SB1377 95TH GENERAL ASSEMBLY

LRB095 07043 NHT 27166 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB1377

Introduced 2/9/2007, by Sen. John J. Millner

SYNOPSIS AS INTRODUCED:

See Index

Creates the Meeting Local Educational Needs Law of the School Code. Allows for a petition to request submission of a proposition at a regularly scheduled election for the purpose of voting for or against the division of an existing community unit school district into 2 parts, (i) a compact and contiguous area that is proposed for detachment from the existing district and establishment as a separate community unit school district and (ii) the remainder of the original, existing district. Provides that the original district must have an enrollment of more than 30,000 students and be located in 2 or more municipalities and 2 or more counties and the petition, if successful, must result in 2 community unit school districts, each with an anticipated enrollment of at least 5,000 students. Contains provisions concerning the election area, the referendum, the creation of the new district (including election of a new school board and the powers of that board), the transfer of employment and collective bargaining, the accounting and division of assets, tax rates, transfer students, bonded indebtedness, and limitations on contesting boundary changes and successive petitions. Makes a related change in provisions of the School Code concerning debt limits. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

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 adding Article 11F and by changing Section 19-1 as follows:

(105 ILCS 5/Art. 11F heading new)

ARTICLE 11F. DIVISION OF LARGE SCHOOL DISTRICTS

(105 ILCS 5/11F-1 new)

Sec. 11F-1. Short title. This Article may be cited as the Meeting Local Educational Needs Law.

(105 ILCS 5/11F-5 new)

Sec. 11F-5. Purpose; findings.

(a) This Article provides a mechanism whereby a new community unit school district may be established from a portion of the territory of an existing community unit school district.

(b) The General Assembly hereby determines and declares all of the following:

(1) That the school needs of certain large regions can be better met by smaller school districts that can be more responsive to local needs. In addition, often the needs of children and citizens of a very large district can be better served by reducing the size of the district and thus reducing the scope of its responsibilities.

(2) That economic burdens that can result from inadequately met school needs fall both upon a region and upon the State and can include unemployment and underemployment of workers, increased need for public assistance, falling property values, a diminished market for housing, and reduced tax revenues, and, in the event that families migrate elsewhere to find better educational opportunities, the burdens may also fall upon the municipalities and other taxing districts within an area losing population and property value in the form of reduced tax revenues, thereby endangering its financial ability to support necessary governmental services for its remaining inhabitants.

(3) That the State has a responsibility to help create a favorable climate for educational opportunities for its citizens by encouraging the development of vibrant and dynamic public school systems in this State.

(4) That the main purpose of this Article is to promote improvement in education, thereby reducing the evils attendant upon unemployment and underemployment and the disintegration of community life attendant upon migration of families from a region and falling property values and thereby enhancing the public health, safety, morals, happiness and general welfare of this State.

(5) That while a goal of this State is generally to reduce the overall number of school districts in this State, in certain situations very large school districts in this State draw students from multiple municipalities and multiple counties, which can cause the district to lack the uniformity of purpose present in many of this State's largest school districts.

(105 ILCS 5/11F-10 new)

Sec. 11F-10. Definitions. The following terms, whenever used or referred to in this Article, shall have the following meanings, except in such instances where the context may clearly indicate otherwise:

"Detachment" means the detachment of territory as described in Section 11F-25 of this Code.

"New Board of Education" means the board of education of a New District, created under this Article.

"New District " means a new community unit school district created from a portion of an existing community unit school district under this Article.

"Original District" means an existing community unit school district, a portion of whose territory is proposed to be detached to form a New District.

"Territory" means a compact and contiguous area that is proposed for detachment from an existing community unit school district and establishment as a separate community unit school district.

(105 ILCS 5/11F-15 new)

Sec. 11F-15. Petition; election area.

(a) A petition under this Article shall be filed with the Regional Superintendent of Schools of the educational service region in which the largest part of the Territory described in the petition is situated, signed by at least 200 voters residing in the Territory. No petition filed or election held under this Article shall be null and void, invalidated, or deemed in noncompliance with the Election Code for failure of any person or persons to publish a notice of intention to file such a petition or to attach an affidavit attesting to the publication of such notice as required under subsection (g) of Section 28-2 of the Election Code for petitions that are not filed under Article 11E of this Code. The petition shall request submission of a proposition at a regularly scheduled election for the purpose of voting for or against the division of an Original District into 2 parts, the Territory and the remainder of the Original District.

(b) The petition shall contain the following:

(1) A description of the Territory proposed for detachment. Describing the Territory by reference to the boundaries of other political subdivisions is hereby authorized, although not required.

(2) Tax rates for the New District.

(3) An aggregate extension base for the New District.

(4) A request that the question of formation of the New District be placed on the ballot as required in this Article.

(5) A request that the board of education be elected on a separate ballot at the same election that the question of formation of the New District is on the ballot.

(6) Designation of a Committee of Ten, as provided under subsection (d) of this Section.

(c) The petition may contain the following:

(1) A Debt Service Extension Base for the New District, if one is desired.

(2) A request that a proposition to issue bonds be placed on a separate ballot at the same election as the question of formation of the New District.

(3) A request for authority to issue working cash bonds in an amount not to exceed 85% of the aggregate extension base.

(d) The petition shall designate a committee of 10 of the petitioners, any 7 of whom may at any time, prior to the final decision of the Regional Superintendent, amend the petition in all respects (except that there may not be an increase or decrease of more than 25% of the Territory to be included in the proposed district) and may make binding stipulations on behalf of all petitioners as to any question with respect to the petition or hearing. The Regional Superintendent may accept such stipulation instead of evidence or proof of the matter stipulated. The committee of petitioners may stipulate to accountings or waiver thereof between school districts pursuant to Article 11C of this Code; however, the Regional Superintendent may refuse to accept the stipulation. Those designated as the Committee of Ten shall serve in such capacity until such time as the Regional Superintendent should determine that, because of death, resignation, transfer of residency from the Territory, or failure to qualify or for any other reason, the office of a particular member of the Committee is vacant. Failure of a person designated as a member of the Committee of Ten to sign the petition shall not disqualify the person as a member of the Committee, and the person may sign the petition at any time prior to final disposition of the petition and the conclusion of the proceedings to form a unit district, including all litigation pertaining to the petition or proceedings. Upon determination by the Regional Superintendent that such vacancies exist, he or she shall so declare the vacancies and shall notify the remaining members to appoint a petitioner or petitioners, as the case may be, to fill the vacancies in the Committee of Ten so designated. Such appointment by the Committee of Ten of any such new membership shall be made by a simple majority vote of the designated remaining members. The Committee of Ten shall act, unless otherwise specified in this Article, by majority vote of the membership. The Committee of Ten may voluntarily dismiss its petition at any time before the final decision of the Regional Superintendent.

Alternatively, if a single municipality encompasses 50% or more of the Territory included in the petition, the petition may be filed by that municipality, by ordinance approved by a two-thirds vote of the corporate authorities, and the corporate authorities by a two-thirds vote thereof may perform any of the activities that the Committee of Ten is authorized to perform. The General Assembly declares that when a home rule municipality files a petition pursuant to this Article, the municipality is deemed to be taking action pertaining to its government and affairs as provided for in Section 6 of Article VII of the Illinois Constitution.

(e) The petition shall state that at that same election at which the question of formation of the New District is placed on the ballot, a board of education shall be elected on a separate ballot to serve as the board of education of the proposed New District. The election of board members shall proceed under the supervision of the Regional Superintendent.

The petition may also request that the referendum at which the proposition is submitted for the purpose of voting for or against the division of a community unit school district in the Territory include a proposition on a separate ballot authorizing the issuance of bonds by the district when organized, in accordance with this Article. The principal amount of the bonds and the purposes of issuance shall be stated in the petition and in all notices and propositions submitted thereunder.

(f) A petition for the division of an Original District into 2 parts may be submitted only with respect to an Original District with an enrollment of more than 30,000 students that is located in 2 or more municipalities and 2 or more counties, and which petition, if successful, would result in 2 community unit school districts, each with an anticipated enrollment of at least 5,000 students.

(g) The petition shall be filed with the Regional Superintendent of the educational service region in which the Territory described in the petition or that part of the Territory with the largest part of the proposed New District is located. The Regional Superintendent shall cause a copy of the petition to be given to each school board of any district affected by the proposed formation of the New District and the Regional Superintendent of any other educational service region in which any part of any affected district is located and shall cause a notice thereof to be published at least once each week for 3 successive weeks in at least one newspaper having general circulation within the area of the Territory of the proposed district. The Regional Superintendent shall give such notice within 90 days after receipt of the petition. The notice shall state when and to whom the petition was presented, the prayer of the petition, the description of the Territory of the proposed New District, that school board members for the New District shall be elected on a separate ballot at the same election, if requested in the petition, a statement of the proposition to issue bonds and indicating the amount and purpose thereof, and the day on which the hearing upon the petition will be held. Not more than 15 days after the last date of the required notice, the Regional Superintendent shall hold a hearing on the petition to determine whether the petition is in compliance with the signature, size, location, contiguity, and compactness requirements specified in this Article and to make findings and conclusions regarding the criteria enumerated in this Section.

(h) Upon the Regional Superintendent determining that the petition, as filed or amended, is proper and is in compliance with any applicable petition requirements set forth in the Election Code and this Article, he or she shall hear evidence as to the school needs and conditions of the Territory and in the area within and adjacent thereto, take into consideration the division of funds and assets that will result from the organization of the New District, and determine whether such division of funds and assets will permit the New District and the original district sufficient resources to operate viable unit school district programs.

The Regional Superintendent shall consider all of the following in reaching his or her decision:

(1) The benefit to students that can come from increased involvement with their home municipality, library, and park district, and coordination of activities of those units of local government with activities of the new unit school district.

(2) The benefit to students that can come from increased direct coordination of curricular and extracurricular activities among the elementary, middle, and high schools of the New District.

(3) Whether the formation of the New District is in the best interests and educational welfare of the whole child, for the children who would attend the schools of the New District, looking at factors that include, but are not limited to, (i) whether the students would benefit from a "community of interest" from the new school district, (ii) whether the community of interest could lead to increased participation in extracurricular activities of the schools of the New District, (iii) whether the community of interest could lead to equivalent or increased participation in the social, religious, and commercial activities of the community, and (iv) whether these same factors would be diminished in a substantial way for the students of the Original District.

At the hearing, any resident in the proposed New District or in any district affected thereby or any Regional Superintendent entitled by this Section to be given a copy of the petition may appear in support of the petition or to object thereto. The Regional Superintendent may adjourn the hearing from time to time. Within 14 days after the conclusion of the hearing, the Regional Superintendent shall make a decision by written order either approving or denying the petition. Upon the Regional Superintendent approving or denying the petition, he or she shall submit the petition and all evidence submitted to the State Superintendent of Education who shall, within 60 days after receipt of the decision of the Regional Superintendent, approve or deny the petition.

The State Superintendent of Education shall review the entire record of the proceedings held before the Regional Superintendent, including the transcript of the proceedings, and based upon a review of the same, shall affirm the decision of the Regional Superintendent unless the State Superintendent of Education finds that the decision is arbitrary or capricious. If the State Superintendent of Education denies the petition, the reasons for the denial must be communicated to appropriate groups, agencies, or instrumentalities representing the petitioners. If approved by the State Superintendent of Education, the petition must be placed on the ballot at the next regularly scheduled election. If the State Superintendent fails to act to approve or deny within 60 days, the petition shall be deemed approved.

The decisions of the Regional Superintendent and the State Superintendent of Education shall be deemed an "administrative decision" as defined in Section 3-101 of the Code of Civil Procedure. Any resident who appears at the hearing, any petitioner, the Committee of Ten, or the board of education of any district affected may, within 35 days after a copy of the decision sought to be reviewed was served by registered mail upon the party affected thereby, apply for a review of the decision in accordance with the Administrative Review Law and the rules adopted pursuant thereto. The commencement of any action for review shall operate as a supersedeas, and no further proceedings shall be had until final disposition of the review.

(i) The election must be held in the entire area of the Original District. For electors residing in the Original District, but not in the Territory, the election shall be only on the question of establishing the New District with specified tax rate and extension information and not any other questions. Electors residing in the Territory shall also be asked to vote on another ballot for members of the Board of Education of the New District and may also be asked to vote for or against propositions to issue bonds on behalf of the New District.

(105 ILCS 5/11F-20 new)

Sec. 11F-20. Referendum.

(a) The Regional Superintendent of Schools of the educational service region comprising the largest percentage of the Territory proposed for disconnection is hereby directed to certify a question for the ballot at the next general, general primary, or consolidated election to occur at least 88 days after the date of the completion of and rendering of a decision on the hearing. If the Territory encompasses areas that are beyond the jurisdiction of the Regional Superintendent or if a district-wide election is required and the Original District encompasses areas beyond the jurisdiction of the Regional Superintendent, then the Regional Superintendent shall certify the appropriate question or questions to the Regional Superintendent or Superintendents having jurisdiction of such area or areas for placement on the ballot at the same election that the certifying Regional Superintendent will place the question or questions on the ballot.

(b) One or more public questions to create a community unit school district under this Article, to elect school board members, and to authorize the issuance of bonds by the newly created district when organized shall be printed on the ballot and submitted at the next regularly scheduled election as set out in this Section, notwithstanding anything to the contrary in Section 28-1 of the Election Code and notwithstanding any other propositions that may be presented at the same election.

(c) The referendum shall be conducted in accordance with the general election law, except as specifically stated in this Section.

(d) The Notice of the referendum shall be substantially in the following form:

NOTICE OF REFERENDUM TO DETACH TERRITORY FROM A CERTAIN UNIT

SCHOOL DISTRICT AND TO ESTABLISH A NEW UNIT SCHOOL DISTRICT

NOTICE is hereby given that on (insert date), a referendum will be held in part (parts) of .......... county (counties) for the purpose of voting for or against the proposition to detach territory from (here name the district from which the territory is to be detached) and to establish a new unit school district for the following described territory:

(here describe the territory as in the petition)

The election is called and will be held pursuant to an order of the Regional Superintendent of Schools dated on (insert date), which order states that the tax rates for educational, operations and maintenance, pupil transportation, and fire prevention and safety purposes, respectively, for the proposed new school district shall be as follows for the new school district for the territory described above: tax rates of ..... for educational purposes, ..... for operations and maintenance purposes, ..... for pupil transportation purposes, and ..... for fire prevention and safety purposes, which rates shall constitute the tax rates for the school district, if a majority of the voters voting on the proposition at the referendum vote in favor thereof.

Dated (insert date).

Regional Superintendent of Schools

..................................

(e) The notice shall state that members of the Board of Education of the New District are to be elected at the same election at which the proposition to establish the New District is to be submitted to the voters.

(f) The ballot shall be in substantially the following form:

OFFICIAL BALLOT

Shall a new community unit school district be established, comprising the following territory:

(here describe the territory as in the petition) with an aggregate extension base of ...................., a debt service extension base of ...................., and initial taxing authority as follows:

(1) .....% for educational purposes and .....% for operations and maintenance purposes;

(2) .....% for capital improvement purposes;

(3) .....% for transportation purposes;

(4) .....% for special education purposes;

(5) .....% for tort immunity;

(6) .....% for health insurance; and

(7) .....% for fire prevention, safety, energy conservation, disabled accessibility, school security, and repair purposes as specified in 105 ILCS 5/17-2.11.

The election authority must record the votes as "Yes" or "No".

(g) If a majority of the voters voting in the election vote in favor of the New District, then the proposition shall be deemed to have passed, and the New District shall be deemed created with the tax rates specified in the question or other applicable rates as specified in this Code if no rate is specified for a particular tax. Notwithstanding anything to the contrary in Sections 18-210 and 18-212 of the Property Tax Code, the New District shall have the aggregate extension base specified in the question and the debt service extension base specified in the question if one was specified.

(105 ILCS 5/11F-25 new)

Sec. 11F-25. Creation of New School District.

(a) Upon the passage of the referendum, the New District shall be established. The governing and administrative powers of the New District shall be vested in a Board of Education consisting of 7 members, all of whom shall have been elected at large by voters residing in the Territory at the same regularly scheduled election as the election establishing the New District.

(b) The terms of all members of the Board of Education shall begin on their election. The 7 members elected pursuant to this Article shall draw lots to determine the length of their terms. Three shall serve for 2-year terms, and 4 shall serve for 4-year terms. The Board of Education shall in all other respects be governed by the provisions of this Code and as qualified and clarified in this Article.

(c) The Territory comprising the New District shall be detached from the territory comprising the Original District, effective on July 1 one year after the July 1 following the election of the new Board of Education. Title to all school lands and buildings located within the Territory of the New District and owned by the Board of Education of the Original District as of the effective date of the detachment shall vest in the new Board of Education as of the date of the detachment of the Territory.

(d) After the election and the organization of the new Board of Education and prior to the date of detachment as set forth in subsection (c) of this Section, the new Board of Education shall have the power to place all necessary public questions on the ballot of any regularly scheduled election, including, but not limited to, questions for the purposes set out in Section 10-22.36 of this Code, and to do all of the following:

(1) Establish the tax levy for the New District in the year immediately preceding the year in which the New District will take effect, in lieu of the levies by the district from which the New District is formed, within the time generally provided by law and in accordance with Section 11F-40 of this Code. The funds produced by such a levy shall be transferred to the New District as generally provided by law at such time as they are received by the county collector.

(2) Enter into agreements with depositories and direct the deposit and investment of any funds received from the county collector or any other source, all as generally provided by law.

(3) Conduct a search for the superintendent of the New District and enter into a contract with the person selected to serve as the superintendent of the New District in accordance with the provisions of this Code generally applicable to the employment of the superintendent.

(4) Engage the services of accountants, architects, attorneys, and other consultants, including, but not limited to, consultants to assist in the search for the superintendent.

(5) Plan for the transition from the administration of the schools by the district from which the New District is formed.

(6) Bargain collectively, pursuant to the Illinois Educational Labor Relations Act, with the certified exclusive bargaining representative or certified exclusive bargaining representatives of the New District's employees.

(7) Expend the funds received from the levy in order to permit the district from which the New District is formed to meet payroll and other essential operating expenses until the New District takes effect for all purposes.

(8) Expend the funds received from the levy and any funds received from the district from which the New District is formed, in the exercise of the powers listed in this Section.

(9) Issue bonds pursuant to and in accordance with all of the requirements of Section 17-2.11 of this Code, levy taxes upon all taxable property within the New District to pay the principal of and interest on those bonds as provided in Section 17-2.11 of this Code, expend the proceeds of the bonds and enter into any necessary contracts for the work financed therewith as authorized by Section 17-2.11 of this Code and other applicable law, and avail itself of the provisions of other applicable law, including the Omnibus Bond Acts, in connection with the issuance of those bonds.

(10) Issue working cash bonds or tax anticipation warrants or both.

(e) After the proposition has been approved at election, the date on which the change shall become effective for purposes of administration and attendance may be accelerated or postponed by stipulation of each of the school boards of the New District and the Original District and approved by the Regional Superintendent of Schools with which the original petition is required to be filed.

(105 ILCS 5/11F-30 new)

Sec. 11F-30. Transfer of employment; collective bargaining.

(a) As of the date of detachment and transfer of real property described in Section 11F-25 of this Code, the employment of all full-time, certified employees and of all full-time, educational-support personnel assigned to the buildings located in the New District shall be transferred to the new Board of Education and the New District. Full-time, certified employees and full-time, educational-support personnel who are assigned part-time to a building or buildings that shall be located in the New District and part-time in a building or buildings located in the Original District shall have the right to choose to assign their employment to one District or the other and shall notify the Boards of Education of both Districts of such choice no later than March 1 of the year in which the disconnection described in Section 11F-25 of this Code shall take place.

(b) Employees subject to this Section shall suffer no loss of accrued benefits of any kind, and all seniority rights of all such employees shall be honored in the same manner as if no transfer of employment had occurred.

(c) The exclusive representative of any group of employees covered by this Section, as "exclusive representative" is defined in Section 2 of the Illinois Educational Labor Relations Act, shall be deemed to be and shall be recognized by the New District as the exclusive representative of employees transferred to the New District. The new Board of Education shall have the duty to bargain with the exclusive representative, subject to the provisions of the Illinois Educational Labor Relations Act.

(105 ILCS 5/11F-35 new)

Sec. 11F-35. Accounting and division of assets. As soon as may be practicable after the passage of a referendum provided for by this Article, the Regional Superintendent of Schools of the educational service region in which the largest percentage of the New District's Territory is located shall conduct an accounting pursuant to Article 11C of this Code for the purpose of determining an equitable division of school assets and property as between the Original District and the New District. If the result of the accounting is that the Original District would owe money to the New District, then all such costs must be forgiven. If the result of the accounting is that the New District owes money to the Original District, then the New District shall make such payment as provided in Article 11C of this Code. For purposes of the accounting, capital assets and real property must be assessed or appraised on the basis of insurance replacement costs, and financial assets must be assessed by means of an audit. The accounting is subject to administrative review, pursuant to Section 11C-3 of this Code.

(105 ILCS 5/11F-40 new)

Sec. 11F-40. Tax rates. Initial tax rates shall be as specified in the ballot question in Section 11F-20 of this Code or in other applicable provisions of this Code. If the ballot question is approved, these rates shall be used to develop the initial levy of the New District. After the election, the rates established by the ballot may be increased or decreased in the same manner and within the limits provided by Sections 17-2 through 17-7 of this Code and the Property Tax Extension Limitation Law, if applicable.

(105 ILCS 5/11F-45 new)

Sec. 11F-45. Transfer students under No Child Left Behind Act. For a period of 10 years after the opening of schools in a New District created under this Article, the New District shall accept students electing to transfer from any school in the Original District that fails to make adequate yearly progress for at least 2 consecutive years, as required by the federal No Child Left Behind Act of 2001 and applicable provisions of this Code, in the same manner as if the New District had never been created from territory formerly within the Original District. After 10 years, such transfers shall be subject to agreement between the districts.

(105 ILCS 5/11F-50 new)

Sec. 11F-50. Bonded indebtedness. Whenever the boundaries of any community unit school district are changed by the detachment of territory and establishment of a New District, the Original District and the New District, as they exist on and after such action, shall each assume the bonded indebtedness, as well as financial obligations to the Capital Development Board pursuant to Section 35-15 of this Code, of all of the territory included therein after such change. The outstanding bonded indebtedness shall be treated as provided in this Section 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, except that the County Clerk shall annually extend taxes against all of the taxable property situated in the county and contained in each such district as it exists after the formation of the community unit school district provided for in this Article.

(105 ILCS 5/11F-55 new)

Sec. 11F-55. Limitations on contesting boundary change. Neither the People of the State of Illinois, any person or corporation, private or public, nor any association of persons shall commence an action contesting either directly or indirectly the creation of any new school district under the provisions of this Article, unless the action is commenced (i) within one year after the order providing for the action shall have become final, (ii) within one year after the date of the election provided for in this Article if no proceedings to contest the election are duly instituted within the time permitted by law, or (iii) within one year after the final disposition of any proceedings that may be so instituted to contest the election; however, where a limitation of a shorter period is prescribed by statute, the shorter limitation shall apply, and the limitation set forth in this Section shall not apply to any order where the judge, body, or officer entering the order being challenged did not at the time of the entry of the order have jurisdiction of the subject matter.

(105 ILCS 5/11F-60 new)

Sec. 11F-60. Limitation on successive petitions. No affected school district shall be again involved in proceedings under this Article for at least 2 years after final determination of the first proceeding, unless during that 2-year period a petition filed is substantially different than any other previously filed petition during the previous 2 years or if an affected district is placed on academic watch status or the financial watch list by the State Board of Education or is certified as being in financial difficulty during that 2-year period.

(105 ILCS 5/19-1) (from Ch. 122, par. 19-1)

Sec. 19-1. Debt limitations of school districts.

(a) School districts shall not be subject to the provisions limiting their indebtedness prescribed in "An Act to limit the indebtedness of counties having a population of less than 500,000 and townships, school districts and other municipal corporations having a population of less than 300,000", approved February 15, 1928, as amended.

No school districts maintaining grades K through 8 or 9 through 12 shall become indebted in any manner or for any purpose to an amount, including existing indebtedness, in the aggregate exceeding 6.9% on the value of the taxable property therein to be ascertained by the last assessment for State and county taxes or, until January 1, 1983, if greater, the sum that is produced by multiplying the school district's 1978 equalized assessed valuation by the debt limitation percentage in effect on January 1, 1979, previous to the incurring of such indebtedness.

No school districts maintaining grades K through 12 shall become indebted in any manner or for any purpose to an amount, including existing indebtedness, in the aggregate exceeding 13.8% on the value of the taxable property therein to be ascertained by the last assessment for State and county taxes or, until January 1, 1983, if greater, the sum that is produced by multiplying the school district's 1978 equalized assessed valuation by the debt limitation percentage in effect on January 1, 1979, previous to the incurring of such indebtedness.

No partial elementary unit district, as defined in Article 11E of this Code, shall become indebted in any manner or for any purpose in an amount, including existing indebtedness, in the aggregate exceeding 6.9% of the value of the taxable property of the entire district, to be ascertained by the last assessment for State and county taxes, plus an amount, including existing indebtedness, in the aggregate exceeding 6.9% of the value of the taxable property of that portion of the district included in the elementary and high school classification, to be ascertained by the last assessment for State and county taxes. Moreover, no partial elementary unit district, as defined in Article 11E of this Code, shall become indebted on account of bonds issued by the district for high school purposes in the aggregate exceeding 6.9% of the value of the taxable property of the entire district, to be ascertained by the last assessment for State and county taxes, nor shall the district become indebted on account of bonds issued by the district for elementary purposes in the aggregate exceeding 6.9% of the value of the taxable property for that portion of the district included in the elementary and high school classification, to be ascertained by the last assessment for State and county taxes.

Notwithstanding the provisions of any other law to the contrary, in any case in which the voters of a school district have approved a proposition for the issuance of bonds of such school district at an election held prior to January 1, 1979, and all of the bonds approved at such election have not been issued, the debt limitation applicable to such school district during the calendar year 1979 shall be computed by multiplying the value of taxable property therein, including personal property, as ascertained by the last assessment for State and county taxes, previous to the incurring of such indebtedness, by the percentage limitation applicable to such school district under the provisions of this subsection (a).

(b) Notwithstanding the debt limitation prescribed in subsection (a) of this Section, additional indebtedness may be incurred in an amount not to exceed the estimated cost of acquiring or improving school sites or constructing and equipping additional building facilities under the following conditions:

(1) Whenever the enrollment of students for the next school year is estimated by the board of education to increase over the actual present enrollment by not less than 35% or by not less than 200 students or the actual present enrollment of students has increased over the previous school year by not less than 35% or by not less than 200 students and the board of education determines that additional school sites or building facilities are required as a result of such increase in enrollment; and

(2) When the Regional Superintendent of Schools having jurisdiction over the school district and the State Superintendent of Education concur in such enrollment projection or increase and approve the need for such additional school sites or building facilities and the estimated cost thereof; and

(3) When the voters in the school district approve a proposition for the issuance of bonds for the purpose of acquiring or improving such needed school sites or constructing and equipping such needed additional building facilities at an election called and held for that purpose. Notice of such an election shall state that the amount of indebtedness proposed to be incurred would exceed the debt limitation otherwise applicable to the school district. The ballot for such proposition shall state what percentage of the equalized assessed valuation will be outstanding in bonds if the proposed issuance of bonds is approved by the voters; or

(4) Notwithstanding the provisions of paragraphs (1) through (3) of this subsection (b), if the school board determines that additional facilities are needed to provide a quality educational program and not less than 2/3 of those voting in an election called by the school board on the question approve the issuance of bonds for the construction of such facilities, the school district may issue bonds for this purpose; or

(5) Notwithstanding the provisions of paragraphs (1) through (3) of this subsection (b), if (i) the school district has previously availed itself of the provisions of paragraph (4) of this subsection (b) to enable it to issue bonds, (ii) the voters of the school district have not defeated a proposition for the issuance of bonds since the referendum described in paragraph (4) of this subsection (b) was held, (iii) the school board determines that additional facilities are needed to provide a quality educational program, and (iv) a majority of those voting in an election called by the school board on the question approve the issuance of bonds for the construction of such facilities, the school district may issue bonds for this purpose.

In no event shall the indebtedness incurred pursuant to this subsection (b) and the existing indebtedness of the school district exceed 15% of the value of the taxable property therein to be ascertained by the last assessment for State and county taxes, previous to the incurring of such indebtedness or, until January 1, 1983, if greater, the sum that is produced by multiplying the school district's 1978 equalized assessed valuation by the debt limitation percentage in effect on January 1, 1979.

The indebtedness provided for by this subsection (b) shall be in addition to and in excess of any other debt limitation.

(c) Notwithstanding the debt limitation prescribed in subsection (a) of this Section, in any case in which a public question for the issuance of bonds of a proposed school district maintaining grades kindergarten through 12 received at least 60% of the valid ballots cast on the question at an election held on or prior to November 8, 1994, and in which the bonds approved at such election have not been issued, the school district pursuant to the requirements of Section 11A-10 (now repealed) may issue the total amount of bonds approved at such election for the purpose stated in the question.

(d) Notwithstanding the debt limitation prescribed in subsection (a) of this Section, a school district that meets all the criteria set forth in paragraphs (1) and (2) of this subsection (d) may incur an additional indebtedness in an amount not to exceed $4,500,000, even though the amount of the additional indebtedness authorized by this subsection (d), when incurred and added to the aggregate amount of indebtedness of the district existing immediately prior to the district incurring the additional indebtedness authorized by this subsection (d), causes the aggregate indebtedness of the district to exceed the debt limitation otherwise applicable to that district under subsection (a):

(1) The additional indebtedness authorized by this subsection (d) is incurred by the school district through the issuance of bonds under and in accordance with Section 17-2.11a for the purpose of replacing a school building which, because of mine subsidence damage, has been closed as provided in paragraph (2) of this subsection (d) or through the issuance of bonds under and in accordance with Section 19-3 for the purpose of increasing the size of, or providing for additional functions in, such replacement school buildings, or both such purposes.

(2) The bonds issued by the school district as provided in paragraph (1) above are issued for the purposes of construction by the school district of a new school building pursuant to Section 17-2.11, to replace an existing school building that, because of mine subsidence damage, is closed as of the end of the 1992-93 school year pursuant to action of the regional superintendent of schools of the educational service region in which the district is located under Section 3-14.22 or are issued for the purpose of increasing the size of, or providing for additional functions in, the new school building being constructed to replace a school building closed as the result of mine subsidence damage, or both such purposes.

(e) (Blank).

(f) Notwithstanding the provisions of subsection (a) of this Section or of any other law, bonds in not to exceed the aggregate amount of $5,500,000 and issued by a school district meeting the following criteria shall not be considered indebtedness for purposes of any statutory limitation and may be issued in an amount or amounts, including existing indebtedness, in excess of any heretofore or hereafter imposed statutory limitation as to indebtedness:

(1) At the time of the sale of such bonds, the board of education of the district shall have determined by resolution that the enrollment of students in the district is projected to increase by not less than 7% during each of the next succeeding 2 school years.

(2) The board of education shall also determine by resolution that the improvements to be financed with the proceeds of the bonds are needed because of the projected enrollment increases.

(3) The board of education shall also determine by resolution that the projected increases in enrollment are the result of improvements made or expected to be made to passenger rail facilities located in the school district.

Notwithstanding the provisions of subsection (a) of this Section or of any other law, a school district that has availed itself of the provisions of this subsection (f) prior to July 22, 2004 (the effective date of Public Act 93-799) may also issue bonds approved by referendum up to an amount, including existing indebtedness, not exceeding 25% of the equalized assessed value of the taxable property in the district if all of the conditions set forth in items (1), (2), and (3) of this subsection (f) are met.

(g) Notwithstanding the provisions of subsection (a) of this Section or any other law, bonds in not to exceed an aggregate amount of 25% of the equalized assessed value of the taxable property of a school district and issued by a school district meeting the criteria in paragraphs (i) through (iv) of this subsection shall not be considered indebtedness for purposes of any statutory limitation and may be issued pursuant to resolution of the school board in an amount or amounts, including existing indebtedness, in excess of any statutory limitation of indebtedness heretofore or hereafter imposed:

(i) The bonds are issued for the purpose of constructing a new high school building to replace two adjacent existing buildings which together house a single high school, each of which is more than 65 years old, and which together are located on more than 10 acres and less than 11 acres of property.

(ii) At the time the resolution authorizing the issuance of the bonds is adopted, the cost of constructing a new school building to replace the existing school building is less than 60% of the cost of repairing the existing school building.

(iii) The sale of the bonds occurs before July 1, 1997.

(iv) The school district issuing the bonds is a unit school district located in a county of less than 70,000 and more than 50,000 inhabitants, which has an average daily attendance of less than 1,500 and an equalized assessed valuation of less than $29,000,000.

(h) Notwithstanding any other provisions of this Section or the provisions of any other law, until January 1, 1998, a community unit school district maintaining grades K through 12 may issue bonds up to an amount, including existing indebtedness, not exceeding 27.6% of the equalized assessed value of the taxable property in the district, if all of the following conditions are met:

(i) The school district has an equalized assessed valuation for calendar year 1995 of less than $24,000,000;

(ii) The bonds are issued for the capital improvement, renovation, rehabilitation, or replacement of existing school buildings of the district, all of which buildings were originally constructed not less than 40 years ago;

(iii) The voters of the district approve a proposition for the issuance of the bonds at a referendum held after March 19, 1996; and

(iv) The bonds are issued pursuant to Sections 19-2 through 19-7 of this Code.

(i) Notwithstanding any other provisions of this Section or the provisions of any other law, until January 1, 1998, a community unit school district maintaining grades K through 12 may issue bonds up to an amount, including existing indebtedness, not exceeding 27% of the equalized assessed value of the taxable property in the district, if all of the following conditions are met:

(i) The school district has an equalized assessed valuation for calendar year 1995 of less than $44,600,000;

(ii) The bonds are issued for the capital improvement, renovation, rehabilitation, or replacement of existing school buildings of the district, all of which existing buildings were originally constructed not less than 80 years ago;

(iii) The voters of the district approve a proposition for the issuance of the bonds at a referendum held after December 31, 1996; and

(iv) The bonds are issued pursuant to Sections 19-2 through 19-7 of this Code.

(j) Notwithstanding any other provisions of this Section or the provisions of any other law, until January 1, 1999, a community unit school district maintaining grades K through 12 may issue bonds up to an amount, including existing indebtedness, not exceeding 27% of the equalized assessed value of the taxable property in the district if all of the following conditions are met:

(i) The school district has an equalized assessed valuation for calendar year 1995 of less than $140,000,000 and a best 3 months average daily attendance for the 1995-96 school year of at least 2,800;

(ii) The bonds are issued to purchase a site and build and equip a new high school, and the school district's existing high school was originally constructed not less than 35 years prior to the sale of the bonds;

(iii) At the time of the sale of the bonds, the board of education determines by resolution that a new high school is needed because of projected enrollment increases;

(iv) At least 60% of those voting in an election held after December 31, 1996 approve a proposition for the issuance of the bonds; and

(v) The bonds are issued pursuant to Sections 19-2 through 19-7 of this Code.

(k) Notwithstanding the debt limitation prescribed in subsection (a) of this Section, a school district that meets all the criteria set forth in paragraphs (1) through (4) of this subsection (k) may issue bonds to incur an additional indebtedness in an amount not to exceed $4,000,000 even though the amount of the additional indebtedness authorized by this subsection (k), when incurred and added to the aggregate amount of indebtedness of the school district existing immediately prior to the school district incurring such additional indebtedness, causes the aggregate indebtedness of the school district to exceed or increases the amount by which the aggregate indebtedness of the district already exceeds the debt limitation otherwise applicable to that school district under subsection (a):

(1) the school district is located in 2 counties, and a referendum to authorize the additional indebtedness was approved by a majority of the voters of the school district voting on the proposition to authorize that indebtedness;

(2) the additional indebtedness is for the purpose of financing a multi-purpose room addition to the existing high school;

(3) the additional indebtedness, together with the existing indebtedness of the school district, shall not exceed 17.4% of the value of the taxable property in the school district, to be ascertained by the last assessment for State and county taxes; and

(4) the bonds evidencing the additional indebtedness are issued, if at all, within 120 days of the effective date of this amendatory Act of 1998.

(l) Notwithstanding any other provisions of this Section or the provisions of any other law, until January 1, 2000, a school district maintaining grades kindergarten through 8 may issue bonds up to an amount, including existing indebtedness, not exceeding 15% of the equalized assessed value of the taxable property in the district if all of the following conditions are met:

(i) the district has an equalized assessed valuation for calendar year 1996 of less than $10,000,000;

(ii) the bonds are issued for capital improvement, renovation, rehabilitation, or replacement of one or more school buildings of the district, which buildings were originally constructed not less than 70 years ago;

(iii) the voters of the district approve a proposition for the issuance of the bonds at a referendum held on or after March 17, 1998; and

(iv) the bonds are issued pursuant to Sections 19-2 through 19-7 of this Code.

(m) Notwithstanding any other provisions of this Section or the provisions of any other law, until January 1, 1999, an elementary school district maintaining grades K through 8 may issue bonds up to an amount, excluding existing indebtedness, not exceeding 18% of the equalized assessed value of the taxable property in the district, if all of the following conditions are met:

(i) The school district has an equalized assessed valuation for calendar year 1995 or less than $7,700,000;

(ii) The school district operates 2 elementary attendance centers that until 1976 were operated as the attendance centers of 2 separate and distinct school districts;

(iii) The bonds are issued for the construction of a new elementary school building to replace an existing multi-level elementary school building of the school district that is not handicapped accessible at all levels and parts of which were constructed more than 75 years ago;

(iv) The voters of the school district approve a proposition for the issuance of the bonds at a referendum held after July 1, 1998; and

(v) The bonds are issued pursuant to Sections 19-2 through 19-7 of this Code.

(n) Notwithstanding the debt limitation prescribed in subsection (a) of this Section or any other provisions of this Section or of any other law, a school district that meets all of the criteria set forth in paragraphs (i) through (vi) of this subsection (n) may incur additional indebtedness by the issuance of bonds in an amount not exceeding the amount certified by the Capital Development Board to the school district as provided in paragraph (iii) of this subsection (n), even though the amount of the additional indebtedness so authorized, when incurred and added to the aggregate amount of indebtedness of the district existing immediately prior to the district incurring the additional indebtedness authorized by this subsection (n), causes the aggregate indebtedness of the district to exceed the debt limitation otherwise applicable by law to that district:

(i) The school district applies to the State Board of Education for a school construction project grant and submits a district facilities plan in support of its application pursuant to Section 5-20 of the School Construction Law.

(ii) The school district's application and facilities plan are approved by, and the district receives a grant entitlement for a school construction project issued by, the State Board of Education under the School Construction Law.

(iii) The school district has exhausted its bonding capacity or the unused bonding capacity of the district is less than the amount certified by the Capital Development Board to the district under Section 5-15 of the School Construction Law as the dollar amount of the school construction project's cost that the district will be required to finance with non-grant funds in order to receive a school construction project grant under the School Construction Law.

(iv) The bonds are issued for a "school construction project", as that term is defined in Section 5-5 of the School Construction Law, in an amount that does not exceed the dollar amount certified, as provided in paragraph (iii) of this subsection (n), by the Capital Development Board to the school district under Section 5-15 of the School Construction Law.

(v) The voters of the district approve a proposition for the issuance of the bonds at a referendum held after the criteria specified in paragraphs (i) and (iii) of this subsection (n) are met.

(vi) The bonds are issued pursuant to Sections 19-2 through 19-7 of the School Code.

(o) Notwithstanding any other provisions of this Section or the provisions of any other law, until November 1, 2007, a community unit school district maintaining grades K through 12 may issue bonds up to an amount, including existing indebtedness, not exceeding 20% of the equalized assessed value of the taxable property in the district if all of the following conditions are met:

(i) the school district has an equalized assessed valuation for calendar year 2001 of at least $737,000,000 and an enrollment for the 2002-2003 school year of at least 8,500;

(ii) the bonds are issued to purchase school sites, build and equip a new high school, build and equip a new junior high school, build and equip 5 new elementary schools, and make technology and other improvements and additions to existing schools;

(iii) at the time of the sale of the bonds, the board of education determines by resolution that the sites and new or improved facilities are needed because of projected enrollment increases;

(iv) at least 57% of those voting in a general election held prior to January 1, 2003 approved a proposition for the issuance of the bonds; and

(v) the bonds are issued pursuant to Sections 19-2 through 19-7 of this Code.

(p) Notwithstanding any other provisions of this Section or the provisions of any other law, a community unit school district maintaining grades K through 12 may issue bonds up to an amount, including indebtedness, not exceeding 27% of the equalized assessed value of the taxable property in the district if all of the following conditions are met:

(i) The school district has an equalized assessed valuation for calendar year 2001 of at least $295,741,187 and a best 3 months' average daily attendance for the 2002-2003 school year of at least 2,394.

(ii) The bonds are issued to build and equip 3 elementary school buildings; build and equip one middle school building; and alter, repair, improve, and equip all existing school buildings in the district.

(iii) At the time of the sale of the bonds, the board of education determines by resolution that the project is needed because of expanding growth in the school district and a projected enrollment increase.

(iv) The bonds are issued pursuant to Sections 19-2 through 19-7 of this Code.

(p-5) Notwithstanding any other provisions of this Section or the provisions of any other law, bonds issued by a community unit school district maintaining grades K through 12 shall not be considered indebtedness for purposes of any statutory limitation and may be issued in an amount or amounts, including existing indebtedness, in excess of any heretofore or hereafter imposed statutory limitation as to indebtedness, if all of the following conditions are met:

(i) For each of the 4 most recent years, residential property comprises more than 80% of the equalized assessed valuation of the district.

(ii) At least 2 school buildings that were constructed 40 or more years prior to the issuance of the bonds will be demolished and will be replaced by new buildings or additions to one or more existing buildings.

(iii) Voters of the district approve a proposition for the issuance of the bonds at a regularly scheduled election.

(iv) At the time of the sale of the bonds, the school board determines by resolution that the new buildings or building additions are needed because of an increase in enrollment projected by the school board.

(v) The principal amount of the bonds, including existing indebtedness, does not exceed 25% of the equalized assessed value of the taxable property in the district.

(vi) The bonds are issued prior to January 1, 2007, pursuant to Sections 19-2 through 19-7 of this Code.

(p-10) Notwithstanding any other provisions of this Section or the provisions of any other law, bonds issued by a community consolidated school district maintaining grades K through 8 shall not be considered indebtedness for purposes of any statutory limitation and may be issued in an amount or amounts, including existing indebtedness, in excess of any heretofore or hereafter imposed statutory limitation as to indebtedness, if all of the following conditions are met:

(i) For each of the 4 most recent years, residential and farm property comprises more than 80% of the equalized assessed valuation of the district.

(ii) The bond proceeds are to be used to acquire and improve school sites and build and equip a school building.

(iii) Voters of the district approve a proposition for the issuance of the bonds at a regularly scheduled election.

(iv) At the time of the sale of the bonds, the school board determines by resolution that the school sites and building additions are needed because of an increase in enrollment projected by the school board.

(v) The principal amount of the bonds, including existing indebtedness, does not exceed 20% of the equalized assessed value of the taxable property in the district.

(vi) The bonds are issued prior to January 1, 2007, pursuant to Sections 19-2 through 19-7 of this Code.

(p-15) In addition to all other authority to issue bonds, the Oswego Community Unit School District Number 308 may issue bonds with an aggregate principal amount not to exceed $450,000,000, but only if all of the following conditions are met:

(i) The voters of the district have approved a proposition for the bond issue at the general election held on November 7, 2006.

(ii) At the time of the sale of the bonds, the school board determines, by resolution, that: (A) the building and equipping of the new high school building, new junior high school buildings, new elementary school buildings, early childhood building, maintenance building, transportation facility, and additions to existing school buildings, the altering, repairing, equipping, and provision of technology improvements to existing school buildings, and the acquisition and improvement of school sites, as the case may be, are required as a result of a projected increase in the enrollment of students in the district; and (B) the sale of bonds for these purposes is authorized by legislation that exempts the debt incurred on the bonds from the district's statutory debt limitation.

(iii) The bonds are issued, in one or more bond issues, on or before November 7, 2011, but the aggregate principal amount issued in all such bond issues combined must not exceed $450,000,000.

(iv) The bonds are issued in accordance with this Article 19.

(v) The proceeds of the bonds are used only to accomplish those projects approved by the voters at the general election held on November 7, 2006. The debt incurred on any bonds issued under this subsection (p-15) shall not be considered indebtedness for purposes of any statutory debt limitation.

(p-20) In addition to all other authority to issue bonds, the Lincoln-Way Community High School District Number 210 may issue bonds with an aggregate principal amount not to exceed $225,000,000, but only if all of the following conditions are met:

(i) The voters of the district have approved a proposition for the bond issue at the general primary election held on March 21, 2006.

(ii) At the time of the sale of the bonds, the school board determines, by resolution, that: (A) the building and equipping of the new high school buildings, the altering, repairing, and equipping of existing school buildings, and the improvement of school sites, as the case may be, are required as a result of a projected increase in the enrollment of students in the district; and (B) the sale of bonds for these purposes is authorized by legislation that exempts the debt incurred on the bonds from the district's statutory debt limitation.

(iii) The bonds are issued, in one or more bond issues, on or before March 21, 2011, but the aggregate principal amount issued in all such bond issues combined must not exceed $225,000,000.

(iv) The bonds are issued in accordance with this Article 19.

(v) The proceeds of the bonds are used only to accomplish those projects approved by the voters at the primary election held on March 21, 2006. The debt incurred on any bonds issued under this subsection (p-20) shall not be considered indebtedness for purposes of any statutory debt limitation.

(p-25) Notwithstanding the debt limitation prescribed in subsection (a) of this Section or the provisions of any other law, any indebtedness assumed under Section 19-29 by a new school district formed under the provisions and procedures of Article 11F of this Code shall not be included in the calculation of the new school district's debt limitation pursuant to subsection (a) of this Section.

(q) A school district must notify the State Board of Education prior to issuing any form of long-term or short-term debt that will result in outstanding debt that exceeds 75% of the debt limit specified in this Section or any other provision of law.

(Source: P.A. 93-13, eff. 6-9-03; 93-799, eff. 7-22-04; 93-1045, eff. 10-15-04; 94-234, eff. 7-1-06; 94-721, eff. 1-6-06; 94-952, eff. 6-27-06; 94-1019, eff. 7-10-06; 94-1078, eff. 1-9-07.)

Section 90. The State Mandates Act is amended by adding Section 8.31 as follows:

(30 ILCS 805/8.31 new)

Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 95th General Assembly.

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