HB0459ham002 100TH GENERAL ASSEMBLY

Rep. Jeanne M Ives

Filed: 3/16/2017

10000HB0459ham002 LRB100 05361 NHT 23672 a

AMENDMENT TO HOUSE BILL 459

AMENDMENT NO. ______. Amend House Bill 459 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the School District Debt Control and Taxpayer Protection Act.

Section 5. Definitions. As used in this Act:

"Capital appreciation bond" means debt issued without annual or semiannual payments of principal, interest, or both.

"Entire debt service" means principal, interest, and issuance costs of all debt and bonds.

"Equalized assessed value" means the assessed value as equalized by the Illinois Department of Revenue.

"Tax anticipation warrants" means tax anticipation warrants drawn and issued under the School Code.

Section 10. Refinancing debt. Notwithstanding any other law to the contrary, a school district may not refinance debt past the repayment period of the debt when issued.

Section 15. Debt serviced more than 20 years. Notwithstanding any law to the contrary, a school district may not issue debt to be serviced over a period greater than 20 years.

Section 20. Equalized assessed value. Notwithstanding any other law to the contrary, for the purpose of calculating the debt limit of a school district in relation to its equalized assessed value, debt shall include alternate revenue bonds, privately placed debt, and all interest on all debt.

Section 25. Debt limitation. Notwithstanding any other law to the contrary, no school district may become indebted in any manner or for any purpose in an amount, including the entire debt service, in the aggregate exceeding 13.8% of the value of the taxable property therein to be ascertained by the last assessment for State and county taxes or, if greater, the sum that is produced by multiplying the school district's 2016 equalized assessed value by the debt limitation percentage in effect on January 1, 2017, previous to the incurring of such indebtedness.

Section 30. New debt prohibited.

(a) Notwithstanding any other law to the contrary and on and after the effective date of this Act, a school district that exceeds the debt limitation of Section 25 of this Act may not incur any new debt, including, but not limited to, tax anticipation warrants, until the school district's aggregate debt limitation is below the debt limitation of Section 25.

(b) Notwithstanding subsection (a), a school district may issue new debt on or after the effective date of this Act if a referendum allowing new debt to be issued was passed before the effective date of this Act.

Section 35. Capital appreciation bonds. Notwithstanding any other law to the contrary and on and after the effective date of this Act, no school district may issue capital appreciation bonds.

Section 40. Additional debt. Nothing in this Act shall authorize any school district to issue additional debt above and beyond what is otherwise authorized by law.

Section 45. Authority to exceed debt limitation. Notwithstanding any other provision of this Act, a school district may only exceed its debt limitation upon the Governor declaring a disaster within the school district, in part or in whole, under Section 7 of the Illinois Emergency Management Agency Act or upon the Governor's prior approval for any other reason.

Section 50. Bond referendum information. Notwithstanding any other law to the contrary, the referendum question allowing a school district to issue bonds must include the total cost of the bond, including interest, principal, and issuance costs, as well as the proposed term of the bond.

Section 55. Bond issuance information. Any material or literature from a school district that is used to present information to the public about the issuance of bonds shall provide a projected cost per median-priced home in the district. This information must also include the school district's current long-term debt amount.

Section 90. The School Code is amended by adding Section 19-32 as follows:

(105 ILCS 5/19-32 new)

Sec. 19-32. School District Debt Control and Taxpayer Protection Act. In any instance in which this Code conflicts with the School District Debt Control and Taxpayer Protection Act, that Act shall control.

Section 99. Effective date. This Act takes effect upon becoming law.".