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1 | AN ACT concerning education.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Property Tax Code is amended by changing | |||||||||||||||||||||||||||
5 | Sections 18-50.1, 18-92, and 18-241 as follows:
| |||||||||||||||||||||||||||
6 | (35 ILCS 200/18-50.1)
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7 | Sec. 18-50.1. School Finance Authority and Financial | |||||||||||||||||||||||||||
8 | Oversight Panel levies.
Notwithstanding any other law to the | |||||||||||||||||||||||||||
9 | contrary, any
levy adopted by a School Finance Authority | |||||||||||||||||||||||||||
10 | created under Article 1F of
the School Code or a Financial | |||||||||||||||||||||||||||
11 | Oversight Panel established under Article 1H of the School Code | |||||||||||||||||||||||||||
12 | is valid and shall be extended by the county clerk if it is
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13 | certified to the county clerk by the Authority or Panel in | |||||||||||||||||||||||||||
14 | sufficient time to allow
the county clerk to include the levy | |||||||||||||||||||||||||||
15 | in the extension for the taxable year.
| |||||||||||||||||||||||||||
16 | (Source: P.A. 92-855, eff. 12-6-02.)
| |||||||||||||||||||||||||||
17 | (35 ILCS 200/18-92)
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18 | Sec. 18-92. Downstate School Finance Authority for | |||||||||||||||||||||||||||
19 | Elementary
Districts Law and Financial Oversight Panel Law . The | |||||||||||||||||||||||||||
20 | provisions of the Truth in Taxation Law are subject to
the | |||||||||||||||||||||||||||
21 | Downstate School Finance Authority for Elementary Districts | |||||||||||||||||||||||||||
22 | Law and the Financial Oversight Panel Law of the School Code .
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| |||||||
1 | (Source: P.A. 95-331, eff. 8-21-07.)
| ||||||
2 | (35 ILCS 200/18-241)
| ||||||
3 | Sec. 18-241. School Finance Authority and Financial | ||||||
4 | Oversight Panel .
| ||||||
5 | (a) A School Finance Authority established under Article 1E | ||||||
6 | or 1F of
the School Code shall not be a taxing district for | ||||||
7 | purposes of this Law. A Financial Oversight Panel established | ||||||
8 | under Article 1H of the School Code shall not be a taxing | ||||||
9 | district for purposes of this Law.
| ||||||
10 | (b) This Law shall not apply to the extension of taxes for | ||||||
11 | a
school district for the levy year in which a School Finance
| ||||||
12 | Authority for the district is created pursuant to Article 1E or | ||||||
13 | 1F of the
School Code. This Law shall not apply to the | ||||||
14 | extension of taxes for a school district for the levy year in | ||||||
15 | which a Financial Oversight Panel for the district is created | ||||||
16 | pursuant to Article 1H of the School Code.
| ||||||
17 | (Source: P.A. 92-547, eff. 6-13-02; 93-501, eff. 8-11-03.)
| ||||||
18 | Section 10. The Illinois Pension Code is amended by | ||||||
19 | changing Sections 7-105 and 7-109 as follows:
| ||||||
20 | (40 ILCS 5/7-105) (from Ch. 108 1/2, par. 7-105)
| ||||||
21 | Sec. 7-105. "Municipality": A city, village, incorporated | ||||||
22 | town, county,
township; a financial oversight panel | ||||||
23 | established pursuant to Article 1H of the School Code; and any |
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| |||||||
1 | school, park, sanitary, road forest preserve, water, fire
| ||||||
2 | protection, public health, river conservancy, mosquito | ||||||
3 | abatement,
tuberculosis sanitarium, public community college | ||||||
4 | district, or other local
district with general continuous power | ||||||
5 | to levy taxes on the property within
such district; now | ||||||
6 | existing or hereafter created within the State; and, for
the | ||||||
7 | purposes of providing annuities and benefits to its employees, | ||||||
8 | the fund
itself.
| ||||||
9 | (Source: P.A. 84-1308.)
| ||||||
10 | (40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
| ||||||
11 | Sec. 7-109. Employee.
| ||||||
12 | (1) "Employee" means any person who:
| ||||||
13 | (a) 1. Receives earnings as payment for the performance | ||||||
14 | of personal
services or official duties out of the | ||||||
15 | general fund of a municipality,
or out of any special | ||||||
16 | fund or funds controlled by a municipality, or by
an | ||||||
17 | instrumentality thereof, or a participating | ||||||
18 | instrumentality, including,
in counties, the fees or | ||||||
19 | earnings of any county fee office; and
| ||||||
20 | 2. Under the usual common law rules applicable in | ||||||
21 | determining the
employer-employee relationship, has | ||||||
22 | the status of an employee with a
municipality, or any | ||||||
23 | instrumentality thereof, or a participating
| ||||||
24 | instrumentality, including aldermen, county | ||||||
25 | supervisors and other
persons (excepting those |
| |||||||
| |||||||
1 | employed as independent contractors) who are
paid | ||||||
2 | compensation, fees, allowances or other emolument for | ||||||
3 | official
duties, and, in counties, the several county | ||||||
4 | fee offices.
| ||||||
5 | (b) Serves as a township treasurer appointed under the | ||||||
6 | School
Code, as heretofore or hereafter amended, and
who | ||||||
7 | receives for such services regular compensation as | ||||||
8 | distinguished
from per diem compensation, and any regular | ||||||
9 | employee in the office of
any township treasurer whether or | ||||||
10 | not his earnings are paid from the
income of the permanent | ||||||
11 | township fund or from funds subject to
distribution to the | ||||||
12 | several school districts and parts of school
districts as | ||||||
13 | provided in the School Code, or from both such sources.
| ||||||
14 | (c) Holds an elective office in a municipality, | ||||||
15 | instrumentality
thereof or participating instrumentality.
| ||||||
16 | (d) Is a chief executive officer, chief educational | ||||||
17 | officer, chief fiscal officer, or other employee of a | ||||||
18 | financial oversight panel established pursuant to Article | ||||||
19 | 1H of the School Code, other than a superintendent or | ||||||
20 | certified school business official. | ||||||
21 | (2) "Employee" does not include persons who:
| ||||||
22 | (a) Are eligible for inclusion under any of the | ||||||
23 | following laws:
| ||||||
24 | 1. "An Act in relation to an Illinois State | ||||||
25 | Teachers' Pension and
Retirement Fund", approved May | ||||||
26 | 27, 1915, as amended;
|
| |||||||
| |||||||
1 | 2. Articles 15 and 16 of this Code.
| ||||||
2 | However, such persons shall be included as employees to | ||||||
3 | the extent of
earnings that are not eligible for inclusion | ||||||
4 | under the foregoing laws
for services not of an | ||||||
5 | instructional nature of any kind.
| ||||||
6 | However, any member of the armed forces who is employed | ||||||
7 | as a teacher
of subjects in the Reserve Officers Training | ||||||
8 | Corps of any school and who
is not certified under the law | ||||||
9 | governing the certification of teachers
shall be included | ||||||
10 | as an employee.
| ||||||
11 | (b) Are designated by the governing body of a | ||||||
12 | municipality in which a
pension fund is required by law to | ||||||
13 | be established for policemen or
firemen, respectively, as | ||||||
14 | performing police or fire protection duties,
except that | ||||||
15 | when such persons are the heads of the police or fire
| ||||||
16 | department and are not eligible to be included within any | ||||||
17 | such pension
fund, they shall be included within this | ||||||
18 | Article; provided, that such
persons shall not be excluded | ||||||
19 | to the extent of concurrent service and
earnings not | ||||||
20 | designated as being for police or fire protection duties.
| ||||||
21 | However, (i) any head of a police department who was a | ||||||
22 | participant under this
Article immediately before October | ||||||
23 | 1, 1977 and did not elect, under Section
3-109 of this Act, | ||||||
24 | to participate in a police pension fund shall be an
| ||||||
25 | "employee", and (ii) any chief of police who elects to | ||||||
26 | participate in this
Fund under Section 3-109.1 of this |
| |||||||
| |||||||
1 | Code, regardless of whether such person
continues to be | ||||||
2 | employed as chief of police or is employed in some other
| ||||||
3 | rank or capacity within the police department, shall be an | ||||||
4 | employee under
this Article for so long as such person is | ||||||
5 | employed to perform police
duties by a participating | ||||||
6 | municipality and has not lawfully rescinded that
election.
| ||||||
7 | (3) All persons, including, without limitation, public | ||||||
8 | defenders and
probation officers, who receive earnings from | ||||||
9 | general or special funds
of a county for performance of | ||||||
10 | personal services or official duties
within the territorial | ||||||
11 | limits of the county, are employees of the county
(unless | ||||||
12 | excluded by subsection (2) of this Section) notwithstanding | ||||||
13 | that
they may be appointed by and are subject to the direction | ||||||
14 | of a person or
persons other than a county board or a county | ||||||
15 | officer. It is hereby
established that an employer-employee | ||||||
16 | relationship under the usual
common law rules exists between | ||||||
17 | such employees and the county paying
their salaries by reason | ||||||
18 | of the fact that the county boards fix their
rates of | ||||||
19 | compensation, appropriate funds for payment of their earnings
| ||||||
20 | and otherwise exercise control over them. This finding and this
| ||||||
21 | amendatory Act shall apply to all such employees from the date | ||||||
22 | of
appointment whether such date is prior to or after the | ||||||
23 | effective date of
this amendatory Act and is intended to | ||||||
24 | clarify existing law pertaining
to their status as | ||||||
25 | participating employees in the Fund.
| ||||||
26 | (Source: P.A. 90-460, eff. 8-17-97.)
|
| |||||||
| |||||||
1 | Section 15. The School Code is amended by changing Sections | ||||||
2 | 1A-8, 1B-8, 8-6, and 17-1 and by adding Article 1H and Section | ||||||
3 | 10-16.9 as follows:
| ||||||
4 | (105 ILCS 5/1A-8) (from Ch. 122, par. 1A-8)
| ||||||
5 | Sec. 1A-8. Powers of the Board in Assisting Districts | ||||||
6 | Deemed in Financial
Difficulties. To promote the financial | ||||||
7 | integrity of school districts, the
State Board of Education | ||||||
8 | shall be provided the necessary powers to promote
sound | ||||||
9 | financial management and continue operation of the public | ||||||
10 | schools.
| ||||||
11 | The State Superintendent of Education may require a school | ||||||
12 | district, including any district subject to Article 34A of this | ||||||
13 | Code, to share financial information relevant to a proper | ||||||
14 | investigation of the district's financial condition and the | ||||||
15 | delivery of appropriate State financial, technical, and | ||||||
16 | consulting services to the district if the district (i) has | ||||||
17 | been designated, through the State Board of Education's School | ||||||
18 | District Financial Profile System, as on financial warning or | ||||||
19 | financial watch status, (ii) has failed to file an annual | ||||||
20 | financial report, annual budget, deficit reduction plan, or | ||||||
21 | other financial information as required by law, or (iii) has | ||||||
22 | been identified, through the district's annual audit or other | ||||||
23 | financial and management information, as in serious financial | ||||||
24 | difficulty in the current or next school year , or (iv) is |
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| |||||||
1 | determined to be likely to fail to fully meet any or all | ||||||
2 | payroll expenses when due or any debt service payments when due | ||||||
3 | or both . In addition to financial, technical, and consulting | ||||||
4 | services provided by the State Board of Education, at the | ||||||
5 | request of a school district, the State Superintendent may | ||||||
6 | provide for an independent financial consultant to assist the | ||||||
7 | district review its financial condition and options.
| ||||||
8 | The State Board of Education, after proper investigation of | ||||||
9 | a district's
financial condition, may certify that a district, | ||||||
10 | including any district
subject to Article 34A, is in financial | ||||||
11 | difficulty
when any of the following conditions occur:
| ||||||
12 | (1) The district has issued school or teacher orders | ||||||
13 | for wages as permitted in Sections
8-16, 32-7.2 and 34-76 | ||||||
14 | of this Code . ;
| ||||||
15 | (2) The district has issued tax anticipation warrants | ||||||
16 | or tax
anticipation notes in anticipation of a second | ||||||
17 | year's taxes when warrants or
notes in anticipation of | ||||||
18 | current year taxes are still outstanding, as
authorized by | ||||||
19 | Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has | ||||||
20 | issued short-term debt against 2 future revenue sources, | ||||||
21 | such as, but not limited to, tax anticipation warrants and | ||||||
22 | general State Aid certificates or tax anticipation | ||||||
23 | warrants and revenue anticipation notes . ;
| ||||||
24 | (3) The district has for 2 consecutive years shown an | ||||||
25 | excess
of expenditures and other financing uses over | ||||||
26 | revenues and other financing
sources and beginning fund |
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| |||||||
1 | balances on its annual financial report for the
aggregate | ||||||
2 | totals of the Educational, Operations and Maintenance,
| ||||||
3 | Transportation, and Working Cash Funds . ;
| ||||||
4 | (4) The district refuses to provide financial | ||||||
5 | information or cooperate with the State Superintendent in | ||||||
6 | an investigation of the district's financial condition. | ||||||
7 | (5) The district is likely to fail to fully meet any or | ||||||
8 | all payroll expenses when due or any debt service payments | ||||||
9 | when due or both.
| ||||||
10 | No school district shall be certified by the State Board of | ||||||
11 | Education to be in financial difficulty solely by
reason of any | ||||||
12 | of the above circumstances arising as a result of (i) the | ||||||
13 | failure
of the county to make any distribution of property tax | ||||||
14 | money due the district
at the time such distribution is due or | ||||||
15 | (ii) the failure of this State to make timely payments of | ||||||
16 | general State aid or any of the mandated categoricals; or if | ||||||
17 | the district clearly demonstrates
to the satisfaction of the | ||||||
18 | State Board of Education at the time of its
determination that | ||||||
19 | such condition no longer exists. If the State Board of
| ||||||
20 | Education certifies that a district in a city with 500,000 | ||||||
21 | inhabitants or
more is in financial difficulty, the State Board | ||||||
22 | shall so notify the
Governor and the Mayor of the city in which | ||||||
23 | the district is located. The
State Board of Education may | ||||||
24 | require school districts certified in
financial difficulty, | ||||||
25 | except those districts subject to Article 34A, to
develop, | ||||||
26 | adopt and submit a financial plan within 45 days after
|
| |||||||
| |||||||
1 | certification of financial difficulty. The financial plan | ||||||
2 | shall be
developed according to guidelines presented to the | ||||||
3 | district by the State
Board of Education within 14 days of | ||||||
4 | certification. Such guidelines shall
address the specific | ||||||
5 | nature of each district's financial difficulties. Any
proposed | ||||||
6 | budget of the district shall be consistent with the financial | ||||||
7 | plan
submitted to and
approved by the State Board of Education.
| ||||||
8 | A district certified to be in financial difficulty, other | ||||||
9 | than a district
subject to Article 34A, shall report to the | ||||||
10 | State Board of Education at
such times and in such manner as | ||||||
11 | the State Board may direct, concerning the
district's | ||||||
12 | compliance with each financial plan. The State Board may review
| ||||||
13 | the district's operations, obtain budgetary data and financial | ||||||
14 | statements,
require the district to produce reports, and have | ||||||
15 | access to any other
information in the possession of the | ||||||
16 | district that it deems relevant. The
State Board may issue | ||||||
17 | recommendations or directives within its powers to
the district | ||||||
18 | to assist in compliance with the financial plan. The district
| ||||||
19 | shall produce such budgetary data, financial statements, | ||||||
20 | reports and other
information and comply with such directives. | ||||||
21 | If the State Board of Education
determines that a district has | ||||||
22 | failed to comply with its financial plan, the
State Board of | ||||||
23 | Education may rescind approval of the plan and appoint a
| ||||||
24 | Financial Oversight Panel for the district as provided in | ||||||
25 | Section 1B-4. This
action shall be taken only after the | ||||||
26 | district has been given notice and an
opportunity to appear |
| |||||||
| |||||||
1 | before the State Board of Education to discuss its
failure to | ||||||
2 | comply with its financial plan.
| ||||||
3 | No bonds, notes, teachers orders, tax anticipation | ||||||
4 | warrants or other
evidences of indebtedness shall be issued or | ||||||
5 | sold by a school district or
be legally binding upon or | ||||||
6 | enforceable against a local board of education
of a district | ||||||
7 | certified to be in financial difficulty unless and until the
| ||||||
8 | financial plan required under this Section has been approved by | ||||||
9 | the State
Board of Education.
| ||||||
10 | Any financial profile compiled and distributed by the State | ||||||
11 | Board of Education in Fiscal Year 2009 or any fiscal year | ||||||
12 | thereafter
shall incorporate such adjustments as may be needed | ||||||
13 | in the profile scores to reflect the financial effects of the
| ||||||
14 | inability or refusal of the State of Illinois to make timely
| ||||||
15 | disbursements of any general State aid or mandated categorical | ||||||
16 | aid payments due school districts or to fully reimburse
school | ||||||
17 | districts for mandated categorical programs pursuant to
| ||||||
18 | reimbursement formulas provided in this School Code.
| ||||||
19 | (Source: P.A. 96-668, eff. 8-25-09.)
| ||||||
20 | (105 ILCS 5/1B-8) (from Ch. 122, par. 1B-8)
| ||||||
21 | Sec. 1B-8. There is created in the State Treasury a
special | ||||||
22 | fund to be known as the School District Emergency
Financial | ||||||
23 | Assistance Fund (the "Fund"). The School District Emergency
| ||||||
24 | Financial Assistance Fund shall consist of appropriations, | ||||||
25 | loan repayments, grants from the
federal government, and |
| |||||||
| |||||||
1 | donations from any public or private source. Moneys in
the Fund
| ||||||
2 | may be appropriated only to the Illinois Finance Authority and
| ||||||
3 | the State Board for
those purposes authorized under this | ||||||
4 | Article and Articles
Article 1F and 1H of this Code.
The | ||||||
5 | appropriation may be
allocated and expended by the State Board | ||||||
6 | for contractual services as
grants to provide technical | ||||||
7 | assistance and consultation consulting services to school | ||||||
8 | districts to assess their financial condition and to Financial | ||||||
9 | Oversight Panels that petition for emergency financial | ||||||
10 | assistance grants. The and by the Illinois Finance Authority | ||||||
11 | may provide as
loans to school districts which are the subject | ||||||
12 | of an
approved petition for emergency financial assistance | ||||||
13 | under
Section 1B-4 ,
or 1F-62 , or 1H-65 of this Code. Neither | ||||||
14 | the State Board of Education nor the Illinois Finance Authority | ||||||
15 | may collect any fees for providing these services. | ||||||
16 | From the amount allocated to each such school
district | ||||||
17 | under this Article the State Board shall identify a sum | ||||||
18 | sufficient to
cover all approved costs of the Financial | ||||||
19 | Oversight Panel
established for the respective school | ||||||
20 | district. If the State Board and State
Superintendent of | ||||||
21 | Education have not approved emergency financial assistance in
| ||||||
22 | conjunction with the appointment of a Financial Oversight | ||||||
23 | Panel, the Panel's
approved costs shall be paid from deductions | ||||||
24 | from the district's general State
aid.
| ||||||
25 | The Financial Oversight Panel may prepare and file
with the | ||||||
26 | State Superintendent a proposal for emergency
financial |
| |||||||
| |||||||
1 | assistance for the school district and for its
operations | ||||||
2 | budget. No expenditures shall be
authorized by the State | ||||||
3 | Superintendent until he or she has approved
the proposal of the | ||||||
4 | Panel, either as submitted or in such
lesser amount determined | ||||||
5 | by the State Superintendent.
| ||||||
6 | The maximum amount of an emergency financial assistance | ||||||
7 | loan
which may be allocated to any school district under this
| ||||||
8 | Article, including moneys necessary for the operations of
the | ||||||
9 | Panel, shall not exceed $4,000 times the number of pupils
| ||||||
10 | enrolled in the school district during the school year
ending | ||||||
11 | June 30 prior to the date of approval by the State
Board of the | ||||||
12 | petition for emergency financial assistance, as
certified to | ||||||
13 | the local board and the Panel by the State
Superintendent.
An | ||||||
14 | emergency financial assistance grant shall not exceed $1,000 | ||||||
15 | times the
number of such pupils. A district may receive both a | ||||||
16 | loan and a grant.
| ||||||
17 | The payment of an emergency State financial assistance | ||||||
18 | grant or loan
shall be subject to appropriation by the General | ||||||
19 | Assembly.
Emergency State financial assistance allocated and | ||||||
20 | paid to a school
district under this Article may be applied to | ||||||
21 | any fund or funds from which
the local board of education of | ||||||
22 | that district is authorized to make
expenditures by law.
| ||||||
23 | Any emergency financial assistance proposed by the
| ||||||
24 | Financial Oversight Panel and approved by the State
| ||||||
25 | Superintendent may be paid in its entirety during the
initial | ||||||
26 | year of the Panel's existence or spread in equal or
declining |
| |||||||
| |||||||
1 | amounts over a period of years not to exceed the
period of the | ||||||
2 | Panel's existence. All
loan payments made from the School | ||||||
3 | District Emergency Financial
Assistance Fund for a
school | ||||||
4 | district shall be required to be repaid, with simple interest | ||||||
5 | over
the term of the loan at a rate equal to 50% of the one-year | ||||||
6 | Constant Maturity
Treasury (CMT) yield as last published by the | ||||||
7 | Board of Governors of the Federal
Reserve System before the | ||||||
8 | date on which the district's loan is
approved
by the State | ||||||
9 | Board of Education, not later than the
date the
Financial | ||||||
10 | Oversight Panel ceases to exist. The Panel shall
establish and | ||||||
11 | the Illinois Finance Authority shall
approve the terms and | ||||||
12 | conditions, including the schedule, of
repayments. The | ||||||
13 | schedule shall provide for repayments
commencing July 1 of each | ||||||
14 | year or upon each fiscal year's receipt of moneys from a tax | ||||||
15 | levy for emergency financial assistance. Repayment shall be | ||||||
16 | incorporated into the
annual budget of the school district and | ||||||
17 | may be made from any fund or funds
of the district in which | ||||||
18 | there are moneys available. Default on repayment is subject to | ||||||
19 | the Illinois Grant Funds Recovery Act. When moneys are repaid
| ||||||
20 | as provided herein they shall not be made available to the | ||||||
21 | local board for
further use as emergency financial assistance | ||||||
22 | under this Article at any
time thereafter. All repayments | ||||||
23 | required to be made by a school district
shall be received by | ||||||
24 | the State Board and deposited in the School District
Emergency | ||||||
25 | Financial Assistance Fund.
| ||||||
26 | In establishing the terms and conditions for the
repayment |
| |||||||
| |||||||
1 | obligation of the school district the Panel shall
annually | ||||||
2 | determine whether a separate local property tax levy is
| ||||||
3 | required. The board of any school district with a tax rate
for | ||||||
4 | educational purposes for the prior year of less than
120% of | ||||||
5 | the maximum rate for educational purposes authorized
by Section | ||||||
6 | 17-2 shall provide for a separate
tax levy for emergency | ||||||
7 | financial assistance repayment
purposes. Such tax levy shall | ||||||
8 | not be subject to referendum approval. The
amount of the levy | ||||||
9 | shall be equal to the
amount necessary to meet the annual | ||||||
10 | repayment obligations of
the district as established by the | ||||||
11 | Panel, or 20% of the
amount levied for educational purposes for | ||||||
12 | the prior year,
whichever is less. However, no district shall | ||||||
13 | be
required to levy the tax if the district's operating tax
| ||||||
14 | rate as determined under Section
18-8 or 18-8.05 exceeds 200% | ||||||
15 | of the district's tax rate for educational
purposes for the | ||||||
16 | prior year.
| ||||||
17 | (Source: P.A. 94-234, eff. 7-1-06 .)
| ||||||
18 | (105 ILCS 5/Art. 1H heading new)
| ||||||
19 | ARTICLE 1H. FINANCIAL OVERSIGHT PANELS | ||||||
20 | (105 ILCS 5/1H-1 new) | ||||||
21 | Sec. 1H-1. Short title. This Article may be cited as the | ||||||
22 | Financial Oversight Panel Law. | ||||||
23 | (105 ILCS 5/1H-5 new) |
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1 | Sec. 1H-5. Findings; purpose; intent. | ||||||
2 | (a) The General Assembly finds all of the following: | ||||||
3 | (1) A fundamental goal of the people of this State, as | ||||||
4 | expressed in Section 1 of Article X of the Illinois | ||||||
5 | Constitution, is the educational development of all | ||||||
6 | persons to the limits of their capacities. When a board of | ||||||
7 | education faces financial difficulties, continued | ||||||
8 | operation of the public school system is threatened. | ||||||
9 | (2) A sound financial structure is essential to the | ||||||
10 | continued operation of any school system. It is vital to | ||||||
11 | commercial, educational, and cultural interests that | ||||||
12 | public schools remain in operation. To achieve that goal, | ||||||
13 | public school systems must have effective access to the | ||||||
14 | private market to borrow short and long term funds. | ||||||
15 | (3) To promote the financial integrity of districts, as | ||||||
16 | defined in this Article, it is necessary to provide for the | ||||||
17 | creation of financial oversight panels with the powers | ||||||
18 | necessary to promote sound financial management and to | ||||||
19 | ensure the continued operation of the public schools. | ||||||
20 | (b) It is the purpose of this Article to provide a secure | ||||||
21 | financial basis for the continued operation of public schools. | ||||||
22 | The intention of the General Assembly, in creating this | ||||||
23 | Article, is to establish procedures, provide powers, and impose | ||||||
24 | restrictions to ensure the financial and educational integrity | ||||||
25 | of the public schools, while leaving principal responsibility | ||||||
26 | for the educational policies of public schools to the boards of |
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| |||||||
1 | education within the State, consistent with the requirements | ||||||
2 | for satisfying the public policy and purpose set forth in this | ||||||
3 | Article.
| ||||||
4 | (105 ILCS 5/1H-10 new) | ||||||
5 | Sec. 1H-10. Definitions. As used in this Article: | ||||||
6 | "Bonds" means bonds authorized to be issued by the Panel | ||||||
7 | under Section 1H-70 of this Code. | ||||||
8 | "Budget" means the annual budget of the district required | ||||||
9 | under Section 17-1 of this Code, as in effect from time to | ||||||
10 | time. | ||||||
11 | "Chairperson" means the Chairperson of the Panel. | ||||||
12 | "District" means any school district having a population of | ||||||
13 | not more than 500,000 that has had a Financial Oversight Panel | ||||||
14 | established under this Article. | ||||||
15 | "Financial plan" means the financial plan of the district | ||||||
16 | to be developed pursuant to this Article, as in effect from | ||||||
17 | time to time. | ||||||
18 | "Fiscal year" means the fiscal year of the district. | ||||||
19 | "Obligations" means bonds and notes of the Panel. | ||||||
20 | "Panel" means a Financial Oversight Panel created under | ||||||
21 | this Article. | ||||||
22 | "State Board" means the State Board of Education. | ||||||
23 | "State Superintendent" means the State Superintendent of | ||||||
24 | Education. |
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| |||||||
1 | (105 ILCS 5/1H-15 new) | ||||||
2 | Sec. 1H-15. Establishment of Financial Oversight Panels; | ||||||
3 | duties of district. | ||||||
4 | (a) A school district may petition the State Board for the | ||||||
5 | establishment of a Financial Oversight Panel for the district. | ||||||
6 | The petition shall cite the reasons why the creation of a | ||||||
7 | Financial Oversight Panel for the district is necessary. The | ||||||
8 | State Board may grant the petition upon determining that the | ||||||
9 | approval of the petition is in the best educational and | ||||||
10 | financial interests of the district. The State Board may | ||||||
11 | establish a Financial Oversight Panel without a petition for a | ||||||
12 | school district deemed to be in financial difficulty pursuant | ||||||
13 | to Section 1A-8 of this Code. | ||||||
14 | (b) Upon establishment of a Financial Oversight Panel, all | ||||||
15 | of the following shall occur: | ||||||
16 | (1) There is established a body both corporate and | ||||||
17 | politic to be known as the "(Name of School District) | ||||||
18 | Financial Oversight Panel", which in this name shall | ||||||
19 | exercise all authority vested in a Panel by this Article. | ||||||
20 | (2) The duties and obligations of the districts under | ||||||
21 | Financial Oversight Panels established pursuant to this | ||||||
22 | Article shall be the same duties and obligations of | ||||||
23 | districts under Financial Oversight Panels established | ||||||
24 | under Article 1B of this Code. | ||||||
25 | (c) In the event of a conflict between the provisions of | ||||||
26 | this Article and the provisions of Article 1B of this Code, the |
| |||||||
| |||||||
1 | provisions of this Article control. | ||||||
2 | (d) Any school district having a Financial Oversight Panel | ||||||
3 | established under Article 1B of this Code or any Financial | ||||||
4 | Oversight Panel established under Article 1B may petition the | ||||||
5 | State Board for the establishment of a Financial Oversight | ||||||
6 | Panel under this Article and concurrent dissolution of the | ||||||
7 | Article 1B Panel. All records, papers, books, funds, or other | ||||||
8 | assets or liabilities belonging to the dissolving Financial | ||||||
9 | Oversight Panel shall be transferred to the newly established | ||||||
10 | Financial Oversight Panel. | ||||||
11 | (105 ILCS 5/1H-20 new) | ||||||
12 | Sec. 1H-20. Members of Panel; meetings. | ||||||
13 | (a) Upon establishment of a Financial Oversight Panel under | ||||||
14 | Section 1H-15 of this Code, the State Superintendent shall | ||||||
15 | within 15 working days thereafter appoint 5 members to serve on | ||||||
16 | a Financial Oversight Panel for the district. Members appointed | ||||||
17 | to the Panel shall serve at the pleasure of the State | ||||||
18 | Superintendent. The State Superintendent shall designate one | ||||||
19 | of the members of the Panel to serve as its Chairperson. In the | ||||||
20 | event of vacancy or resignation, the State Superintendent | ||||||
21 | shall, within 10 working days after receiving notice, appoint a | ||||||
22 | successor to serve out that member's term. The State | ||||||
23 | Superintendent may remove a member for incompetence, | ||||||
24 | malfeasance, neglect of duty, or other just cause. | ||||||
25 | (b) Members of the Panel shall be selected primarily on the |
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1 | basis of their experience and education in financial | ||||||
2 | management, with consideration given to persons knowledgeable | ||||||
3 | in education finance. Two members of the Panel shall be | ||||||
4 | residents of the school district that the Panel serves. A | ||||||
5 | member of the Panel may not be a member of the district's | ||||||
6 | school board or an employee of the district nor may a member | ||||||
7 | have a direct financial interest in the district. | ||||||
8 | (c) Panel members may be reimbursed by the State Board for | ||||||
9 | travel and other necessary expenses incurred in the performance | ||||||
10 | of their official duties. Unless paid from bonds issued under | ||||||
11 | Section 1H-70 of this Code, the amount reimbursed members for | ||||||
12 | their expenses shall be charged to the school district as part | ||||||
13 | of any emergency financial assistance and incorporated as a | ||||||
14 | part of the terms and conditions for repayment of the | ||||||
15 | assistance or shall be deducted from the district's general | ||||||
16 | State aid as provided in Section 1H-65 of this Code. | ||||||
17 | (d) With the exception of the chairperson, who shall be | ||||||
18 | designated as provided in subsection (a) of this Section, the | ||||||
19 | Panel may elect such officers as it deems appropriate. | ||||||
20 | (e) The first meeting of the Panel shall be held at the | ||||||
21 | call of the Chairperson. The Panel shall prescribe the times | ||||||
22 | and places for its meetings and the manner in which regular and | ||||||
23 | special meetings may be called and shall comply with the Open | ||||||
24 | Meetings Act. | ||||||
25 | (f) Three members of the Panel shall constitute a quorum. A | ||||||
26 | majority of members present is required to pass a measure. |
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| |||||||
1 | (105 ILCS 5/1H-25 new) | ||||||
2 | Sec. 1H-25. General powers. The purposes of the Panel shall | ||||||
3 | be to exercise financial control over the district and to | ||||||
4 | furnish financial assistance so that the district can provide | ||||||
5 | public education within the district's jurisdiction while | ||||||
6 | permitting the district to meet its obligations to its | ||||||
7 | creditors and the holders of its debt. Except as expressly | ||||||
8 | limited by this Article, the Panel shall have all powers | ||||||
9 | granted to a voluntary or involuntary Financial Oversight Panel | ||||||
10 | and to a Financial Administrator under Article 1B of this Code | ||||||
11 | and all other powers necessary to meet its responsibilities and | ||||||
12 | to carry out its purposes and the purposes of this Article, | ||||||
13 | including without limitation all of the following powers, | ||||||
14 | provided that the Panel shall have no power to terminate any | ||||||
15 | employee without following the statutory procedures for such | ||||||
16 | terminations set forth in this Code, nor to incur debt or | ||||||
17 | otherwise take action to lease, buy, or build or otherwise | ||||||
18 | acquire additional school buildings or grounds without front | ||||||
19 | door referenda approval under Sections 19-2 through 19-7 of | ||||||
20 | this Code: | ||||||
21 | (1) To sue and to be sued. | ||||||
22 | (2) To make, cancel, modify, and execute contracts, | ||||||
23 | leases, subleases, and all other instruments or agreements | ||||||
24 | necessary or convenient for the exercise of the powers and | ||||||
25 | functions granted by this Article, subject to Section 1H-45 |
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| |||||||
1 | of this Code. The Panel may at a regular or special meeting | ||||||
2 | find that the district has insufficient or inadequate funds | ||||||
3 | with respect to any contract; however, final collective | ||||||
4 | bargaining agreements may not be cancelled or modified | ||||||
5 | without the express written consent of the exclusive | ||||||
6 | bargaining representative and the Panel. | ||||||
7 | (3) To purchase real or personal property necessary or | ||||||
8 | convenient for its purposes; to execute and deliver deeds | ||||||
9 | for real property held in its own name; and to sell, lease, | ||||||
10 | or otherwise dispose of such of its property as, in the | ||||||
11 | judgment of the Panel, is no longer necessary for its | ||||||
12 | purposes. | ||||||
13 | (4) To employ officers, agents, and employees of the | ||||||
14 | Panel; to define their duties and qualifications; and to | ||||||
15 | fix their compensation and benefits. | ||||||
16 | (5) To transfer to the district such sums of money as | ||||||
17 | are not required for other purposes. | ||||||
18 | (6) To borrow money, including without limitation | ||||||
19 | accepting State loans, and to issue obligations pursuant to | ||||||
20 | this Article; to fund, refund, or advance refund the same; | ||||||
21 | to provide for the rights of the holders of its | ||||||
22 | obligations; and to repay any advances. | ||||||
23 | (7) To levy all property tax levies that otherwise | ||||||
24 | could be levied by the district, and to make levies | ||||||
25 | pursuant to Section 1H-65 of this Code. This levy or levies | ||||||
26 | shall be exempt from the Truth in Taxation Law. |
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| |||||||
1 | (8) Subject to the provisions of any contract with or | ||||||
2 | for the benefit of the holders of its obligations, to | ||||||
3 | purchase or redeem its obligations. | ||||||
4 | (9) To procure all necessary goods and services for the | ||||||
5 | Panel in compliance with the purchasing laws and | ||||||
6 | requirements applicable to the district. | ||||||
7 | (10) To do any and all things necessary or convenient | ||||||
8 | to carry out its purposes and exercise the powers given to | ||||||
9 | it by this Article. | ||||||
10 | (11) To recommend any type of reorganization of the | ||||||
11 | district, in whole or in part, pursuant to Article 7 or 11E | ||||||
12 | of this Code or Section 10-22.22b or 10-22.22c of this | ||||||
13 | Code, to the State Board if in the Panel's judgment the | ||||||
14 | circumstances so require. No such proposal for | ||||||
15 | reorganization shall occur unless the Panel and the school | ||||||
16 | boards of all other districts directly affected by the | ||||||
17 | reorganization have each approved by majority vote the | ||||||
18 | reorganization. Upon approval by the Panel and all other | ||||||
19 | districts directly affected and notwithstanding any other | ||||||
20 | law to the contrary, upon approval of the proposal by the | ||||||
21 | State Board, by a majority vote, the State Board and all | ||||||
22 | other affected entities shall forthwith implement the | ||||||
23 | proposal in accordance with applicable provisions of this | ||||||
24 | Code. | ||||||
25 | (105 ILCS 5/1H-30 new) |
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| |||||||
1 | Sec. 1H-30. Chief executive officer. The Panel may employ a | ||||||
2 | chief executive officer who, under the direction of the Panel, | ||||||
3 | shall supervise the Panel's staff, including the chief | ||||||
4 | educational officer and the chief fiscal officer, and shall | ||||||
5 | have ultimate responsibility for implementing the policies, | ||||||
6 | procedures, directives, and decisions of the Panel. The chief | ||||||
7 | executive officer shall have the authority to determine the | ||||||
8 | agenda and order of business at school board meetings, as | ||||||
9 | needed in order to carry forward and implement the objectives | ||||||
10 | and priorities of the school board and Financial Oversight | ||||||
11 | Panel in the administration and management of the district. The | ||||||
12 | chief executive officer is not required to hold any certificate | ||||||
13 | issued under Article 21 of this Code. The chief executive | ||||||
14 | officer shall have the powers and duties as assigned by the | ||||||
15 | Panel in accordance with this Code. | ||||||
16 | (105 ILCS 5/1H-35 new) | ||||||
17 | Sec. 1H-35. Chief educational officer. The Panel may at a | ||||||
18 | regular or special meeting find that cause exists to cancel the | ||||||
19 | contract of the school district's superintendent who is serving | ||||||
20 | at the time the Panel is established for the same reasons and | ||||||
21 | in the same manner as the school board may cancel the contract. | ||||||
22 | If there is no superintendent, then the Panel may employ a | ||||||
23 | chief educational officer for the district, who shall have all | ||||||
24 | of the powers and duties of a school district superintendent | ||||||
25 | under this Code and such other duties as may be assigned by the |
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1 | Panel in accordance with this Code. The chief educational | ||||||
2 | officer shall report to the Panel or the chief executive | ||||||
3 | officer employed by the Panel. The district shall not | ||||||
4 | thereafter employ a superintendent during the period that a | ||||||
5 | chief educational officer is serving in the district. The chief | ||||||
6 | educational officer is not required to hold any certificate | ||||||
7 | issued under Article 21 of this Code. | ||||||
8 | (105 ILCS 5/1H-40 new) | ||||||
9 | Sec. 1H-40. Chief fiscal officer. The Panel may employ a | ||||||
10 | chief fiscal officer who, under the direction of the Panel or | ||||||
11 | the chief executive officer employed by the Panel, shall have | ||||||
12 | all of the powers and duties of the district's chief school | ||||||
13 | business official and any other duties regarding budgeting, | ||||||
14 | accounting, and other financial matters that are assigned by | ||||||
15 | the Panel, in accordance with this Code. The district may not | ||||||
16 | employ a chief school business official during the period that | ||||||
17 | the chief fiscal officer is serving in the district. The chief | ||||||
18 | fiscal officer is not required to hold a certificate issued | ||||||
19 | under Article 21 of this Code. | ||||||
20 | (105 ILCS 5/1H-41 new)
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21 | Sec. 1H-41. Superintendent. The Panel may employ a | ||||||
22 | superintendent who, under the direction of the Panel or the | ||||||
23 | chief executive officer employed by the Panel, shall have all | ||||||
24 | of the powers and duties of a school district superintendent |
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1 | under this Code assigned by the Panel and such other duties as | ||||||
2 | may be assigned by the Panel in accordance with this Code. The | ||||||
3 | superintendent shall report to the Panel or the chief executive | ||||||
4 | officer employed by the Panel. The superintendent shall hold a | ||||||
5 | certificate with a superintendent endorsement issued under | ||||||
6 | Article 21 of this Code. | ||||||
7 | (105 ILCS 5/1H-42 new)
| ||||||
8 | Sec. 1H-42. Chief school business official. The Panel may | ||||||
9 | employ a chief school business official who, under the | ||||||
10 | direction of the Panel or the chief executive officer employed | ||||||
11 | by the Panel, shall have all of the powers and duties of a | ||||||
12 | chief school business official under this Code assigned by the | ||||||
13 | Panel and such other duties as may be assigned by the Panel in | ||||||
14 | accordance with this Code. The chief school business official | ||||||
15 | shall report to the Panel or the chief executive officer | ||||||
16 | employed by the Panel. The chief school business official shall | ||||||
17 | hold a certificate with a chief school business official | ||||||
18 | endorsement issued under Article 21 of this Code. | ||||||
19 | (105 ILCS 5/1H-43 new) | ||||||
20 | Sec. 1H-43. School treasurer. | ||||||
21 | (a) In Class I county school units and in each school | ||||||
22 | district that forms a part of a Class II county school unit but | ||||||
23 | has withdrawn from the jurisdiction and authority of the | ||||||
24 | trustees of schools of the township in which the school |
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1 | district is located and from the jurisdiction and authority of | ||||||
2 | the township treasurer in the Class II county school unit, the | ||||||
3 | Panel may, in its discretion, remove the treasurer appointed or | ||||||
4 | elected by the school board of the district and appoint a new | ||||||
5 | treasurer to succeed the removed treasurer, as provided in | ||||||
6 | Section 8-19 of this Code. | ||||||
7 | (b) In the case of a school district located in a Class II | ||||||
8 | county school unit where such school district is subject to the | ||||||
9 | jurisdiction and authority of township trustees and the | ||||||
10 | jurisdiction and authority of a township treasurer, the Panel | ||||||
11 | may, in its discretion, withdraw the district from the | ||||||
12 | jurisdiction and authority of the township trustees and the | ||||||
13 | jurisdiction and authority of the township treasurer, | ||||||
14 | notwithstanding any provision of Section 8-1 of this Code other | ||||||
15 | than subsection (f) to the contrary, and appoint or elect a | ||||||
16 | school treasurer for the school district. Subsection (f) of | ||||||
17 | Section 8-1 of this Code shall govern the transfer from the | ||||||
18 | township treasurer to the school treasurer. | ||||||
19 | (c) All school treasurers appointed or elected pursuant to | ||||||
20 | this Section are subject to the provisions of Sections 8-2 | ||||||
21 | through 8-20 of the School Code and other applicable provisions | ||||||
22 | of the School Code. | ||||||
23 | (105 ILCS 5/1H-45 new) | ||||||
24 | Sec. 1H-45. Collective bargaining agreements. The Panel | ||||||
25 | shall have the power to negotiate collective bargaining |
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| |||||||
1 | agreements with the district's employees in lieu of and on | ||||||
2 | behalf of the district. Upon concluding bargaining, the | ||||||
3 | district shall execute the agreements negotiated by the Panel, | ||||||
4 | and the district and the Panel shall be bound by and shall | ||||||
5 | administer the agreements in all respects as if the agreements | ||||||
6 | had been negotiated by the district itself. | ||||||
7 | (105 ILCS 5/1H-50 new) | ||||||
8 | Sec. 1H-50. Deposits and investments. | ||||||
9 | (a) The Panel shall have the power to establish checking | ||||||
10 | and whatever other banking accounts it may deem appropriate for | ||||||
11 | conducting its affairs. | ||||||
12 | (b) Subject to the provisions of any contract with or for | ||||||
13 | the benefit of the holders of its obligations, the Panel may | ||||||
14 | invest any funds not required for immediate use or | ||||||
15 | disbursement, as provided in the Public Funds Investment Act. | ||||||
16 | (105 ILCS 5/1H-55 new) | ||||||
17 | Sec. 1H-55. Cash accounts and bank accounts. | ||||||
18 | (a) The Panel shall require the district or any officer of | ||||||
19 | the district, including the district's treasurer, to establish | ||||||
20 | and maintain separate cash accounts and separate bank accounts | ||||||
21 | in accordance with such rules, standards, and procedures as the | ||||||
22 | Panel may prescribe. | ||||||
23 | (b) The Panel shall have the power to assume exclusive | ||||||
24 | administration of the cash accounts and bank accounts of the |
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| |||||||
1 | district, to establish and maintain whatever new cash accounts | ||||||
2 | and bank accounts it may deem appropriate, and to withdraw | ||||||
3 | funds from these accounts for the lawful expenditures of the | ||||||
4 | district. | ||||||
5 | (105 ILCS 5/1H-60 new) | ||||||
6 | Sec. 1H-60. Financial, management, and budgetary | ||||||
7 | structure. Upon direction of the Panel, the district shall | ||||||
8 | reorganize the financial accounts, management, and budgetary | ||||||
9 | systems of the district in whatever manner that is consistent | ||||||
10 | with the rules adopted by the State Board of Education | ||||||
11 | regarding accounting, budgeting, financial reporting, and | ||||||
12 | auditing as the Panel deems appropriate to achieve greater | ||||||
13 | financial responsibility and to reduce financial inefficiency. | ||||||
14 | (105 ILCS 5/1H-65 new) | ||||||
15 | Sec. 1H-65. School District Emergency Financial Assistance | ||||||
16 | Fund; grants and loans. | ||||||
17 | (a) Moneys in the School District Emergency Financial | ||||||
18 | Assistance Fund established under Section 1B-8 of this Code may | ||||||
19 | be allocated and expended by the State Board for contractual | ||||||
20 | services to provide technical assistance and consultation to | ||||||
21 | school districts to assess their financial condition or to | ||||||
22 | Panels that petition for emergency financial assistance grants | ||||||
23 | and by the Illinois Finance Authority as loans to school | ||||||
24 | districts that are the subject of an approved petition for |
| |||||||
| |||||||
1 | emergency financial assistance under Section 1B-4, 1F-62, or | ||||||
2 | 1H-65 of this Code. Neither the State Board nor the Illinois | ||||||
3 | Finance Authority may collect any fees for providing these | ||||||
4 | services. From the amount allocated to each such school | ||||||
5 | district, the State Board shall identify a sum sufficient to | ||||||
6 | cover all approved costs of the Panel established for the | ||||||
7 | respective school district. If the State Board and State | ||||||
8 | Superintendent have not approved emergency financial | ||||||
9 | assistance in conjunction with the appointment of a Panel, the | ||||||
10 | Panel's approved costs shall be paid from deductions from the | ||||||
11 | district's general State aid. An emergency financial | ||||||
12 | assistance loan to a Panel or borrowing from sources other than | ||||||
13 | the State shall not be considered as part of the calculation of | ||||||
14 | a district's debt for purposes of the limitation specified in | ||||||
15 | Section 19-1 of this Code. | ||||||
16 | (b) The Panel may prepare and file with the State | ||||||
17 | Superintendent a proposal for emergency financial assistance | ||||||
18 | for the district and for its operations budget. The State | ||||||
19 | Superintendent may not authorize any expenditures until he or | ||||||
20 | she has approved the proposal of the Panel, either as submitted | ||||||
21 | or in such lesser amount as determined by the State | ||||||
22 | Superintendent. A district may receive both a loan and a grant. | ||||||
23 | State emergency financial assistance allocated and paid to a | ||||||
24 | Panel under this Article may be applied to any fund or funds | ||||||
25 | from which the Panel is authorized to make expenditures by law. | ||||||
26 | Any State emergency financial assistance proposed by the Panel |
| |||||||
| |||||||
1 | and approved by the State Superintendent may be paid in its | ||||||
2 | entirety during the initial year of the Panel's existence or | ||||||
3 | spread in equal or variable amounts over a period of years not | ||||||
4 | to exceed the period of the Panel's existence. | ||||||
5 | (c) The amount of an emergency financial assistance grant | ||||||
6 | that may be allocated to a Panel under this Article must not | ||||||
7 | exceed $1,000 times the number of pupils enrolled in the | ||||||
8 | district during the school year ending June 30 prior to the | ||||||
9 | date of approval of the petition for emergency financial | ||||||
10 | assistance by the State Board. The payment of a State emergency | ||||||
11 | financial assistance grant is subject to appropriation by the | ||||||
12 | General Assembly. | ||||||
13 | (d) The amount of an emergency financial assistance loan | ||||||
14 | that may be allocated to a Panel under this Article, including | ||||||
15 | (i) moneys necessary for the operations of the Panel and (ii) | ||||||
16 | borrowing from sources other than the State, must not exceed, | ||||||
17 | in the aggregate, $4,000 times the number of pupils enrolled in | ||||||
18 | the district during the school year ending June 30 prior to the | ||||||
19 | date of approval of the petition for emergency financial | ||||||
20 | assistance by the State Board. However, this limitation does | ||||||
21 | not apply to borrowing by the district secured by amounts | ||||||
22 | levied by the district prior to establishment of the Panel. The | ||||||
23 | State Superintendent may not approve any loan to the Panel | ||||||
24 | unless the Panel has been unable to borrow sufficient funds to | ||||||
25 | operate the district. | ||||||
26 | All loan payments made from the School District Emergency |
| |||||||
| |||||||
1 | Financial Assistance Fund to a Panel must be required to be | ||||||
2 | repaid not later than the date the Panel ceases to exist, with | ||||||
3 | simple interest over the term of the loan at a rate equal to | ||||||
4 | 50% of the one-year Constant Maturity Treasury (CMT) yield as | ||||||
5 | last published by the Board of Governors of the Federal Reserve | ||||||
6 | System before the date on which the Financial Oversight Panel's | ||||||
7 | loan is approved by the State Superintendent. | ||||||
8 | The Panel shall establish and the Illinois Finance | ||||||
9 | Authority shall approve the terms and conditions of the loan, | ||||||
10 | including the schedule of repayments. The schedule shall | ||||||
11 | provide for repayments commencing July 1 of each year or upon | ||||||
12 | each fiscal year's receipt of moneys from a tax levy for | ||||||
13 | emergency financial assistance. Repayment must be
incorporated | ||||||
14 | into the annual budget of the district and may be made from any | ||||||
15 | fund or funds of the district in which there are moneys | ||||||
16 | available. Default on repayment is subject to the Illinois | ||||||
17 | Grant Funds Recovery Act. When moneys are repaid as provided in | ||||||
18 | this Section, they must not be made available to the Panel for | ||||||
19 | further use as emergency financial assistance under this | ||||||
20 | Article at any time thereafter. All repayments required to be | ||||||
21 | made by a Panel shall be deposited into the School District | ||||||
22 | Emergency Financial Assistance Fund. | ||||||
23 | In establishing the terms and conditions for the repayment | ||||||
24 | obligation of the Panel, the Panel shall annually determine | ||||||
25 | whether a separate local property tax levy is required to meet | ||||||
26 | that obligation. The Financial Oversight Panel shall provide |
| |||||||
| |||||||
1 | for a separate tax levy for emergency financial assistance | ||||||
2 | repayment purposes. This tax levy is not subject to referendum | ||||||
3 | approval. The amount of the levy must not exceed the amount | ||||||
4 | necessary to meet the annual emergency financial repayment | ||||||
5 | obligations of the district, including principal and interest, | ||||||
6 | as established by the Panel, and is not subject to the | ||||||
7 | provisions of the Property Tax Extension Limitation Law. | ||||||
8 | (105 ILCS 5/1H-70 new) | ||||||
9 | Sec. 1H-70. Power to issue bonds. | ||||||
10 | (a) The Panel may incur indebtedness by the issuance of | ||||||
11 | negotiable full faith and credit general obligation bonds of | ||||||
12 | the Panel in an outstanding amount not to exceed at any time, | ||||||
13 | including existing indebtedness, 15% of the district's most | ||||||
14 | recent equalized assessed valuation, excluding Bonds of the | ||||||
15 | Panel that have been refunded, for (i) the purpose of providing | ||||||
16 | the district with moneys for ordinary and necessary | ||||||
17 | expenditures and other operational needs of the district; (ii) | ||||||
18 | payment or refunding of outstanding debt obligations or tax | ||||||
19 | anticipation warrants of the district, the proceeds of which | ||||||
20 | were used to provide financing for the district; (iii) payment | ||||||
21 | of fees for arrangements as provided in subsection (b) of | ||||||
22 | Section 1H-75 of this Code; (iv) payment of interest on Bonds; | ||||||
23 | (v) establishment of reserves to secure Bonds; (vi) the payment | ||||||
24 | of costs of issuance of Bonds; (vii) payment of principal of or | ||||||
25 | interest or redemption premium on any Bonds or notes of the |
| |||||||
| |||||||
1 | Panel; and (viii) all other expenditures of the Panel | ||||||
2 | incidental to and necessary or convenient for carrying out its | ||||||
3 | corporate purposes and powers. | ||||||
4 | (b) The Panel may from time to time (i) issue Bonds to | ||||||
5 | refund any outstanding Bonds or notes of the Panel, whether the | ||||||
6 | Bonds or notes to be refunded have or have not matured or | ||||||
7 | become redeemable, and (ii) issue Bonds partly to refund Bonds | ||||||
8 | or notes then outstanding and partly for any other purpose set | ||||||
9 | forth in this Section. | ||||||
10 | (c) Bonds issued in accordance with subsection (a) of this | ||||||
11 | Section are not subject to any other statutory limitation as to | ||||||
12 | debt, including without limitation that established by the | ||||||
13 | Local Government Debt Limitation Act, and may be issued without | ||||||
14 | referendum. | ||||||
15 | (105 ILCS 5/1H-75 new) | ||||||
16 | Sec. 1H-75. Terms of bonds. | ||||||
17 | (a) Whenever the Panel desires or is required to issue | ||||||
18 | Bonds as provided in this Article, it shall adopt a resolution | ||||||
19 | designating the amount of the Bonds to be issued, the purposes | ||||||
20 | for which the proceeds of the Bonds are to be used, and the | ||||||
21 | manner in which the proceeds shall be held pending the | ||||||
22 | application thereof. The Bonds shall be issued in the corporate | ||||||
23 | name of the Panel and shall bear such date or dates and shall | ||||||
24 | mature at such time or times, not exceeding 20 years from their | ||||||
25 | date, as the resolution may provide. The Bonds may be issued as |
| |||||||
| |||||||
1 | serial bonds payable in installments, as term bonds with | ||||||
2 | sinking fund installments, or as a combination of these as the | ||||||
3 | Panel may determine in the resolution. The Bonds shall be in | ||||||
4 | such denominations as the Panel may determine. The Bonds shall | ||||||
5 | be in such form, carry such registration privileges, be | ||||||
6 | executed in such manner, be payable at such place or places, | ||||||
7 | and be subject to such terms of redemption at such redemption | ||||||
8 | prices, including premium, as the resolution may provide. The | ||||||
9 | Bonds shall be sold by the Panel at public or private sale, as | ||||||
10 | determined by the Panel. | ||||||
11 | (b) In connection with the issuance of its Bonds, the Panel | ||||||
12 | may enter into arrangements to provide additional security and | ||||||
13 | liquidity for the Bonds. These may include without limitation | ||||||
14 | municipal bond insurance, letters of credit, lines of credit by | ||||||
15 | which the Panel may borrow funds to pay or redeem its Bonds, | ||||||
16 | and purchase or remarketing arrangements for ensuring the | ||||||
17 | ability of owners of the Panel's Bonds to sell their Bonds or | ||||||
18 | to have their Bonds redeemed. The Panel may enter into | ||||||
19 | contracts and may agree to pay fees to persons providing the | ||||||
20 | arrangements, including from Bond proceeds, but only under | ||||||
21 | circumstances in which the total interest paid or to be paid on | ||||||
22 | the Bonds, together with the fees for the arrangements (being | ||||||
23 | treated as if interest), would not, taken together, cause the | ||||||
24 | Bonds to bear interest, calculated to their absolute maturity, | ||||||
25 | at a rate in excess of the maximum rate allowed by law. | ||||||
26 | The resolution of the Panel authorizing the issuance of its |
| |||||||
| |||||||
1 | Bonds may provide that interest rates may vary from time to | ||||||
2 | time depending upon criteria established by the Panel, which | ||||||
3 | may include without limitation a variation in interest rates as | ||||||
4 | may be necessary to cause the Bonds to be remarketable from | ||||||
5 | time to time at a price equal to their principal amount, and | ||||||
6 | may provide for appointment of a national banking association, | ||||||
7 | bank, trust company, investment banker, or other financial | ||||||
8 | institution to serve as a remarketing agent in that connection. | ||||||
9 | The resolution of the Panel authorizing the issuance of its | ||||||
10 | Bonds may provide that alternative interest rates or provisions | ||||||
11 | shall apply during such times as the Bonds are held by a person | ||||||
12 | providing a letter of credit or other credit enhancement | ||||||
13 | arrangement for those Bonds. | ||||||
14 | (105 ILCS 5/1H-80 new) | ||||||
15 | Sec. 1H-80. Tax levy. | ||||||
16 | (a) Before or at the time of issuing any Bonds, the Panel | ||||||
17 | shall provide by resolution for the levy and collection of a | ||||||
18 | direct annual tax upon all the taxable property located within | ||||||
19 | the district, without limit as to rate or amount, sufficient to | ||||||
20 | pay and discharge the principal thereof at maturity or on | ||||||
21 | sinking fund installment dates and to pay the interest thereon | ||||||
22 | as it falls due. The taxes as levied shall also include | ||||||
23 | additional amounts to the extent that the collections in the | ||||||
24 | prior years were insufficient to pay and discharge the | ||||||
25 | principal thereof at maturity, sinking fund installments, if |
| |||||||
| |||||||
1 | any, and interest thereon as it fell due, and the amount so | ||||||
2 | collected shall be placed in the debt service reserve fund. The | ||||||
3 | tax shall be in addition to and exclusive of the maximum of all | ||||||
4 | taxes that the Panel or the district is authorized by law to | ||||||
5 | levy for any and all school purposes. The resolution shall be | ||||||
6 | in force upon its adoption. | ||||||
7 | (b) The levy shall be for the sole benefit of the holders | ||||||
8 | of the Bonds, and the holders of the Bonds shall have a | ||||||
9 | security interest in and lien upon all rights, claims, and | ||||||
10 | interests of the Panel arising pursuant to the levy and all | ||||||
11 | present and future proceeds of the levy until the principal of | ||||||
12 | and sinking fund installments and interest on the Bonds are | ||||||
13 | paid in full. All proceeds from the levy shall be deposited by | ||||||
14 | each county collector directly into the debt service fund | ||||||
15 | established pursuant to Section 1H-85 of this Code, shall be | ||||||
16 | applied solely for the payment of principal of and sinking fund | ||||||
17 | installments and interest on the Bonds, and shall not be used | ||||||
18 | for any other purpose. | ||||||
19 | (c) Upon the filing in the office of the county clerk of | ||||||
20 | each county where the school district is located of a duly | ||||||
21 | certified copy of the resolution, it shall be the duty of each | ||||||
22 | county clerk to extend the tax provided for in the resolution, | ||||||
23 | including an amount determined by the Panel to cover loss and | ||||||
24 | cost of collection and also deferred collections and abatements | ||||||
25 | in the amount of the taxes as extended on the collectors' | ||||||
26 | books. The tax shall be separate and apart from all other taxes |
| |||||||
| |||||||
1 | of the Panel or the district and shall be separately identified | ||||||
2 | by the collectors. | ||||||
3 | (105 ILCS 5/1H-85 new) | ||||||
4 | Sec. 1H-85. Debt service fund. The Panel shall establish a | ||||||
5 | debt service fund for the Bonds, to be maintained by a paying | ||||||
6 | agent, escrow agent, depository, or corporate trustee, which | ||||||
7 | may be any trust company or bank having the power of a trust | ||||||
8 | company within this State, separate and segregated from all | ||||||
9 | other funds and accounts of the Panel and the district. All | ||||||
10 | moneys on deposit in the debt service fund shall be held in | ||||||
11 | trust in the debt service fund for the benefit of the holders | ||||||
12 | of the Bonds, shall be applied solely for the payment of the | ||||||
13 | principal of and sinking fund installment, redemption premium, | ||||||
14 | if any, and interest on the Bonds, and shall not be used for | ||||||
15 | any other purpose. The holders of the Bonds shall have a | ||||||
16 | security interest in and lien upon all such moneys. | ||||||
17 | (105 ILCS 5/1H-90 new) | ||||||
18 | Sec. 1H-90. Debt service reserve fund. | ||||||
19 | (a) The Panel may create and establish a debt service | ||||||
20 | reserve fund to be maintained by a paying agent, escrow agent, | ||||||
21 | depository, or corporate trustee, which may be any trust | ||||||
22 | company or bank having the power of a trust company within the | ||||||
23 | State, separate and segregated from all other funds and | ||||||
24 | accounts of the Panel. The Panel may pay the following into the |
| |||||||
| |||||||
1 | debt service reserve fund: | ||||||
2 | (1) any proceeds from the sale of Bonds to the extent | ||||||
3 | provided in the resolution authorizing the issuance of the | ||||||
4 | Bonds; and | ||||||
5 | (2) any other moneys that may be available to the Panel | ||||||
6 | for the purpose of the fund. | ||||||
7 | (b) The amount to be accumulated in the debt service | ||||||
8 | reserve fund shall be determined by the Panel, but shall not | ||||||
9 | exceed the maximum amount of interest, principal, and sinking | ||||||
10 | fund installments due in any succeeding calendar year. | ||||||
11 | (c) All moneys on deposit in the debt service reserve fund | ||||||
12 | shall be held in trust for the benefit of the holders of the | ||||||
13 | Bonds, shall be applied solely for the payment of principal of | ||||||
14 | and sinking fund installments and interest on the Bonds to the | ||||||
15 | extent not paid from the debt service fund, and shall not be | ||||||
16 | used for any other purpose. | ||||||
17 | (d) Any moneys in the debt service reserve fund in excess | ||||||
18 | of the amount determined by the Panel pursuant to a resolution | ||||||
19 | authorizing the issuance of Bonds may be withdrawn by the Panel | ||||||
20 | and used for any of its lawful purposes. | ||||||
21 | (e) In computing the amount of the debt service reserve | ||||||
22 | fund, investments shall be valued as the Panel provides in the | ||||||
23 | resolution authorizing the issuance of the Bonds. | ||||||
24 | (105 ILCS 5/1H-95 new) | ||||||
25 | Sec. 1H-95. Bond anticipation notes. |
| |||||||
| |||||||
1 | (a) After the issuance of Bonds has been authorized, the | ||||||
2 | Panel shall have power to issue from time to time, pursuant to | ||||||
3 | a resolution or resolutions of the Panel, negotiable bond | ||||||
4 | anticipation notes of the Panel in anticipation of the issuance | ||||||
5 | of Bonds. | ||||||
6 | (b) Bond anticipation notes shall mature not later than 2 | ||||||
7 | years after the date of issuance, may be made redeemable prior | ||||||
8 | to their maturity, and may be sold in such manner, in such | ||||||
9 | denominations, and at such price or prices and shall bear | ||||||
10 | interest at such rate or rates not to exceed the maximum annual | ||||||
11 | rate authorized by law as a resolution authorizing the issuance | ||||||
12 | of the bond anticipation notes may provide. | ||||||
13 | (c) The bond anticipation notes may be made payable as to | ||||||
14 | both principal and interest from the proceeds of the Bonds. The | ||||||
15 | Panel may provide for payment of interest on the bond | ||||||
16 | anticipation notes from direct annual taxes upon all of the | ||||||
17 | taxable property located within the district that are | ||||||
18 | authorized to be levied annually for that purpose, without | ||||||
19 | limit as to rate or amount, sufficient to pay the interest as | ||||||
20 | it falls due, in the manner, subject to the security interest | ||||||
21 | and lien, and with the effect provided in Section 1H-80 of this | ||||||
22 | Code. | ||||||
23 | (d) The Panel is authorized to issue renewal notes in the | ||||||
24 | event it is unable to issue Bonds to pay outstanding bond | ||||||
25 | anticipation notes, on terms the Panel deems reasonable. | ||||||
26 | (e) A debt service fund shall be established in the manner |
| |||||||
| |||||||
1 | provided in Section 1H-85 of this Code by the Panel for the | ||||||
2 | bond anticipation notes, and the proceeds of any tax levy made | ||||||
3 | pursuant to this Section shall be deposited into the fund upon | ||||||
4 | receipt. | ||||||
5 | (105 ILCS 5/1H-100 new) | ||||||
6 | Sec. 1H-100. Vesting powers in trustee or other authorized | ||||||
7 | agent. The resolution authorizing issuance of the Bonds shall | ||||||
8 | vest in a trustee, paying agent, escrow agent, or depository | ||||||
9 | such rights, powers, and duties in trust as the Panel may | ||||||
10 | determine and may contain such provisions for protecting and | ||||||
11 | enforcing the rights and remedies of the holders of the Bonds | ||||||
12 | and limiting such rights and remedies as may be reasonable and | ||||||
13 | proper and not in violation of law, including covenants setting | ||||||
14 | forth the duties of the Panel in relation to the exercise of | ||||||
15 | its corporate powers and the custody, safeguarding, and | ||||||
16 | application of all moneys. The resolution shall provide for the | ||||||
17 | manner in which moneys in the various funds and accounts of the | ||||||
18 | Panel may be invested and the disposition of the earnings on | ||||||
19 | the investments. | ||||||
20 | (105 ILCS 5/1H-105 new) | ||||||
21 | Sec. 1H-105. Discharge of bonds. | ||||||
22 | (a) If the Panel pays or causes to be paid to the holders | ||||||
23 | of all Bonds then outstanding the principal, redemption price, | ||||||
24 | if any, and interest to become due on the Bonds, at the times |
| |||||||
| |||||||
1 | and in the manner stipulated therein and in the resolution | ||||||
2 | authorizing the issuance of the Bonds, then the covenants, | ||||||
3 | agreements, and other obligations of the Panel to the | ||||||
4 | Bondholders shall be discharged and satisfied. | ||||||
5 | (b) Bonds or interest installments for the payment or | ||||||
6 | redemption of which moneys have been set aside and held in | ||||||
7 | trust by the trustee or other authorized agent provided for in | ||||||
8 | Section 1H-100 of this Code, through deposit by the Panel of | ||||||
9 | funds for the payment, redemption, or otherwise, at the | ||||||
10 | maturity or redemption date, are deemed to have been paid | ||||||
11 | within the meaning and with the effect expressed in subsection | ||||||
12 | (a) of this Section. All outstanding Bonds of any series, prior | ||||||
13 | to the maturity or redemption date, are deemed to have been | ||||||
14 | paid within the meaning and with the effect expressed in | ||||||
15 | subsection (a) of this Section if (1) there has been deposited | ||||||
16 | with the trustee or other authorized agent either (A) moneys in | ||||||
17 | an amount that is sufficient or (B) direct obligations of the | ||||||
18 | United States of America the principal of and the interest on | ||||||
19 | which, when due, will provide moneys that, together with the | ||||||
20 | moneys, if any, deposited with the trustee or other authorized | ||||||
21 | agent at the same time, are sufficient to pay, when due, the | ||||||
22 | principal, sinking fund installment, or redemption price, if | ||||||
23 | applicable, of and interest due and to become due on the Bonds | ||||||
24 | on and prior to the redemption date, sinking fund installment | ||||||
25 | date, or maturity date, as the case may be, and (2) the Panel | ||||||
26 | has given the trustee or other authorized agent, in form |
| |||||||
| |||||||
1 | satisfactory to it, irrevocable instructions to give notice to | ||||||
2 | the effect and in accordance with the procedures provided in | ||||||
3 | the resolution authorizing the issuance of the Bonds. Neither | ||||||
4 | direct obligations of the United States of America, moneys | ||||||
5 | deposited with the trustee or other authorized agent, or | ||||||
6 | principal or interest payments on the securities shall be | ||||||
7 | withdrawn or used for any purpose other than, and shall be held | ||||||
8 | in trust for, the payment of the principal or redemption price, | ||||||
9 | if applicable, and interest on the Bonds. | ||||||
10 | (105 ILCS 5/1H-110 new) | ||||||
11 | Sec. 1H-110. Pledge of the State. The State of Illinois | ||||||
12 | pledges to and agrees with the holders of Bonds that the State | ||||||
13 | will not limit or alter the rights and powers vested in the | ||||||
14 | Panel by this Article with respect to the issuance of | ||||||
15 | obligations so as to impair the terms of any contract made by | ||||||
16 | the Panel with these holders or in any way impair the rights | ||||||
17 | and remedies of these holders until the Bonds, together with | ||||||
18 | interest on the Bonds, interest on any unpaid installments of | ||||||
19 | interest, and all costs and expenses in connection with any | ||||||
20 | action or proceedings by or on behalf of these holders, are | ||||||
21 | fully met and discharged or provisions made for their payment. | ||||||
22 | The Panel is authorized to include this pledge and agreement of | ||||||
23 | the State in any resolution or contract with the holders of | ||||||
24 | Bonds. |
| |||||||
| |||||||
1 | (105 ILCS 5/1H-115 new) | ||||||
2 | Sec. 1H-115. Statutory lien. Any pledge, assignment, lien, | ||||||
3 | or security interest for the benefit of the holders of Bonds or | ||||||
4 | bond anticipation notes, if any, created pursuant to this | ||||||
5 | Article are valid and binding from the time the Bonds are | ||||||
6 | issued, without any physical delivery or further act, and are | ||||||
7 | valid and binding as against and prior to any claims of all | ||||||
8 | other parties having claims of any kind in tort, contract, or | ||||||
9 | otherwise against the State, the Panel, the district, or any | ||||||
10 | other person, irrespective of whether the other parties have | ||||||
11 | notice. | ||||||
12 | (105 ILCS 5/1H-120 new) | ||||||
13 | Sec. 1H-120. State or district not liable on obligations. | ||||||
14 | Obligations shall not be deemed to constitute (i) a debt or | ||||||
15 | liability of the State, the district, or any political | ||||||
16 | subdivision of the State or district other than the Panel or | ||||||
17 | (ii) a pledge of the full faith and credit of the State, the | ||||||
18 | district, or any political subdivision of the State or district | ||||||
19 | other than the Panel but shall be payable solely from the funds | ||||||
20 | and revenues provided for in this Article. The issuance of | ||||||
21 | obligations shall not directly, indirectly, or contingently | ||||||
22 | obligate the State, the district, or any political subdivision | ||||||
23 | of the State or district other than the Panel to levy any form | ||||||
24 | of taxation therefor or to make any appropriation for their | ||||||
25 | payment. Nothing in this Section shall prevent or be construed |
| |||||||
| |||||||
1 | to prevent the Panel from pledging its full faith and credit to | ||||||
2 | the payment of obligations. Nothing in this Article shall be | ||||||
3 | construed to authorize the Panel to create a debt of the State | ||||||
4 | or the district within the meaning of the Constitution or laws | ||||||
5 | of Illinois, and all obligations issued by the Panel pursuant | ||||||
6 | to the provisions of this Article are payable and shall state | ||||||
7 | that they are payable solely from the funds and revenues | ||||||
8 | pledged for their payment in accordance with the resolution | ||||||
9 | authorizing their issuance or any trust indenture executed as | ||||||
10 | security therefor. The State or the district shall not in any | ||||||
11 | event be liable for the payment of the principal of or interest | ||||||
12 | on any obligations of the Panel or for the performance of any | ||||||
13 | pledge, obligation, or agreement of any kind whatsoever that | ||||||
14 | may be undertaken by the Panel. No breach of any such pledge, | ||||||
15 | obligation, or agreement may impose any liability upon the | ||||||
16 | State or the district or any charge upon their general credit | ||||||
17 | or against their taxing power. | ||||||
18 | (105 ILCS 5/1H-125 new) | ||||||
19 | Sec. 1H-125. Obligations as legal investments. The | ||||||
20 | obligations issued under the provisions of this Article are | ||||||
21 | hereby made securities in which all public officers and bodies | ||||||
22 | of this State, all political subdivisions of this State, all | ||||||
23 | persons carrying on an insurance business, all banks, bankers, | ||||||
24 | trust companies, savings banks, and savings associations | ||||||
25 | (including savings and loan associations, building and loan |
| |||||||
| |||||||
1 | associations, investment companies, and other persons carrying | ||||||
2 | on a banking business), and all credit unions, pension funds, | ||||||
3 | administrators, and guardians who are or may be authorized to | ||||||
4 | invest in bonds or in other obligations of the State may | ||||||
5 | properly and legally invest funds, including capital, in their | ||||||
6 | control or belonging to them. The obligations are also hereby | ||||||
7 | made securities that may be deposited with and may be received | ||||||
8 | by all public officers and bodies of the State, all political | ||||||
9 | subdivisions of the State, and public corporations for any | ||||||
10 | purpose for which the deposit of bonds or other obligations of | ||||||
11 | the State is authorized. | ||||||
12 | (105 ILCS 5/1H-130 new) | ||||||
13 | Sec. 1H-130. Complete authority. This Article, without | ||||||
14 | reference to any other law, shall be deemed full and complete | ||||||
15 | authority for the issuance of Bonds and bond anticipation notes | ||||||
16 | as provided in this Article. | ||||||
17 | (105 ILCS 5/1H-135 new) | ||||||
18 | Sec. 1H-135. Tax anticipation warrants, tax anticipation | ||||||
19 | notes, revenue anticipation certificated or notes, general | ||||||
20 | State aid anticipation certificates, and lines of credit. A | ||||||
21 | Panel shall have the same power as a school district to do the | ||||||
22 | following: | ||||||
23 | (1) issue tax anticipation warrants under Section | ||||||
24 | 17-16 of this Code; |
| |||||||
| |||||||
1 | (2) issue tax anticipation notes under the Tax | ||||||
2 | Anticipation Note Act; | ||||||
3 | (3) issue revenue anticipation certificates or notes | ||||||
4 | under the Revenue Anticipation Act; | ||||||
5 | (4) issue general State aid anticipation certificates | ||||||
6 | under Section 18-18 of this Code; and | ||||||
7 | (5) establish and utilize lines of credit under Section | ||||||
8 | 17-17 of this Code. | ||||||
9 | Tax anticipation warrants, tax anticipation notes, revenue | ||||||
10 | anticipation certificates or notes, general State aid | ||||||
11 | anticipation certificates, and lines of credit are considered | ||||||
12 | borrowing from sources other than the State and are subject to | ||||||
13 | Section 1H-65 of this Code. | ||||||
14 | (105 ILCS 5/1H-140 new) | ||||||
15 | Sec. 1H-140. Reports. | ||||||
16 | (a) The Panel, upon taking office and annually thereafter, | ||||||
17 | shall prepare and submit to the Governor, General Assembly, and | ||||||
18 | State Superintendent a report that includes the audited | ||||||
19 | financial statement for the preceding fiscal year prepared and | ||||||
20 | audited in compliance with the provisions of Sections 3-7 and | ||||||
21 | 3-15.1 of this Code, an approved financial plan, and a | ||||||
22 | statement of the major steps necessary to accomplish the | ||||||
23 | objectives of the financial plan. | ||||||
24 | (b) Annual reports must be submitted on or before March 1 | ||||||
25 | of each year. |
| |||||||
| |||||||
1 | (c) The requirement for reporting to the General Assembly | ||||||
2 | shall be satisfied by filing copies of the report as provided | ||||||
3 | in Section 3.1 of the General Assembly Organization Act and by | ||||||
4 | filing additional copies with the State Government Report | ||||||
5 | Distribution Center for the General Assembly as required under | ||||||
6 | subdivision (t) of Section 7 of the State Library Act. | ||||||
7 | (105 ILCS 5/1H-145 new) | ||||||
8 | Sec. 1H-145. Audit of Panel. The State Superintendent may | ||||||
9 | require a separate audit of the Panel, otherwise the activities | ||||||
10 | of the Panel must be included in the scope of the audit of the | ||||||
11 | school district. A copy of the audit report covering the Panel | ||||||
12 | must be submitted to the State Superintendent. | ||||||
13 | (105 ILCS 5/1H-150 new) | ||||||
14 | Sec. 1H-150. Assistance by State agencies, units of local | ||||||
15 | government, and school districts. The district shall render | ||||||
16 | such services to and permit the use of its facilities and | ||||||
17 | resources by the Panel at no charge as may be requested by the | ||||||
18 | Panel. Any State agency, unit of local government, or school | ||||||
19 | district may, within its lawful powers and duties, render such | ||||||
20 | services to the Panel as may be requested by the Panel. Upon | ||||||
21 | request of the Panel, any State agency, unit of local | ||||||
22 | government, or school district is authorized and empowered to | ||||||
23 | loan to the Panel such officers and employees as the Panel may | ||||||
24 | deem necessary in carrying out its functions and duties. |
| |||||||
| |||||||
1 | Officers and employees so transferred shall not lose or forfeit | ||||||
2 | their employment status or rights. | ||||||
3 | (105 ILCS 5/1H-155 new) | ||||||
4 | Sec. 1H-155. Property of Panel exempt from taxation. The | ||||||
5 | property of the Panel is exempt from taxation. | ||||||
6 | (105 ILCS 5/1H-160 new) | ||||||
7 | Sec. 1H-160. Sanctions. | ||||||
8 | (a) No member, officer, employee, or agent of the district | ||||||
9 | may commit the district to any contract or other obligation or | ||||||
10 | incur any liability on behalf of the district for any purpose | ||||||
11 | if the amount of the contract, obligation, or liability is in | ||||||
12 | excess of the amount authorized for that purpose then available | ||||||
13 | under the financial plan and budget then in effect. | ||||||
14 | (b) No member, officer, employee, or agent of the district | ||||||
15 | may commit the district to any contract or other obligation on | ||||||
16 | behalf of the district for the payment of money for any purpose | ||||||
17 | required to be approved by the Panel unless the contract or | ||||||
18 | other obligation has been approved by the Panel. | ||||||
19 | (c) No member, officer, employee, or agent of the district | ||||||
20 | may take any action in violation of any valid order of the | ||||||
21 | Panel, may fail or refuse to take any action required by any | ||||||
22 | such order, may prepare, present, certify, or report any | ||||||
23 | information, including any projections or estimates, for the | ||||||
24 | Panel or any of its agents that is false or misleading, or, |
| |||||||
| |||||||
1 | upon learning that any such information is false or misleading, | ||||||
2 | may fail promptly to advise the Panel or its agents. | ||||||
3 | (d) In addition to any penalty or liability under any other | ||||||
4 | law, any member, officer, employee, or agent of the district | ||||||
5 | who violates subsection (a), (b), or (c) of this Section is | ||||||
6 | subject to appropriate administrative discipline as may be | ||||||
7 | imposed by the Panel, including, if warranted, suspension from | ||||||
8 | duty without pay, removal from office, or termination of | ||||||
9 | employment. | ||||||
10 | (105 ILCS 5/1H-165 new) | ||||||
11 | Sec. 1H-165. Abolition of Panel. The Panel shall be | ||||||
12 | abolished 10 years after its creation or one year after all its | ||||||
13 | obligations issued under the provisions of this Article have | ||||||
14 | been fully paid and discharged, whichever comes later. However, | ||||||
15 | the State Board, upon recommendation of the Panel and if no | ||||||
16 | obligations are outstanding, may abolish the Panel at any time | ||||||
17 | after the Panel has been in existence for 3 years. Upon the | ||||||
18 | abolition of the Panel, all of its records shall be transferred | ||||||
19 | to the State Board and any property of the Panel shall pass to | ||||||
20 | and be vested in the State Board. | ||||||
21 | (105 ILCS 5/1H-170 new) | ||||||
22 | Sec. 1H-170. Indemnification; legal representation; | ||||||
23 | limitations of actions after abolition. | ||||||
24 | (a) The Panel may indemnify any member, officer, employee, |
| |||||||
| |||||||
1 | or agent who was or is a party or is threatened to be made a | ||||||
2 | party to any threatened, pending, or completed action, suit, or | ||||||
3 | proceeding, whether civil, criminal, administrative, or | ||||||
4 | investigative, by reason of the fact that he or she was a | ||||||
5 | member, officer, employee, or agent of the Panel, against | ||||||
6 | expenses (including attorney's fees, judgments, fines, and | ||||||
7 | amounts paid in settlement actually and reasonably incurred by | ||||||
8 | him or her in connection with the action, suit, or proceeding) | ||||||
9 | if he or she acted in good faith and in a manner that he or she | ||||||
10 | reasonably believed to be in or not opposed to the best | ||||||
11 | interests of the Panel and, with respect to any criminal action | ||||||
12 | or proceeding, had no reasonable cause to believe his or her | ||||||
13 | conduct was unlawful. The termination of any action, suit, or | ||||||
14 | proceeding by judgment, order, settlement, or conviction or | ||||||
15 | upon a plea of nolo contendere or its equivalent, shall not, of | ||||||
16 | itself, create a presumption that the person did not act in | ||||||
17 | good faith in a manner that he or she reasonably believed to be | ||||||
18 | in or not opposed to the best interests of the Panel and, with | ||||||
19 | respect to any criminal action or proceeding, had reasonable | ||||||
20 | cause to believe that his or her conduct was unlawful. | ||||||
21 | To the extent that a member, officer, employee, or agent of | ||||||
22 | the Panel has been successful, on the merits or otherwise, in | ||||||
23 | the defense of any such action, suit, or proceeding referred to | ||||||
24 | in this subsection (a) or in defense of any claim, issue, or | ||||||
25 | matter therein, he or she shall be indemnified against | ||||||
26 | expenses, including attorney's fees, actually and reasonably |
| |||||||
| |||||||
1 | incurred by him or her in connection therewith. Any such | ||||||
2 | indemnification shall be made by the Panel only as authorized | ||||||
3 | in the specific case, upon a determination that indemnification | ||||||
4 | of the member, officer, employee, or agent is proper in the | ||||||
5 | circumstances because he or she has met the applicable standard | ||||||
6 | of conduct. The determination shall be made (i) by the Panel by | ||||||
7 | a majority vote of a quorum consisting of members who are not | ||||||
8 | parties to the action, suit, or proceeding or (ii) if such a | ||||||
9 | quorum is not obtainable or, even if obtainable, a quorum of | ||||||
10 | disinterested members so directs, by independent legal counsel | ||||||
11 | in a written opinion. | ||||||
12 | Reasonable expenses incurred in defending an action, suit, | ||||||
13 | or proceeding shall be paid by the Panel in advance of the | ||||||
14 | final disposition of the action, suit, or proceeding, as | ||||||
15 | authorized by the Panel in the specific case, upon receipt of | ||||||
16 | an undertaking by or on behalf of the member, officer, | ||||||
17 | employee, or agent to repay the amount, unless it is ultimately | ||||||
18 | determined that he or she is entitled to be indemnified by the | ||||||
19 | Panel as authorized in this Section. | ||||||
20 | Any member, officer, employee, or agent against whom any | ||||||
21 | action, suit, or proceeding is brought may employ his or her | ||||||
22 | own attorney to appear on his or her behalf. | ||||||
23 | The right to indemnification accorded by this Section shall | ||||||
24 | not limit any other right to indemnification to which the | ||||||
25 | member, officer, employee, or agent may be entitled. Any rights | ||||||
26 | under this Section shall inure to the benefit of the heirs, |
| |||||||
| |||||||
1 | executors, and administrators of any member, officer, | ||||||
2 | employee, or agent of the Panel. | ||||||
3 | The Panel may purchase and maintain insurance on behalf of | ||||||
4 | any person who is or was a member, officer, employee, or agent | ||||||
5 | of the Panel against any liability asserted against him or her | ||||||
6 | and incurred by him or her in any such capacity or arising out | ||||||
7 | of his or her status as such, whether or not the Panel would | ||||||
8 | have the power to indemnify him or her against liability under | ||||||
9 | the provisions of this Section. | ||||||
10 | (b) The Panel shall be considered a State agency for | ||||||
11 | purposes of receiving representation by the Attorney General. | ||||||
12 | Members, officers, employees, and agents of the Panel shall be | ||||||
13 | entitled to representation and indemnification under the State | ||||||
14 | Employee Indemnification Act. | ||||||
15 | (c) Abolition of the Panel pursuant to Section 1H-165 of | ||||||
16 | this Code shall bar any remedy available against the Panel, its | ||||||
17 | members, employees, or agents for any right or claim existing | ||||||
18 | or any liability incurred prior to the abolition, unless the | ||||||
19 | action or other proceeding is commenced prior to the expiration | ||||||
20 | of 2 years after the date of the abolition.
| ||||||
21 | (105 ILCS 5/8-6) (from Ch. 122, par. 8-6)
| ||||||
22 | Sec. 8-6.
Custody
of school funds.
| ||||||
23 | The school treasurer shall have custody of the school funds | ||||||
24 | and shall
keep in a cash book separate cash balances. In the | ||||||
25 | cash book he shall enter in
separate accounts the balance, |
| |||||||
| |||||||
1 | total of all moneys received in each fund,
and the total of the | ||||||
2 | orders countersigned or checks signed with respect to each | ||||||
3 | fund, and extend the balances and the aggregate cash balance | ||||||
4 | for all funds
balance at least monthly. The treasurer and shall | ||||||
5 | reconcile such balances balance with the
accounting or | ||||||
6 | bookkeeping department of the district in conformity with a | ||||||
7 | template provided by the State Board of Education monthly, and | ||||||
8 | a copy of such a reconciliation must be submitted by the school | ||||||
9 | board to the State Board of Education within 30 days after | ||||||
10 | receipt from the treasurer .
| ||||||
11 | (Source: Laws 1961, p. 31.)
| ||||||
12 | (105 ILCS 5/10-16.9 new) | ||||||
13 | Sec. 10-16.9. Bank reconciliation reports. Within 30 days | ||||||
14 | after receipt of the book reconciliation reports from the | ||||||
15 | school treasurer as required pursuant to Section 8-6 of this | ||||||
16 | Code, the school board shall submit to the State Board of | ||||||
17 | Education a reconciliation report in conformity with the | ||||||
18 | template provided by the State Board of Education.
| ||||||
19 | (105 ILCS 5/17-1) (from Ch. 122, par. 17-1)
| ||||||
20 | Sec. 17-1. Annual Budget. The board of education of each | ||||||
21 | school
district under 500,000 inhabitants shall, within or | ||||||
22 | before the first
quarter of each fiscal year, adopt and file | ||||||
23 | with the State Board of Education an annual balanced budget | ||||||
24 | which it deems
necessary to defray all necessary expenses and |
| |||||||
| |||||||
1 | liabilities of the
district, and in such annual budget shall | ||||||
2 | specify the objects and
purposes of each item and amount needed | ||||||
3 | for each object or purpose.
| ||||||
4 | The budget shall be entered upon a School District Budget | ||||||
5 | form prepared
and provided by the State Board of Education and | ||||||
6 | therein shall contain
a statement of the cash on hand at the
| ||||||
7 | beginning of the fiscal year, an estimate of the cash expected | ||||||
8 | to be
received during such fiscal year from all sources, an | ||||||
9 | estimate of the
expenditures contemplated for such fiscal year, | ||||||
10 | and a statement of the
estimated cash expected to be on hand at | ||||||
11 | the end of such year. The
estimate of taxes to be received may | ||||||
12 | be based upon the amount of actual
cash receipts that may | ||||||
13 | reasonably be expected by the district during
such fiscal year, | ||||||
14 | estimated from the experience of the district in prior
years | ||||||
15 | and with due regard for other circumstances that may | ||||||
16 | substantially
affect such receipts. Nothing in this Section | ||||||
17 | shall be construed as
requiring any district to change or | ||||||
18 | preventing any district from
changing from a cash basis of | ||||||
19 | financing to a surplus or deficit basis of
financing; or as | ||||||
20 | requiring any district to change or preventing any
district | ||||||
21 | from changing its system of accounting.
| ||||||
22 | To the extent that a school district's budget is not | ||||||
23 | balanced, the district shall also adopt and file with the State | ||||||
24 | Board of Education a deficit reduction plan to balance the | ||||||
25 | district's budget within 3 years. The deficit reduction plan | ||||||
26 | must be filed at the same time as the budget, but the State |
| |||||||
| |||||||
1 | Superintendent of Education may extend this deadline if the | ||||||
2 | situation warrants.
| ||||||
3 | If, as the result of an audit performed in compliance with | ||||||
4 | Section 3-7 of this Code, the resulting annual financial report | ||||||
5 | required to be submitted pursuant to Section 3-15.1 of this | ||||||
6 | Code reflects a deficit, as defined for purposes of the | ||||||
7 | preceding paragraph; then the district shall, within 30 days | ||||||
8 | after acceptance of such audit report, submit a deficit | ||||||
9 | reduction plan. | ||||||
10 | The board of education of each district shall fix a fiscal | ||||||
11 | year
therefor. If the beginning of the fiscal year of a | ||||||
12 | district is
subsequent to the time that the tax levy due to be | ||||||
13 | made in such
fiscal year shall be
made, then such annual budget | ||||||
14 | shall be adopted prior to the time such
tax levy shall be made.
| ||||||
15 | The failure by a board of education of any district to adopt an | ||||||
16 | annual
budget, or to comply in any respect with the provisions | ||||||
17 | of this Section, shall
not affect the validity of any tax levy | ||||||
18 | of the district otherwise in
conformity with the law. With | ||||||
19 | respect to taxes levied either before, on, or
after the | ||||||
20 | effective date of this amendatory Act of the 91st General | ||||||
21 | Assembly,
(i) a tax levy is made
for the fiscal year in which | ||||||
22 | the levy is due to be made regardless of which
fiscal year the | ||||||
23 | proceeds of the levy are expended or are intended to be
| ||||||
24 | expended, and (ii) except as otherwise provided by law, a board | ||||||
25 | of education's
adoption of
an annual budget in conformity with | ||||||
26 | this Section is not a prerequisite to the
adoption of a valid |
| |||||||
| |||||||
1 | tax levy and is not a limit on the amount of the levy.
| ||||||
2 | Such budget shall be prepared in tentative form by some | ||||||
3 | person or
persons designated by the board, and in such | ||||||
4 | tentative form shall be
made conveniently available to public | ||||||
5 | inspection for at least 30 days
prior to final action thereon. | ||||||
6 | At least 1 public hearing shall be held
as to such budget prior | ||||||
7 | to final action thereon. Notice of availability
for public | ||||||
8 | inspection and of such public hearing shall be given by
| ||||||
9 | publication in a newspaper published in such district, at least | ||||||
10 | 30 days
prior to the time of such hearing. If there is no | ||||||
11 | newspaper published
in such district, notice of such public | ||||||
12 | hearing shall be given by
posting notices thereof in 5 of the | ||||||
13 | most public places in such district.
It shall be the duty of | ||||||
14 | the secretary of such board to make such
tentative budget | ||||||
15 | available to public inspection, and to arrange for such
public | ||||||
16 | hearing. The board may from time to time make transfers between
| ||||||
17 | the various items in any fund not exceeding in the aggregate | ||||||
18 | 10% of the
total of such fund as set forth in the budget. The | ||||||
19 | board may from time
to time amend such budget by the same | ||||||
20 | procedure as is herein provided
for its original adoption.
| ||||||
21 | Beginning July 1, 1976, the board of education, or regional
| ||||||
22 | superintendent, or governing board responsible for the | ||||||
23 | administration of
a joint agreement shall, by September 1 of | ||||||
24 | each
fiscal year thereafter, adopt an annual budget for the | ||||||
25 | joint agreement
in the same manner and subject to the same | ||||||
26 | requirements as are provided
in this Section.
|
| |||||||
| |||||||
1 | The State Board of Education shall exercise powers and | ||||||
2 | duties
relating to budgets as provided in Section 2-3.27 of | ||||||
3 | this Code and shall require school districts to submit their | ||||||
4 | annual budgets, deficit reduction plans, and other financial | ||||||
5 | information, including revenue and expenditure reports and | ||||||
6 | borrowing and interfund transfer plans, in such form and within | ||||||
7 | the timelines designated by the State Board of Education.
| ||||||
8 | By fiscal year 1982 all school districts shall use the | ||||||
9 | Program Budget
Accounting System.
| ||||||
10 | In the case of a school district receiving emergency State | ||||||
11 | financial
assistance under Article 1B, the school board shall | ||||||
12 | also be subject to the
requirements
established under Article | ||||||
13 | 1B with respect to the annual budget.
| ||||||
14 | (Source: P.A. 94-234, eff. 7-1-06.)
| ||||||
15 | Section 20. The Illinois Educational Labor Relations Act is | ||||||
16 | amended by changing Section 2 as follows:
| ||||||
17 | (115 ILCS 5/2) (from Ch. 48, par. 1702)
| ||||||
18 | Sec. 2. Definitions. As used in this Act:
| ||||||
19 | (a) "Educational employer"
or "employer" means the | ||||||
20 | governing body of a public school district, including the | ||||||
21 | governing body of a charter school established under Article | ||||||
22 | 27A of the School Code or of a contract school or contract | ||||||
23 | turnaround school established under paragraph 30 of Section | ||||||
24 | 34-18 of the School Code, combination
of public school |
| |||||||
| |||||||
1 | districts, including the governing body of joint agreements
of | ||||||
2 | any type formed by 2 or more school districts, public community | ||||||
3 | college
district or State college or university, a | ||||||
4 | subcontractor of instructional services of a school district | ||||||
5 | (other than a school district organized under Article 34 of the | ||||||
6 | School Code), combination of school districts, charter school | ||||||
7 | established under Article 27A of the School Code, or contract | ||||||
8 | school or contract turnaround school established under | ||||||
9 | paragraph 30 of Section 34-18 of the School Code, and any State | ||||||
10 | agency whose major
function is providing educational services.
| ||||||
11 | "Educational employer" or "employer" does not include (1) a | ||||||
12 | Financial Oversight
Panel created pursuant to Section 1A-8 of | ||||||
13 | the School Code due to a
district
violating a financial plan or | ||||||
14 | (2) an approved nonpublic special education facility that | ||||||
15 | contracts with a school district or combination of school | ||||||
16 | districts to provide special education services pursuant to | ||||||
17 | Section 14-7.02 of the School Code, but does include a School | ||||||
18 | Finance Authority
created
under Article 1E or 1F of the School | ||||||
19 | Code and a Financial Oversight Panel created under Article 1B | ||||||
20 | or 1H of the School Code . The change made by this amendatory | ||||||
21 | Act of the 96th General Assembly to this paragraph (a) to make | ||||||
22 | clear that the governing body of a charter school is an | ||||||
23 | "educational employer" is declaratory of existing law.
| ||||||
24 | (b) "Educational employee" or "employee" means any | ||||||
25 | individual, excluding
supervisors, managerial, confidential, | ||||||
26 | short term employees, student, and
part-time academic |
| |||||||
| |||||||
1 | employees of community colleges employed full or part
time by | ||||||
2 | an educational employer, but shall not include elected | ||||||
3 | officials
and appointees of the Governor with the advice and | ||||||
4 | consent of the Senate,
firefighters as defined by subsection | ||||||
5 | (g-1) of Section 3 of the Illinois
Public Labor Relations Act, | ||||||
6 | and peace officers employed by a State
university. For the | ||||||
7 | purposes of this Act, part-time
academic employees of community | ||||||
8 | colleges shall be defined as those
employees who provide less | ||||||
9 | than 3 credit hours of instruction per
academic
semester. In | ||||||
10 | this subsection (b), the term "student"
includes graduate | ||||||
11 | students who are research assistants primarily
performing | ||||||
12 | duties that involve research or graduate assistants primarily
| ||||||
13 | performing duties that are pre-professional, but excludes | ||||||
14 | graduate
students who are teaching assistants primarily | ||||||
15 | performing duties that
involve the delivery and support of | ||||||
16 | instruction and all other graduate
assistants.
| ||||||
17 | (c) "Employee organization" or "labor organization" means | ||||||
18 | an organization
of any kind in which membership includes | ||||||
19 | educational employees, and which
exists for the purpose, in | ||||||
20 | whole or in part, of dealing with employers
concerning | ||||||
21 | grievances, employee-employer disputes, wages, rates of pay,
| ||||||
22 | hours of employment, or conditions of work, but shall not | ||||||
23 | include any
organization which practices discrimination in | ||||||
24 | membership because of race,
color, creed, age, gender, national | ||||||
25 | origin or political affiliation.
| ||||||
26 | (d) "Exclusive representative" means the labor |
| |||||||
| |||||||
1 | organization which has
been designated by the Illinois | ||||||
2 | Educational Labor Relations Board as the
representative of the | ||||||
3 | majority of educational employees in an appropriate
unit, or | ||||||
4 | recognized by an educational employer prior to January 1, 1984 | ||||||
5 | as
the exclusive representative of the employees in an | ||||||
6 | appropriate unit or,
after January 1, 1984, recognized by an | ||||||
7 | employer upon evidence that the
employee organization has been | ||||||
8 | designated as the exclusive representative
by a majority of the | ||||||
9 | employees in an appropriate unit.
| ||||||
10 | (e) "Board" means the Illinois Educational Labor Relations | ||||||
11 | Board.
| ||||||
12 | (f) "Regional Superintendent" means the regional | ||||||
13 | superintendent of
schools provided for in Articles 3 and 3A of | ||||||
14 | The School Code.
| ||||||
15 | (g) "Supervisor" means any individual having authority in | ||||||
16 | the interests
of the employer to hire, transfer, suspend, lay | ||||||
17 | off, recall, promote,
discharge, reward or discipline other | ||||||
18 | employees within the appropriate
bargaining unit and adjust | ||||||
19 | their grievances, or to effectively recommend
such action if | ||||||
20 | the exercise of such authority is not of a merely routine or
| ||||||
21 | clerical nature but requires the use of independent judgment. | ||||||
22 | The term
"supervisor" includes only those individuals who | ||||||
23 | devote a preponderance of
their employment time to such | ||||||
24 | exercising authority.
| ||||||
25 | (h) "Unfair labor practice" or "unfair practice" means any | ||||||
26 | practice
prohibited by Section 14 of this Act.
|
| |||||||
| |||||||
1 | (i) "Person" includes an individual, educational employee, | ||||||
2 | educational
employer, legal representative, or employee | ||||||
3 | organization.
| ||||||
4 | (j) "Wages" means salaries or other forms of compensation | ||||||
5 | for services
rendered.
| ||||||
6 | (k) "Professional employee" means, in the case of a public | ||||||
7 | community
college, State college or university, State agency | ||||||
8 | whose major function is
providing educational services, the | ||||||
9 | Illinois School for the Deaf, and the
Illinois School for the | ||||||
10 | Visually Impaired, (1) any employee engaged in work
(i) | ||||||
11 | predominantly intellectual and varied in character as opposed | ||||||
12 | to
routine mental, manual, mechanical, or physical work; (ii) | ||||||
13 | involving the
consistent exercise of discretion and judgment in | ||||||
14 | its performance; (iii) of
such character that the output | ||||||
15 | produced or the result accomplished cannot
be standardized in | ||||||
16 | relation to a given period of time; and (iv) requiring
| ||||||
17 | knowledge of an advanced type in a field of science or learning | ||||||
18 | customarily
acquired by a prolonged course of specialized | ||||||
19 | intellectual instruction and
study in an institution of higher | ||||||
20 | learning or a hospital, as distinguished
from a general | ||||||
21 | academic education or from an apprenticeship or from training
| ||||||
22 | in the performance of routine mental, manual, or physical | ||||||
23 | processes; or
(2) any employee, who (i) has completed the | ||||||
24 | courses of specialized
intellectual instruction and study | ||||||
25 | described in clause (iv) of paragraph
(1) of this subsection, | ||||||
26 | and (ii) is performing related work under the
supervision of a |
| |||||||
| |||||||
1 | professional person to qualify himself or herself to
become a | ||||||
2 | professional as defined in paragraph (l).
| ||||||
3 | (l) "Professional employee" means, in the case of any | ||||||
4 | public school
district, or combination of school districts | ||||||
5 | pursuant to joint agreement,
any employee who has a certificate | ||||||
6 | issued under Article 21 or Section 34-83
of the School Code, as | ||||||
7 | now or hereafter amended.
| ||||||
8 | (m) "Unit" or "bargaining unit" means any group of | ||||||
9 | employees for which
an exclusive representative is selected.
| ||||||
10 | (n) "Confidential employee" means an employee, who (i) in | ||||||
11 | the regular
course of his or her duties, assists and acts in a | ||||||
12 | confidential capacity to
persons who formulate, determine and | ||||||
13 | effectuate management policies with
regard to labor relations | ||||||
14 | or who (ii) in the regular course of his or her
duties has | ||||||
15 | access to information relating to the effectuation or review of
| ||||||
16 | the employer's collective bargaining policies.
| ||||||
17 | (o) "Managerial employee" means an individual who is | ||||||
18 | engaged
predominantly in executive and management functions | ||||||
19 | and is charged with the
responsibility of directing the | ||||||
20 | effectuation of such management policies and
practices.
| ||||||
21 | (p) "Craft employee" means a skilled journeyman, craft | ||||||
22 | person, and his
or her apprentice or helper.
| ||||||
23 | (q) "Short-term employee" is an employee who is employed | ||||||
24 | for less than
2 consecutive calendar quarters during a calendar | ||||||
25 | year and who does not
have a reasonable expectation that he or | ||||||
26 | she will be rehired by the same
employer for the same service |
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1 | in a subsequent calendar year. Nothing in
this subsection shall | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | affect the employee status of individuals who were
covered by a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | collective bargaining agreement on the effective date of this
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4 | amendatory Act of 1991.
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5 | (Source: P.A. 95-331, eff. 8-21-07; 96-104, eff. 1-1-10.)
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6 | Section 99. Effective date. This Act takes effect upon | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | becoming law.
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