HB1466sam003 97TH GENERAL ASSEMBLY

Sen. Kimberly A. Lightford

Filed: 5/8/2012

09700HB1466sam003 LRB097 06297 NHT 69240 a

AMENDMENT TO HOUSE BILL 1466

AMENDMENT NO. ______. Amend House Bill 1466, AS AMENDED, by replacing everything after the enacting clause with the following:

"Section 5. The School Code is amended by changing Sections 1B-5 and 1H-20 and by adding Sections 1B-5.5 and 1H-117 as follows:

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

Sec. 1B-5. When a petition for emergency financial assistance for a school district is allowed by the State Board under Section 1B-4, the State Superintendent shall within 10 days thereafter appoint 3 members to serve at the State Superintendent's pleasure on a Financial Oversight Panel for the district. The State Superintendent shall designate one of the members of the Panel to serve as its Chairman. In the event of vacancy or resignation the State Superintendent shall appoint a successor within 10 days of receiving notice thereof.

Members of the Panel shall be selected primarily on the basis of their experience and education in financial management, with consideration given to persons knowledgeable in education finance. A member of the Panel may not be a board member or employee of the district for which the Panel is constituted, nor may a member have a direct financial interest in that district.

A board may petition the State Superintendent for the removal, replacement, or reassignment of any member of a Panel. The State Superintendent shall grant such a petition if a Panel has been established for the district for at least 3 years or if the State Superintendent determines that granting the petition is in the best interests of the district. If the petition is granted, the State Superintendent shall remove, replace, or reassign the Panel member within 60 days.

Panel members shall serve without compensation, but may be reimbursed for travel and other necessary expenses incurred in the performance of their official duties by the State Board. The amount reimbursed Panel members for their expenses shall be charged to the school district as part of any emergency financial assistance and incorporated as a part of the terms and conditions for repayment of such assistance or shall be deducted from the district's general State aid as provided in Section 1B-8.

The first meeting of the Panel shall be held at the call of the Chairman. The Panel may elect such other officers as it deems appropriate. The Panel shall prescribe the times and places for its meetings and the manner in which regular and special meetings may be called, and shall comply with the Open Meetings Act.

Two members of the Panel shall constitute a quorum, and the affirmative vote of 2 members shall be necessary for any decision or action to be taken by the Panel.

The Panel and the State Superintendent shall cooperate with each other in the exercise of their respective powers. The Panel shall report not later than September 1 annually to the State Board and the State Superintendent with respect to its activities and the condition of the school district for the previous fiscal year.

Any Financial Oversight Panel established under this Article shall remain in existence for not less than 2 3 years nor more than 10 years from the date the State Board grants the petition under Section 1B-4. In addition to the right to dissolution set forth in Section 1B-5.5 of this Code, if If after 3 years the school district has repaid all of its obligations resulting from emergency State financial assistance provided under this Article and has improved its financial situation, the board of education may, not more frequently than once in any 12 month period, petition the State Board to dissolve the Financial Oversight Panel, terminate the oversight responsibility, and remove the district's certification under Section 1A-8 as a district in financial difficulty. In acting on such a petition the State Board shall give additional weight to the recommendations of the State Superintendent and the Financial Oversight Panel.

(Source: P.A. 88-618, eff. 9-9-94.)

(105 ILCS 5/1B-5.5 new)

Sec. 1B-5.5. Right to dissolution. A Panel established pursuant to a petition from a board shall be dissolved by the State Board following the State Board's receipt of a petition from the board certifying that the following requirements have been satisfied for at least 2 consecutive fiscal years:

(1) The district has maintained a budget that has been balanced in accordance with the accounting system and procedure prescribed by the Panel.

(2) The Panel has approved the financial plan submitted from the district.

(3) The district has received a clean or unqualified opinion from the auditor conducting the annual audit required under this Article.

(4) The State Board has placed the district in its highest financial category.

Any outstanding obligations that resulted from emergency State financial assistance provided under this Article must be repaid by the board prior to or upon the dissolution of the Panel.

(105 ILCS 5/1H-20)

Sec. 1H-20. Members of Panel; meetings.

(a) Upon establishment of a Financial Oversight Panel under Section 1H-15 of this Code, the State Superintendent shall within 15 working days thereafter appoint 5 members to serve on a Financial Oversight Panel for the district. Members appointed to the Panel shall serve at the pleasure of the State Superintendent. The State Superintendent shall designate one of the members of the Panel to serve as its Chairperson. In the event of vacancy or resignation, the State Superintendent shall, within 10 days after receiving notice, appoint a successor to serve out that member's term.

(b) Members of the Panel shall be selected primarily on the basis of their experience and education in financial management, with consideration given to persons knowledgeable in education finance. Two members of the Panel shall be residents of the school district that the Panel serves. A member of the Panel may not be a member of the district's school board or an employee of the district nor may a member have a direct financial interest in the district.

(b-5) A board of education for a district may petition the State Superintendent for the removal, replacement, or reassignment of any member of a Panel. The State Superintendent shall grant such a petition if a Panel has been established for the district for at least 3 years or if the State Superintendent determines that granting the petition is in the best interests of the district. If the petition is granted, the State Superintendent shall remove, replace, or reassign the Panel member within 60 days.

(c) Panel members may be reimbursed by the State Board for travel and other necessary expenses incurred in the performance of their official duties. The amount reimbursed members for their expenses shall be charged to the school district as part of any emergency financial assistance and incorporated as a part of the terms and conditions for repayment of the assistance or shall be deducted from the district's general State aid as provided in Section 1H-65 of this Code.

(d) With the exception of the chairperson, who shall be designated as provided in subsection (a) of this Section, the Panel may elect such officers as it deems appropriate.

(e) The first meeting of the Panel shall be held at the call of the Chairperson. The Panel shall prescribe the times and places for its meetings and the manner in which regular and special meetings may be called and shall comply with the Open Meetings Act. The Panel shall also comply with the Freedom of Information Act.

(f) Three members of the Panel shall constitute a quorum. A majority of members present is required to pass a measure.

(Source: P.A. 97-429, eff. 8-16-11.)

(105 ILCS 5/1H-117 new)

Sec. 1H-117. Right to dissolution. A Panel established pursuant to a petition from a board of education shall be dissolved by the State Board following the State Board's receipt of a petition from the board of education certifying that the following requirements have been satisfied for at least 2 consecutive fiscal years:

(1) the district has maintained a budget that has been balanced in accordance with the accounting system and procedure prescribed by the Panel;

(2) the Panel has approved the financial plan submitted from the district;

(3) the district has received a clean or unqualified opinion from the auditor conducting the annual audit required under this Article; and

(4) the State Board has placed the district in its highest financial category.

Any outstanding obligations must be repaid by the board of education prior to or upon the dissolution of the Panel.

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