State of Illinois
2023 and 2024


Introduced 2/2/2023, by Sen. Don Harmon


105 ILCS 5/1B-22

    Amends the School Code. Makes a technical change in a Section concerning a financial oversight panel's powers.

LRB103 02908 RJT 47914 b





SB0457LRB103 02908 RJT 47914 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 School Code is amended by changing Section
51B-22 as follows:
6    (105 ILCS 5/1B-22)
7    Sec. 1B-22. Additional Powers of the Panel. For Panels
8established under Section 1B-4 for a district which had its
9financial plan rescinded by the the State Board for violating
10that plan as provided in Section 1A-8, the Panel shall have the
11following additional powers:
12    (a) As necessary to carry out its purposes when district
13resources are not readily available or appropriate for use by
14the Panel, the Panel may make and execute contracts, leases,
15subleases and all other instruments or agreements necessary or
16convenient for the exercise of the powers and functions
17granted by this Article.
18    (b) As necessary to carry out its purposes when district
19resources are not readily available or appropriate for use by
20the Panel, the Panel may purchase personal property necessary
21or convenient for its purposes; mortgage, pledge or otherwise
22grant security interests in such properties; and convey to the
23district such of its property as, in the judgment of the Panel,



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1is no longer necessary for its purposes.
2    (c) As necessary to carry out its purposes when district
3resources are not readily available or appropriate for use by
4the Panel, the Panel may appoint officers, agents, and
5employees of the Panel, define their duties and
6qualifications, and fix their compensation and employee
8    (d) In order to investigate allegations of or incidents of
9waste, fraud, or financial mismanagement which the Board is
10unable or unwilling to properly investigate as requested by
11the Panel, the Panel may appoint an Inspector General who
12shall have the authority to conduct investigations into such
13allegations or incidents. The Inspector General shall make
14recommendations to the Panel about its investigations. The
15Inspector General shall be independent of the operations of
16the Panel and the Board and perform other duties requested by
17the Panel. The Inspector General shall have access to all
18information and personnel necessary to perform the duties of
19the office. If the Inspector General determines that a
20possible criminal act has been committed or that special
21expertise is required in the investigation, he shall
22immediately notify the State's Attorney in the county in which
23the district is located. All investigations conducted by the
24Inspector General shall be conducted in a manner that ensures
25the preservation of evidence for use in criminal prosecutions.
26At all times the Inspector General shall be granted access to



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1any building or facility that is owned, operated, or leased by
2the Panel or the Board. The Inspector General shall have the
3power to subpoena witnesses and compel the production of books
4and papers pertinent to an investigation authorized by this
5Code. Any person who (1) fails to appear in response to a
6subpoena; (2) fails to answer any question; (3) fails to
7produce any books or papers pertinent to an investigation
8under this Code; or (4) knowingly gives false testimony during
9an investigation under this Code is guilty of a Class A
10misdemeanor. The Inspector General shall provide to the Panel
11and the State Board of Education a summary of reports and
12investigations made under this Section for the previous fiscal
13year no later than January 1 of each year. The summaries shall
14detail the final disposition of those recommendations. The
15summaries shall not contain any confidential or identifying
16information concerning the subjects of the reports and
17investigations. The summaries shall also include detailed
18recommended administrative actions and matters for
19consideration by the State Board of Education or the General
21    (e) No hiring or appointment of any person in any position
22by the Board, the superintendent, or any other officer or
23employee of the Board shall be made or entered into unless it
24is consistent with the Financial Plan and Budget in effect and
25the staffing plan approved by the Panel under this Section.
26The hiring or appointment of any person shall not be binding on



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1the Board unless and until it is in compliance with this
2Section. The Board shall submit to the Panel for approval by
3the Panel a staffing plan for the upcoming school year at the
4same time as the submission of the Budget, except that the
5staffing plan for the fiscal year ending in 1997 shall be
6submitted to the Panel within 90 days after the effective date
7of this amendatory Act of 1996. The staffing plan shall be
8accompanied by a cost analysis and such other information as
9the Panel may require. The Panel may prescribe standards,
10procedures, and forms for submission of the staffing plan. The
11Panel shall approve the staffing plan if the information
12required to be submitted is complete and the staffing plan is
13consistent with the Budget and Financial Plan in effect.
14Otherwise, the Panel shall reject the staffing plan. In the
15event of rejection, the Panel shall prescribe a procedure and
16standards for revision of the staffing plan. The Panel shall
17act on the staffing plan at the same time as the approval of
18the Budget, except that the staffing plan for the fiscal year
19ending in 1997 shall be acted upon within 60 days of the
20submission of the staffing plan by the Board. The Board shall
21report to the Panel, at such times and in such manner as the
22Panel may direct, concerning the Board's compliance with each
23staffing plan. The Panel may review the Board's operations,
24obtaining budgetary data and financial statements, may require
25the Board to produce reports, and shall have access to any
26other information in the possession of the Board that it deems



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1relevant. The Panel may issue directives to the Board to
2assure compliance with the staffing plan, including the
3issuance of reduction in force notices, non-renewal of
4employment contracts, or any other notices or actions required
5by contract or law. The Board shall produce such budgetary
6data, financial statements, reports, and other information and
7shall comply with such directives. After approval of each
8staffing plan, the Board shall regularly reexamine the
9estimates on which it was based and revise them as necessary.
10The Board shall promptly notify the Panel of any material
11change in the estimates in the staffing plan. The Board may
12submit to the Panel, or the Panel may require the Board to
13submit, modifications to the staffing plan based upon revised
14revenue or expenditure estimates or for any other good reason.
15The Panel shall approve or reject each modified staffing plan
16within 60 days of its submission in a manner similar to the
17provisions of this subsection for the approval or rejection of
18the initial staffing plan.
19    (f) The Panel shall examine the business records and audit
20the accounts of the Board or require that the Board examine its
21business records and audit its accounts at such time and in
22such manner as the Panel may prescribe. The Board shall
23appoint a certified public accountant annually, approved by
24the Panel, to audit its financial statements. The audit
25conducted pursuant to this paragraph shall be in lieu of the
26audit that the Board is required to undertake pursuant to



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1Section 3-7.
2    (g) The Panel shall initiate and direct financial
3management assessments and similar analyses of the operations
4of the Board as may, in the judgment of the Panel, assure sound
5and efficient financial management of the Board. Upon the
6completion of these assessments, the Panel shall give
7directives to the Board regarding improvements and changes
8that derive from these assessments, which the Board shall
9implement. In conjunction with its budgetary submission to the
10Panel for each fiscal year, the Board shall demonstrate to the
11satisfaction of the Panel that the directives of the Panel
12have been implemented in whole or in part or, in the
13alternative, are not capable of being implemented. In
14consideration of whether to approve or reject the budget for a
15fiscal year, the Panel shall adjudge whether the Board has
16fully considered and responsibly proposed implementation of
17the Panel's directives.
18    (h) The Panel shall initiate and direct a management audit
19of the Board at least once every 2 years. The audit shall
20review the personnel, organization, contracts, leases, and
21physical properties of the Board to determine whether the
22Board is managing and utilizing its resources in an economical
23and efficient manner. The audit shall determine the causes of
24any inefficiencies or uneconomical practices, including
25inadequacies in internal and administrative procedures,
26organizational structure, uses of resources, utilization of



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1real property, allocation of personnel, purchasing policies,
2and equipment.
3    (i) In the event that the Board refuses or fails to follow
4a directive of the Panel to issue notices of non-renewal of
5contracts, to issue notices of reduction in force to
6employees, to issue requests for bids or proposals, or to
7obtain financial or other information that the Panel finds
8necessary for the implementation of its responsibilities under
9this Article, the Panel may take such action in the name of the
10district, and such action shall be binding the same as if the
11action had been taken by the Board. The powers established by
12this paragraph do not authorize the Panel to enter into
13contracts in the name of the Board.
14    (j) The Panel shall meet with the Board or its designees in
15closed session prior to the Board commencing any collective
16bargaining negotiations to discuss the financial issues
17relevant to the bargaining and for the purpose of the Panel
18approving the budget limitations for the potential collective
19bargaining agreement. The Board shall not make or consider any
20proposal which does not comply with the collective bargaining
21budget approved by the Panel. The Board shall keep the Panel
22apprised as to the status of the bargaining. The Board shall
23present any proposed change in the approved collective
24bargaining budget to the Panel in closed session for approval.
25Prior to the Board taking a final vote on any tentative
26agreement approved by the employee organization, the Board



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1shall discuss the tentative agreement with the Panel in closed
2session. Upon final approval of a collective bargaining
3agreement by both the Board and the employee organization, the
4Board shall submit the final collective bargaining agreement
5to the Panel for approval. At the same time that the Board
6submits the final agreement to the Panel, the Board shall
7notify the employee organization that the final agreement has
8been submitted and the date of the Panel meeting at which the
9final agreement will be considered. The employee organization
10shall be provided an opportunity to discuss the final
11agreement with the Panel prior to the Panel taking action on
12the agreement. No collective bargaining agreement shall be
13binding upon the district unless the Board has followed the
14requirements of this paragraph and the final agreement has
15been approved by the Panel.
16    (k) The budget of the Panel or any revisions to the budget,
17including any costs to the Panel associated with the
18appointment of an Inspector General, shall be approved by the
19State Superintendent upon request of the Panel and after
20opportunity for response by the Board.
21(Source: P.A. 89-572, eff. 7-30-96.)