Public Act 095-1025
 
SB2824 Enrolled LRB095 20016 HLH 46452 b

    AN ACT concerning local government.
 
    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
7-14 as follows:
 
    (105 ILCS 5/7-14)  (from Ch. 122, par. 7-14)
    Sec. 7-14. Bonded indebtedness-Tax rate.
    (a) Except as provided in subsection (b), whenever the
boundaries of any school district are changed by the annexation
or detachment of territory, each such district as it exists on
and after such action shall assume the bonded indebtedness, as
well as financial obligations to the Capital Development Board
pursuant to Section 35-15 (now repealed) of this Code, of all
the territory included therein after such change. The tax rate
for bonded indebtedness shall be determined in the manner
provided in Section 19-7 of this Act, except the County Clerk
shall annually extend taxes against all the taxable property
situated in the county and contained in each such district as
it exists after the action. Notwithstanding the provisions of
this subsection, if the boundaries of a school district are
changed by annexation or detachment of territory after June 30,
1987, and prior to September 15, 1987, and if the school
district to which territory is being annexed has no outstanding
bonded indebtedness on the date such annexation occurs, then
the annexing school district shall not be liable for any bonded
indebtedness of the district from which the territory is
detached, and the school district from which the territory is
detached shall remain liable for all of its bonded
indebtedness.
    (b) Whenever a school district with bonded indebtedness has
become dissolved under this Article and its territory annexed
to another district, the annexing district or districts shall
not, except by action pursuant to resolution of the school
board of the annexing district prior to the effective date of
the annexation, assume the bonded indebtedness of the dissolved
district; nor, except by action pursuant to resolution of the
school board of the dissolving district, shall the territory of
the dissolved district assume the bonded indebtedness of the
annexing district or districts. If the annexing district or
districts do not assume the bonded indebtedness of the
dissolved district, a tax rate for the bonded indebtedness
shall be determined in the manner provided in Section 19-7, and
the county clerk or clerks shall annually extend taxes for each
outstanding bond issue against all the taxable property that
was situated within the boundaries of the district as the
boundaries existed at the time of the issuance of each 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.
    (c) 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
bonds issued exclusively to refund any bonded indebtedness of
the annexing school district against all of the taxable
property that was situated within the boundaries of the
annexing district as the boundaries existed at the time of the
issuance of the bonded indebtedness being refunded and not
against any of the taxable property in the dissolved school
district, provided that (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 provisions of this subsection (c) are applicable to
school districts that were dissolved and their territory
annexed to another school district pursuant to a referendum
held in April of 2003. The provisions of this subsection (c),
other than this sentence, are inoperative 2 years after the
effective date of this amendatory Act of the 95th General
Assembly.
(Source: P.A. 94-1105, eff. 6-1-07.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.