Public Act 096-0019
 
HB0999 Enrolled LRB096 09918 NHT 20081 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
17-17 and by adding Sections 17-18 and 17-19 as follows:
 
    (105 ILCS 5/17-17)
    Sec. 17-17. School board establishment of lines of credit
Issuance of notes, bonds, or other obligations in lieu of tax
anticipation warrants.
    (a) In lieu of issuing tax anticipation warrants in
accordance with Section 17-16 of this Code, the school board of
a school district having a population of 500,000 or less
inhabitants may issue notes, bonds, or other obligations (and
in connection with that issuance, establish a line of credit
with a bank or other financial institution) in an amount not to
exceed 85% of the amount of property taxes most recently levied
for educational, operations and maintenance, transportation,
or other tax levy and building purposes or any combination
thereof. Moneys thus borrowed shall be applied to the purposes
for which the tax or any combination of the taxes may be levied
they were obtained and no other purpose. All moneys so borrowed
shall be repaid exclusively from property tax revenues within
60 days after the property tax revenues have been received by
the board.
    (a-5) In lieu of issuing notes or certificates in
accordance with the provisions of the Revenue Anticipation Act
or Section 18-18 of this Code, the school board of a school
district having a population of 500,000 or less inhabitants may
anticipate revenues due in the current fiscal year or expected
to be due in the next subsequent fiscal year and issue notes,
bonds, or other obligations (and in connection with that
issuance, establish a line of credit with a bank or other
financial institution) in an amount not to exceed the
following:
        (1) if anticipating revenues due in the current fiscal
    year, 85% of the amount or amounts of the revenues due in
    the current fiscal year as certified by the State
    Superintendent of Education or other official in a position
    to provide assurances as to the amounts; and
        (2) if anticipating revenues expected to be due in the
    next subsequent fiscal year, 50% of the amount or amounts
    of the revenues due in the current fiscal year as certified
    by the State Superintendent of Education or other official
    in a position to provide assurances as to the amounts.
    All moneys so borrowed shall be repaid exclusively from the
anticipated revenues within 60 days after the revenues have
been received.
    (b) Borrowing authorized under subsections (a) and (a-5)
subsection (a) of this Section shall bear interest at a rate
not to exceed the maximum rate authorized by the Bond
Authorization Act, from the date of issuance until paid.
    (c) Prior to the board borrowing or establishing a line of
credit under this Section, the board shall authorize, by
resolution, the borrowing or line of credit. The resolution
shall set forth facts demonstrating the need for the borrowing
or line of credit, state the amount to be borrowed, establish a
maximum interest rate limit not to exceed that set forth in
subsection (b) of this Section, and provide a date by which the
borrowed funds shall be repaid. The resolution shall direct the
relevant officials to make arrangements to set apart and hold
the taxes or other revenue, as received, that will be used to
repay the borrowing. In addition, the resolution may authorize
the relevant officials to make partial repayments of the
borrowing as the taxes or other revenues become available and
may contain any other terms, restrictions, or limitations not
inconsistent with the provisions of this Section.
(Source: P.A. 92-620, eff. 7-11-02.)
 
    (105 ILCS 5/17-18 new)
    Sec. 17-18. Establishment of lines of credit by other
educational entities.
    (a) In lieu of borrowing in accordance with the provisions
of Section 18-20 of this Code, an entity, such as a special
education cooperative or other such joint agreement or an
intergovernmental agreement, may anticipate revenues due in
the current fiscal year or expected to be due in the next
subsequent fiscal year and issue notes or other obligations
(and in connection with that issuance, establish a line of
credit with a bank or other financial institution) in an amount
not to exceed the following:
        (1) if anticipating revenues due in the current fiscal
    year, 85% of the amount or amounts of State categorical or
    grant payments due in the current fiscal year as certified
    by the State Superintendent of Education or other official
    in a position to provide assurances as to the amounts; and
        (2) if anticipating revenues expected to be due in the
    next subsequent fiscal year, 50% of the amount or amounts
    of State categorical or grant payments due in the current
    fiscal year as certified by the State Superintendent of
    Education or other official in a position to provide
    assurances as to the amounts.
    All moneys so borrowed shall be repaid exclusively from
such anticipated revenues within 60 days after the revenues
have been received.
    (b) Borrowing authorized under subsection (a) of this
Section shall bear interest at a rate not to exceed the maximum
rate authorized by the Bond Authorization Act, from the date of
issuance until paid.
    (c) Prior to borrowing or establishing a line of credit
under this Section, the regional superintendent of schools or
governing board, as the case may be, shall authorize, by
executive order or resolution, the borrowing or line of credit.
The executive order or resolution shall set forth facts
demonstrating the need for the borrowing or line of credit,
state the amount to be borrowed, establish a maximum interest
rate limit not to exceed that set forth in subsection (b) of
this Section, and provide a date by which the borrowed funds
shall be repaid. The executive order or resolution shall direct
the relevant officials to make arrangements to set apart and
hold the revenue, as received, that will be used to repay the
borrowing. In addition, the executive order or resolution may
authorize the relevant officials to make partial repayments of
the borrowing as the revenues become available and may contain
any other terms, restrictions, or limitations not inconsistent
with the provisions of this Section.
 
    (105 ILCS 5/17-19 new)
    Sec. 17-19. Establishment of lines of credit by regional
superintendents.
    (a) In lieu of borrowing in accordance with the provisions
of Section 18-20 of this Code, a regional superintendent of
schools, in his or her official capacity as regional
superintendent of schools, may anticipate revenues due in the
current fiscal year or expected to be due in the next
subsequent fiscal year and issue notes or other obligations
(and in connection with that issuance, establish a line of
credit with a bank or other financial institution) in an amount
not to exceed the following:
        (1) if anticipating revenues due in the current fiscal
    year, 85% of the amount or amounts of State categorical or
    grant payments due in the current fiscal year as certified
    by the State Superintendent of Education or other official
    in a position to provide assurances as to the amounts; and
        (2) if anticipating revenues expected to be due in the
    next subsequent fiscal year, 50% of the amount or amounts
    of State categorical or grant payments due in the current
    fiscal year as certified by the State Superintendent of
    Education or other official in a position to provide
    assurances as to the amounts.
    All moneys so borrowed shall be repaid exclusively from
such anticipated revenues within 60 days after the revenues
have been received.
    (b) Borrowing authorized under subsection (a) of this
Section shall bear interest at a rate not to exceed the maximum
rate authorized by the Bond Authorization Act, from the date of
issuance until paid.
    (c) Prior to borrowing or establishing a line of credit
under this Section, the regional superintendent of schools, in
his or her official capacity as regional superintendent of
schools, shall authorize, by executive order or resolution, the
borrowing or line of credit. The executive order or resolution
shall set forth facts demonstrating the need for the borrowing
or line of credit, state the amount to be borrowed, establish a
maximum interest rate limit not to exceed that set forth in
subsection (b) of this Section, and provide a date by which the
borrowed funds shall be repaid. The executive order or
resolution shall direct the relevant officials to make
arrangements to set apart and hold the revenue, as received,
that will be used to repay the borrowing. In addition, the
executive order or resolution may authorize the relevant
officials to make partial repayments of the borrowing as the
revenues become available and may contain any other terms,
restrictions, or limitations not inconsistent with the
provisions of this Section.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.