HB5967 99TH GENERAL ASSEMBLY

LRB099 20586 AWJ 45143 b

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.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning local government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

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

Section 5. Definitions. As used in this Act:

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

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

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

"Tax anticipation warrants" means tax anticipation warrants drawn and issued under Section 2 of the Warrants and Jurors Certificates Act.

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

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

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

Section 25. Debt limitation. Notwithstanding any other law to the contrary, no school district may become indebted in any manner or for any purpose in an amount, including the entire debt service, in the aggregate exceeding 13.8% of the value of the taxable property therein to be ascertained by the last assessment for State and county taxes or, if greater, the sum that is produced by multiplying the school district's 2015 equalized assessed valuation by the debt limitation percentage in effect on January 1, 2016, previous to the incurring of such indebtedness.

Section 30. New debt prohibited.

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

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

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

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

Section 45. The School Code is amended by adding Section 19-32 as follows:

(105 ILCS 5/19-32 new)

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

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