of the school district; and the per-pupil State
    average operating expenditure for the district type
    (elementary, high school, or unit);
        (B) curriculum information, including, where
    applicable, Advanced Placement, International
    Baccalaureate or equivalent courses, dual enrollment
    courses, foreign language classes, school personnel
    resources (including Career Technical Education teachers),
    before and after school programs, extracurricular
    activities, subjects in which elective classes are
    offered, health and wellness initiatives (including the
    average number of days of Physical Education per week per
    student), approved programs of study, awards received,
    community partnerships, and special programs such as
    programming for the gifted and talented, students with
    disabilities, and work-study students;
        (C) student outcomes, including, where applicable, the
    percentage of students deemed proficient on assessments of
    State standards, the percentage of students in the eighth
    grade who pass Algebra, the percentage of students enrolled
    in post-secondary institutions (including colleges,
    universities, community colleges, trade/vocational
    schools, and training programs leading to career
    certification within 2 semesters of high school
    graduation), the percentage of students graduating from
    high school who are college and career ready, and the
    percentage of graduates enrolled in community colleges,
    colleges, and universities who are in one or more courses
    that the community college, college, or university
    identifies as a developmental course;
        (D) student progress, including, where applicable, the
    percentage of students in the ninth grade who have earned 5
    credits or more without failing more than one core class, a
    measure of students entering kindergarten ready to learn, a
    measure of growth, and the percentage of students who enter
    high school on track for college and career readiness;
        (E) the school environment, including, where
    applicable, the percentage of students with less than 10
    absences in a school year, the percentage of teachers with
    less than 10 absences in a school year for reasons other
    than professional development, leaves taken pursuant to
    the federal Family Medical Leave Act of 1993, long-term
    disability, or parental leaves, the 3-year average of the
    percentage of teachers returning to the school from the
    previous year, the number of different principals at the
    school in the last 6 years, 2 or more indicators from any
    school climate survey selected or approved by the State and
    administered pursuant to Section 2-3.153 of this Code, with
    the same or similar indicators included on school report
    cards for all surveys selected or approved by the State
    pursuant to Section 2-3.153 of this Code, and the combined
    percentage of teachers rated as proficient or excellent in
    their most recent evaluation; and
        (F) a school district's and its individual schools'
    balanced accountability measure, in accordance with
    Section 2-3.25a of this Code; .
        (G) a school district's Final Percent of Adequacy, as
    defined in paragraph (4) of subsection (f) of Section
    18-8.15 of this Code;
        (H) a school district's Local Capacity Target, as
    defined in paragraph (2) of subsection (c) of Section
    18-8.15 of this Code, displayed as a percentage amount; and
        (I) a school district's Real Receipts, as defined in
    paragraph (1) of subsection (d) of Section 18-8.15 of this
    Code, divided by a school district's Adequacy Target, as
    defined in paragraph (1) of subsection (b) of Section
    18-8.15 of this Code, displayed as a percentage amount.
    The school report card shall also provide information that
allows for comparing the current outcome, progress, and
environment data to the State average, to the school data from
the past 5 years, and to the outcomes, progress, and
environment of similar schools based on the type of school and
enrollment of low-income students, special education students,
and English learners.
    (3) At the discretion of the State Superintendent, the
school district report card shall include a subset of the
information identified in paragraphs (A) through (E) of
subsection (2) of this Section, as well as information relating
to the operating expense per pupil and other finances of the
school district, and the State report card shall include a
subset of the information identified in paragraphs (A) through
(E) of subsection (2) of this Section.
    (4) Notwithstanding anything to the contrary in this
Section, in consultation with key education stakeholders, the
State Superintendent shall at any time have the discretion to
amend or update any and all metrics on the school, district, or
State report card.
    (5) Annually, no more than 30 calendar days after receipt
of the school district and school report cards from the State
Superintendent of Education, each school district, including
special charter districts and districts subject to the
provisions of Article 34, shall present such report cards at a
regular school board meeting subject to applicable notice
requirements, post the report cards on the school district's
Internet web site, if the district maintains an Internet web
site, make the report cards available to a newspaper of general
circulation serving the district, and, upon request, send the
report cards home to a parent (unless the district does not
maintain an Internet web site, in which case the report card
shall be sent home to parents without request). If the district
posts the report card on its Internet web site, the district
shall send a written notice home to parents stating (i) that
the report card is available on the web site, (ii) the address
of the web site, (iii) that a printed copy of the report card
will be sent to parents upon request, and (iv) the telephone
number that parents may call to request a printed copy of the
report card.
    (6) Nothing contained in this amendatory Act of the 98th
General Assembly repeals, supersedes, invalidates, or
nullifies final decisions in lawsuits pending on the effective
date of this amendatory Act of the 98th General Assembly in
Illinois courts involving the interpretation of Public Act
97-8.
(Source: P.A. 98-463, eff. 8-16-13; 98-648, eff. 7-1-14; 99-30,
eff. 7-10-15; 99-193, eff. 7-30-15; 99-642, eff. 7-28-16.)
 
    (105 ILCS 5/10-19)  (from Ch. 122, par. 10-19)
    Sec. 10-19. Length of school term - experimental programs.
Each school board shall annually prepare a calendar for the
school term, specifying the opening and closing dates and
providing a minimum term of at least 185 days to insure 176
days of actual pupil attendance, computable under Section
18-8.05 or 18-8.15, except that for the 1980-1981 school year
only 175 days of actual pupil attendance shall be required
because of the closing of schools pursuant to Section 24-2 on
January 29, 1981 upon the appointment by the President of that
day as a day of thanksgiving for the freedom of the Americans
who had been held hostage in Iran. Any days allowed by law for
teachers' institutes but not used as such or used as parental
institutes as provided in Section 10-22.18d shall increase the
minimum term by the school days not so used. Except as provided
in Section 10-19.1, the board may not extend the school term
beyond such closing date unless that extension of term is
necessary to provide the minimum number of computable days. In
case of such necessary extension school employees shall be paid
for such additional time on the basis of their regular
contracts. A school board may specify a closing date earlier
than that set on the annual calendar when the schools of the
district have provided the minimum number of computable days
under this Section. Nothing in this Section prevents the board
from employing superintendents of schools, principals and
other nonteaching personnel for a period of 12 months, or in
the case of superintendents for a period in accordance with
Section 10-23.8, or prevents the board from employing other
personnel before or after the regular school term with payment
of salary proportionate to that received for comparable work
during the school term.
    A school board may make such changes in its calendar for
the school term as may be required by any changes in the legal
school holidays prescribed in Section 24-2. A school board may
make changes in its calendar for the school term as may be
necessary to reflect the utilization of teachers' institute
days as parental institute days as provided in Section
10-22.18d.
    The calendar for the school term and any changes must be
submitted to and approved by the regional superintendent of
schools before the calendar or changes may take effect.
    With the prior approval of the State Board of Education and
subject to review by the State Board of Education every 3
years, any school board may, by resolution of its board and in
agreement with affected exclusive collective bargaining
agents, establish experimental educational programs, including
but not limited to programs for e-learning days as authorized
under Section 10-20.56 of this Code, self-directed learning, or
outside of formal class periods, which programs when so
approved shall be considered to comply with the requirements of
this Section as respects numbers of days of actual pupil
attendance and with the other requirements of this Act as
respects courses of instruction.
(Source: P.A. 98-756, eff. 7-16-14; 99-194, eff. 7-30-15.)
 
    (105 ILCS 5/10-22.5a)  (from Ch. 122, par. 10-22.5a)
    Sec. 10-22.5a. Attendance by dependents of United States
military personnel, foreign exchange students, and certain
nonresident pupils.
    (a) To enter into written agreements with cultural exchange
organizations, or with nationally recognized eleemosynary
institutions that promote excellence in the arts, mathematics,
or science. The written agreements may provide for tuition free
attendance at the local district school by foreign exchange
students, or by nonresident pupils of eleemosynary
institutions. The local board of education, as part of the
agreement, may require that the cultural exchange program or
the eleemosynary institutions provide services to the district
in exchange for the waiver of nonresident tuition.
    To enter into written agreements with adjacent school
districts to provide for tuition free attendance by a student
of the adjacent district when requested for the student's
health and safety by the student or parent and both districts
determine that the student's health or safety will be served by
such attendance. Districts shall not be required to enter into
such agreements nor be required to alter existing
transportation services due to the attendance of such
non-resident pupils.
    (a-5) If, at the time of enrollment, a dependent of United
States military personnel is housed in temporary housing
located outside of a school district, but will be living within
the district within 60 days after the time of initial
enrollment, the dependent must be allowed to enroll, subject to
the requirements of this subsection (a-5), and must not be
charged tuition. Any United States military personnel
attempting to enroll a dependent under this subsection (a-5)
shall provide proof that the dependent will be living within
the district within 60 days after the time of initial
enrollment. Proof of residency may include, but is not limited
to, postmarked mail addressed to the military personnel and
sent to an address located within the district, a lease
agreement for occupancy of a residence located within the
district, or proof of ownership of a residence located within
the district.
    (b) Nonresident pupils and foreign exchange students
attending school on a tuition free basis under such agreements
and nonresident dependents of United States military personnel
attending school on a tuition free basis may be counted for the
purposes of determining the apportionment of State aid provided
under Section 18-8.05 or 18-8.15 of this Code. No organization
or institution participating in agreements authorized under
this Section may exclude any individual for participation in
its program on account of the person's race, color, sex,
religion or nationality.
(Source: P.A. 98-739, eff. 7-16-14.)
 
    (105 ILCS 5/10-22.20)  (from Ch. 122, par. 10-22.20)
    Sec. 10-22.20. Classes for adults and youths whose
schooling has been interrupted; conditions for State
reimbursement; use of child care facilities.
    (a) To establish special classes for the instruction (1) of
persons of age 21 years or over and (2) of persons less than
age 21 and not otherwise in attendance in public school, for
the purpose of providing adults in the community and youths
whose schooling has been interrupted with such additional basic
education, vocational skill training, and other instruction as
may be necessary to increase their qualifications for
employment or other means of self-support and their ability to
meet their responsibilities as citizens, including courses of
instruction regularly accepted for graduation from elementary
or high schools and for Americanization and high school
equivalency testing review classes.
    The board shall pay the necessary expenses of such classes
out of school funds of the district, including costs of student
transportation and such facilities or provision for child-care
as may be necessary in the judgment of the board to permit
maximum utilization of the courses by students with children,
and other special needs of the students directly related to
such instruction. The expenses thus incurred shall be subject
to State reimbursement, as provided in this Section. The board
may make a tuition charge for persons taking instruction who
are not subject to State reimbursement, such tuition charge not
to exceed the per capita cost of such classes.
    The cost of such instruction, including the additional
expenses herein authorized, incurred for recipients of
financial aid under the Illinois Public Aid Code, or for
persons for whom education and training aid has been authorized
under Section 9-8 of that Code, shall be assumed in its
entirety from funds appropriated by the State to the Illinois
Community College Board.
    (b) The Illinois Community College Board shall establish
the standards for the courses of instruction reimbursed under
this Section. The Illinois Community College Board shall
supervise the administration of the programs. The Illinois
Community College Board shall determine the cost of instruction
in accordance with standards established by the Illinois
Community College Board, including therein other incidental
costs as herein authorized, which shall serve as the basis of
State reimbursement in accordance with the provisions of this
Section. In the approval of programs and the determination of
the cost of instruction, the Illinois Community College Board
shall provide for the maximum utilization of federal funds for
such programs. The Illinois Community College Board shall also
provide for:
        (1) the development of an index of need for program
    planning and for area funding allocations, as defined by
    the Illinois Community College Board;
        (2) the method for calculating hours of instruction, as
    defined by the Illinois Community College Board, claimable
    for reimbursement and a method to phase in the calculation
    and for adjusting the calculations in cases where the
    services of a program are interrupted due to circumstances
    beyond the control of the program provider;
        (3) a plan for the reallocation of funds to increase
    the amount allocated for grants based upon program
    performance as set forth in subsection (d) below; and
        (4) the development of standards for determining
    grants based upon performance as set forth in subsection
    (d) below and a plan for the phased-in implementation of
    those standards.
    For instruction provided by school districts and community
college districts beginning July 1, 1996 and thereafter,
reimbursement provided by the Illinois Community College Board
for classes authorized by this Section shall be provided from
funds appropriated for the reimbursement criteria set forth in
subsection (c) below.
    (c) Upon the annual approval of the Illinois Community
College Board, reimbursement shall be first provided for
transportation, child care services, and other special needs of
the students directly related to instruction and then from the
funds remaining an amount equal to the product of the total
credit hours or units of instruction approved by the Illinois
Community College Board, multiplied by the following:
        (1) For adult basic education, the maximum
    reimbursement per credit hour or per unit of instruction
    shall be equal to (i) through fiscal year 2017, the general
    state aid per pupil foundation level established in
    subsection (B) of Section 18-8.05, divided by 60, or (ii)
    in fiscal year 2018 and thereafter, the prior fiscal year
    reimbursement level multiplied by the Consumer Price Index
    for All Urban Consumers for all items published by the
    United States Department of Labor;
        (2) The maximum reimbursement per credit hour or per
    unit of instruction in subparagraph (1) above shall be
    weighted for students enrolled in classes defined as
    vocational skills and approved by the Illinois Community
    College Board by 1.25;
        (3) The maximum reimbursement per credit hour or per
    unit of instruction in subparagraph (1) above shall be
    multiplied by .90 for students enrolled in classes defined
    as adult secondary education programs and approved by the
    Illinois Community College Board;
        (4) (Blank); and
        (5) Funding for program years after 1999-2000 shall be
    determined by the Illinois Community College Board.
    (d) Upon its annual approval, the Illinois Community
College Board shall provide grants to eligible programs for
supplemental activities to improve or expand services under the
Adult Education Act. Eligible programs shall be determined
based upon performance outcomes of students in the programs as
set by the Illinois Community College Board.
    (e) Reimbursement under this Section shall not exceed the
actual costs of the approved program.
    If the amount appropriated to the Illinois Community
College Board for reimbursement under this Section is less than
the amount required under this Act, the apportionment shall be
proportionately reduced.
    School districts and community college districts may
assess students up to $3.00 per credit hour, for classes other
than Adult Basic Education level programs, if needed to meet
program costs.
    (f) An education plan shall be established for each adult
or youth whose schooling has been interrupted and who is
participating in the instructional programs provided under
this Section.
    Each school board and community college shall keep an
accurate and detailed account of the students assigned to and
receiving instruction under this Section who are subject to
State reimbursement and shall submit reports of services
provided commencing with fiscal year 1997 as required by the
Illinois Community College Board.
    For classes authorized under this Section, a credit hour or
unit of instruction is equal to 15 hours of direct instruction
for students enrolled in approved adult education programs at
midterm and making satisfactory progress, in accordance with
standards established by the Illinois Community College Board.
    (g) Upon proof submitted to the Illinois Department of
Human Services of the payment of all claims submitted under
this Section, that Department shall apply for federal funds
made available therefor and any federal funds so received shall
be paid into the General Revenue Fund in the State Treasury.
    School districts or community colleges providing classes
under this Section shall submit applications to the Illinois
Community College Board for preapproval in accordance with the
standards established by the Illinois Community College Board.
Payments shall be made by the Illinois Community College Board
based upon approved programs. Interim expenditure reports may
be required by the Illinois Community College Board. Final
claims for the school year shall be submitted to the regional
superintendents for transmittal to the Illinois Community
College Board. Final adjusted payments shall be made by
September 30.
    If a school district or community college district fails to
provide, or is providing unsatisfactory or insufficient
classes under this Section, the Illinois Community College
Board may enter into agreements with public or private
educational or other agencies other than the public schools for
the establishment of such classes.
    (h) If a school district or community college district
establishes child-care facilities for the children of
participants in classes established under this Section, it may
extend the use of these facilities to students who have
obtained employment and to other persons in the community whose
children require care and supervision while the parent or other
person in charge of the children is employed or otherwise
absent from the home during all or part of the day. It may make
the facilities available before and after as well as during
regular school hours to school age and preschool age children
who may benefit thereby, including children who require care
and supervision pending the return of their parent or other
person in charge of their care from employment or other
activity requiring absence from the home.
    The Illinois Community College Board shall pay to the board
the cost of care in the facilities for any child who is a
recipient of financial aid under the Illinois Public Aid Code.
    The board may charge for care of children for whom it
cannot make claim under the provisions of this Section. The
charge shall not exceed per capita cost, and to the extent
feasible, shall be fixed at a level which will permit
utilization by employed parents of low or moderate income. It
may also permit any other State or local governmental agency or
private agency providing care for children to purchase care.
    After July 1, 1970 when the provisions of Section 10-20.20
become operative in the district, children in a child-care
facility shall be transferred to the kindergarten established
under that Section for such portion of the day as may be
required for the kindergarten program, and only the prorated
costs of care and training provided in the Center for the
remaining period shall be charged to the Illinois Department of
Human Services or other persons or agencies paying for such
care.
    (i) The provisions of this Section shall also apply to
school districts having a population exceeding 500,000.
    (j) In addition to claiming reimbursement under this
Section, a school district may claim general State aid under
Section 18-8.05 or evidence-based funding under Section
18-8.15 for any student under age 21 who is enrolled in courses
accepted for graduation from elementary or high school and who
otherwise meets the requirements of Section 18-8.05 or 18-8.15,
as applicable.
(Source: P.A. 98-718, eff. 1-1-15.)
 
    (105 ILCS 5/10-29)
    Sec. 10-29. Remote educational programs.
    (a) For purposes of this Section, "remote educational
program" means an educational program delivered to students in
the home or other location outside of a school building that
meets all of the following criteria:
        (1) A student may participate in the program only after
    the school district, pursuant to adopted school board
    policy, and a person authorized to enroll the student under
    Section 10-20.12b of this Code determine that a remote
    educational program will best serve the student's
    individual learning needs. The adopted school board policy
    shall include, but not be limited to, all of the following:
            (A) Criteria for determining that a remote
        educational program will best serve a student's
        individual learning needs. The criteria must include
        consideration of, at a minimum, a student's prior
        attendance, disciplinary record, and academic history.
            (B) Any limitations on the number of students or
        grade levels that may participate in a remote
        educational program.
            (C) A description of the process that the school
        district will use to approve participation in the
        remote educational program. The process must include
        without limitation a requirement that, for any student
        who qualifies to receive services pursuant to the
        federal Individuals with Disabilities Education
        Improvement Act of 2004, the student's participation
        in a remote educational program receive prior approval
        from the student's individualized education program
        team.
            (D) A description of the process the school
        district will use to develop and approve a written
        remote educational plan that meets the requirements of
        subdivision (5) of this subsection (a).
            (E) A description of the system the school district
        will establish to calculate the number of clock hours a
        student is participating in instruction in accordance
        with the remote educational program.
            (F) A description of the process for renewing a
        remote educational program at the expiration of its
        term.
            (G) Such other terms and provisions as the school
        district deems necessary to provide for the
        establishment and delivery of a remote educational
        program.
        (2) The school district has determined that the remote
    educational program's curriculum is aligned to State
    learning standards and that the program offers instruction
    and educational experiences consistent with those given to
    students at the same grade level in the district.
        (3) The remote educational program is delivered by
    instructors that meet the following qualifications:
            (A) they are certificated under Article 21 of this
        Code;
            (B) they meet applicable highly qualified criteria
        under the federal No Child Left Behind Act of 2001; and
            (C) they have responsibility for all of the
        following elements of the program: planning
        instruction, diagnosing learning needs, prescribing
        content delivery through class activities, assessing
        learning, reporting outcomes to administrators and
        parents and guardians, and evaluating the effects of
        instruction.
        (4) During the period of time from and including the
    opening date to the closing date of the regular school term
    of the school district established pursuant to Section
    10-19 of this Code, participation in a remote educational
    program may be claimed for general State aid purposes under
    Section 18-8.05 of this Code or evidence-based funding
    purposes under Section 18-8.15 of this Code on any calendar
    day, notwithstanding whether the day is a day of pupil
    attendance or institute day on the school district's
    calendar or any other provision of law restricting
    instruction on that day. If the district holds year-round
    classes in some buildings, the district shall classify each
    student's participation in a remote educational program as
    either on a year-round or a non-year-round schedule for
    purposes of claiming general State aid or evidence-based
    funding. Outside of the regular school term of the
    district, the remote educational program may be offered as
    part of any summer school program authorized by this Code.
        (5) Each student participating in a remote educational
    program must have a written remote educational plan that
    has been approved by the school district and a person
    authorized to enroll the student under Section 10-20.12b of
    this Code. The school district and a person authorized to
    enroll the student under Section 10-20.12b of this Code
    must approve any amendment to a remote educational plan.
    The remote educational plan must include, but is not
    limited to, all of the following:
            (A) Specific achievement goals for the student
        aligned to State learning standards.
            (B) A description of all assessments that will be
        used to measure student progress, which description
        shall indicate the assessments that will be
        administered at an attendance center within the school
        district.
            (C) A description of the progress reports that will
        be provided to the school district and the person or
        persons authorized to enroll the student under Section
        10-20.12b of this Code.
            (D) Expectations, processes, and schedules for
        interaction between a teacher and student.
            (E) A description of the specific responsibilities
        of the student's family and the school district with
        respect to equipment, materials, phone and Internet
        service, and any other requirements applicable to the
        home or other location outside of a school building
        necessary for the delivery of the remote educational
        program.
            (F) If applicable, a description of how the remote
        educational program will be delivered in a manner
        consistent with the student's individualized education
        program required by Section 614(d) of the federal
        Individuals with Disabilities Education Improvement
        Act of 2004 or plan to ensure compliance with Section
        504 of the federal Rehabilitation Act of 1973.
            (G) A description of the procedures and
        opportunities for participation in academic and
        extra-curricular activities and programs within the
        school district.
            (H) The identification of a parent, guardian, or
        other responsible adult who will provide direct
        supervision of the program. The plan must include an
        acknowledgment by the parent, guardian, or other
        responsible adult that he or she may engage only in
        non-teaching duties not requiring instructional
        judgment or the evaluation of a student. The plan shall
        designate the parent, guardian, or other responsible
        adult as non-teaching personnel or volunteer personnel
        under subsection (a) of Section 10-22.34 of this Code.
            (I) The identification of a school district
        administrator who will oversee the remote educational
        program on behalf of the school district and who may be
        contacted by the student's parents with respect to any
        issues or concerns with the program.
            (J) The term of the student's participation in the
        remote educational program, which may not extend for
        longer than 12 months, unless the term is renewed by
        the district in accordance with subdivision (7) of this
        subsection (a).
            (K) A description of the specific location or
        locations in which the program will be delivered. If
        the remote educational program is to be delivered to a
        student in any location other than the student's home,
        the plan must include a written determination by the
        school district that the location will provide a
        learning environment appropriate for the delivery of
        the program. The location or locations in which the
        program will be delivered shall be deemed a long
        distance teaching reception area under subsection (a)
        of Section 10-22.34 of this Code.
            (L) Certification by the school district that the
        plan meets all other requirements of this Section.
        (6) Students participating in a remote educational
    program must be enrolled in a school district attendance
    center pursuant to the school district's enrollment policy
    or policies. A student participating in a remote
    educational program must be tested as part of all
    assessments administered by the school district pursuant
    to Section 2-3.64a-5 of this Code at the attendance center
    in which the student is enrolled and in accordance with the
    attendance center's assessment policies and schedule. The
    student must be included within all accountability
    determinations for the school district and attendance
    center under State and federal law.
        (7) The term of a student's participation in a remote
    educational program may not extend for longer than 12
    months, unless the term is renewed by the school district.
    The district may only renew a student's participation in a
    remote educational program following an evaluation of the
    student's progress in the program, a determination that the
    student's continuation in the program will best serve the
    student's individual learning needs, and an amendment to
    the student's written remote educational plan addressing
    any changes for the upcoming term of the program.
    For purposes of this Section, a remote educational program
does not include instruction delivered to students through an
e-learning program approved under Section 10-20.56 of this
Code.
    (b) A school district may, by resolution of its school
board, establish a remote educational program.
    (c) Clock hours of instruction by students in a remote
educational program meeting the requirements of this Section
may be claimed by the school district and shall be counted as
school work for general State aid purposes in accordance with
and subject to the limitations of Section 18-8.05 of this Code
or evidence-based funding purposes in accordance with and
subject to the limitations of Section 18-8.15 of this Code.
    (d) The impact of remote educational programs on wages,
hours, and terms and conditions of employment of educational
employees within the school district shall be subject to local
collective bargaining agreements.
    (e) The use of a home or other location outside of a school
building for a remote educational program shall not cause the
home or other location to be deemed a public school facility.
    (f) A remote educational program may be used, but is not
required, for instruction delivered to a student in the home or
other location outside of a school building that is not claimed
for general State aid purposes under Section 18-8.05 of this
Code or evidence-based funding purposes under Section 18-8.15
of this Code.
    (g) School districts that, pursuant to this Section, adopt
a policy for a remote educational program must submit to the
State Board of Education a copy of the policy and any
amendments thereto, as well as data on student participation in
a format specified by the State Board of Education. The State
Board of Education may perform or contract with an outside
entity to perform an evaluation of remote educational programs
in this State.
    (h) The State Board of Education may adopt any rules
necessary to ensure compliance by remote educational programs
with the requirements of this Section and other applicable
legal requirements.
(Source: P.A. 98-972, eff. 8-15-14; 99-193, eff. 7-30-15;
99-194, eff. 7-30-15; 99-642, eff. 7-28-16.)
 
    (105 ILCS 5/11E-135)
    Sec. 11E-135. Incentives. For districts reorganizing under
this Article and for a district or districts that annex all of
the territory of one or more entire other school districts in
accordance with Article 7 of this Code, the following payments
shall be made from appropriations made for these purposes:
    (a)(1) For a combined school district, as defined in
Section 11E-20 of this Code, or for a unit district, as defined
in Section 11E-25 of this Code, for its first year of
existence, the general State aid and supplemental general State
aid calculated under Section 18-8.05 of this Code or the
evidence-based funding calculated under Section 18-8.15 of
this Code, as applicable, shall be computed for the new
district and for the previously existing districts for which
property is totally included within the new district. If the
computation on the basis of the previously existing districts
is greater, a supplementary payment equal to the difference
shall be made for the first 4 years of existence of the new
district.
    (2) For a school district that annexes all of the territory
of one or more entire other school districts as defined in
Article 7 of this Code, for the first year during which the
change of boundaries attributable to the annexation becomes
effective for all purposes, as determined under Section 7-9 of
this Code, the general State aid and supplemental general State
aid calculated under Section 18-8.05 of this Code or the
evidence-based funding calculated under Section 18-8.15 of
this Code, as applicable, shall be computed for the annexing
district as constituted after the annexation and for the
annexing and each annexed district as constituted prior to the
annexation; and if the computation on the basis of the annexing
and annexed districts as constituted prior to the annexation is
greater, then a supplementary payment equal to the difference
shall be made for the first 4 years of existence of the
annexing school district as constituted upon the annexation.
    (3) For 2 or more school districts that annex all of the
territory of one or more entire other school districts, as
defined in Article 7 of this Code, for the first year during
which the change of boundaries attributable to the annexation
becomes effective for all purposes, as determined under Section
7-9 of this Code, the general State aid and supplemental
general State aid calculated under Section 18-8.05 of this Code
or the evidence-based funding calculated under Section 18-8.15
of this Code, as applicable, shall be computed for each
annexing district as constituted after the annexation and for
each annexing and annexed district as constituted prior to the
annexation; and if the aggregate of the general State aid and
supplemental general State aid or evidence-based funding, as
applicable, as so computed for the annexing districts as
constituted after the annexation is less than the aggregate of
the general State aid and supplemental general State aid or
evidence-based funding, as applicable, as so computed for the
annexing and annexed districts, as constituted prior to the
annexation, then a supplementary payment equal to the
difference shall be made and allocated between or among the
annexing districts, as constituted upon the annexation, for the
first 4 years of their existence. The total difference payment
shall be allocated between or among the annexing districts in
the same ratio as the pupil enrollment from that portion of the
annexed district or districts that is annexed to each annexing
district bears to the total pupil enrollment from the entire
annexed district or districts, as such pupil enrollment is
determined for the school year last ending prior to the date
when the change of boundaries attributable to the annexation
becomes effective for all purposes. The amount of the total
difference payment and the amount thereof to be allocated to
the annexing districts shall be computed by the State Board of
Education on the basis of pupil enrollment and other data that
shall be certified to the State Board of Education, on forms
that it shall provide for that purpose, by the regional
superintendent of schools for each educational service region
in which the annexing and annexed districts are located.
    (4) For a school district conversion, as defined in Section
11E-15 of this Code, or a multi-unit conversion, as defined in
subsection (b) of Section 11E-30 of this Code, if in their
first year of existence the newly created elementary districts
and the newly created high school district, from a school
district conversion, or the newly created elementary district
or districts and newly created combined high school - unit
district, from a multi-unit conversion, qualify for less
general State aid under Section 18-8.05 of this Code or
evidence-based funding under Section 18-8.15 of this Code than
would have been payable under Section 18-8.05 or 18-8.15, as
applicable, for that same year to the previously existing
districts, then a supplementary payment equal to that
difference shall be made for the first 4 years of existence of
the newly created districts. The aggregate amount of each
supplementary payment shall be allocated among the newly
created districts in the proportion that the deemed pupil
enrollment in each district during its first year of existence
bears to the actual aggregate pupil enrollment in all of the
districts during their first year of existence. For purposes of
each allocation:
        (A) the deemed pupil enrollment of the newly created
    high school district from a school district conversion
    shall be an amount equal to its actual pupil enrollment for
    its first year of existence multiplied by 1.25;
        (B) the deemed pupil enrollment of each newly created
    elementary district from a school district conversion
    shall be an amount equal to its actual pupil enrollment for
    its first year of existence reduced by an amount equal to
    the product obtained when the amount by which the newly
    created high school district's deemed pupil enrollment
    exceeds its actual pupil enrollment for its first year of
    existence is multiplied by a fraction, the numerator of
    which is the actual pupil enrollment of the newly created
    elementary district for its first year of existence and the
    denominator of which is the actual aggregate pupil
    enrollment of all of the newly created elementary districts
    for their first year of existence;
        (C) the deemed high school pupil enrollment of the
    newly created combined high school - unit district from a
    multi-unit conversion shall be an amount equal to its
    actual grades 9 through 12 pupil enrollment for its first
    year of existence multiplied by 1.25; and
        (D) the deemed elementary pupil enrollment of each
    newly created district from a multi-unit conversion shall
    be an amount equal to each district's actual grade K
    through 8 pupil enrollment for its first year of existence,
    reduced by an amount equal to the product obtained when the
    amount by which the newly created combined high school -
    unit district's deemed high school pupil enrollment
    exceeds its actual grade 9 through 12 pupil enrollment for
    its first year of existence is multiplied by a fraction,
    the numerator of which is the actual grade K through 8
    pupil enrollment of each newly created district for its
    first year of existence and the denominator of which is the
    actual aggregate grade K through 8 pupil enrollment of all
    such newly created districts for their first year of
    existence.
     The aggregate amount of each supplementary payment under
this subdivision (4) and the amount thereof to be allocated to
the newly created districts shall be computed by the State
Board of Education on the basis of pupil enrollment and other
data, which shall be certified to the State Board of Education,
on forms that it shall provide for that purpose, by the
regional superintendent of schools for each educational
service region in which the newly created districts are
located.
    (5) For a partial elementary unit district, as defined in
subsection (a) or (c) of Section 11E-30 of this Code, if, in
the first year of existence, the newly created partial
elementary unit district qualifies for less general State aid
and supplemental general State aid under Section 18-8.05 of
this Code or less evidence-based funding under Section 18-8.15
of this Code, as applicable, than would have been payable under
those Sections that Section for that same year to the
previously existing districts that formed the partial
elementary unit district, then a supplementary payment equal to
that difference shall be made to the partial elementary unit
district for the first 4 years of existence of that newly
created district.
    (6) For an elementary opt-in, as described in subsection
(d) of Section 11E-30 of this Code, the general State aid or
evidence-based funding difference shall be computed in
accordance with paragraph (5) of this subsection (a) as if the
elementary opt-in was included in an optional elementary unit
district at the optional elementary unit district's original
effective date. If the calculation in this paragraph (6) is
less than that calculated in paragraph (5) of this subsection
(a) at the optional elementary unit district's original
effective date, then no adjustments may be made. If the
calculation in this paragraph (6) is more than that calculated
in paragraph (5) of this subsection (a) at the optional
elementary unit district's original effective date, then the
excess must be paid as follows:
        (A) If the effective date for the elementary opt-in is
    one year after the effective date for the optional
    elementary unit district, 100% of the calculated excess
    shall be paid to the optional elementary unit district in
    each of the first 4 years after the effective date of the
    elementary opt-in.
        (B) If the effective date for the elementary opt-in is
    2 years after the effective date for the optional
    elementary unit district, 75% of the calculated excess
    shall be paid to the optional elementary unit district in
    each of the first 4 years after the effective date of the
    elementary opt-in.
        (C) If the effective date for the elementary opt-in is
    3 years after the effective date for the optional
    elementary unit district, 50% of the calculated excess
    shall be paid to the optional elementary unit district in
    each of the first 4 years after the effective date of the
    elementary opt-in.
        (D) If the effective date for the elementary opt-in is
    4 years after the effective date for the optional
    elementary unit district, 25% of the calculated excess
    shall be paid to the optional elementary unit district in
    each of the first 4 years after the effective date of the
    elementary opt-in.
        (E) If the effective date for the elementary opt-in is
    5 years after the effective date for the optional
    elementary unit district, the optional elementary unit
    district is not eligible for any additional incentives due
    to the elementary opt-in.
    (6.5) For a school district that annexes territory detached
from another school district whereby the enrollment of the
annexing district increases by 90% or more as a result of the
annexation, for the first year during which the change of
boundaries attributable to the annexation becomes effective
for all purposes as determined under Section 7-9 of this Code,
the general State aid and supplemental general State aid or
evidence-based funding, as applicable, calculated under this
Section shall be computed for the district gaining territory
and the district losing territory as constituted after the
annexation and for the same districts as constituted prior to
the annexation; and if the aggregate of the general State aid
and supplemental general State aid or evidence-based funding,
as applicable, as so computed for the district gaining
territory and the district losing territory as constituted
after the annexation is less than the aggregate of the general
State aid and supplemental general State aid or evidence-based
funding, as applicable, as so computed for the district gaining
territory and the district losing territory as constituted
prior to the annexation, then a supplementary payment shall be
made to the annexing district for the first 4 years of
existence after the annexation, equal to the difference
multiplied by the ratio of student enrollment in the territory
detached to the total student enrollment in the district losing
territory for the year prior to the effective date of the
annexation. The amount of the total difference and the
proportion paid to the annexing district shall be computed by
the State Board of Education on the basis of pupil enrollment
and other data that must be submitted to the State Board of
Education in accordance with Section 7-14A of this Code. The
changes to this Section made by Public Act 95-707 are intended
to be retroactive and applicable to any annexation taking
effect on or after July 1, 2004. For annexations that are
eligible for payments under this paragraph (6.5) and that are
effective on or after July 1, 2004, but before January 11, 2008
(the effective date of Public Act 95-707), the first required
yearly payment under this paragraph (6.5) shall be paid in the
fiscal year of January 11, 2008 (the effective date of Public
Act 95-707). Subsequent required yearly payments shall be paid
in subsequent fiscal years until the payment obligation under
this paragraph (6.5) is complete.
    (7) Claims for financial assistance under this subsection
(a) may not be recomputed except as expressly provided under
Section 18-8.05 or 18-8.15 of this Code.
    (8) Any supplementary payment made under this subsection
(a) must be treated as separate from all other payments made
pursuant to Section 18-8.05 or 18-8.15 of this Code.
    (b)(1) After the formation of a combined school district,
as defined in Section 11E-20 of this Code, or a unit district,
as defined in Section 11E-25 of this Code, a computation shall
be made to determine the difference between the salaries
effective in each of the previously existing districts on June
30, prior to the creation of the new district. For the first 4
years after the formation of the new district, a supplementary
State aid reimbursement shall be paid to the new district equal
to the difference between the sum of the salaries earned by
each of the certificated members of the new district, while
employed in one of the previously existing districts during the
year immediately preceding the formation of the new district,
and the sum of the salaries those certificated members would
have been paid during the year immediately prior to the
formation of the new district if placed on the salary schedule
of the previously existing district with the highest salary
schedule.
    (2) After the territory of one or more school districts is
annexed by one or more other school districts as defined in
Article 7 of this Code, a computation shall be made to
determine the difference between the salaries effective in each
annexed district and in the annexing district or districts as
they were each constituted on June 30 preceding the date when
the change of boundaries attributable to the annexation became
effective for all purposes, as determined under Section 7-9 of
this Code. For the first 4 years after the annexation, a
supplementary State aid reimbursement shall be paid to each
annexing district as constituted after the annexation equal to
the difference between the sum of the salaries earned by each
of the certificated members of the annexing district as
constituted after the annexation, while employed in an annexed
or annexing district during the year immediately preceding the
annexation, and the sum of the salaries those certificated
members would have been paid during the immediately preceding
year if placed on the salary schedule of whichever of the
annexing or annexed districts had the highest salary schedule
during the immediately preceding year.
    (3) For each new high school district formed under a school
district conversion, as defined in Section 11E-15 of this Code,
the State shall make a supplementary payment for 4 years equal
to the difference between the sum of the salaries earned by
each certified member of the new high school district, while
employed in one of the previously existing districts, and the
sum of the salaries those certified members would have been
paid if placed on the salary schedule of the previously
existing district with the highest salary schedule.
    (4) For each newly created partial elementary unit
district, the State shall make a supplementary payment for 4
years equal to the difference between the sum of the salaries
earned by each certified member of the newly created partial
elementary unit district, while employed in one of the
previously existing districts that formed the partial
elementary unit district, and the sum of the salaries those
certified members would have been paid if placed on the salary
schedule of the previously existing district with the highest
salary schedule. The salary schedules used in the calculation
shall be those in effect in the previously existing districts
for the school year prior to the creation of the new partial
elementary unit district.
    (5) For an elementary district opt-in, as described in
subsection (d) of Section 11E-30 of this Code, the salary
difference incentive shall be computed in accordance with
paragraph (4) of this subsection (b) as if the opted-in
elementary district was included in the optional elementary
unit district at the optional elementary unit district's
original effective date. If the calculation in this paragraph
(5) is less than that calculated in paragraph (4) of this
subsection (b) at the optional elementary unit district's
original effective date, then no adjustments may be made. If
the calculation in this paragraph (5) is more than that
calculated in paragraph (4) of this subsection (b) at the
optional elementary unit district's original effective date,
then the excess must be paid as follows:
        (A) If the effective date for the elementary opt-in is
    one year after the effective date for the optional
    elementary unit district, 100% of the calculated excess
    shall be paid to the optional elementary unit district in
    each of the first 4 years after the effective date of the
    elementary opt-in.
        (B) If the effective date for the elementary opt-in is
    2 years after the effective date for the optional
    elementary unit district, 75% of the calculated excess
    shall be paid to the optional elementary unit district in
    each of the first 4 years after the effective date of the
    elementary opt-in.
        (C) If the effective date for the elementary opt-in is
    3 years after the effective date for the optional
    elementary unit district, 50% of the calculated excess
    shall be paid to the optional elementary unit district in
    each of the first 4 years after the effective date of the
    elementary opt-in.
        (D) If the effective date for the elementary opt-in is
    4 years after the effective date for the partial elementary
    unit district, 25% of the calculated excess shall be paid
    to the optional elementary unit district in each of the
    first 4 years after the effective date of the elementary
    opt-in.
        (E) If the effective date for the elementary opt-in is
    5 years after the effective date for the optional
    elementary unit district, the optional elementary unit
    district is not eligible for any additional incentives due
    to the elementary opt-in.
    (5.5) After the formation of a cooperative high school by 2
or more school districts under Section 10-22.22c of this Code,
a computation shall be made to determine the difference between
the salaries effective in each of the previously existing high
schools on June 30 prior to the formation of the cooperative
high school. For the first 4 years after the formation of the
cooperative high school, a supplementary State aid
reimbursement shall be paid to the cooperative high school
equal to the difference between the sum of the salaries earned
by each of the certificated members of the cooperative high
school while employed in one of the previously existing high
schools during the year immediately preceding the formation of
the cooperative high school and the sum of the salaries those
certificated members would have been paid during the year
immediately prior to the formation of the cooperative high
school if placed on the salary schedule of the previously
existing high school with the highest salary schedule.
    (5.10) After the annexation of territory detached from
another school district whereby the enrollment of the annexing
district increases by 90% or more as a result of the
annexation, a computation shall be made to determine the
difference between the salaries effective in the district
gaining territory and the district losing territory as they
each were constituted on June 30 preceding the date when the
change of boundaries attributable to the annexation became
effective for all purposes as determined under Section 7-9 of
this Code. For the first 4 years after the annexation, a
supplementary State aid reimbursement shall be paid to the
annexing district equal to the difference between the sum of
the salaries earned by each of the certificated members of the
annexing district as constituted after the annexation while
employed in the district gaining territory or the district
losing territory during the year immediately preceding the
annexation and the sum of the salaries those certificated
members would have been paid during such immediately preceding
year if placed on the salary schedule of whichever of the
district gaining territory or district losing territory had the
highest salary schedule during the immediately preceding year.
To be eligible for supplementary State aid reimbursement under
this Section, the intergovernmental agreement to be submitted
pursuant to Section 7-14A of this Code must show that staff
members were transferred from the control of the district
losing territory to the control of the district gaining
territory in the annexation. The changes to this Section made
by Public Act 95-707 are intended to be retroactive and
applicable to any annexation taking effect on or after July 1,
2004. For annexations that are eligible for payments under this
paragraph (5.10) and that are effective on or after July 1,
2004, but before January 11, 2008 (the effective date of Public
Act 95-707), the first required yearly payment under this
paragraph (5.10) shall be paid in the fiscal year of January
11, 2008 (the effective date of Public Act 95-707). Subsequent
required yearly payments shall be paid in subsequent fiscal
years until the payment obligation under this paragraph (5.10)
is complete.
    (5.15) After the deactivation of a school facility in
accordance with Section 10-22.22b of this Code, a computation
shall be made to determine the difference between the salaries
effective in the sending school district and each receiving
school district on June 30 prior to the deactivation of the
school facility. For the lesser of the first 4 years after the
deactivation of the school facility or the length of the
deactivation agreement, including any renewals of the original
deactivation agreement, a supplementary State aid
reimbursement shall be paid to each receiving district equal to
the difference between the sum of the salaries earned by each
of the certificated members transferred to that receiving
district as a result of the deactivation while employed in the
sending district during the year immediately preceding the
deactivation and the sum of the salaries those certificated
members would have been paid during the year immediately
preceding the deactivation if placed on the salary schedule of
the sending or receiving district with the highest salary
schedule.
    (6) The supplementary State aid reimbursement under this
subsection (b) shall be treated as separate from all other
payments made pursuant to Section 18-8.05 of this Code. In the
case of the formation of a new district or cooperative high
school or a deactivation, reimbursement shall begin during the
first year of operation of the new district or cooperative high
school or the first year of the deactivation, and in the case
of an annexation of the territory of one or more school
districts by one or more other school districts or the
annexation of territory detached from a school district whereby
the enrollment of the annexing district increases by 90% or
more as a result of the annexation, reimbursement shall begin
during the first year when the change in boundaries
attributable to the annexation becomes effective for all
purposes as determined pursuant to Section 7-9 of this Code,
except that for an annexation of territory detached from a
school district that is effective on or after July 1, 2004, but
before January 11, 2008 (the effective date of Public Act
95-707), whereby the enrollment of the annexing district
increases by 90% or more as a result of the annexation,
reimbursement shall begin during the fiscal year of January 11,
2008 (the effective date of Public Act 95-707). Each year that
the new, annexing, or receiving district or cooperative high
school, as the case may be, is entitled to receive
reimbursement, the number of eligible certified members who are
employed on October 1 in the district or cooperative high
school shall be certified to the State Board of Education on
prescribed forms by October 15 and payment shall be made on or
before November 15 of that year.
    (c)(1) For the first year after the formation of a combined
school district, as defined in Section 11E-20 of this Code or a
unit district, as defined in Section 11E-25 of this Code, a
computation shall be made totaling each previously existing
district's audited fund balances in the educational fund,
working cash fund, operations and maintenance fund, and
transportation fund for the year ending June 30 prior to the
referendum for the creation of the new district. The new
district shall be paid supplementary State aid equal to the sum
of the differences between the deficit of the previously
existing district with the smallest deficit and the deficits of
each of the other previously existing districts.
    (2) For the first year after the annexation of all of the
territory of one or more entire school districts by another
school district, as defined in Article 7 of this Code,
computations shall be made, for the year ending June 30 prior
to the date that the change of boundaries attributable to the
annexation is allowed by the affirmative decision issued by the
regional board of school trustees under Section 7-6 of this
Code, notwithstanding any effort to seek administrative review
of the decision, totaling the annexing district's and totaling
each annexed district's audited fund balances in their
respective educational, working cash, operations and
maintenance, and transportation funds. The annexing district
as constituted after the annexation shall be paid supplementary
State aid equal to the sum of the differences between the
deficit of whichever of the annexing or annexed districts as
constituted prior to the annexation had the smallest deficit
and the deficits of each of the other districts as constituted
prior to the annexation.
    (3) For the first year after the annexation of all of the
territory of one or more entire school districts by 2 or more
other school districts, as defined by Article 7 of this Code,
computations shall be made, for the year ending June 30 prior
to the date that the change of boundaries attributable to the
annexation is allowed by the affirmative decision of the
regional board of school trustees under Section 7-6 of this
Code, notwithstanding any action for administrative review of
the decision, totaling each annexing and annexed district's
audited fund balances in their respective educational, working
cash, operations and maintenance, and transportation funds.
The annexing districts as constituted after the annexation
shall be paid supplementary State aid, allocated as provided in
this paragraph (3), in an aggregate amount equal to the sum of
the differences between the deficit of whichever of the
annexing or annexed districts as constituted prior to the
annexation had the smallest deficit and the deficits of each of
the other districts as constituted prior to the annexation. The
aggregate amount of the supplementary State aid payable under
this paragraph (3) shall be allocated between or among the
annexing districts as follows:
        (A) the regional superintendent of schools for each
    educational service region in which an annexed district is
    located prior to the annexation shall certify to the State
    Board of Education, on forms that it shall provide for that
    purpose, the value of all taxable property in each annexed
    district, as last equalized or assessed by the Department
    of Revenue prior to the annexation, and the equalized
    assessed value of each part of the annexed district that
    was annexed to or included as a part of an annexing
    district;
        (B) using equalized assessed values as certified by the
    regional superintendent of schools under clause (A) of this
    paragraph (3), the combined audited fund balance deficit of
    each annexed district as determined under this Section
    shall be apportioned between or among the annexing
    districts in the same ratio as the equalized assessed value
    of that part of the annexed district that was annexed to or
    included as a part of an annexing district bears to the
    total equalized assessed value of the annexed district; and
        (C) the aggregate supplementary State aid payment
    under this paragraph (3) shall be allocated between or
    among, and shall be paid to, the annexing districts in the
    same ratio as the sum of the combined audited fund balance
    deficit of each annexing district as constituted prior to
    the annexation, plus all combined audited fund balance
    deficit amounts apportioned to that annexing district
    under clause (B) of this subsection, bears to the aggregate
    of the combined audited fund balance deficits of all of the
    annexing and annexed districts as constituted prior to the
    annexation.
    (4) For the new elementary districts and new high school
district formed through a school district conversion, as
defined in Section 11E-15 of this Code or the new elementary
district or districts and new combined high school - unit
district formed through a multi-unit conversion, as defined in
subsection (b) of Section 11E-30 of this Code, a computation
shall be made totaling each previously existing district's
audited fund balances in the educational fund, working cash
fund, operations and maintenance fund, and transportation fund
for the year ending June 30 prior to the referendum
establishing the new districts. In the first year of the new
districts, the State shall make a one-time supplementary
payment equal to the sum of the differences between the deficit
of the previously existing district with the smallest deficit
and the deficits of each of the other previously existing
districts. A district with a combined balance among the 4 funds
that is positive shall be considered to have a deficit of zero.
The supplementary payment shall be allocated among the newly
formed high school and elementary districts in the manner
provided by the petition for the formation of the districts, in
the form in which the petition is approved by the regional
superintendent of schools or State Superintendent of Education
under Section 11E-50 of this Code.
    (5) For each newly created partial elementary unit
district, as defined in subsection (a) or (c) of Section 11E-30
of this Code, a computation shall be made totaling the audited
fund balances of each previously existing district that formed
the new partial elementary unit district in the educational
fund, working cash fund, operations and maintenance fund, and
transportation fund for the year ending June 30 prior to the
referendum for the formation of the partial elementary unit
district. In the first year of the new partial elementary unit
district, the State shall make a one-time supplementary payment
to the new district equal to the sum of the differences between
the deficit of the previously existing district with the
smallest deficit and the deficits of each of the other
previously existing districts. A district with a combined
balance among the 4 funds that is positive shall be considered
to have a deficit of zero.
    (6) For an elementary opt-in as defined in subsection (d)
of Section 11E-30 of this Code, the deficit fund balance
incentive shall be computed in accordance with paragraph (5) of
this subsection (c) as if the opted-in elementary was included
in the optional elementary unit district at the optional
elementary unit district's original effective date. If the
calculation in this paragraph (6) is less than that calculated
in paragraph (5) of this subsection (c) at the optional
elementary unit district's original effective date, then no
adjustments may be made. If the calculation in this paragraph
(6) is more than that calculated in paragraph (5) of this
subsection (c) at the optional elementary unit district's
original effective date, then the excess must be paid as
follows:
        (A) If the effective date for the elementary opt-in is
    one year after the effective date for the optional
    elementary unit district, 100% of the calculated excess
    shall be paid to the optional elementary unit district in
    the first year after the effective date of the elementary
    opt-in.
        (B) If the effective date for the elementary opt-in is
    2 years after the effective date for the optional
    elementary unit district, 75% of the calculated excess
    shall be paid to the optional elementary unit district in
    the first year after the effective date of the elementary
    opt-in.
        (C) If the effective date for the elementary opt-in is
    3 years after the effective date for the optional
    elementary unit district, 50% of the calculated excess
    shall be paid to the optional elementary unit district in
    the first year after the effective date of the elementary
    opt-in.
        (D) If the effective date for the elementary opt-in is
    4 years after the effective date for the optional
    elementary unit district, 25% of the calculated excess
    shall be paid to the optional elementary unit district in
    the first year after the effective date of the elementary
    opt-in.
        (E) If the effective date for the elementary opt-in is
    5 years after the effective date for the optional
    elementary unit district, the optional elementary unit
    district is not eligible for any additional incentives due
    to the elementary opt-in.
    (6.5) For the first year after the annexation of territory
detached from another school district whereby the enrollment of
the annexing district increases by 90% or more as a result of
the annexation, a computation shall be made totaling the
audited fund balances of the district gaining territory and the
audited fund balances of the district losing territory in the
educational fund, working cash fund, operations and
maintenance fund, and transportation fund for the year ending
June 30 prior to the date that the change of boundaries
attributable to the annexation is allowed by the affirmative
decision of the regional board of school trustees under Section
7-6 of this Code, notwithstanding any action for administrative
review of the decision. The annexing district as constituted
after the annexation shall be paid supplementary State aid
equal to the difference between the deficit of whichever
district included in this calculation as constituted prior to
the annexation had the smallest deficit and the deficit of each
other district included in this calculation as constituted
prior to the annexation, multiplied by the ratio of equalized
assessed value of the territory detached to the total equalized
assessed value of the district losing territory. The regional
superintendent of schools for the educational service region in
which a district losing territory is located prior to the
annexation shall certify to the State Board of Education the
value of all taxable property in the district losing territory
and the value of all taxable property in the territory being
detached, as last equalized or assessed by the Department of
Revenue prior to the annexation. To be eligible for
supplementary State aid reimbursement under this Section, the
intergovernmental agreement to be submitted pursuant to
Section 7-14A of this Code must show that fund balances were
transferred from the district losing territory to the district
gaining territory in the annexation. The changes to this
Section made by Public Act 95-707 are intended to be
retroactive and applicable to any annexation taking effect on
or after July 1, 2004. For annexations that are eligible for
payments under this paragraph (6.5) and that are effective on
or after July 1, 2004, but before January 11, 2008 (the
effective date of Public Act 95-707), the required payment
under this paragraph (6.5) shall be paid in the fiscal year of
January 11, 2008 (the effective date of Public Act 95-707).
    (7) For purposes of any calculation required under
paragraph (1), (2), (3), (4), (5), (6), or (6.5) of this
subsection (c), a district with a combined fund balance that is
positive shall be considered to have a deficit of zero. For
purposes of determining each district's audited fund balances
in its educational fund, working cash fund, operations and
maintenance fund, and transportation fund for the specified
year ending June 30, as provided in paragraphs (1), (2), (3),
(4), (5), (6), and (6.5) of this subsection (c), the balance of
each fund shall be deemed decreased by an amount equal to the
amount of the annual property tax theretofore levied in the
fund by the district for collection and payment to the district
during the calendar year in which the June 30 fell, but only to
the extent that the tax so levied in the fund actually was
received by the district on or before or comprised a part of
the fund on such June 30. For purposes of determining each
district's audited fund balances, a calculation shall be made
for each fund to determine the average for the 3 years prior to
the specified year ending June 30, as provided in paragraphs
(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c),
of the district's expenditures in the categories "purchased
services", "supplies and materials", and "capital outlay", as
those categories are defined in rules of the State Board of
Education. If this 3-year average is less than the district's
expenditures in these categories for the specified year ending
June 30, as provided in paragraphs (1), (2), (3), (4), (5),
(6), and (6.5) of this subsection (c), then the 3-year average
shall be used in calculating the amounts payable under this
Section in place of the amounts shown in these categories for
the specified year ending June 30, as provided in paragraphs
(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c).
Any deficit because of State aid not yet received may not be
considered in determining the June 30 deficits. The same basis
of accounting shall be used by all previously existing
districts and by all annexing or annexed districts, as
constituted prior to the annexation, in making any computation
required under paragraphs (1), (2), (3), (4), (5), (6), and
(6.5) of this subsection (c).
    (8) The supplementary State aid payments under this
subsection (c) shall be treated as separate from all other
payments made pursuant to Section 18-8.05 of this Code.
    (d)(1) Following the formation of a combined school
district, as defined in Section 11E-20 of this Code, a new unit
district, as defined in Section 11E-25 of this Code, a new
elementary district or districts and a new high school district
formed through a school district conversion, as defined in
Section 11E-15 of this Code, a new partial elementary unit
district, as defined in Section 11E-30 of this Code, or a new
elementary district or districts formed through a multi-unit
conversion, as defined in subsection (b) of Section 11E-30 of
this Code, or the annexation of all of the territory of one or
more entire school districts by one or more other school
districts, as defined in Article 7 of this Code, a
supplementary State aid reimbursement shall be paid for the
number of school years determined under the following table to
each new or annexing district equal to the sum of $4,000 for
each certified employee who is employed by the district on a
full-time basis for the regular term of the school year:
 

 
Reorganized District's RankReorganized District's Rank
by type of district (unit,in Average Daily Attendance
high school, elementary)By Quintile
in Equalized Assessed Value
Per Pupil by Quintile
3rd, 4th,
1st2ndor 5th
QuintileQuintileQuintile
    1st Quintile1 year1 year1 year
    2nd Quintile1 year2 years2 years
    3rd Quintile2 years3 years3 years
    4th Quintile2 years3 years3 years
    5th Quintile2 years3 years3 years
The State Board of Education shall make a one-time calculation
of a reorganized district's quintile ranks. The average daily
attendance used in this calculation shall be the best 3 months'
average daily attendance for the district's first year. The
equalized assessed value per pupil shall be the district's real
property equalized assessed value used in calculating the
district's first-year general State aid claim, under Section
18-8.05 of this Code, or first-year evidence-based funding
claim, under Section 18-8.15 of this Code, as applicable,
divided by the best 3 months' average daily attendance.
    No annexing or resulting school district shall be entitled
to supplementary State aid under this subsection (d) unless the
district acquires at least 30% of the average daily attendance
of the district from which the territory is being detached or
divided.
    If a district results from multiple reorganizations that
would otherwise qualify the district for multiple payments
under this subsection (d) in any year, then the district shall
receive a single payment only for that year based solely on the
most recent reorganization.
    (2) For an elementary opt-in, as defined in subsection (d)
of Section 11E-30 of this Code, the full-time certified staff
incentive shall be computed in accordance with paragraph (1) of
this subsection (d), equal to the sum of $4,000 for each
certified employee of the elementary district that opts-in who
is employed by the optional elementary unit district on a
full-time basis for the regular term of the school year. The
calculation from this paragraph (2) must be paid as follows:
        (A) If the effective date for the elementary opt-in is
    one year after the effective date for the optional
    elementary unit district, 100% of the amount calculated in
    this paragraph (2) shall be paid to the optional elementary
    unit district for the number of years calculated in
    paragraph (1) of this subsection (d) at the optional
    elementary unit district's original effective date,
    starting in the second year after the effective date of the
    elementary opt-in.
        (B) If the effective date for the elementary opt-in is
    2 years after the effective date for the optional
    elementary unit district, 75% of the amount calculated in
    this paragraph (2) shall be paid to the optional elementary
    unit district for the number of years calculated in
    paragraph (1) of this subsection (d) at the optional
    elementary unit district's original effective date,
    starting in the second year after the effective date of the
    elementary opt-in.
        (C) If the effective date for the elementary opt-in is
    3 years after the effective date for the optional
    elementary unit district, 50% of the amount calculated in
    this paragraph (2) shall be paid to the optional elementary
    unit district for the number of years calculated in
    paragraph (1) of this subsection (d) at the optional
    elementary unit district's original effective date,
    starting in the second year after the effective date of the
    elementary opt-in.
        (D) If the effective date for the elementary opt-in is
    4 years after the effective date for the optional
    elementary unit district, 25% of the amount calculated in
    this paragraph (2) shall be paid to the optional elementary
    unit district for the number of years calculated in
    paragraph (1) of this subsection (d) at the optional
    elementary unit district's original effective date,
    starting in the second year after the effective date of the
    elementary opt-in.
        (E) If the effective date for the elementary opt-in is
    5 years after the effective date for the optional
    elementary unit district, the optional elementary unit
    district is not eligible for any additional incentives due
    to the elementary opt-in.
    (2.5) Following the formation of a cooperative high school
by 2 or more school districts under Section 10-22.22c of this
Code, a supplementary State aid reimbursement shall be paid for
3 school years to the cooperative high school equal to the sum
of $4,000 for each certified employee who is employed by the
cooperative high school on a full-time basis for the regular
term of any such school year. If a cooperative high school
results from multiple agreements that would otherwise qualify
the cooperative high school for multiple payments under this
Section in any year, the cooperative high school shall receive
a single payment for that year based solely on the most recent
agreement.
    (2.10) Following the annexation of territory detached from
another school district whereby the enrollment of the annexing
district increases 90% or more as a result of the annexation, a
supplementary State aid reimbursement shall be paid to the
annexing district equal to the sum of $4,000 for each certified
employee who is employed by the annexing district on a
full-time basis and shall be calculated in accordance with
subsection (a) of this Section. To be eligible for
supplementary State aid reimbursement under this Section, the
intergovernmental agreement to be submitted pursuant to
Section 7-14A of this Code must show that certified staff
members were transferred from the control of the district
losing territory to the control of the district gaining
territory in the annexation. The changes to this Section made
by Public Act 95-707 are intended to be retroactive and
applicable to any annexation taking effect on or after July 1,
2004. For annexations that are eligible for payments under this
paragraph (2.10) and that are effective on or after July 1,
2004, but before January 11, 2008 (the effective date of Public
Act 95-707), the first required yearly payment under this
paragraph (2.10) shall be paid in the second fiscal year after
January 11, 2008 (the effective date of Public Act 95-707). Any
subsequent required yearly payments shall be paid in subsequent
fiscal years until the payment obligation under this paragraph
(2.10) is complete.
    (2.15) Following the deactivation of a school facility in
accordance with Section 10-22.22b of this Code, a supplementary
State aid reimbursement shall be paid for the lesser of 3
school years or the length of the deactivation agreement,
including any renewals of the original deactivation agreement,
to each receiving school district equal to the sum of $4,000
for each certified employee who is employed by that receiving
district on a full-time basis for the regular term of any such
school year who was originally transferred to the control of
that receiving district as a result of the deactivation.
Receiving districts are eligible for payments under this
paragraph (2.15) based on the certified employees transferred
to that receiving district as a result of the deactivation and
are not required to receive at least 30% of the deactivating
district's average daily attendance as required under
paragraph (1) of this subsection (d) to be eligible for
payments.
    (3) The supplementary State aid reimbursement payable
under this subsection (d) shall be separate from and in
addition to all other payments made to the district pursuant to
any other Section of this Article.
    (4) During May of each school year for which a
supplementary State aid reimbursement is to be paid to a new,
annexing, or receiving school district or cooperative high
school pursuant to this subsection (d), the school board or
governing board shall certify to the State Board of Education,
on forms furnished to the school board or governing board by
the State Board of Education for purposes of this subsection
(d), the number of certified employees for which the district
or cooperative high school is entitled to reimbursement under
this Section, together with the names, certificate numbers, and
positions held by the certified employees.
    (5) Upon certification by the State Board of Education to
the State Comptroller of the amount of the supplementary State
aid reimbursement to which a school district or cooperative
high school is entitled under this subsection (d), the State
Comptroller shall draw his or her warrant upon the State
Treasurer for the payment thereof to the school district or
cooperative high school and shall promptly transmit the payment
to the school district or cooperative high school through the
appropriate school treasurer.
(Source: P.A. 95-331, eff. 8-21-07; 95-707, eff. 1-11-08;
95-903, eff. 8-25-08; 96-328, eff. 8-11-09.)
 
    (105 ILCS 5/13A-8)
    Sec. 13A-8. Funding.
    (a) The State of Illinois shall provide funding for the
alternative school programs within each educational service
region and within the Chicago public school system by line item
appropriation made to the State Board of Education for that
purpose. This money, when appropriated, shall be provided to
the regional superintendent and to the Chicago Board of
Education, who shall establish a budget, including salaries,
for their alternative school programs. Each program shall
receive funding in the amount of $30,000 plus an amount based
on the ratio of the region's or Chicago's best 3 months'
average daily attendance in grades pre-kindergarten through 12
to the statewide totals of these amounts. For purposes of this
calculation, the best 3 months' average daily attendance for
each region or Chicago shall be calculated by adding to the
best 3 months' average daily attendance the number of
low-income students identified in the most recently available
federal census multiplied by one-half times the percentage of
the region's or Chicago's low-income students to the State's
total low-income students. The State Board of Education shall
retain up to 1.1% of the appropriation to be used to provide
technical assistance, professional development, and
evaluations for the programs.
    (a-5) Notwithstanding any other provisions of this
Section, for the 1998-1999 fiscal year, the total amount
distributed under subsection (a) for an alternative school
program shall be not less than the total amount that was
distributed under that subsection for that alternative school
program for the 1997-1998 fiscal year. If an alternative school
program is to receive a total distribution under subsection (a)
for the 1998-1999 fiscal year that is less than the total
distribution that the program received under that subsection
for the 1997-1998 fiscal year, that alternative school program
shall also receive, from a separate appropriation made for
purposes of this subsection (a-5), a supplementary payment
equal to the amount by which its total distribution under
subsection (a) for the 1997-1998 fiscal year exceeds the amount
of the total distribution that the alternative school program
receives under that subsection for the 1998-1999 fiscal year.
If the amount appropriated for supplementary payments to
alternative school programs under this subsection (a-5) is
insufficient for that purpose, those supplementary payments
shall be prorated among the alternative school programs
entitled to receive those supplementary payments according to
the aggregate amount of the appropriation made for purposes of
this subsection (a-5).
    (b) An alternative school program shall be entitled to
receive general State aid as calculated in subsection (K) of
Section 18-8.05 or evidence-based funding as calculated in
subsection (g) of Section 18-8.15 upon filing a claim as
provided therein. Any time that a student who is enrolled in an
alternative school program spends in work-based learning,
community service, or a similar alternative educational
setting shall be included in determining the student's minimum
number of clock hours of daily school work that constitute a
day of attendance for purposes of calculating general State aid
or evidence-based funding.
    (c) An alternative school program may receive additional
funding from its school districts in such amount as may be
agreed upon by the parties and necessary to support the
program. In addition, an alternative school program is
authorized to accept and expend gifts, legacies, and grants,
including but not limited to federal grants, from any source
for purposes directly related to the conduct and operation of
the program.
(Source: P.A. 89-383, eff. 8-18-95; 89-629, eff. 8-9-96;
89-636, eff. 8-9-96; 90-14, eff. 7-1-97; 90-283, eff. 7-31-97;
90-802, eff. 12-15-98.)
 
    (105 ILCS 5/13B-20.20)
    Sec. 13B-20.20. Enrollment in other programs. High school
equivalency testing preparation programs are not eligible for
funding under this Article. A student may enroll in a program
approved under Section 18-8.05 or 18-8.15 of this Code, as
appropriate, or attend both the alternative learning
opportunities program and the regular school program to enhance
student performance and facilitate on-time graduation.
(Source: P.A. 98-718, eff. 1-1-15.)
 
    (105 ILCS 5/13B-45)
    Sec. 13B-45. Days and hours of attendance. An alternative
learning opportunities program shall provide students with at
least the minimum number of days of pupil attendance required
under Section 10-19 of this Code and the minimum number of
daily hours of school work required under Section 18-8.05 or
18-8.15 of this Code, provided that the State Board may approve
exceptions to these requirements if the program meets all of
the following conditions:
        (1) The district plan submitted under Section
    13B-25.15 of this Code establishes that a program providing
    the required minimum number of days of attendance or daily
    hours of school work would not serve the needs of the
    program's students.
        (2) Each day of attendance shall provide no fewer than
    3 clock hours of school work, as defined under paragraph
    (1) of subsection (F) of Section 18-8.05 of this Code.
        (3) Each day of attendance that provides fewer than 5
    clock hours of school work shall also provide supplementary
    services, including without limitation work-based
    learning, student assistance programs, counseling, case
    management, health and fitness programs, or life-skills or
    conflict resolution training, in order to provide a total
    daily program to the student of 5 clock hours. A program
    may claim general State aid or evidence-based funding for
    up to 2 hours of the time each day that a student is
    receiving supplementary services.
        (4) Each program shall provide no fewer than 174 days
    of actual pupil attendance during the school term; however,
    approved evening programs that meet the requirements of
    Section 13B-45 of this Code may offer less than 174 days of
    actual pupil attendance during the school term.
(Source: P.A. 92-42, eff. 1-1-02.)
 
    (105 ILCS 5/13B-50)
    Sec. 13B-50. Eligibility to receive general State aid or
evidence-based funding. In order to receive general State aid
or evidence-based funding, alternative learning opportunities
programs must meet the requirements for claiming general State
aid as specified in Section 18-8.05 of this Code or
evidence-based funding as specified in Section 18-8.15 of this
Code, as applicable, with the exception of the length of the
instructional day, which may be less than 5 hours of school
work if the program meets the criteria set forth under Sections
13B-50.5 and 13B-50.10 of this Code and if the program is
approved by the State Board.
(Source: P.A. 92-42, eff. 1-1-02.)
 
    (105 ILCS 5/13B-50.10)
    Sec. 13B-50.10. Additional criteria for general State aid
or evidence-based funding. In order to claim general State aid
or evidence-based funding, an alternative learning
opportunities program must meet the following criteria:
    (1) Teacher professional development plans should include
education in the instruction of at-risk students.
    (2) Facilities must meet the health, life, and safety
requirements in this Code.
    (3) The program must comply with all other State and
federal laws applicable to education providers.
(Source: P.A. 92-42, eff. 1-1-02.)
 
    (105 ILCS 5/13B-50.15)
    Sec. 13B-50.15. Level of funding. Approved alternative
learning opportunities programs are entitled to claim general
State aid or evidence-based funding, subject to Sections
13B-50, 13B-50.5, and 13B-50.10 of this Code. Approved programs
operated by regional offices of education are entitled to
receive general State aid at the foundation level of support. A
school district or consortium must ensure that an approved
program receives supplemental general State aid,
transportation reimbursements, and special education
resources, if appropriate, for students enrolled in the
program.
(Source: P.A. 92-42, eff. 1-1-02.)
 
    (105 ILCS 5/14-7.02b)
    Sec. 14-7.02b. Funding for children requiring special
education services. Payments to school districts for children
requiring special education services documented in their
individualized education program regardless of the program
from which these services are received, excluding children
claimed under Sections 14-7.02 and 14-7.03 of this Code, shall
be made in accordance with this Section. Funds received under
this Section may be used only for the provision of special
educational facilities and services as defined in Section
14-1.08 of this Code.
    The appropriation for fiscal year 2005 through fiscal year
2017 and thereafter shall be based upon the IDEA child count of
all students in the State, excluding students claimed under
Sections 14-7.02 and 14-7.03 of this Code, on December 1 of the
fiscal year 2 years preceding, multiplied by 17.5% of the
general State aid foundation level of support established for
that fiscal year under Section 18-8.05 of this Code.
    Beginning with fiscal year 2005 and through fiscal year
2007, individual school districts shall not receive payments
under this Section totaling less than they received under the
funding authorized under Section 14-7.02a of this Code during
fiscal year 2004, pursuant to the provisions of Section
14-7.02a as they were in effect before the effective date of
this amendatory Act of the 93rd General Assembly. This base
level funding shall be computed first.
    Beginning with fiscal year 2008 through fiscal year 2017
and each fiscal year thereafter, individual school districts
must not receive payments under this Section totaling less than
they received in fiscal year 2007. This funding shall be
computed last and shall be a separate calculation from any
other calculation set forth in this Section. This amount is
exempt from the requirements of Section 1D-1 of this Code.
    Through fiscal year 2017, an An amount equal to 85% of the
funds remaining in the appropriation shall be allocated to
school districts based upon the district's average daily
attendance reported for purposes of Section 18-8.05 of this
Code for the preceding school year. Fifteen percent of the
funds remaining in the appropriation shall be allocated to
school districts based upon the district's low income eligible
pupil count used in the calculation of general State aid under
Section 18-8.05 of this Code for the same fiscal year. One
hundred percent of the funds computed and allocated to
districts under this Section shall be distributed and paid to
school districts.
    For individual students with disabilities whose program
costs exceed 4 times the district's per capita tuition rate as
calculated under Section 10-20.12a of this Code, the costs in
excess of 4 times the district's per capita tuition rate shall
be paid by the State Board of Education from unexpended IDEA
discretionary funds originally designated for room and board
reimbursement pursuant to Section 14-8.01 of this Code. The
amount of tuition for these children shall be determined by the
actual cost of maintaining classes for these children, using
the per capita cost formula set forth in Section 14-7.01 of
this Code, with the program and cost being pre-approved by the
State Superintendent of Education. Reimbursement for
individual students with disabilities whose program costs
exceed 4 times the district's per capita tuition rate shall be
claimed beginning with costs encumbered for the 2004-2005
school year and thereafter.
    The State Board of Education shall prepare vouchers equal
to one-fourth the amount allocated to districts, for
transmittal to the State Comptroller on the 30th day of
September, December, and March, respectively, and the final
voucher, no later than June 20. The Comptroller shall make
payments pursuant to this Section to school districts as soon
as possible after receipt of vouchers. If the money
appropriated from the General Assembly for such purposes for
any year is insufficient, it shall be apportioned on the basis
of the payments due to school districts.
    Nothing in this Section shall be construed to decrease or
increase the percentage of all special education funds that are
allocated annually under Article 1D of this Code or to alter
the requirement that a school district provide special
education services.
    Nothing in this amendatory Act of the 93rd General Assembly
shall eliminate any reimbursement obligation owed as of the
effective date of this amendatory Act of the 93rd General
Assembly to a school district with in excess of 500,000
inhabitants.
    Except for reimbursement for individual students with
disabilities whose program costs exceed 4 times the district's
per capita tuition rate, no funding shall be provided to school
districts under this Section after fiscal year 2017.
    In fiscal year 2018 and each fiscal year thereafter, all
funding received by a school district from the State pursuant
to Section 188.15 of this Code that is attributable to
students requiring special education services must be used for
special education services authorized under this Code.
(Source: P.A. 93-1022, eff. 8-24-08; 95-705, eff. 1-8-08.)
 
    (105 ILCS 5/14-13.01)  (from Ch. 122, par. 14-13.01)
    Sec. 14-13.01. Reimbursement payable by State; amounts for
personnel and transportation.
    (a) Through fiscal year 2017, for For staff working on
behalf of children who have not been identified as eligible for
special education and for eligible children with physical
disabilities, including all eligible children whose placement
has been determined under Section 14-8.02 in hospital or home
instruction, 1/2 of the teacher's salary but not more than
$1,000 annually per child or $9,000 per teacher, whichever is
less.
    (a-5) A child qualifies for home or hospital instruction if
it is anticipated that, due to a medical condition, the child
will be unable to attend school, and instead must be instructed
at home or in the hospital, for a period of 2 or more
consecutive weeks or on an ongoing intermittent basis. For
purposes of this Section, "ongoing intermittent basis" means
that the child's medical condition is of such a nature or
severity that it is anticipated that the child will be absent
from school due to the medical condition for periods of at
least 2 days at a time multiple times during the school year
totaling at least 10 days or more of absences. There shall be
no requirement that a child be absent from school a minimum
number of days before the child qualifies for home or hospital
instruction. In order to establish eligibility for home or
hospital services, a student's parent or guardian must submit
to the child's school district of residence a written statement
from a physician licensed to practice medicine in all of its
branches stating the existence of such medical condition, the
impact on the child's ability to participate in education, and
the anticipated duration or nature of the child's absence from
school. Home or hospital instruction may commence upon receipt
of a written physician's statement in accordance with this
Section, but instruction shall commence not later than 5 school
days after the school district receives the physician's
statement. Special education and related services required by
the child's IEP or services and accommodations required by the
child's federal Section 504 plan must be implemented as part of
the child's home or hospital instruction, unless the IEP team
or federal Section 504 plan team determines that modifications
are necessary during the home or hospital instruction due to
the child's condition.
    (a-10) Through fiscal year 2017, eligible Eligible
children to be included in any reimbursement under this
paragraph must regularly receive a minimum of one hour of
instruction each school day, or in lieu thereof of a minimum of
5 hours of instruction in each school week in order to qualify
for full reimbursement under this Section. If the attending
physician for such a child has certified that the child should
not receive as many as 5 hours of instruction in a school week,
however, reimbursement under this paragraph on account of that
child shall be computed proportionate to the actual hours of
instruction per week for that child divided by 5.
    (a-15) The State Board of Education shall establish rules
governing the required qualifications of staff providing home
or hospital instruction.
    (b) For children described in Section 14-1.02, 80% of the
cost of transportation approved as a related service in the
Individualized Education Program for each student in order to
take advantage of special educational facilities.
Transportation costs shall be determined in the same fashion as
provided in Section 29-5 of this Code. For purposes of this
subsection (b), the dates for processing claims specified in
Section 29-5 shall apply.
    (c) Through fiscal year 2017, for For each qualified
worker, the annual sum of $9,000.
    (d) Through fiscal year 2017, for For one full time
qualified director of the special education program of each
school district which maintains a fully approved program of
special education the annual sum of $9,000. Districts
participating in a joint agreement special education program
shall not receive such reimbursement if reimbursement is made
for a director of the joint agreement program.
    (e) (Blank).
    (f) (Blank).
    (g) Through fiscal year 2017, for For readers, working with
blind or partially seeing children 1/2 of their salary but not
more than $400 annually per child. Readers may be employed to
assist such children and shall not be required to be certified
but prior to employment shall meet standards set up by the
State Board of Education.
    (h) Through fiscal year 2017, for For non-certified
employees, as defined by rules promulgated by the State Board
of Education, who deliver services to students with IEPs, 1/2
of the salary paid or $3,500 per employee, whichever is less.
    (i) The State Board of Education shall set standards and
prescribe rules for determining the allocation of
reimbursement under this section on less than a full time basis
and for less than a school year.
    When any school district eligible for reimbursement under
this Section operates a school or program approved by the State
Superintendent of Education for a number of days in excess of
the adopted school calendar but not to exceed 235 school days,
such reimbursement shall be increased by 1/180 of the amount or
rate paid hereunder for each day such school is operated in
excess of 180 days per calendar year.
    Notwithstanding any other provision of law, any school
district receiving a payment under this Section or under
Section 14-7.02, 14-7.02b, or 29-5 of this Code may classify
all or a portion of the funds that it receives in a particular
fiscal year or from evidence-based funding general State aid
pursuant to Section 18-8.15 18-8.05 of this Code as funds
received in connection with any funding program for which it is
entitled to receive funds from the State in that fiscal year
(including, without limitation, any funding program referenced
in this Section), regardless of the source or timing of the
receipt. The district may not classify more funds as funds
received in connection with the funding program than the
district is entitled to receive in that fiscal year for that
program. Any classification by a district must be made by a
resolution of its board of education. The resolution must
identify the amount of any payments or evidence-based funding
general State aid to be classified under this paragraph and
must specify the funding program to which the funds are to be
treated as received in connection therewith. This resolution is
controlling as to the classification of funds referenced
therein. A certified copy of the resolution must be sent to the
State Superintendent of Education. The resolution shall still
take effect even though a copy of the resolution has not been
sent to the State Superintendent of Education in a timely
manner. No classification under this paragraph by a district
shall affect the total amount or timing of money the district
is entitled to receive under this Code. No classification under
this paragraph by a district shall in any way relieve the
district from or affect any requirements that otherwise would
apply with respect to that funding program, including any
accounting of funds by source, reporting expenditures by
original source and purpose, reporting requirements, or
requirements of providing services.
    No funding shall be provided to school districts under this
Section after fiscal year 2017. In fiscal year 2018 and each
fiscal year thereafter, all funding received by a school
district from the State pursuant to Section 18-8.15 of this
Code that is attributable to personnel reimbursements for
special education pupils must be used for special education
services authorized under this Code.
(Source: P.A. 96-257, eff. 8-11-09; 97-123, eff. 7-14-11.)
 
    (105 ILCS 5/14C-1)  (from Ch. 122, par. 14C-1)
    Sec. 14C-1. The General Assembly finds that there are large
numbers of children in this State who come from environments
where the primary language is other than English. Experience
has shown that public school classes in which instruction is
given only in English are often inadequate for the education of
children whose native tongue is another language. The General
Assembly believes that a program of transitional bilingual
education can meet the needs of these children and facilitate
their integration into the regular public school curriculum.
Therefore, pursuant to the policy of this State to ensure equal
educational opportunity to every child, and in recognition of
the educational needs of English learners, it is the purpose of
this Act to provide for the establishment of transitional
bilingual education programs in the public schools, to provide
supplemental financial assistance through fiscal year 2017 to
help local school districts meet the extra costs of such
programs, and to allow this State through the State Board of
Education to directly or indirectly provide technical
assistance and professional development to support
transitional bilingual education or a transitional program of
instruction programs statewide through contractual services by
a not-for-profit entity for technical assistance, professional
development, and other support to school districts and
educators for services for English learner pupils. In no case
may aggregate funding for contractual services by a
not-for-profit entity for support to school districts and
educators for services for English learner pupils be less than
the aggregate amount expended for such purposes in Fiscal Year
2017. Not-for-profit entities providing support to school
districts and educators for services for English learner pupils
must have experience providing those services in a school
district having a population exceeding 500,000; one or more
school districts in any of the counties of Lake, McHenry,
DuPage, Kane, and Will; and one or more school districts
elsewhere in this State. Funding for not-for-profit entities
providing support to school districts and educators for
services for English learner pupils may be increased subject to
an agreement with the State Board of Education. Funding for
not-for-profit entities providing support to school districts
and educators for services for English learner pupils shall
come from funds allocated pursuant to Section 18-8.15 of this
Code.
(Source: P.A. 99-30, eff. 7-10-15.)
 
    (105 ILCS 5/14C-12)  (from Ch. 122, par. 14C-12)
    Sec. 14C-12. Account of expenditures; Cost report;
Reimbursement. Each school district with at least one English
learner shall keep an accurate, detailed and separate account
of all monies paid out by it for the programs in transitional
bilingual education required or permitted by this Article,
including transportation costs, and shall annually report
thereon for the school year ending June 30 indicating the
average per pupil expenditure. Through fiscal year 2017, each
Each school district shall be reimbursed for the amount by
which such costs exceed the average per pupil expenditure by
such school district for the education of children of
comparable age who are not in any special education program. No
funding shall be provided to school districts under this
Section after fiscal year 2017. In fiscal year 2018 and each
fiscal year thereafter, all funding received by a school
district from the State pursuant to Section 18-8.15 of this
Code that is attributable to instructions, supports, and
interventions for English learner pupils must be used for
programs and services authorized under this Article. At least
60% of transitional bilingual education funding received from
the State must be used for the instructional costs of programs
and services authorized under this Article transitional
bilingual education.
    Applications for preapproval for reimbursement for costs
of transitional bilingual education programs must be submitted
to the State Superintendent of Education at least 60 days
before a transitional bilingual education program is started,
unless a justifiable exception is granted by the State
Superintendent of Education. Applications shall set forth a
plan for transitional bilingual education established and
maintained in accordance with this Article.
    Through fiscal year 2017, reimbursement Reimbursement
claims for transitional bilingual education programs shall be
made as follows:
    Each school district shall claim reimbursement on a current
basis for the first 3 quarters of the fiscal year and file a
final adjusted claim for the school year ended June 30
preceding computed in accordance with rules prescribed by the
State Superintendent's Office. The State Superintendent of
Education before approving any such claims shall determine
their accuracy and whether they are based upon services and
facilities provided under approved programs. Upon approval he
shall transmit to the Comptroller the vouchers showing the
amounts due for school district reimbursement claims. Upon
receipt of the final adjusted claims the State Superintendent
of Education shall make a final determination of the accuracy
of such claims. If the money appropriated by the General
Assembly for such purpose for any year is insufficient, it
shall be apportioned on the basis of the claims approved.
    Failure on the part of the school district to prepare and
certify the final adjusted claims due under this Section may
constitute a forfeiture by the school district of its right to
be reimbursed by the State under this Section.
(Source: P.A. 96-1170, eff. 1-1-11.)
 
    (105 ILCS 5/17-1)  (from Ch. 122, par. 17-1)
    Sec. 17-1. Annual Budget. The board of education of each
school district under 500,000 inhabitants shall, within or
before the first quarter of each fiscal year, adopt and file
with the State Board of Education an annual balanced budget
which it deems necessary to defray all necessary expenses and
liabilities of the district, and in such annual budget shall
specify the objects and purposes of each item and amount needed
for each object or purpose.
    The budget shall be entered upon a School District Budget
form prepared and provided by the State Board of Education and
therein shall contain a statement of the cash on hand at the
beginning of the fiscal year, an estimate of the cash expected
to be received during such fiscal year from all sources, an
estimate of the expenditures contemplated for such fiscal year,
and a statement of the estimated cash expected to be on hand at
the end of such year. The estimate of taxes to be received may
be based upon the amount of actual cash receipts that may
reasonably be expected by the district during such fiscal year,
estimated from the experience of the district in prior years
and with due regard for other circumstances that may
substantially affect such receipts. Nothing in this Section
shall be construed as requiring any district to change or
preventing any district from changing from a cash basis of
financing to a surplus or deficit basis of financing; or as
requiring any district to change or preventing any district
from changing its system of accounting. The budget shall
conform to the requirements adopted by the State Board of
Education pursuant to Section 2-3.28 of this Code.
    To the extent that a school district's budget is not
balanced, the district shall also adopt and file with the State
Board of Education a deficit reduction plan to balance the
district's budget within 3 years. The deficit reduction plan
must be filed at the same time as the budget, but the State
Superintendent of Education may extend this deadline if the
situation warrants.
    If, as the result of an audit performed in compliance with
Section 3-7 of this Code, the resulting Annual Financial Report
required to be submitted pursuant to Section 3-15.1 of this
Code reflects a deficit as defined for purposes of the
preceding paragraph, then the district shall, within 30 days
after acceptance of such audit report, submit a deficit
reduction plan.
    The board of education of each district shall fix a fiscal
year therefor. If the beginning of the fiscal year of a
district is subsequent to the time that the tax levy due to be
made in such fiscal year shall be made, then such annual budget
shall be adopted prior to the time such tax levy shall be made.
The failure by a board of education of any district to adopt an
annual budget, or to comply in any respect with the provisions
of this Section, shall not affect the validity of any tax levy
of the district otherwise in conformity with the law. With
respect to taxes levied either before, on, or after the
effective date of this amendatory Act of the 91st General
Assembly, (i) a tax levy is made for the fiscal year in which
the levy is due to be made regardless of which fiscal year the
proceeds of the levy are expended or are intended to be
expended, and (ii) except as otherwise provided by law, a board
of education's adoption of an annual budget in conformity with
this Section is not a prerequisite to the adoption of a valid
tax levy and is not a limit on the amount of the levy.
    Such budget shall be prepared in tentative form by some
person or persons designated by the board, and in such
tentative form shall be made conveniently available to public
inspection for at least 30 days prior to final action thereon.
At least 1 public hearing shall be held as to such budget prior
to final action thereon. Notice of availability for public
inspection and of such public hearing shall be given by
publication in a newspaper published in such district, at least
30 days prior to the time of such hearing. If there is no
newspaper published in such district, notice of such public
hearing shall be given by posting notices thereof in 5 of the
most public places in such district. It shall be the duty of
the secretary of such board to make such tentative budget
available to public inspection, and to arrange for such public
hearing. The board may from time to time make transfers between
the various items in any fund not exceeding in the aggregate
10% of the total of such fund as set forth in the budget. The
board may from time to time amend such budget by the same
procedure as is herein provided for its original adoption.
    Beginning July 1, 1976, the board of education, or regional
superintendent, or governing board responsible for the
administration of a joint agreement shall, by September 1 of
each fiscal year thereafter, adopt an annual budget for the
joint agreement in the same manner and subject to the same
requirements as are provided in this Section.
    The State Board of Education shall exercise powers and
duties relating to budgets as provided in Section 2-3.27 of
this Code and shall require school districts to submit their
annual budgets, deficit reduction plans, and other financial
information, including revenue and expenditure reports and
borrowing and interfund transfer plans, in such form and within
the timelines designated by the State Board of Education.
    By fiscal year 1982 all school districts shall use the
Program Budget Accounting System.
    In the case of a school district receiving emergency State
financial assistance under Article 1B, the school board shall
also be subject to the requirements established under Article
1B with respect to the annual budget.
(Source: P.A. 97-429, eff. 8-16-11.)
 
    (105 ILCS 5/17-1.2)
    Sec. 17-1.2. Post annual budget on web site. If a school
district has an Internet web site, the school district shall
post its current annual budget, itemized by receipts and
expenditures, on the district's Internet web site. The budget
shall include information conforming to the rules adopted by
the State Board of Education pursuant to Section 2-3.28 of this
Code. The school district shall notify the parents or guardians
of its students that the budget has been posted on the
district's web site and what the web site's address is.
(Source: P.A. 92-438, eff. 1-1-02.)
 
    (105 ILCS 5/17-1.5)
    Sec. 17-1.5. Limitation of administrative costs.
    (a) It is the purpose of this Section to establish
limitations on the growth of administrative expenditures in
order to maximize the proportion of school district resources
available for the instructional program, building maintenance,
and safety services for the students of each district.
    (b) Definitions. For the purposes of this Section:
    "Administrative expenditures" mean the annual expenditures
of school districts properly attributable to expenditure
functions defined by the rules of the State Board of Education
as: 2320 (Executive Administration Services); 2330 (Special
Area Administration Services); 2490 (Other Support Services -
School Administration); 2510 (Direction of Business Support
Services); 2570 (Internal Services); and 2610 (Direction of
Central Support Services); provided, however, that
"administrative expenditures" shall not include early
retirement or other pension system obligations required by
State law.
    "School district" means all school districts having a
population of less than 500,000.
    (c) For the 1998-99 school year and each school year
thereafter, each school district shall undertake budgetary and
expenditure control actions so that the increase in
administrative expenditures for that school year over the prior
school year does not exceed 5%. School districts with
administrative expenditures per pupil in the 25th percentile
and below for all districts of the same type, as defined by the
State Board of Education, may waive the limitation imposed
under this Section for any year following a public hearing and
with the affirmative vote of at least two-thirds of the members
of the school board of the district. Any district waiving the
limitation shall notify the State Board within 45 days of such
action.
    (d) School districts shall file with the State Board of
Education by November 15, 1998 and by each November 15th
thereafter a one-page report that lists (i) the actual
administrative expenditures for the prior year from the
district's audited Annual Financial Report, and (ii) the
projected administrative expenditures for the current year
from the budget adopted by the school board pursuant to Section
17-1 of this Code.
    If a school district that is ineligible to waive the
limitation imposed by subsection (c) of this Section by board
action exceeds the limitation solely because of circumstances
beyond the control of the district and the district has
exhausted all available and reasonable remedies to comply with
the limitation, the district may request a waiver pursuant to
Section 2-3.25g. The waiver application shall specify the
amount, nature, and reason for the relief requested, as well as
all remedies the district has exhausted to comply with the
limitation. Any emergency relief so requested shall apply only
to the specific school year for which the request is made. The
State Board of Education shall analyze all such waivers
submitted and shall recommend that the General Assembly
disapprove any such waiver requested that is not due solely to
circumstances beyond the control of the district and for which
the district has not exhausted all available and reasonable
remedies to comply with the limitation. The State
Superintendent shall have no authority to impose any sanctions
pursuant to this Section for any expenditures for which a
waiver has been requested until such waiver has been reviewed
by the General Assembly.
    If the report and information required under this
subsection (d) are not provided by the school district in a
timely manner, or are subsequently determined by the State
Superintendent of Education to be incomplete or inaccurate, the
State Superintendent shall notify the district in writing of
reporting deficiencies. The school district shall, within 60
days of the notice, address the reporting deficiencies
identified.
    (e) If the State Superintendent determines that a school
district has failed to comply with the administrative
expenditure limitation imposed in subsection (c) of this
Section, the State Superintendent shall notify the district of
the violation and direct the district to undertake corrective
action to bring the district's budget into compliance with the
administrative expenditure limitation. The district shall,
within 60 days of the notice, provide adequate assurance to the
State Superintendent that appropriate corrective actions have
been or will be taken. If the district fails to provide
adequate assurance or fails to undertake the necessary
corrective actions, the State Superintendent may impose
progressive sanctions against the district that may culminate
in withholding all subsequent payments of general State aid due
the district under Section 18-8.05 of this Code or
evidence-based funding due the district under Section 18-8.15
of this Code until the assurance is provided or the corrective
actions taken.
    (f) The State Superintendent shall publish a list each year
of the school districts that violate the limitation imposed by
subsection (c) of this Section and a list of the districts that
waive the limitation by board action as provided in subsection
(c) of this Section.
(Source: P.A. 90-548, eff. 1-1-98; 90-653, eff. 7-29-98.)
 
    (105 ILCS 5/17-2.11)  (from Ch. 122, par. 17-2.11)
    Sec. 17-2.11. School board power to levy a tax or to borrow
money and issue bonds for fire prevention, safety, energy
conservation, accessibility, school security, and specified
repair purposes.
    (a) Whenever, as a result of any lawful order of any
agency, other than a school board, having authority to enforce
any school building code applicable to any facility that houses
students, or any law or regulation for the protection and
safety of the environment, pursuant to the Environmental
Protection Act, any school district having a population of less
than 500,000 inhabitants is required to alter or reconstruct
any school building or permanent, fixed equipment; the district
may, by proper resolution, levy a tax for the purpose of making
such alteration or reconstruction, based on a survey report by
an architect or engineer licensed in this State, upon all of
the taxable property of the district at the value as assessed
by the Department of Revenue and at a rate not to exceed 0.05%
per year for a period sufficient to finance such alteration or
reconstruction, upon the following conditions:
        (1) When there are not sufficient funds available in
    the operations and maintenance fund of the school district,
    the school facility occupation tax fund of the district, or
    the fire prevention and safety fund of the district, as
    determined by the district on the basis of rules adopted by
    the State Board of Education, to make such alteration or
    reconstruction or to purchase and install such permanent,
    fixed equipment so ordered or determined as necessary.
    Appropriate school district records must be made available
    to the State Superintendent of Education, upon request, to
    confirm this insufficiency.
        (2) When a certified estimate of an architect or
    engineer licensed in this State stating the estimated
    amount necessary to make the alteration or reconstruction
    or to purchase and install the equipment so ordered has
    been secured by the school district, and the estimate has
    been approved by the regional superintendent of schools
    having jurisdiction over the district and the State
    Superintendent of Education. Approval must not be granted
    for any work that has already started without the prior
    express authorization of the State Superintendent of
    Education. If the estimate is not approved or is denied
    approval by the regional superintendent of schools within 3
    months after the date on which it is submitted to him or
    her, the school board of the district may submit the
    estimate directly to the State Superintendent of Education
    for approval or denial.
    In the case of an emergency situation, where the estimated
cost to effectuate emergency repairs is less than the amount
specified in Section 10-20.21 of this Code, the school district
may proceed with such repairs prior to approval by the State
Superintendent of Education, but shall comply with the
provisions of subdivision (2) of this subsection (a) as soon
thereafter as may be as well as Section 10-20.21 of this Code.
If the estimated cost to effectuate emergency repairs is
greater than the amount specified in Section 10-20.21 of this
Code, then the school district shall proceed in conformity with
Section 10-20.21 of this Code and with rules established by the
State Board of Education to address such situations. The rules
adopted by the State Board of Education to deal with these
situations shall stipulate that emergency situations must be
expedited and given priority consideration. For purposes of
this paragraph, an emergency is a situation that presents an
imminent and continuing threat to the health and safety of
students or other occupants of a facility, requires complete or
partial evacuation of a building or part of a building, or
consumes one or more of the 5 emergency days built into the
adopted calendar of the school or schools or would otherwise be
expected to cause such school or schools to fall short of the
minimum school calendar requirements.
    (b) Whenever any such district determines that it is
necessary for energy conservation purposes that any school
building or permanent, fixed equipment should be altered or
reconstructed and that such alterations or reconstruction will
be made with funds not necessary for the completion of approved
and recommended projects contained in any safety survey report
or amendments thereto authorized by Section 2-3.12 of this Act;
the district may levy a tax or issue bonds as provided in
subsection (a) of this Section.
    (c) Whenever any such district determines that it is
necessary for accessibility purposes and to comply with the
school building code that any school building or equipment
should be altered or reconstructed and that such alterations or
reconstruction will be made with funds not necessary for the
completion of approved and recommended projects contained in
any safety survey report or amendments thereto authorized under
Section 2-3.12 of this Act, the district may levy a tax or
issue bonds as provided in subsection (a) of this Section.
    (d) Whenever any such district determines that it is
necessary for school security purposes and the related
protection and safety of pupils and school personnel that any
school building or property should be altered or reconstructed
or that security systems and equipment (including but not
limited to intercom, early detection and warning, access
control and television monitoring systems) should be purchased
and installed, and that such alterations, reconstruction or
purchase and installation of equipment will be made with funds
not necessary for the completion of approved and recommended
projects contained in any safety survey report or amendment
thereto authorized by Section 2-3.12 of this Act and will deter
and prevent unauthorized entry or activities upon school
property by unknown or dangerous persons, assure early
detection and advance warning of any such actual or attempted
unauthorized entry or activities and help assure the continued
safety of pupils and school staff if any such unauthorized
entry or activity is attempted or occurs; the district may levy
a tax or issue bonds as provided in subsection (a) of this
Section.
    (e) If a school district does not need funds for other fire
prevention and safety projects, including the completion of
approved and recommended projects contained in any safety
survey report or amendments thereto authorized by Section
2-3.12 of this Act, and it is determined after a public hearing
(which is preceded by at least one published notice (i)
occurring at least 7 days prior to the hearing in a newspaper
of general circulation within the school district and (ii)
setting forth the time, date, place, and general subject matter
of the hearing) that there is a substantial, immediate, and
otherwise unavoidable threat to the health, safety, or welfare
of pupils due to disrepair of school sidewalks, playgrounds,
parking lots, or school bus turnarounds and repairs must be
made; then the district may levy a tax or issue bonds as
provided in subsection (a) of this Section.
    (f) For purposes of this Section a school district may
replace a school building or build additions to replace
portions of a building when it is determined that the
effectuation of the recommendations for the existing building
will cost more than the replacement costs. Such determination
shall be based on a comparison of estimated costs made by an
architect or engineer licensed in the State of Illinois. The
new building or addition shall be equivalent in area (square
feet) and comparable in purpose and grades served and may be on
the same site or another site. Such replacement may only be
done upon order of the regional superintendent of schools and
the approval of the State Superintendent of Education.
    (g) The filing of a certified copy of the resolution
levying the tax when accompanied by the certificates of the
regional superintendent of schools and State Superintendent of
Education shall be the authority of the county clerk to extend
such tax.
    (h) The county clerk of the county in which any school
district levying a tax under the authority of this Section is
located, in reducing raised levies, shall not consider any such
tax as a part of the general levy for school purposes and shall
not include the same in the limitation of any other tax rate
which may be extended.
    Such tax shall be levied and collected in like manner as
all other taxes of school districts, subject to the provisions
contained in this Section.
    (i) The tax rate limit specified in this Section may be
increased to .10% upon the approval of a proposition to effect
such increase by a majority of the electors voting on that
proposition at a regular scheduled election. Such proposition
may be initiated by resolution of the school board and shall be
certified by the secretary to the proper election authorities
for submission in accordance with the general election law.
    (j) When taxes are levied by any school district for fire
prevention, safety, energy conservation, and school security
purposes as specified in this Section, and the purposes for
which the taxes have been levied are accomplished and paid in
full, and there remain funds on hand in the Fire Prevention and
Safety Fund from the proceeds of the taxes levied, including
interest earnings thereon, the school board by resolution shall
use such excess and other board restricted funds, excluding
bond proceeds and earnings from such proceeds, as follows:
        (1) for other authorized fire prevention, safety,
    energy conservation, required safety inspections, school
    security purposes, sampling for lead in drinking water in
    schools, and for repair and mitigation due to lead levels
    in the drinking water supply; or
        (2) for transfer to the Operations and Maintenance Fund
    for the purpose of abating an equal amount of operations
    and maintenance purposes taxes.
Notwithstanding subdivision (2) of this subsection (j)