99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB5967

 

Introduced , by Rep. Jeanne M Ives

 

SYNOPSIS AS INTRODUCED:
 
New Act
105 ILCS 5/19-32 new

    Creates the School District Debt Control and Taxpayer Protection Act. Provides that a school district may not refinance debt past the repayment period of the debt when issued, may not issue debt to be serviced over a period of greater than 20 years, and may not issue capital appreciation bonds. Provides that school districts may not be indebted in an amount greater than that indicated in the Act and if they do exceed the debt limitation then the school district many not incur any new debt until the school district's debt is lower than the debt limitation. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5967LRB099 20586 AWJ 45143 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the School
5District Debt Control and Taxpayer Protection Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Capital appreciation bond" means debt issued without
8annual or semiannual payments of principal, interest, or both.
9    "Entire debt service" means principal, interest, and
10issuance costs of all debt and bonds.
11    "Equalized assessed value" means the assessed value as
12equalized by the Illinois Department of Revenue.
13    "Tax anticipation warrants" means tax anticipation
14warrants drawn and issued under Section 2 of the Warrants and
15Jurors Certificates Act.
 
16    Section 10. Refinancing debt. Notwithstanding any other
17law to the contrary, a school district may not refinance debt
18past the repayment period of the debt when issued.
 
19    Section 15. Debt serviced more than 20 years.
20Notwithstanding any law to the contrary, a school district may
21not issue debt to be serviced over a period greater than 20

 

 

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1years.
 
2    Section 20. Equalized assessed value. Notwithstanding any
3other law to the contrary, for the purpose of calculating the
4debt limit of a school district in relation to its equalized
5assessed value, debt shall include alternate revenue bonds,
6privately placed debt, and all interest on all debt.
 
7    Section 25. Debt limitation. Notwithstanding any other law
8to the contrary, no school district may become indebted in any
9manner or for any purpose in an amount, including the entire
10debt service, in the aggregate exceeding 13.8% of the value of
11the taxable property therein to be ascertained by the last
12assessment for State and county taxes or, if greater, the sum
13that is produced by multiplying the school district's 2015
14equalized assessed valuation by the debt limitation percentage
15in effect on January 1, 2016, previous to the incurring of such
16indebtedness.
 
17    Section 30. New debt prohibited.
18    (a) Notwithstanding any other law to the contrary and on
19and after the effective date of this Act, a school district
20that exceeds the debt limitation of Section 25 of this Act may
21not incur any new debt, including, but not limited to, tax
22anticipation warrants, until the school district's aggregate
23debt limitation is below the debt limitation of Section 25.

 

 

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1    (b) Notwithstanding subsection (a), a school district may
2issue new debt on or after effective date of this Act if a
3referendum allowing new debt to be issued was passed before the
4effective date of this Act.
 
5    Section 35. Capital appreciation bonds. Notwithstanding
6any other law to the contrary and on and after the effective
7date of this Act, no school district may issue capital
8appreciation bonds.
 
9    Section 40. Additional debt. Nothing in this Act shall
10authorize any school district to issue additional debt above
11and beyond what is otherwise authorized by law.
 
12    Section 45. The School Code is amended by adding Section
1319-32 as follows:
 
14    (105 ILCS 5/19-32 new)
15    Sec. 19-32. School District Debt Control and Taxpayer
16Protection Act. In any instance in which this Code conflicts
17with the School District Debt Control and Taxpayer Protection
18Act, that Act shall control.
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.