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1 | AN ACT concerning public employee benefits. | |||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||||||
3 | represented in the General Assembly: | |||||||||||||||||||||||
4 | Section 5. The Illinois Pension Code is amended by | |||||||||||||||||||||||
5 | changing Section 17-132 as follows: | |||||||||||||||||||||||
6 | (40 ILCS 5/17-132) (from Ch. 108 1/2, par. 17-132) | |||||||||||||||||||||||
7 | Sec. 17-132. Payments and certification of salary | |||||||||||||||||||||||
8 | deductions. | |||||||||||||||||||||||
9 | (a) An Employer shall cause the Fund to receive all | |||||||||||||||||||||||
10 | members' payroll records and pension contributions within 30 | |||||||||||||||||||||||
11 | calendar days after each predesignated payday. For purposes of | |||||||||||||||||||||||
12 | this Section, the predesignated payday shall be determined in | |||||||||||||||||||||||
13 | accordance with each Employer's payroll schedule for | |||||||||||||||||||||||
14 | contributions to the Fund. | |||||||||||||||||||||||
15 | (b) An Employer that fails to timely certify and submit | |||||||||||||||||||||||
16 | payroll records to the Fund is subject to a statutory penalty | |||||||||||||||||||||||
17 | in the amount of $100 per day for each day that a required | |||||||||||||||||||||||
18 | certification and submission is late. | |||||||||||||||||||||||
19 | Amounts not received by the 30th calendar day after the | |||||||||||||||||||||||
20 | predesignated payday shall be deemed delinquent and subject to | |||||||||||||||||||||||
21 | a penalty consisting of interest, which shall accrue on a | |||||||||||||||||||||||
22 | monthly basis at the Fund's then effective actuarial rate of | |||||||||||||||||||||||
23 | return, and liquidated damages in the amount of $100 per day, |
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1 | not to exceed 20% of the principal contributions due, which | ||||||
2 | shall be mandatory except for good cause shown and in the | ||||||
3 | discretion of the Board. | ||||||
4 | An Employer in possession of member contributions deducted | ||||||
5 | from payroll checks is holding Fund assets, and thus becomes a | ||||||
6 | fiduciary over those assets. | ||||||
7 | (c) The payroll records shall report (1) all pensionable | ||||||
8 | salary earned in that pay period, exclusive of salaries for | ||||||
9 | overtime, extracurricular activities, or any employment on an | ||||||
10 | optional basis, such as in summer school; (2) adjustments to | ||||||
11 | pensionable salary, exclusive of salaries for overtime, | ||||||
12 | extracurricular activities, or any employment on an optional | ||||||
13 | basis, such as in summer school, made in a pay period for any | ||||||
14 | prior pay periods; (3) pension contributions attributable to | ||||||
15 | pensionable salary earned in the reported pay period or the | ||||||
16 | adjusted pay period as required by subsection (b) of Section | ||||||
17 | 17-131; and (4) any salary paid by an Employer if that salary | ||||||
18 | is compensation for validated service and is exclusive of | ||||||
19 | salary for overtime, extracurricular activities, or any | ||||||
20 | employment on an optional basis, such as in summer school. | ||||||
21 | Payroll records required by item (4) of this paragraph shall | ||||||
22 | identify the number of days of service rendered by the member | ||||||
23 | and whether each day of service represents a partial or whole | ||||||
24 | day of service. | ||||||
25 | (d) The appropriate officers of the Employer shall certify | ||||||
26 | and submit the payroll records no later than 30 calendar days |
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1 | after each predesignated payday. The certification shall | ||||||
2 | constitute a confirmation of the accuracy of such deductions | ||||||
3 | according to the provisions of this Article. | ||||||
4 | Each Charter School and contract school shall designate an | ||||||
5 | administrator as a "Pension Officer". The Pension Officer | ||||||
6 | shall be responsible for certifying all payroll information, | ||||||
7 | including contributions due and certified sick days payable | ||||||
8 | pursuant to Section 17-134, and assuring resolution of | ||||||
9 | reported payroll and contribution deficiencies. | ||||||
10 | (d-5) If an Employer fails to transmit to the Fund | ||||||
11 | contributions required of the Employer under this Article or | ||||||
12 | contributions required of teachers for more than 180 days | ||||||
13 | after those contributions are due, then, after giving notice | ||||||
14 | to the Board of Education, the Fund may certify to the State | ||||||
15 | Comptroller or the State Superintendent of Education the | ||||||
16 | amounts of the delinquent payments, and the State Comptroller | ||||||
17 | or the State Superintendent of Education, whichever is | ||||||
18 | applicable, shall deduct the amounts so certified or any part | ||||||
19 | thereof from any State funds to be remitted to the Board of | ||||||
20 | Education and shall pay the amount so deducted to the Fund. If | ||||||
21 | State funds from which such deductions may be made are not | ||||||
22 | available, the Fund may proceed in accordance with subsection | ||||||
23 | (e) to recover the amounts of such delinquent payments. | ||||||
24 | (e) The Board has the authority to conduct payroll audits | ||||||
25 | of a charter school or contract school to determine the | ||||||
26 | existence of any delinquencies in contributions to the Fund, |
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1 | and such charter school or contract school shall be required | ||||||
2 | to provide such books and records and contribution information | ||||||
3 | as the Board or its authorized representative may require. The | ||||||
4 | Board is also authorized to collect delinquent contributions | ||||||
5 | from charter schools and contract schools and develop | ||||||
6 | procedures for the collection of such delinquencies. | ||||||
7 | Collection procedures may include legal proceedings in the | ||||||
8 | courts of the State of Illinois. Expenses, including | ||||||
9 | reasonable attorneys' fees, incurred in the collection of | ||||||
10 | delinquent contributions may be assessed by the Board against | ||||||
11 | the charter school or contract school. | ||||||
12 | (f) The Fund shall provide a conditional grace period for | ||||||
13 | contract schools that show evidence of timely and good faith | ||||||
14 | efforts to submit payroll records and make pension | ||||||
15 | contributions due between January 1, 2022 and April 1, 2022. | ||||||
16 | If payroll records and pension contributions due during that | ||||||
17 | time period are not submitted by April 1, 2022, the statutory | ||||||
18 | penalties, liquidated damages, and interest shall be | ||||||
19 | calculated from the original due date to the submission date | ||||||
20 | of the pension contributions or payroll records, as | ||||||
21 | applicable. | ||||||
22 | Evidence of timely and good faith efforts shall include, | ||||||
23 | but are not limited to, the following: | ||||||
24 | (1) evidence of the contract school's continuing | ||||||
25 | efforts to submit payroll records and make pension | ||||||
26 | contributions, both before and after the date the payroll |
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1 | records and pension contributions were due; | ||||||
2 | (2) documented evidence submitted by the contract | ||||||
3 | school of the contract school's continuing efforts to | ||||||
4 | submit payroll records and make pension contributions; | ||||||
5 | (3) evidence in the possession of the Fund of the | ||||||
6 | contract school's continuing efforts to submit payroll | ||||||
7 | records and make pension contributions; and | ||||||
8 | (4) contact by the contract school with the Fund to | ||||||
9 | seek assistance and notify the Fund of difficulties with | ||||||
10 | submitting the payroll records and making the pension | ||||||
11 | contributions within a period of time determined by the | ||||||
12 | Board after the date the pension contributions and payroll | ||||||
13 | records were due. | ||||||
14 | The Fund may adopt rules to implement the changes made by | ||||||
15 | this amendatory Act of the 102nd General Assembly. | ||||||
16 | (Source: P.A. 101-261, eff. 8-9-19; 102-636, eff. 8-27-21.) | ||||||
17 | Section 10. The School Code is amended by changing Section | ||||||
18 | 27A-11 as follows: | ||||||
19 | (105 ILCS 5/27A-11) | ||||||
20 | Sec. 27A-11. Local financing. | ||||||
21 | (a) For purposes of the School Code, pupils enrolled in a | ||||||
22 | charter school shall be included in the pupil enrollment of | ||||||
23 | the school district within which the pupil resides. Each | ||||||
24 | charter school (i) shall determine the school district in |
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1 | which each pupil who is enrolled in the charter school | ||||||
2 | resides, (ii) shall report the aggregate number of pupils | ||||||
3 | resident of a school district who are enrolled in the charter | ||||||
4 | school to the school district in which those pupils reside, | ||||||
5 | and (iii) shall maintain accurate records of daily attendance | ||||||
6 | that shall be deemed sufficient to file claims under Section | ||||||
7 | 18-8.15 notwithstanding any other requirements of that Section | ||||||
8 | regarding hours of instruction and teacher licensure. | ||||||
9 | (b) Except for a charter school established by referendum | ||||||
10 | under Section 27A-6.5, as part of a charter school contract, | ||||||
11 | the charter school and the local school board shall agree on | ||||||
12 | funding and any services to be provided by the school district | ||||||
13 | to the charter school. Agreed funding that a charter school is | ||||||
14 | to receive from the local school board for a school year shall | ||||||
15 | be paid in equal quarterly installments with the payment of | ||||||
16 | the installment for the first quarter being made not later | ||||||
17 | than July 1, unless the charter establishes a different | ||||||
18 | payment schedule. However, if a charter school dismisses a | ||||||
19 | pupil from the charter school after receiving a quarterly | ||||||
20 | payment, the charter school shall return to the school | ||||||
21 | district, on a quarterly basis, the prorated portion of public | ||||||
22 | funding provided for the education of that pupil for the time | ||||||
23 | the student is not enrolled at the charter school. Likewise, | ||||||
24 | if a pupil transfers to a charter school between quarterly | ||||||
25 | payments, the school district shall provide, on a quarterly | ||||||
26 | basis, a prorated portion of the public funding to the charter |
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1 | school to provide for the education of that pupil. The charter | ||||||
2 | school contract shall provide that the school district shall | ||||||
3 | withhold from any funding to the charter school an amount | ||||||
4 | equal to any delinquent pension contributions by the charter | ||||||
5 | school and that the school district shall remit that amount to | ||||||
6 | the affected pension fund or retirement system. | ||||||
7 | All services centrally or otherwise provided by the school | ||||||
8 | district including, but not limited to, rent, food services, | ||||||
9 | custodial services, maintenance, curriculum, media services, | ||||||
10 | libraries, transportation, and warehousing shall be subject to | ||||||
11 | negotiation between a charter school and the local school | ||||||
12 | board and paid for out of the revenues negotiated pursuant to | ||||||
13 | this subsection (b); provided that the local school board | ||||||
14 | shall not attempt, by negotiation or otherwise, to obligate a | ||||||
15 | charter school to provide pupil transportation for pupils for | ||||||
16 | whom a district is not required to provide transportation | ||||||
17 | under the criteria set forth in subsection (a)(13) of Section | ||||||
18 | 27A-7. | ||||||
19 | In no event shall the funding be less than 97% or more than | ||||||
20 | 103% of the school district's per capita student tuition | ||||||
21 | multiplied by the number of students residing in the district | ||||||
22 | who are enrolled in the charter school. | ||||||
23 | It is the intent of the General Assembly that funding and | ||||||
24 | service agreements under this subsection (b) shall be neither | ||||||
25 | a financial incentive nor a financial disincentive to the | ||||||
26 | establishment of a charter school. |
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1 | The charter school may set and collect reasonable fees. | ||||||
2 | Fees collected from students enrolled at a charter school | ||||||
3 | shall be retained by the charter school. | ||||||
4 | (c) Notwithstanding subsection (b) of this Section, the | ||||||
5 | proportionate share of State and federal resources generated | ||||||
6 | by students with disabilities or staff serving them shall be | ||||||
7 | directed to charter schools enrolling those students by their | ||||||
8 | school districts or administrative units. The proportionate | ||||||
9 | share of moneys generated under other federal or State | ||||||
10 | categorical aid programs shall be directed to charter schools | ||||||
11 | serving students eligible for that aid. | ||||||
12 | (d) The governing body of a charter school is authorized | ||||||
13 | to accept gifts, donations, or grants of any kind made to the | ||||||
14 | charter school and to expend or use gifts, donations, or | ||||||
15 | grants in accordance with the conditions prescribed by the | ||||||
16 | donor; however, a gift, donation, or grant may not be accepted | ||||||
17 | by the governing body if it is subject to any condition | ||||||
18 | contrary to applicable law or contrary to the terms of the | ||||||
19 | contract between the charter school and the local school | ||||||
20 | board. Charter schools shall be encouraged to solicit and | ||||||
21 | utilize community volunteer speakers and other instructional | ||||||
22 | resources when providing instruction on the Holocaust and | ||||||
23 | other historical events. | ||||||
24 | (e) (Blank). | ||||||
25 | (f) (Blank). | ||||||
26 | (g) At the non-renewal or revocation of its charter, each |
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1 | charter school shall refund to the local board of education | ||||||
2 | all unspent funds. | ||||||
3 | (h) A charter school is authorized to incur temporary, | ||||||
4 | short term debt to pay operating expenses in anticipation of | ||||||
5 | receipt of funds from the local school board. | ||||||
6 | (Source: P.A. 103-175, eff. 6-30-23.) | ||||||
7 | Section 90. The State Mandates Act is amended by adding | ||||||
8 | Section 8.48 as follows: | ||||||
9 | (30 ILCS 805/8.48 new) | ||||||
10 | Sec. 8.48. Exempt mandate. Notwithstanding Sections 6 and | ||||||
11 | 8 of this Act, no reimbursement by the State is required for | ||||||
12 | the implementation of any mandate created by this amendatory | ||||||
13 | Act of the 103rd General Assembly. |