102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2371

 

Introduced 2/26/2021, by Sen. John Connor

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/6z-45
30 ILCS 350/16.5
105 ILCS 230/5-5
105 ILCS 230/5-10
105 ILCS 230/5-15
105 ILCS 230/5-20
105 ILCS 230/5-25
105 ILCS 230/5-30
105 ILCS 230/5-35
105 ILCS 230/5-50
105 ILCS 230/5-37 rep.
105 ILCS 230/5-38 rep.
105 ILCS 230/5-45 rep.
105 ILCS 230/5-57 rep.

    Amends the School Construction Law. Makes changes concerning application for a grant, a conditional grant award, the required local match and grant award amount, eligibility, the priority of school construction projects, and referendum requirements. Repeals provisions concerning carry over projects, Fiscal Year 2002 escalation, debt service grants, and a school capital needs assessment. Amends the State Finance Act and the Local Government Debt Reform Act to make related changes. Effective immediately.


LRB102 17327 CMG 22817 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2371LRB102 17327 CMG 22817 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by changing
5Section 6z-45 as follows:
 
6    (30 ILCS 105/6z-45)
7    Sec. 6z-45. The School Infrastructure Fund.
8    (a) The School Infrastructure Fund is created as a special
9fund in the State Treasury.
10    In addition to any other deposits authorized by law,
11beginning January 1, 2000, on the first day of each month, or
12as soon thereafter as may be practical, the State Treasurer
13and State Comptroller shall transfer the sum of $5,000,000
14from the General Revenue Fund to the School Infrastructure
15Fund, except that, notwithstanding any other provision of law,
16and in addition to any other transfers that may be provided for
17by law, before June 30, 2012, the Comptroller and the
18Treasurer shall transfer $45,000,000 from the General Revenue
19Fund into the School Infrastructure Fund, and, for fiscal year
202013 only, the Treasurer and the Comptroller shall transfer
21$1,250,000 from the General Revenue Fund to the School
22Infrastructure Fund on the first day of each month; provided,
23however, that no such transfers shall be made from July 1, 2001

 

 

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1through June 30, 2003.
2    (a-5) Money in the School Infrastructure Fund may be used
3to pay the expenses of the State Board of Education, the
4Governor's Office of Management and Budget, and the Capital
5Development Board in administering programs under the School
6Construction Law, the total expenses not to exceed $1,315,000
7in any fiscal year.
8    (b) Subject to the transfer provisions set forth below,
9money in the School Infrastructure Fund shall, if and when the
10State of Illinois incurs any bonded indebtedness for the
11construction of school improvements under subsection (e) of
12Section 5 of the General Obligation Bond Act, be set aside and
13used for the purpose of paying and discharging annually the
14principal and interest on that bonded indebtedness then due
15and payable, and for no other purpose.
16    In addition to other transfers to the General Obligation
17Bond Retirement and Interest Fund made pursuant to Section 15
18of the General Obligation Bond Act, upon each delivery of
19bonds issued for construction of school improvements under the
20School Construction Law, the State Comptroller shall compute
21and certify to the State Treasurer the total amount of
22principal of, interest on, and premium, if any, on such bonds
23during the then current and each succeeding fiscal year. With
24respect to the interest payable on variable rate bonds, such
25certifications shall be calculated at the maximum rate of
26interest that may be payable during the fiscal year, after

 

 

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1taking into account any credits permitted in the related
2indenture or other instrument against the amount of such
3interest required to be appropriated for that period.
4    On or before the last day of each month, the State
5Treasurer and State Comptroller shall transfer from the School
6Infrastructure Fund to the General Obligation Bond Retirement
7and Interest Fund an amount sufficient to pay the aggregate of
8the principal of, interest on, and premium, if any, on the
9bonds payable on their next payment date, divided by the
10number of monthly transfers occurring between the last
11previous payment date (or the delivery date if no payment date
12has yet occurred) and the next succeeding payment date.
13Interest payable on variable rate bonds shall be calculated at
14the maximum rate of interest that may be payable for the
15relevant period, after taking into account any credits
16permitted in the related indenture or other instrument against
17the amount of such interest required to be appropriated for
18that period. Interest for which moneys have already been
19deposited into the capitalized interest account within the
20General Obligation Bond Retirement and Interest Fund shall not
21be included in the calculation of the amounts to be
22transferred under this subsection.
23    (b-5) The money deposited into the School Infrastructure
24Fund from transfers pursuant to subsections (c-30) and (c-35)
25of Section 13 of the Illinois Gambling Act shall be applied,
26without further direction, as provided in subsection (b-3) of

 

 

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1Section 5-35 of the School Construction Law.
2    (b-7) In fiscal year 2021 only, of the surplus, if any, in
3the School Infrastructure Fund after payments made pursuant to
4subsections (a-5), (b), and (b-5) of this Section, $20,000,000
5shall be transferred to the General Revenue Fund.
6    (c) The surplus, if any, in the School Infrastructure Fund
7after payments made pursuant to subsections (a-5), (b), (b-5),
8and (b-7) of this Section shall, subject to appropriation, be
9used as follows:
10    First - to make 3 payments to the School Technology
11Revolving Loan Fund as follows:
12        Transfer of $30,000,000 in fiscal year 1999;
13        Transfer of $20,000,000 in fiscal year 2000; and
14        Transfer of $10,000,000 in fiscal year 2001.
15    Second - to pay any amounts due for grants for school
16construction projects and debt service under the School
17Construction Law.
18    Third - to pay any amounts due for grants for school
19maintenance projects under the School Construction Law.
20(Source: P.A. 100-23, eff. 7-6-17; 101-31, eff. 6-28-19;
21101-636, eff. 6-10-20.)
 
22    Section 10. The Local Government Debt Reform Act is
23amended by changing Section 16.5 as follows:
 
24    (30 ILCS 350/16.5)

 

 

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1    Sec. 16.5. Proposition for bonds. For all elections held
2after July 1, 2000, the form of a proposition to authorize the
3issuance of bonds pursuant to either a referendum or backdoor
4referendum may be as set forth in this Section as an
5alternative to the form of proposition as otherwise set forth
6by applicable law. The proposition authorized by this Section
7shall be in substantially the following form:
8        Shall (name of governmental unit) (state purpose for
9    the bond issue) and issue its bonds to the amount of $
10    (state amount) for the purpose of paying the costs
11    thereof?
12    If a school district receives a conditional grant award
13from the Capital Development Board expects to receive a school
14construction grant from the State of Illinois pursuant to
15Section 5-15 of the School Construction Law for the a school
16construction project to be financed in part with proceeds of
17the bonds a bond authorized by referendum, then the form of
18proposition may at the option of the school district
19additionally contain substantially the following language:
20        (Name of school district) expects to receive a school
21    construction grant from the State of Illinois in the
22    amount of $ (state amount) pursuant to the School
23    Construction Law to cover a portion of the total project
24    costs for the school construction project to be financed
25    in part with the proceeds of the bonds, based on the
26    conditional grant award received from the Capital

 

 

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1    Development Board pursuant to the School Construction Law
2    (i) a grant entitlement from the State Board of Education
3    and (ii) current recognized project costs determined by
4    the Capital Development Board.
5(Source: P.A. 91-868, eff. 6-22-00; 92-879, eff. 1-13-03.)
 
6    Section 15. The School Construction Law is amended by
7changing Sections 5-5, 5-10, 5-15, 5-20, 5-25, 5-30, 5-35, and
85-50 as follows:
 
9    (105 ILCS 230/5-5)
10    Sec. 5-5. Definitions. As used in this Article:
11    "Conditional grant award" means the formal notification by
12the Capital Development Board to a school district of its
13conditional intent to award a grant to a school district to pay
14a portion of the recognized project cost for a school
15construction project. The grant award is conditioned upon
16receiving proof from the school district that it has funds
17available to cover the cost of the required local match.
18    "Grant award amount" means an amount equal to the
19recognized project cost determined by the Capital Development
20Board for a school construction project multiplied by the
21grant award percentage and then adjusted as may be required
22pursuant to subsection (d) of Section 5-15.
23    "Grant award percentage" means a percentage equal to one
24minus the required local match percentage.

 

 

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1    "Approved school construction bonds" mean bonds that were
2approved by referendum after January 1, 1996 but prior to
3January 1, 1998 as provided in Sections 19-2 through 19-7 of
4the School Code to provide funds for the acquisition,
5development, construction, reconstruction, rehabilitation,
6improvement, architectural planning, and installation of
7capital facilities consisting of buildings, structures,
8durable-equipment, and land for educational purposes.
9    "Grant index" means, with respect only to school
10construction projects described in grant applications filed by
11school districts in 2004, a figure for each school district
12equal to one minus the ratio of the district's equalized
13assessed valuation per pupil in average daily attendance to
14the equalized assessed valuation per pupil in average daily
15attendance of the district located at the 90th percentile for
16all districts of the same category. This definition applies
17only to school construction projects for which a grant
18application was filed for the 2004 application cycle by a
19school district included on the State Board of Education's
202004 School Construction Project Application Cycle listing and
21only for the purpose of determining the amount of any
22adjustment pursuant to subsection (d) of Section 5-15 to a
23grant award amount for a project funded during the first
24application cycle opened after June 30, 2020. For the purpose
25of calculating the grant index, school districts are grouped
26into 2 categories, Category I and Category II. Category I

 

 

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1consists of elementary and unit school districts. The
2equalized assessed valuation per pupil in average daily
3attendance of each school district in Category I shall be
4computed using its grades kindergarten through 8 average daily
5attendance figure. A unit school district's Category I grant
6index shall be used for projects or portions of projects
7constructed for elementary school pupils. Category II consists
8of high school and unit school districts. The equalized
9assessed valuation per pupil in average daily attendance of
10each school district in Category II shall be computed using
11its grades 9 through 12 average daily attendance figure. A
12unit school district's Category II grant index shall be used
13for projects or portions of projects constructed for high
14school pupils. The changes made by this amendatory Act of the
1592nd General Assembly apply to all grants made on or after the
16effective date of this amendatory Act, provided that for
17grants not yet made on the effective date of this amendatory
18Act but made in fiscal year 2001 and for grants made in fiscal
19year 2002, the grant index for a school district shall be the
20greater of (i) the grant index as calculated under this Law on
21or after the effective date of this amendatory Act or (ii) the
22grant index as calculated under this Law before the effective
23date of this amendatory Act. The grant index shall be no less
24than 0.35 and no greater than 0.75 for each district; provided
25that the grant index for districts whose equalized assessed
26valuation per pupil in average daily attendance is at the 99th

 

 

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1percentile and above for all districts of the same type shall
2be 0.00.
3    The grant index shall be calculated for each of those
4school districts forming a reorganized school district or
5cooperative high school if one or more of the following happen
6within the current or prior 2 fiscal years:
7        (1) a new school district is created in accordance
8    with Article 11E of the School Code;
9        (2) an existing school district annexes all of the
10    territory of one or more entire other school districts in
11    accordance with Article 7 of the School Code; or
12        (3) a cooperative high school is formed in accordance
13    with Section 10-22.22c of the School Code.
14The average grant index of those school districts shall be
15used as the grant index for the newly reorganized district or
16cooperative high school.
17    "Recognized project cost" means the total project cost for
18a school construction project determined by the Capital
19Development Board to be taken into account in calculating the
20grant award amount and the required local match for a school
21construction project.
22    "Required local match" means an amount equal to the
23product of the recognized project cost determined by the
24Capital Development Board multiplied by a school district's
25required local match percentage, and then adjusted as may be
26required pursuant to Section 5-15.

 

 

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1    "Required local match percentage" means a percentage equal
2to a school district's Local Capacity Percentage, as defined
3in Section 18-8.15 of the School Code, and as calculated by the
4State Superintendent of Education in the fiscal year in which
5the school district applies for a grant to be awarded pursuant
6to this Article, provided that the required local match
7percentage shall be no less than 10% and no greater than 90%
8for any district. With respect to a Type 40 area vocational
9center cooperative, a special education cooperative, or a
10cooperative high school, the required local match percentage
11is calculated by first multiplying each cooperative member
12district's average student enrollment utilized to calculate
13its latest Evidence-Based Funding, as defined in Section
1418-8.15 of the School Code, by the respective district's
15latest Local Capacity Percentage, as defined in Section
1618-8.15 of the School Code, to obtain a weighted average
17student enrollment. Then, the required local match percentage
18is calculated by taking the sum of all the member districts'
19weighted average student enrollment and dividing that sum by
20the sum of all the member districts' average student
21enrollment utilized to calculate the latest Evidence-Based
22Funding.
23    "School construction project" means the acquisition,
24development, construction, reconstruction, rehabilitation,
25improvement, architectural planning, and installation of
26capital facilities consisting of buildings, structures,

 

 

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1durable equipment, and land for educational purposes.
2    "School district" means a school district or a Type 40
3area vocational center or special education cooperative that
4is jointly owned, if the joint agreement includes language
5that specifies how the debt obligation is to be paid,
6including in the event that an entity withdraws from the joint
7agreement.
8    "School district" includes a cooperative high school, if
9the cooperative agreement includes language that specifies how
10the debt obligation is to be paid, including if an entity
11withdraws from the cooperative agreement or the cooperative
12agreement is terminated which shall be considered a high
13school district for the purpose of calculating its grant
14index.
15    "School maintenance project" means a project, other than a
16school construction project, intended to provide for the
17maintenance or upkeep of buildings or structures for
18educational purposes, but does not include ongoing operational
19costs.
20(Source: P.A. 96-731, eff. 8-25-09; 96-1381, eff. 1-1-11.)
 
21    (105 ILCS 230/5-10)
22    Sec. 5-10. Grant awards. The Capital Development Board is
23authorized to make grants to school districts for school
24construction projects with funds appropriated by the General
25Assembly from the School Infrastructure Fund and the School

 

 

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1Construction Fund pursuant to the provisions of this Article.
2The State Board of Education is authorized to make grants to
3school districts for debt service with funds appropriated by
4the General Assembly from the School Infrastructure Fund
5pursuant to the provisions of this Article.
6(Source: P.A. 90-548, eff. 1-1-98.)
 
7    (105 ILCS 230/5-15)
8    Sec. 5-15. Grant award amounts and required local match
9entitlements.
10    (a) After June 30, 2021, any time there is an
11appropriation of funds by the General Assembly from the School
12Infrastructure Fund or School Construction Fund and a release
13of the appropriated funds to the Capital Development Board for
14expenditure on grant awards pursuant to the provisions of this
15Article, the The State Board of Education is authorized to
16open an application cycle to receive grant applications from
17school districts issue grant entitlements for school
18construction projects. No grant application filed before the
19start of the first application cycle after June 30, 2021 may be
20considered. After the close of each application cycle, the
21State Board of Education and debt service and shall determine
22the approval of applications, the required local match
23percentage for each approved application, and the priority
24order for school construction project grants to be made by the
25Capital Development Board and shall then notify all applicants

 

 

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1regarding their eligibility for a grant. Such notification
2shall include an estimate of the required local match. The
3State Board of Education shall publish a list of applicants
4eligible for grants and forward it to the Capital Development
5Board. When issuing a grant entitlement for a school
6construction project, the Capital Development Board, as a part
7of that entitlement, shall certify to the district receiving
8the entitlement the dollar amount of the school construction
9project's cost that the district will be required to finance
10with non-grant funds in order to qualify to receive a school
11construction project grant under this Article from the Capital
12Development Board.
13    (b) The Capital Development Board, to the extent that
14appropriated funds have been released and proceeding through
15the list of eligible applicants in the order of priority
16determined by the State Board of Education, shall issue
17conditional grant awards to eligible school districts. An
18applicant that does not receive a conditional grant award
19notification must submit a new application during another
20application cycle in order to receive future consideration for
21a grant award.
22    (c) The conditional grant award certifies to a school
23district the recognized project costs for its school
24construction project determined by the Capital Development
25Board, the applicable required local match percentage and
26grant award percentage, the required local match and grant

 

 

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1award amount calculated by multiplying the required local
2match percentage and the grant award percentage by the
3recognized project cost, and the required local match and
4grant award amount as those amounts may be adjusted as
5required in subsection (d).
6    (d) The required local match and grant award amount are
7calculated by multiplying the required local match percentage
8and the grant award percentage by the recognized project cost,
9provided that, only during the first application cycle after
10June 30, 2021, these amounts may be adjusted if the applicant
11had previously expended funds on a school construction project
12on the 2004 School Construction Grant List. In that case, the
13required local match shall be reduced (but not below zero) and
14the grant award amount shall be increased (to an amount no
15greater that the recognized project cost) by an amount
16determined by the Capital Development Board to be equal to the
17amount of the grant the applicant would have received pursuant
18to Section 5-35 had it been awarded a grant in 2004 based on
19the 2004 School Construction Grant List.
20(Source: P.A. 90-548, eff. 1-1-98; 91-55, eff. 6-30-99.)
 
21    (105 ILCS 230/5-20)
22    Sec. 5-20. Grant application; district facilities plan.
23School districts shall apply to the State Board of Education
24for school construction project grants and debt service
25grants. Districts filing grant applications shall submit to

 

 

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1the State Board a district facilities plan that shall include,
2but not be limited to, an assessment of present and future
3district facility needs as required by present and anticipated
4educational programming, the availability of local financial
5resources including current revenues, fund balances, and
6unused bonding capacity, a fiscal plan for meeting present and
7anticipated debt service obligations, and a maintenance plan
8and schedule that contain necessary assurances that new,
9renovated, and existing facilities are being or will be
10properly maintained. If a district that applies for a school
11construction project grant has no unused bonding capacity or
12if its unused bonding capacity may be less than the portion of
13the cost of the proposed school construction project that the
14district would be required to finance with non-grant funds,
15the amount certified by the Capital Development Board under
16Section 5-15 application and facilities plan submitted by the
17district shall set forth the estimated amount of the project's
18cost that the district proposes to finance by the issuance of
19bonds under subsection (n) of Section 19-1 of the School Code.
20The State Board of Education shall review and approve district
21facilities plans prior to prioritizing the applications
22issuing grant entitlements. Each district that receives a
23grant entitlement shall annually update its district
24facilities plan and submit the revised plan to the State Board
25for approval.
26(Source: P.A. 90-548, eff. 1-1-98; 91-55, eff. 6-30-99.)
 

 

 

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1    (105 ILCS 230/5-25)
2    Sec. 5-25. Eligibility and project standards.
3    (a) The State Board of Education shall establish
4eligibility standards for school construction project grants
5and debt service grants. These standards shall include minimum
6enrollment requirements for eligibility for school
7construction project grants of 200 students for elementary
8districts, 200 students for high school districts, and 400
9students for unit districts. The total enrollment of member
10districts forming a cooperative high school in accordance with
11subsection (c) of Section 10-22.22 of the School Code shall
12meet the minimum enrollment requirements specified in this
13subsection (a). The State Board of Education shall approve a
14district's eligibility for a school construction project grant
15or a debt service grant pursuant to the established standards.
16    For purposes only of determining a Type 40 area vocational
17center's eligibility for an entity included in a school
18construction project grant or a school maintenance project
19grant, an area vocational center shall be deemed eligible if
20one or more of its member school districts satisfy the grant
21index criteria set forth in this Law. A Type 40 area vocational
22center that makes application for school construction funds
23after August 25, 2009 (the effective date of Public Act
2496-731) shall be placed on the respective application cycle
25list. Type 40 area vocational centers must be placed last on

 

 

SB2371- 17 -LRB102 17327 CMG 22817 b

1the priority listing of eligible entities for the applicable
2fiscal year.
3    (b) The Capital Development Board shall establish project
4standards for all school construction project grants provided
5pursuant to this Article. These standards shall include space
6and capacity standards as well as the determination of
7recognized project costs that shall be eligible for State
8financial assistance and enrichment costs that shall not be
9eligible for State financial assistance.
10    (c) The State Board of Education and the Capital
11Development Board shall not establish standards that
12disapprove or otherwise establish limitations that restrict
13the eligibility of (i) a school district with a population
14exceeding 500,000 for a school construction project grant
15based on the fact that any or all of the school construction
16project grant will be used to pay debt service or to make lease
17payments, as authorized by subsection (b) of Section 5-35 of
18this Law, (ii) a school district located in whole or in part in
19a county that imposes a tax for school facility or resources
20purposes pursuant to Section 5-1006.7 of the Counties Code, or
21(iii) a school district that (1) was organized prior to 1860
22and (2) is located in part in a city originally incorporated
23prior to 1840, based on the fact that all or a part of the
24school construction project is owned by a public building
25commission and leased to the school district or the fact that
26any or all of the school construction project grant will be

 

 

SB2371- 18 -LRB102 17327 CMG 22817 b

1used to pay debt service or to make lease payments.
2    (d) (Blank). A reorganized school district or cooperative
3high school may use a school construction application that was
4submitted by a school district that formed the reorganized
5school district or cooperative high school if that application
6has not been entitled for a project by the State Board of
7Education and any one or more of the following happen within
8the current or prior 4 fiscal years:
9        (1) a new school district is created in accordance
10    with Article 11E of the School Code;
11        (2) an existing school district annexes all of the
12    territory of one or more other school districts in
13    accordance with Article 7 of the School Code; or
14        (3) a cooperative high school is formed in accordance
15    with subsection (c) of Section 10-22.22 of the School
16    Code.
17A new elementary district formed from a school district
18conversion, as defined in Section 11E-15 of the School Code,
19may use only the application of the dissolved district whose
20territory is now included in the new elementary district and
21must obtain the written approval of the local school board of
22any other school district that includes territory from that
23dissolved district. A new high school district formed from a
24school district conversion, as defined in Section 11E-15 of
25the School Code, may use only the application of any dissolved
26district whose territory is now included in the new high

 

 

SB2371- 19 -LRB102 17327 CMG 22817 b

1school district, but only after obtaining the written approval
2of the local school board of any other school district that
3includes territory from that dissolved district. A cooperative
4high school using this Section must obtain the written
5approval of the local school board of the member school
6district whose application it is using. All other eligibility
7and project standards apply to this Section.
8(Source: P.A. 101-455, eff. 8-23-19.)
 
9    (105 ILCS 230/5-30)
10    Sec. 5-30. Priority of school construction projects. The
11State Board of Education shall develop standards for the
12determination of priority needs concerning school construction
13projects based upon approved district facilities plans. Such
14standards shall call for prioritization based on the degree of
15need and project type in the following order:
16        (1) Replacement or reconstruction of school buildings
17    destroyed or damaged by flood, tornado, fire, earthquake,
18    mine subsidence, or other disasters, either man-made or
19    produced by nature;
20        (2) Projects designed to alleviate a shortage of
21    classrooms due to population growth or to replace or
22    rehabilitate aging school buildings;
23        (3) Projects resulting from interdistrict
24    reorganization of school districts contingent on local
25    referenda;

 

 

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1        (4) Replacement, rehabilitation, or reconstruction of
2    school facilities determined to be severe and continuing
3    health or life safety hazards;
4        (5) Alterations necessary to provide accessibility for
5    qualified individuals with disabilities; and
6        (6) Other unique solutions to facility needs.
7Except for those changes absolutely necessary to comply with
8the changes made to subsection (c) of Section 5-25 of this Law
9by Public Act 96-37, the State Board of Education may not make
10any material changes to the standards in effect on May 18,
112004, unless the State Board of Education is specifically
12authorized by law.
13(Source: P.A. 96-37, eff. 7-13-09; 96-102, eff. 7-29-09;
1496-1000, eff. 7-2-10; 97-880, eff. 8-2-12.)
 
15    (105 ILCS 230/5-35)
16    Sec. 5-35. School construction project grant award
17amounts; permitted use; prohibited use.
18    (a) The grant award percentage is equal to one minus the
19required local match percentage. The grant award amount is
20equal to the grant award percentage multiplied by The product
21of the district's grant index and the recognized project cost,
22as determined by the Capital Development Board, for an
23approved school construction project, which amount may be
24adjusted as required in Section 5-15. The grant award amount
25shall equal the amount of the grant the Capital Development

 

 

SB2371- 21 -LRB102 17327 CMG 22817 b

1Board shall provide to the eligible district. The grant index
2shall not be used in cases where the General Assembly and the
3Governor approve appropriations designated for specifically
4identified school district construction projects.
5    The average of the grant indexes of the member districts
6in a joint agreement shall be used to calculate the amount of a
7school construction project grant awarded to an eligible Type
840 area vocational center.
9    (b) In each fiscal year in which school construction
10project grants are awarded, 20% of the total amount awarded
11statewide shall be awarded to a school district with a
12population exceeding 500,000, provided such district complies
13with the provisions of this Article.
14    In addition to the uses otherwise authorized by this Law,
15any school district with a population exceeding 500,000 is
16authorized to use any or all of the school construction
17project grants (i) to pay debt service, as defined in the Local
18Government Debt Reform Act, on bonds, as defined in the Local
19Government Debt Reform Act, issued to finance one or more
20school construction projects and (ii) to the extent that any
21such bond is a lease or other installment or financing
22contract between the school district and a public building
23commission that has issued bonds to finance one or more
24qualifying school construction projects, to make lease
25payments under the lease.
26    (b-3) The Capital Development Board shall make payment in

 

 

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1an amount equal to 20% of each amount deposited into the School
2Infrastructure Fund pursuant to subsection (b-5) of Section
36z-45 of the State Finance Act to the Board of Education of the
4City of Chicago within 10 days after such deposit. The Board of
5Education of the City of Chicago shall use such moneys
6received (i) for application to the costs of a school
7construction project, (ii) to pay debt service on bonds, as
8those terms are defined in the Local Government Debt Reform
9Act, that are issued to finance one or more school
10construction projects, and (iii) to the extent that any such
11bond is a lease or other installment or financing contract
12between the school district and a public building commission
13that has issued bonds to finance one or more qualifying school
14construction projects, to make lease payments under the lease.
15The Board of Education of the City of Chicago shall submit
16quarterly to the Capital Development Board documentation
17sufficient to establish that this money is being used as
18authorized by this Section. The Capital Development Board may
19withhold payments if the documentation is not provided. The
20remaining 80% of each such deposit shall be applied in
21accordance with the provisions of subsection (a) of this
22Section; however, no portion of this remaining 80% shall be
23awarded to a school district with a population of more than
24500,000.
25    (b-5) In addition to the uses otherwise authorized by this
26Law, any school district that (1) was organized prior to 1860

 

 

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1and (2) is located in part in a city originally incorporated
2prior to 1840 is authorized to use any or all of the school
3construction project grants (i) to pay debt service on bonds,
4as those terms are defined in the Local Government Debt Reform
5Act, that are issued to finance one or more school
6construction projects and (ii) to the extent that any such
7bond is a lease or other installment or financing contract
8between the school district and a public building commission
9that has issued bonds to finance one or more qualifying school
10construction projects, to make lease payments under the lease.
11    (c) No portion of a school construction project grant
12awarded by the Capital Development Board shall be used by a
13school district for any on-going operational costs.
14(Source: P.A. 98-18, eff. 6-7-13.)
 
15    (105 ILCS 230/5-50)
16    Sec. 5-50. Referendum requirements. A school district may
17submit a school construction project or the financing of a
18school construction project to referendum at any time.
19However, the proposition may include a reference to the school
20district's expectation of receiving a school construction
21grant from the State of Illinois only if the school district
22has received a conditional grant award for the project from
23the Capital Development Board. After the State Board of
24Education has approved all or part of a district's application
25and issued a grant entitlement for a school construction

 

 

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1project grant, the district shall submit the project or the
2financing of the project to a referendum when such referendum
3is required by law, except for a project financed by bonds
4issued pursuant to subsection (p-70) of Section 19-1 of the
5School Code.
6(Source: P.A. 96-1438, eff. 8-20-10; 97-333, eff. 8-12-11.)
 
7    (105 ILCS 230/5-37 rep.)
8    (105 ILCS 230/5-38 rep.)
9    (105 ILCS 230/5-45 rep.)
10    (105 ILCS 230/5-57 rep.)
11    Section 20. The School Construction Law is amended by
12repealing Sections 5-37, 5-38, 5-45, and 5-57.
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.