Public Act 098-1112
 
SB3113 EnrolledLRB098 19695 NHT 54903 b

    AN ACT concerning education.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The School Code is amended by changing Section
11E-105 as follows:
 
    (105 ILCS 5/11E-105)
    Sec. 11E-105. Assets, liabilities and bonded indebtedness;
tax rate.
    (a) Subject to the terms and provisions of subsections (b)
and (c) of this Section, whenever a new district is created
under any of the provisions of this Article, the outstanding
bonded indebtedness shall be treated as provided in this
subsection (a) and in Section 19-29 of this Code. The tax rate
for bonded indebtedness shall be determined in the manner
provided in Section 19-7 of this Code, and, notwithstanding the
creation of any such district, the county clerk or clerks shall
annually extend taxes, for each outstanding bond issue against
all of the taxable property that was situated within the
boundaries of the district, as those boundaries existed at the
time of the issuance of the bond issue, regardless of whether
the property is still contained in that same district at the
time of the extension of the taxes by the county clerk or
clerks; provided that, notwithstanding the provisions of
Section 19-18 of this Code, upon resolution of the school
board, the county clerk must extend taxes to pay the principal
of and interest on any general obligation bonds issued by the
new district exclusively to refund any bonded indebtedness of a
district organized into the new district against all of the
taxable property that was situated within the boundaries of the
previously existing district as the boundaries existed at the
time of the issuance of the bonded indebtedness being refunded;
however, (i) the net interest rate on the refunding bonds may
not exceed the net interest rate on the refunded bonds, (ii)
the final maturity date of the refunding bonds may not extend
beyond the final maturity date of the refunded bonds, and (iii)
the tax levy to pay the refunding bonds in any levy year may
not exceed the tax levy that would have been required to pay
the refunded bonds for that levy year. The terms of the proviso
are applicable to districts that were created pursuant to a
referendum held in November of 2008. The terms of the proviso,
other than this sentence, are inoperative after June 30, 2016.
    (b) For a unit district formation, whenever a part of a
district is included within the boundaries of a newly created
unit district, the regional superintendent of schools shall
cause an accounting to be had between the districts affected by
the change in boundaries as provided for in Article 11C of this
Code. Whenever the entire territory of 2 or more school
districts is organized into a unit district pursuant to a
petition filed under this Article, the petition may provide
that the entire territory of the new unit district shall assume
the bonded indebtedness of the previously existing school
districts. In that case, the tax rate for bonded indebtedness
shall be determined in the manner provided in Section 19-7 of
this Code, except that the county clerk shall annually extend
taxes for each outstanding bond issue against all the taxable
property situated in the new unit district as it exists after
the organization.
    (c)(1) For a high school-unit conversion, unit to dual
conversion, or multi-unit conversion, upon the effective date
of the change as provided in Section 11E-70 of this Code and
subject to the provisions of paragraph (2) of this subsection
(c), each newly created elementary district shall receive all
of the assets and assume all of the liabilities and obligations
of the dissolved unit district forming the boundary of the
newly created elementary district.
    (2) Notwithstanding the provisions of paragraph (1) of this
subsection (c), upon the stipulation of the school board of the
school district serving a newly created elementary district for
high school purposes and either (i) the school board of the
unit district prior to the effective date of its dissolution or
(ii) thereafter the school board of the newly created
elementary district and with the approval in either case of the
regional superintendent of schools of the educational service
region in which the territory described in the petition filed
under this Article or the greater percentage of equalized
assessed valuation of the territory is situated, the assets,
liabilities, and obligations of the dissolved unit district may
be divided and assumed between and by the newly created
elementary district and the school district serving the newly
created elementary district for high school purposes, in
accordance with the terms and provisions of the stipulation and
approval. In this event, the provisions of Section 19-29 shall
be applied to determine the debt incurring power of the newly
created elementary district and of the school district serving
the newly created elementary district for high school purposes.
    (3) Without regard to whether the receipt of assets and the
assumption of liabilities and obligations of the dissolved unit
district is determined pursuant to paragraph (1) or (2) of this
subsection (c), the tax rate for bonded indebtedness shall be
determined in the manner provided in Section 19-7, and,
notwithstanding the creation of this new elementary district,
the county clerk or clerks shall annually extend taxes for each
outstanding bond issue against all of the taxable property that
was situated within the boundaries of the dissolved unit
district as those boundaries existed at the time of the
issuance of the bond issue, regardless of whether the property
was still contained in that unit district at the time of its
dissolution and regardless of whether the property is contained
in the newly created elementary district at the time of the
extension of the taxes by the county clerk or clerks.
(Source: P.A. 94-1019, eff. 7-10-06.)