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1     AN ACT concerning education.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The School Code is amended by changing Section
5 19-1 as follows:
 
6     (105 ILCS 5/19-1)  (from Ch. 122, par. 19-1)
7     (Text of Section before amendment by P.A. 94-234)
8     Sec. 19-1. Debt limitations of school districts.
9     (a) School districts shall not be subject to the provisions
10 limiting their indebtedness prescribed in "An Act to limit the
11 indebtedness of counties having a population of less than
12 500,000 and townships, school districts and other municipal
13 corporations having a population of less than 300,000",
14 approved February 15, 1928, as amended.
15     No school districts maintaining grades K through 8 or 9
16 through 12 shall become indebted in any manner or for any
17 purpose to an amount, including existing indebtedness, in the
18 aggregate exceeding 6.9% on the value of the taxable property
19 therein to be ascertained by the last assessment for State and
20 county taxes or, until January 1, 1983, if greater, the sum
21 that is produced by multiplying the school district's 1978
22 equalized assessed valuation by the debt limitation percentage
23 in effect on January 1, 1979, previous to the incurring of such
24 indebtedness.
25     No school districts maintaining grades K through 12 shall
26 become indebted in any manner or for any purpose to an amount,
27 including existing indebtedness, in the aggregate exceeding
28 13.8% on the value of the taxable property therein to be
29 ascertained by the last assessment for State and county taxes
30 or, until January 1, 1983, if greater, the sum that is produced
31 by multiplying the school district's 1978 equalized assessed
32 valuation by the debt limitation percentage in effect on

 

 

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1 January 1, 1979, previous to the incurring of such
2 indebtedness.
3     Notwithstanding the provisions of any other law to the
4 contrary, in any case in which the voters of a school district
5 have approved a proposition for the issuance of bonds of such
6 school district at an election held prior to January 1, 1979,
7 and all of the bonds approved at such election have not been
8 issued, the debt limitation applicable to such school district
9 during the calendar year 1979 shall be computed by multiplying
10 the value of taxable property therein, including personal
11 property, as ascertained by the last assessment for State and
12 county taxes, previous to the incurring of such indebtedness,
13 by the percentage limitation applicable to such school district
14 under the provisions of this subsection (a).
15     (b) Notwithstanding the debt limitation prescribed in
16 subsection (a) of this Section, additional indebtedness may be
17 incurred in an amount not to exceed the estimated cost of
18 acquiring or improving school sites or constructing and
19 equipping additional building facilities under the following
20 conditions:
21         (1) Whenever the enrollment of students for the next
22     school year is estimated by the board of education to
23     increase over the actual present enrollment by not less
24     than 35% or by not less than 200 students or the actual
25     present enrollment of students has increased over the
26     previous school year by not less than 35% or by not less
27     than 200 students and the board of education determines
28     that additional school sites or building facilities are
29     required as a result of such increase in enrollment; and
30         (2) When the Regional Superintendent of Schools having
31     jurisdiction over the school district and the State
32     Superintendent of Education concur in such enrollment
33     projection or increase and approve the need for such
34     additional school sites or building facilities and the
35     estimated cost thereof; and
36         (3) When the voters in the school district approve a

 

 

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1     proposition for the issuance of bonds for the purpose of
2     acquiring or improving such needed school sites or
3     constructing and equipping such needed additional building
4     facilities at an election called and held for that purpose.
5     Notice of such an election shall state that the amount of
6     indebtedness proposed to be incurred would exceed the debt
7     limitation otherwise applicable to the school district.
8     The ballot for such proposition shall state what percentage
9     of the equalized assessed valuation will be outstanding in
10     bonds if the proposed issuance of bonds is approved by the
11     voters; or
12         (4) Notwithstanding the provisions of paragraphs (1)
13     through (3) of this subsection (b), if the school board
14     determines that additional facilities are needed to
15     provide a quality educational program and not less than 2/3
16     of those voting in an election called by the school board
17     on the question approve the issuance of bonds for the
18     construction of such facilities, the school district may
19     issue bonds for this purpose; or
20         (5) Notwithstanding the provisions of paragraphs (1)
21     through (3) of this subsection (b), if (i) the school
22     district has previously availed itself of the provisions of
23     paragraph (4) of this subsection (b) to enable it to issue
24     bonds, (ii) the voters of the school district have not
25     defeated a proposition for the issuance of bonds since the
26     referendum described in paragraph (4) of this subsection
27     (b) was held, (iii) the school board determines that
28     additional facilities are needed to provide a quality
29     educational program, and (iv) a majority of those voting in
30     an election called by the school board on the question
31     approve the issuance of bonds for the construction of such
32     facilities, the school district may issue bonds for this
33     purpose.
34     In no event shall the indebtedness incurred pursuant to
35 this subsection (b) and the existing indebtedness of the school
36 district exceed 15% of the value of the taxable property

 

 

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1 therein to be ascertained by the last assessment for State and
2 county taxes, previous to the incurring of such indebtedness
3 or, until January 1, 1983, if greater, the sum that is produced
4 by multiplying the school district's 1978 equalized assessed
5 valuation by the debt limitation percentage in effect on
6 January 1, 1979.
7     The indebtedness provided for by this subsection (b) shall
8 be in addition to and in excess of any other debt limitation.
9     (c) Notwithstanding the debt limitation prescribed in
10 subsection (a) of this Section, in any case in which a public
11 question for the issuance of bonds of a proposed school
12 district maintaining grades kindergarten through 12 received
13 at least 60% of the valid ballots cast on the question at an
14 election held on or prior to November 8, 1994, and in which the
15 bonds approved at such election have not been issued, the
16 school district pursuant to the requirements of Section 11A-10
17 may issue the total amount of bonds approved at such election
18 for the purpose stated in the question.
19     (d) Notwithstanding the debt limitation prescribed in
20 subsection (a) of this Section, a school district that meets
21 all the criteria set forth in paragraphs (1) and (2) of this
22 subsection (d) may incur an additional indebtedness in an
23 amount not to exceed $4,500,000, even though the amount of the
24 additional indebtedness authorized by this subsection (d),
25 when incurred and added to the aggregate amount of indebtedness
26 of the district existing immediately prior to the district
27 incurring the additional indebtedness authorized by this
28 subsection (d), causes the aggregate indebtedness of the
29 district to exceed the debt limitation otherwise applicable to
30 that district under subsection (a):
31         (1) The additional indebtedness authorized by this
32     subsection (d) is incurred by the school district through
33     the issuance of bonds under and in accordance with Section
34     17-2.11a for the purpose of replacing a school building
35     which, because of mine subsidence damage, has been closed
36     as provided in paragraph (2) of this subsection (d) or

 

 

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1     through the issuance of bonds under and in accordance with
2     Section 19-3 for the purpose of increasing the size of, or
3     providing for additional functions in, such replacement
4     school buildings, or both such purposes.
5         (2) The bonds issued by the school district as provided
6     in paragraph (1) above are issued for the purposes of
7     construction by the school district of a new school
8     building pursuant to Section 17-2.11, to replace an
9     existing school building that, because of mine subsidence
10     damage, is closed as of the end of the 1992-93 school year
11     pursuant to action of the regional superintendent of
12     schools of the educational service region in which the
13     district is located under Section 3-14.22 or are issued for
14     the purpose of increasing the size of, or providing for
15     additional functions in, the new school building being
16     constructed to replace a school building closed as the
17     result of mine subsidence damage, or both such purposes.
18     (e) Notwithstanding the debt limitation prescribed in
19 subsection (a) of this Section, a school district that meets
20 all the criteria set forth in paragraphs (1) through (5) of
21 this subsection (e) may, without referendum, incur an
22 additional indebtedness in an amount not to exceed the lesser
23 of $5,000,000 or 1.5% of the value of the taxable property
24 within the district even though the amount of the additional
25 indebtedness authorized by this subsection (e), when incurred
26 and added to the aggregate amount of indebtedness of the
27 district existing immediately prior to the district incurring
28 that additional indebtedness, causes the aggregate
29 indebtedness of the district to exceed or increases the amount
30 by which the aggregate indebtedness of the district already
31 exceeds the debt limitation otherwise applicable to that
32 district under subsection (a):
33         (1) The State Board of Education certifies the school
34     district under Section 19-1.5 as a financially distressed
35     district.
36         (2) The additional indebtedness authorized by this

 

 

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1     subsection (e) is incurred by the financially distressed
2     district during the school year or school years in which
3     the certification of the district as a financially
4     distressed district continues in effect through the
5     issuance of bonds for the lawful school purposes of the
6     district, pursuant to resolution of the school board and
7     without referendum, as provided in paragraph (5) of this
8     subsection.
9         (3) The aggregate amount of bonds issued by the
10     financially distressed district during a fiscal year in
11     which it is authorized to issue bonds under this subsection
12     does not exceed the amount by which the aggregate
13     expenditures of the district for operational purposes
14     during the immediately preceding fiscal year exceeds the
15     amount appropriated for the operational purposes of the
16     district in the annual school budget adopted by the school
17     board of the district for the fiscal year in which the
18     bonds are issued.
19         (4) Throughout each fiscal year in which certification
20     of the district as a financially distressed district
21     continues in effect, the district maintains in effect a
22     gross salary expense and gross wage expense freeze policy
23     under which the district expenditures for total employee
24     salaries and wages do not exceed such expenditures for the
25     immediately preceding fiscal year. Nothing in this
26     paragraph, however, shall be deemed to impair or to require
27     impairment of the contractual obligations, including
28     collective bargaining agreements, of the district or to
29     impair or require the impairment of the vested rights of
30     any employee of the district under the terms of any
31     contract or agreement in effect on the effective date of
32     this amendatory Act of 1994.
33         (5) Bonds issued by the financially distressed
34     district under this subsection shall bear interest at a
35     rate not to exceed the maximum rate authorized by law at
36     the time of the making of the contract, shall mature within

 

 

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1     40 years from their date of issue, and shall be signed by
2     the president of the school board and treasurer of the
3     school district. In order to issue bonds under this
4     subsection, the school board shall adopt a resolution
5     fixing the amount of the bonds, the date of the bonds, the
6     maturities of the bonds, the rates of interest of the
7     bonds, and their place of payment and denomination, and
8     shall provide for the levy and collection of a direct
9     annual tax upon all the taxable property in the district
10     sufficient to pay the principal and interest on the bonds
11     to maturity. Upon the filing in the office of the county
12     clerk of the county in which the financially distressed
13     district is located of a certified copy of the resolution,
14     it is the duty of the county clerk to extend the tax
15     therefor in addition to and in excess of all other taxes at
16     any time authorized to be levied by the district. If bond
17     proceeds from the sale of bonds include a premium or if the
18     proceeds of the bonds are invested as authorized by law,
19     the school board shall determine by resolution whether the
20     interest earned on the investment of bond proceeds or the
21     premium realized on the sale of the bonds is to be used for
22     any of the lawful school purposes for which the bonds were
23     issued or for the payment of the principal indebtedness and
24     interest on the bonds. The proceeds of the bond sale shall
25     be deposited in the educational purposes fund of the
26     district and shall be used to pay operational expenses of
27     the district. This subsection is cumulative and
28     constitutes complete authority for the issuance of bonds as
29     provided in this subsection, notwithstanding any other law
30     to the contrary.
31     (f) Notwithstanding the provisions of subsection (a) of
32 this Section or of any other law, bonds in not to exceed the
33 aggregate amount of $5,500,000 and issued by a school district
34 meeting the following criteria shall not be considered
35 indebtedness for purposes of any statutory limitation and may
36 be issued in an amount or amounts, including existing

 

 

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1 indebtedness, in excess of any heretofore or hereafter imposed
2 statutory limitation as to indebtedness:
3         (1) At the time of the sale of such bonds, the board of
4     education of the district shall have determined by
5     resolution that the enrollment of students in the district
6     is projected to increase by not less than 7% during each of
7     the next succeeding 2 school years.
8         (2) The board of education shall also determine by
9     resolution that the improvements to be financed with the
10     proceeds of the bonds are needed because of the projected
11     enrollment increases.
12         (3) The board of education shall also determine by
13     resolution that the projected increases in enrollment are
14     the result of improvements made or expected to be made to
15     passenger rail facilities located in the school district.
16     Notwithstanding the provisions of subsection (a) of this
17 Section or of any other law, a school district that has availed
18 itself of the provisions of this subsection (f) prior to July
19 22, 2004 (the effective date of Public Act 93-799) this
20 amendatory Act of the 93rd General Assembly may also issue
21 bonds approved by referendum up to an amount, including
22 existing indebtedness, not exceeding 25% of the equalized
23 assessed value of the taxable property in the district if all
24 of the conditions set forth in items (1), (2), and (3) of this
25 subsection (f) are met.
26     (g) Notwithstanding the provisions of subsection (a) of
27 this Section or any other law, bonds in not to exceed an
28 aggregate amount of 25% of the equalized assessed value of the
29 taxable property of a school district and issued by a school
30 district meeting the criteria in paragraphs (i) through (iv) of
31 this subsection shall not be considered indebtedness for
32 purposes of any statutory limitation and may be issued pursuant
33 to resolution of the school board in an amount or amounts,
34 including existing indebtedness, in excess of any statutory
35 limitation of indebtedness heretofore or hereafter imposed:
36         (i) The bonds are issued for the purpose of

 

 

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1     constructing a new high school building to replace two
2     adjacent existing buildings which together house a single
3     high school, each of which is more than 65 years old, and
4     which together are located on more than 10 acres and less
5     than 11 acres of property.
6         (ii) At the time the resolution authorizing the
7     issuance of the bonds is adopted, the cost of constructing
8     a new school building to replace the existing school
9     building is less than 60% of the cost of repairing the
10     existing school building.
11         (iii) The sale of the bonds occurs before July 1, 1997.
12         (iv) The school district issuing the bonds is a unit
13     school district located in a county of less than 70,000 and
14     more than 50,000 inhabitants, which has an average daily
15     attendance of less than 1,500 and an equalized assessed
16     valuation of less than $29,000,000.
17     (h) Notwithstanding any other provisions of this Section or
18 the provisions of any other law, until January 1, 1998, a
19 community unit school district maintaining grades K through 12
20 may issue bonds up to an amount, including existing
21 indebtedness, not exceeding 27.6% of the equalized assessed
22 value of the taxable property in the district, if all of the
23 following conditions are met:
24         (i) The school district has an equalized assessed
25     valuation for calendar year 1995 of less than $24,000,000;
26         (ii) The bonds are issued for the capital improvement,
27     renovation, rehabilitation, or replacement of existing
28     school buildings of the district, all of which buildings
29     were originally constructed not less than 40 years ago;
30         (iii) The voters of the district approve a proposition
31     for the issuance of the bonds at a referendum held after
32     March 19, 1996; and
33         (iv) The bonds are issued pursuant to Sections 19-2
34     through 19-7 of this Code.
35     (i) Notwithstanding any other provisions of this Section or
36 the provisions of any other law, until January 1, 1998, a

 

 

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1 community unit school district maintaining grades K through 12
2 may issue bonds up to an amount, including existing
3 indebtedness, not exceeding 27% of the equalized assessed value
4 of the taxable property in the district, if all of the
5 following conditions are met:
6         (i) The school district has an equalized assessed
7     valuation for calendar year 1995 of less than $44,600,000;
8         (ii) The bonds are issued for the capital improvement,
9     renovation, rehabilitation, or replacement of existing
10     school buildings of the district, all of which existing
11     buildings were originally constructed not less than 80
12     years ago;
13         (iii) The voters of the district approve a proposition
14     for the issuance of the bonds at a referendum held after
15     December 31, 1996; and
16         (iv) The bonds are issued pursuant to Sections 19-2
17     through 19-7 of this Code.
18     (j) Notwithstanding any other provisions of this Section or
19 the provisions of any other law, until January 1, 1999, a
20 community unit school district maintaining grades K through 12
21 may issue bonds up to an amount, including existing
22 indebtedness, not exceeding 27% of the equalized assessed value
23 of the taxable property in the district if all of the following
24 conditions are met:
25         (i) The school district has an equalized assessed
26     valuation for calendar year 1995 of less than $140,000,000
27     and a best 3 months average daily attendance for the
28     1995-96 school year of at least 2,800;
29         (ii) The bonds are issued to purchase a site and build
30     and equip a new high school, and the school district's
31     existing high school was originally constructed not less
32     than 35 years prior to the sale of the bonds;
33         (iii) At the time of the sale of the bonds, the board
34     of education determines by resolution that a new high
35     school is needed because of projected enrollment
36     increases;

 

 

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1         (iv) At least 60% of those voting in an election held
2     after December 31, 1996 approve a proposition for the
3     issuance of the bonds; and
4         (v) The bonds are issued pursuant to Sections 19-2
5     through 19-7 of this Code.
6     (k) Notwithstanding the debt limitation prescribed in
7 subsection (a) of this Section, a school district that meets
8 all the criteria set forth in paragraphs (1) through (4) of
9 this subsection (k) may issue bonds to incur an additional
10 indebtedness in an amount not to exceed $4,000,000 even though
11 the amount of the additional indebtedness authorized by this
12 subsection (k), when incurred and added to the aggregate amount
13 of indebtedness of the school district existing immediately
14 prior to the school district incurring such additional
15 indebtedness, causes the aggregate indebtedness of the school
16 district to exceed or increases the amount by which the
17 aggregate indebtedness of the district already exceeds the debt
18 limitation otherwise applicable to that school district under
19 subsection (a):
20         (1) the school district is located in 2 counties, and a
21     referendum to authorize the additional indebtedness was
22     approved by a majority of the voters of the school district
23     voting on the proposition to authorize that indebtedness;
24         (2) the additional indebtedness is for the purpose of
25     financing a multi-purpose room addition to the existing
26     high school;
27         (3) the additional indebtedness, together with the
28     existing indebtedness of the school district, shall not
29     exceed 17.4% of the value of the taxable property in the
30     school district, to be ascertained by the last assessment
31     for State and county taxes; and
32         (4) the bonds evidencing the additional indebtedness
33     are issued, if at all, within 120 days of the effective
34     date of this amendatory Act of 1998.
35     (l) Notwithstanding any other provisions of this Section or
36 the provisions of any other law, until January 1, 2000, a

 

 

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1 school district maintaining grades kindergarten through 8 may
2 issue bonds up to an amount, including existing indebtedness,
3 not exceeding 15% of the equalized assessed value of the
4 taxable property in the district if all of the following
5 conditions are met:
6         (i) the district has an equalized assessed valuation
7     for calendar year 1996 of less than $10,000,000;
8         (ii) the bonds are issued for capital improvement,
9     renovation, rehabilitation, or replacement of one or more
10     school buildings of the district, which buildings were
11     originally constructed not less than 70 years ago;
12         (iii) the voters of the district approve a proposition
13     for the issuance of the bonds at a referendum held on or
14     after March 17, 1998; and
15         (iv) the bonds are issued pursuant to Sections 19-2
16     through 19-7 of this Code.
17     (m) Notwithstanding any other provisions of this Section or
18 the provisions of any other law, until January 1, 1999, an
19 elementary school district maintaining grades K through 8 may
20 issue bonds up to an amount, excluding existing indebtedness,
21 not exceeding 18% of the equalized assessed value of the
22 taxable property in the district, if all of the following
23 conditions are met:
24         (i) The school district has an equalized assessed
25     valuation for calendar year 1995 or less than $7,700,000;
26         (ii) The school district operates 2 elementary
27     attendance centers that until 1976 were operated as the
28     attendance centers of 2 separate and distinct school
29     districts;
30         (iii) The bonds are issued for the construction of a
31     new elementary school building to replace an existing
32     multi-level elementary school building of the school
33     district that is not handicapped accessible at all levels
34     and parts of which were constructed more than 75 years ago;
35         (iv) The voters of the school district approve a
36     proposition for the issuance of the bonds at a referendum

 

 

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1     held after July 1, 1998; and
2         (v) The bonds are issued pursuant to Sections 19-2
3     through 19-7 of this Code.
4     (n) Notwithstanding the debt limitation prescribed in
5 subsection (a) of this Section or any other provisions of this
6 Section or of any other law, a school district that meets all
7 of the criteria set forth in paragraphs (i) through (vi) of
8 this subsection (n) may incur additional indebtedness by the
9 issuance of bonds in an amount not exceeding the amount
10 certified by the Capital Development Board to the school
11 district as provided in paragraph (iii) of this subsection (n),
12 even though the amount of the additional indebtedness so
13 authorized, when incurred and added to the aggregate amount of
14 indebtedness of the district existing immediately prior to the
15 district incurring the additional indebtedness authorized by
16 this subsection (n), causes the aggregate indebtedness of the
17 district to exceed the debt limitation otherwise applicable by
18 law to that district:
19         (i) The school district applies to the State Board of
20     Education for a school construction project grant and
21     submits a district facilities plan in support of its
22     application pursuant to Section 5-20 of the School
23     Construction Law.
24         (ii) The school district's application and facilities
25     plan are approved by, and the district receives a grant
26     entitlement for a school construction project issued by,
27     the State Board of Education under the School Construction
28     Law.
29         (iii) The school district has exhausted its bonding
30     capacity or the unused bonding capacity of the district is
31     less than the amount certified by the Capital Development
32     Board to the district under Section 5-15 of the School
33     Construction Law as the dollar amount of the school
34     construction project's cost that the district will be
35     required to finance with non-grant funds in order to
36     receive a school construction project grant under the

 

 

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1     School Construction Law.
2         (iv) The bonds are issued for a "school construction
3     project", as that term is defined in Section 5-5 of the
4     School Construction Law, in an amount that does not exceed
5     the dollar amount certified, as provided in paragraph (iii)
6     of this subsection (n), by the Capital Development Board to
7     the school district under Section 5-15 of the School
8     Construction Law.
9         (v) The voters of the district approve a proposition
10     for the issuance of the bonds at a referendum held after
11     the criteria specified in paragraphs (i) and (iii) of this
12     subsection (n) are met.
13         (vi) The bonds are issued pursuant to Sections 19-2
14     through 19-7 of the School Code.
15     (o) Notwithstanding any other provisions of this Section or
16 the provisions of any other law, until November 1, 2007, a
17 community unit school district maintaining grades K through 12
18 may issue bonds up to an amount, including existing
19 indebtedness, not exceeding 20% of the equalized assessed value
20 of the taxable property in the district if all of the following
21 conditions are met:
22         (i) the school district has an equalized assessed
23     valuation for calendar year 2001 of at least $737,000,000
24     and an enrollment for the 2002-2003 school year of at least
25     8,500;
26         (ii) the bonds are issued to purchase school sites,
27     build and equip a new high school, build and equip a new
28     junior high school, build and equip 5 new elementary
29     schools, and make technology and other improvements and
30     additions to existing schools;
31         (iii) at the time of the sale of the bonds, the board
32     of education determines by resolution that the sites and
33     new or improved facilities are needed because of projected
34     enrollment increases;
35         (iv) at least 57% of those voting in a general election
36     held prior to January 1, 2003 approved a proposition for

 

 

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1     the issuance of the bonds; and
2         (v) the bonds are issued pursuant to Sections 19-2
3     through 19-7 of this Code.
4     (p) Notwithstanding any other provisions of this Section or
5 the provisions of any other law, a community unit school
6 district maintaining grades K through 12 may issue bonds up to
7 an amount, including indebtedness, not exceeding 27% of the
8 equalized assessed value of the taxable property in the
9 district if all of the following conditions are met:
10         (i) The school district has an equalized assessed
11     valuation for calendar year 2001 of at least $295,741,187
12     and a best 3 months' average daily attendance for the
13     2002-2003 school year of at least 2,394.
14         (ii) The bonds are issued to build and equip 3
15     elementary school buildings; build and equip one middle
16     school building; and alter, repair, improve, and equip all
17     existing school buildings in the district.
18         (iii) At the time of the sale of the bonds, the board
19     of education determines by resolution that the project is
20     needed because of expanding growth in the school district
21     and a projected enrollment increase.
22         (iv) The bonds are issued pursuant to Sections 19-2
23     through 19-7 of this Code.
24     (p-5) Notwithstanding any other provisions of this Section
25 or the provisions of any other law, bonds issued by a community
26 unit school district maintaining grades K through 12 shall not
27 be considered indebtedness for purposes of any statutory
28 limitation and may be issued in an amount or amounts, including
29 existing indebtedness, in excess of any heretofore or hereafter
30 imposed statutory limitation as to indebtedness, if all of the
31 following conditions are met:
32         (i) For each of the 4 most recent years, residential
33     property comprises more than 80% of the equalized assessed
34     valuation of the district.
35         (ii) At least 2 school buildings that were constructed
36     40 or more years prior to the issuance of the bonds will be

 

 

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1     demolished and will be replaced by new buildings or
2     additions to one or more existing buildings.
3         (iii) Voters of the district approve a proposition for
4     the issuance of the bonds at a regularly scheduled
5     election.
6         (iv) At the time of the sale of the bonds, the school
7     board determines by resolution that the new buildings or
8     building additions are needed because of an increase in
9     enrollment projected by the school board.
10         (v) The principal amount of the bonds, including
11     existing indebtedness, does not exceed 25% of the equalized
12     assessed value of the taxable property in the district.
13         (vi) The bonds are issued prior to January 1, 2007,
14     pursuant to Sections 19-2 through 19-7 of this Code.
15 (Source: P.A. 93-13, eff. 6-9-03; 93-799, eff. 7-22-04;
16 93-1045, eff. 10-15-04; revised 10-22-04.)
 
17     (Text of Section after amendment by P.A. 94-234)
18     Sec. 19-1. Debt limitations of school districts.
19     (a) School districts shall not be subject to the provisions
20 limiting their indebtedness prescribed in "An Act to limit the
21 indebtedness of counties having a population of less than
22 500,000 and townships, school districts and other municipal
23 corporations having a population of less than 300,000",
24 approved February 15, 1928, as amended.
25     No school districts maintaining grades K through 8 or 9
26 through 12 shall become indebted in any manner or for any
27 purpose to an amount, including existing indebtedness, in the
28 aggregate exceeding 6.9% on the value of the taxable property
29 therein to be ascertained by the last assessment for State and
30 county taxes or, until January 1, 1983, if greater, the sum
31 that is produced by multiplying the school district's 1978
32 equalized assessed valuation by the debt limitation percentage
33 in effect on January 1, 1979, previous to the incurring of such
34 indebtedness.
35     No school districts maintaining grades K through 12 shall

 

 

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1 become indebted in any manner or for any purpose to an amount,
2 including existing indebtedness, in the aggregate exceeding
3 13.8% on the value of the taxable property therein to be
4 ascertained by the last assessment for State and county taxes
5 or, until January 1, 1983, if greater, the sum that is produced
6 by multiplying the school district's 1978 equalized assessed
7 valuation by the debt limitation percentage in effect on
8 January 1, 1979, previous to the incurring of such
9 indebtedness.
10     Notwithstanding the provisions of any other law to the
11 contrary, in any case in which the voters of a school district
12 have approved a proposition for the issuance of bonds of such
13 school district at an election held prior to January 1, 1979,
14 and all of the bonds approved at such election have not been
15 issued, the debt limitation applicable to such school district
16 during the calendar year 1979 shall be computed by multiplying
17 the value of taxable property therein, including personal
18 property, as ascertained by the last assessment for State and
19 county taxes, previous to the incurring of such indebtedness,
20 by the percentage limitation applicable to such school district
21 under the provisions of this subsection (a).
22     (b) Notwithstanding the debt limitation prescribed in
23 subsection (a) of this Section, additional indebtedness may be
24 incurred in an amount not to exceed the estimated cost of
25 acquiring or improving school sites or constructing and
26 equipping additional building facilities under the following
27 conditions:
28         (1) Whenever the enrollment of students for the next
29     school year is estimated by the board of education to
30     increase over the actual present enrollment by not less
31     than 35% or by not less than 200 students or the actual
32     present enrollment of students has increased over the
33     previous school year by not less than 35% or by not less
34     than 200 students and the board of education determines
35     that additional school sites or building facilities are
36     required as a result of such increase in enrollment; and

 

 

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1         (2) When the Regional Superintendent of Schools having
2     jurisdiction over the school district and the State
3     Superintendent of Education concur in such enrollment
4     projection or increase and approve the need for such
5     additional school sites or building facilities and the
6     estimated cost thereof; and
7         (3) When the voters in the school district approve a
8     proposition for the issuance of bonds for the purpose of
9     acquiring or improving such needed school sites or
10     constructing and equipping such needed additional building
11     facilities at an election called and held for that purpose.
12     Notice of such an election shall state that the amount of
13     indebtedness proposed to be incurred would exceed the debt
14     limitation otherwise applicable to the school district.
15     The ballot for such proposition shall state what percentage
16     of the equalized assessed valuation will be outstanding in
17     bonds if the proposed issuance of bonds is approved by the
18     voters; or
19         (4) Notwithstanding the provisions of paragraphs (1)
20     through (3) of this subsection (b), if the school board
21     determines that additional facilities are needed to
22     provide a quality educational program and not less than 2/3
23     of those voting in an election called by the school board
24     on the question approve the issuance of bonds for the
25     construction of such facilities, the school district may
26     issue bonds for this purpose; or
27         (5) Notwithstanding the provisions of paragraphs (1)
28     through (3) of this subsection (b), if (i) the school
29     district has previously availed itself of the provisions of
30     paragraph (4) of this subsection (b) to enable it to issue
31     bonds, (ii) the voters of the school district have not
32     defeated a proposition for the issuance of bonds since the
33     referendum described in paragraph (4) of this subsection
34     (b) was held, (iii) the school board determines that
35     additional facilities are needed to provide a quality
36     educational program, and (iv) a majority of those voting in

 

 

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1     an election called by the school board on the question
2     approve the issuance of bonds for the construction of such
3     facilities, the school district may issue bonds for this
4     purpose.
5     In no event shall the indebtedness incurred pursuant to
6 this subsection (b) and the existing indebtedness of the school
7 district exceed 15% of the value of the taxable property
8 therein to be ascertained by the last assessment for State and
9 county taxes, previous to the incurring of such indebtedness
10 or, until January 1, 1983, if greater, the sum that is produced
11 by multiplying the school district's 1978 equalized assessed
12 valuation by the debt limitation percentage in effect on
13 January 1, 1979.
14     The indebtedness provided for by this subsection (b) shall
15 be in addition to and in excess of any other debt limitation.
16     (c) Notwithstanding the debt limitation prescribed in
17 subsection (a) of this Section, in any case in which a public
18 question for the issuance of bonds of a proposed school
19 district maintaining grades kindergarten through 12 received
20 at least 60% of the valid ballots cast on the question at an
21 election held on or prior to November 8, 1994, and in which the
22 bonds approved at such election have not been issued, the
23 school district pursuant to the requirements of Section 11A-10
24 may issue the total amount of bonds approved at such election
25 for the purpose stated in the question.
26     (d) Notwithstanding the debt limitation prescribed in
27 subsection (a) of this Section, a school district that meets
28 all the criteria set forth in paragraphs (1) and (2) of this
29 subsection (d) may incur an additional indebtedness in an
30 amount not to exceed $4,500,000, even though the amount of the
31 additional indebtedness authorized by this subsection (d),
32 when incurred and added to the aggregate amount of indebtedness
33 of the district existing immediately prior to the district
34 incurring the additional indebtedness authorized by this
35 subsection (d), causes the aggregate indebtedness of the
36 district to exceed the debt limitation otherwise applicable to

 

 

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1 that district under subsection (a):
2         (1) The additional indebtedness authorized by this
3     subsection (d) is incurred by the school district through
4     the issuance of bonds under and in accordance with Section
5     17-2.11a for the purpose of replacing a school building
6     which, because of mine subsidence damage, has been closed
7     as provided in paragraph (2) of this subsection (d) or
8     through the issuance of bonds under and in accordance with
9     Section 19-3 for the purpose of increasing the size of, or
10     providing for additional functions in, such replacement
11     school buildings, or both such purposes.
12         (2) The bonds issued by the school district as provided
13     in paragraph (1) above are issued for the purposes of
14     construction by the school district of a new school
15     building pursuant to Section 17-2.11, to replace an
16     existing school building that, because of mine subsidence
17     damage, is closed as of the end of the 1992-93 school year
18     pursuant to action of the regional superintendent of
19     schools of the educational service region in which the
20     district is located under Section 3-14.22 or are issued for
21     the purpose of increasing the size of, or providing for
22     additional functions in, the new school building being
23     constructed to replace a school building closed as the
24     result of mine subsidence damage, or both such purposes.
25     (e) (Blank).
26     (f) Notwithstanding the provisions of subsection (a) of
27 this Section or of any other law, bonds in not to exceed the
28 aggregate amount of $5,500,000 and issued by a school district
29 meeting the following criteria shall not be considered
30 indebtedness for purposes of any statutory limitation and may
31 be issued in an amount or amounts, including existing
32 indebtedness, in excess of any heretofore or hereafter imposed
33 statutory limitation as to indebtedness:
34         (1) At the time of the sale of such bonds, the board of
35     education of the district shall have determined by
36     resolution that the enrollment of students in the district

 

 

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1     is projected to increase by not less than 7% during each of
2     the next succeeding 2 school years.
3         (2) The board of education shall also determine by
4     resolution that the improvements to be financed with the
5     proceeds of the bonds are needed because of the projected
6     enrollment increases.
7         (3) The board of education shall also determine by
8     resolution that the projected increases in enrollment are
9     the result of improvements made or expected to be made to
10     passenger rail facilities located in the school district.
11     Notwithstanding the provisions of subsection (a) of this
12 Section or of any other law, a school district that has availed
13 itself of the provisions of this subsection (f) prior to July
14 22, 2004 (the effective date of Public Act 93-799) may also
15 issue bonds approved by referendum up to an amount, including
16 existing indebtedness, not exceeding 25% of the equalized
17 assessed value of the taxable property in the district if all
18 of the conditions set forth in items (1), (2), and (3) of this
19 subsection (f) are met.
20     (g) Notwithstanding the provisions of subsection (a) of
21 this Section or any other law, bonds in not to exceed an
22 aggregate amount of 25% of the equalized assessed value of the
23 taxable property of a school district and issued by a school
24 district meeting the criteria in paragraphs (i) through (iv) of
25 this subsection shall not be considered indebtedness for
26 purposes of any statutory limitation and may be issued pursuant
27 to resolution of the school board in an amount or amounts,
28 including existing indebtedness, in excess of any statutory
29 limitation of indebtedness heretofore or hereafter imposed:
30         (i) The bonds are issued for the purpose of
31     constructing a new high school building to replace two
32     adjacent existing buildings which together house a single
33     high school, each of which is more than 65 years old, and
34     which together are located on more than 10 acres and less
35     than 11 acres of property.
36         (ii) At the time the resolution authorizing the

 

 

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1     issuance of the bonds is adopted, the cost of constructing
2     a new school building to replace the existing school
3     building is less than 60% of the cost of repairing the
4     existing school building.
5         (iii) The sale of the bonds occurs before July 1, 1997.
6         (iv) The school district issuing the bonds is a unit
7     school district located in a county of less than 70,000 and
8     more than 50,000 inhabitants, which has an average daily
9     attendance of less than 1,500 and an equalized assessed
10     valuation of less than $29,000,000.
11     (h) Notwithstanding any other provisions of this Section or
12 the provisions of any other law, until January 1, 1998, a
13 community unit school district maintaining grades K through 12
14 may issue bonds up to an amount, including existing
15 indebtedness, not exceeding 27.6% of the equalized assessed
16 value of the taxable property in the district, if all of the
17 following conditions are met:
18         (i) The school district has an equalized assessed
19     valuation for calendar year 1995 of less than $24,000,000;
20         (ii) The bonds are issued for the capital improvement,
21     renovation, rehabilitation, or replacement of existing
22     school buildings of the district, all of which buildings
23     were originally constructed not less than 40 years ago;
24         (iii) The voters of the district approve a proposition
25     for the issuance of the bonds at a referendum held after
26     March 19, 1996; and
27         (iv) The bonds are issued pursuant to Sections 19-2
28     through 19-7 of this Code.
29     (i) Notwithstanding any other provisions of this Section or
30 the provisions of any other law, until January 1, 1998, a
31 community unit school district maintaining grades K through 12
32 may issue bonds up to an amount, including existing
33 indebtedness, not exceeding 27% of the equalized assessed value
34 of the taxable property in the district, if all of the
35 following conditions are met:
36         (i) The school district has an equalized assessed

 

 

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1     valuation for calendar year 1995 of less than $44,600,000;
2         (ii) The bonds are issued for the capital improvement,
3     renovation, rehabilitation, or replacement of existing
4     school buildings of the district, all of which existing
5     buildings were originally constructed not less than 80
6     years ago;
7         (iii) The voters of the district approve a proposition
8     for the issuance of the bonds at a referendum held after
9     December 31, 1996; and
10         (iv) The bonds are issued pursuant to Sections 19-2
11     through 19-7 of this Code.
12     (j) Notwithstanding any other provisions of this Section or
13 the provisions of any other law, until January 1, 1999, a
14 community unit school district maintaining grades K through 12
15 may issue bonds up to an amount, including existing
16 indebtedness, not exceeding 27% of the equalized assessed value
17 of the taxable property in the district if all of the following
18 conditions are met:
19         (i) The school district has an equalized assessed
20     valuation for calendar year 1995 of less than $140,000,000
21     and a best 3 months average daily attendance for the
22     1995-96 school year of at least 2,800;
23         (ii) The bonds are issued to purchase a site and build
24     and equip a new high school, and the school district's
25     existing high school was originally constructed not less
26     than 35 years prior to the sale of the bonds;
27         (iii) At the time of the sale of the bonds, the board
28     of education determines by resolution that a new high
29     school is needed because of projected enrollment
30     increases;
31         (iv) At least 60% of those voting in an election held
32     after December 31, 1996 approve a proposition for the
33     issuance of the bonds; and
34         (v) The bonds are issued pursuant to Sections 19-2
35     through 19-7 of this Code.
36     (k) Notwithstanding the debt limitation prescribed in

 

 

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1 subsection (a) of this Section, a school district that meets
2 all the criteria set forth in paragraphs (1) through (4) of
3 this subsection (k) may issue bonds to incur an additional
4 indebtedness in an amount not to exceed $4,000,000 even though
5 the amount of the additional indebtedness authorized by this
6 subsection (k), when incurred and added to the aggregate amount
7 of indebtedness of the school district existing immediately
8 prior to the school district incurring such additional
9 indebtedness, causes the aggregate indebtedness of the school
10 district to exceed or increases the amount by which the
11 aggregate indebtedness of the district already exceeds the debt
12 limitation otherwise applicable to that school district under
13 subsection (a):
14         (1) the school district is located in 2 counties, and a
15     referendum to authorize the additional indebtedness was
16     approved by a majority of the voters of the school district
17     voting on the proposition to authorize that indebtedness;
18         (2) the additional indebtedness is for the purpose of
19     financing a multi-purpose room addition to the existing
20     high school;
21         (3) the additional indebtedness, together with the
22     existing indebtedness of the school district, shall not
23     exceed 17.4% of the value of the taxable property in the
24     school district, to be ascertained by the last assessment
25     for State and county taxes; and
26         (4) the bonds evidencing the additional indebtedness
27     are issued, if at all, within 120 days of the effective
28     date of this amendatory Act of 1998.
29     (l) Notwithstanding any other provisions of this Section or
30 the provisions of any other law, until January 1, 2000, a
31 school district maintaining grades kindergarten through 8 may
32 issue bonds up to an amount, including existing indebtedness,
33 not exceeding 15% of the equalized assessed value of the
34 taxable property in the district if all of the following
35 conditions are met:
36         (i) the district has an equalized assessed valuation

 

 

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1     for calendar year 1996 of less than $10,000,000;
2         (ii) the bonds are issued for capital improvement,
3     renovation, rehabilitation, or replacement of one or more
4     school buildings of the district, which buildings were
5     originally constructed not less than 70 years ago;
6         (iii) the voters of the district approve a proposition
7     for the issuance of the bonds at a referendum held on or
8     after March 17, 1998; and
9         (iv) the bonds are issued pursuant to Sections 19-2
10     through 19-7 of this Code.
11     (m) Notwithstanding any other provisions of this Section or
12 the provisions of any other law, until January 1, 1999, an
13 elementary school district maintaining grades K through 8 may
14 issue bonds up to an amount, excluding existing indebtedness,
15 not exceeding 18% of the equalized assessed value of the
16 taxable property in the district, if all of the following
17 conditions are met:
18         (i) The school district has an equalized assessed
19     valuation for calendar year 1995 or less than $7,700,000;
20         (ii) The school district operates 2 elementary
21     attendance centers that until 1976 were operated as the
22     attendance centers of 2 separate and distinct school
23     districts;
24         (iii) The bonds are issued for the construction of a
25     new elementary school building to replace an existing
26     multi-level elementary school building of the school
27     district that is not handicapped accessible at all levels
28     and parts of which were constructed more than 75 years ago;
29         (iv) The voters of the school district approve a
30     proposition for the issuance of the bonds at a referendum
31     held after July 1, 1998; and
32         (v) The bonds are issued pursuant to Sections 19-2
33     through 19-7 of this Code.
34     (n) Notwithstanding the debt limitation prescribed in
35 subsection (a) of this Section or any other provisions of this
36 Section or of any other law, a school district that meets all

 

 

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1 of the criteria set forth in paragraphs (i) through (vi) of
2 this subsection (n) may incur additional indebtedness by the
3 issuance of bonds in an amount not exceeding the amount
4 certified by the Capital Development Board to the school
5 district as provided in paragraph (iii) of this subsection (n),
6 even though the amount of the additional indebtedness so
7 authorized, when incurred and added to the aggregate amount of
8 indebtedness of the district existing immediately prior to the
9 district incurring the additional indebtedness authorized by
10 this subsection (n), causes the aggregate indebtedness of the
11 district to exceed the debt limitation otherwise applicable by
12 law to that district:
13         (i) The school district applies to the State Board of
14     Education for a school construction project grant and
15     submits a district facilities plan in support of its
16     application pursuant to Section 5-20 of the School
17     Construction Law.
18         (ii) The school district's application and facilities
19     plan are approved by, and the district receives a grant
20     entitlement for a school construction project issued by,
21     the State Board of Education under the School Construction
22     Law.
23         (iii) The school district has exhausted its bonding
24     capacity or the unused bonding capacity of the district is
25     less than the amount certified by the Capital Development
26     Board to the district under Section 5-15 of the School
27     Construction Law as the dollar amount of the school
28     construction project's cost that the district will be
29     required to finance with non-grant funds in order to
30     receive a school construction project grant under the
31     School Construction Law.
32         (iv) The bonds are issued for a "school construction
33     project", as that term is defined in Section 5-5 of the
34     School Construction Law, in an amount that does not exceed
35     the dollar amount certified, as provided in paragraph (iii)
36     of this subsection (n), by the Capital Development Board to

 

 

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1     the school district under Section 5-15 of the School
2     Construction Law.
3         (v) The voters of the district approve a proposition
4     for the issuance of the bonds at a referendum held after
5     the criteria specified in paragraphs (i) and (iii) of this
6     subsection (n) are met.
7         (vi) The bonds are issued pursuant to Sections 19-2
8     through 19-7 of the School Code.
9     (o) Notwithstanding any other provisions of this Section or
10 the provisions of any other law, until November 1, 2007, a
11 community unit school district maintaining grades K through 12
12 may issue bonds up to an amount, including existing
13 indebtedness, not exceeding 20% of the equalized assessed value
14 of the taxable property in the district if all of the following
15 conditions are met:
16         (i) the school district has an equalized assessed
17     valuation for calendar year 2001 of at least $737,000,000
18     and an enrollment for the 2002-2003 school year of at least
19     8,500;
20         (ii) the bonds are issued to purchase school sites,
21     build and equip a new high school, build and equip a new
22     junior high school, build and equip 5 new elementary
23     schools, and make technology and other improvements and
24     additions to existing schools;
25         (iii) at the time of the sale of the bonds, the board
26     of education determines by resolution that the sites and
27     new or improved facilities are needed because of projected
28     enrollment increases;
29         (iv) at least 57% of those voting in a general election
30     held prior to January 1, 2003 approved a proposition for
31     the issuance of the bonds; and
32         (v) the bonds are issued pursuant to Sections 19-2
33     through 19-7 of this Code.
34     (p) Notwithstanding any other provisions of this Section or
35 the provisions of any other law, a community unit school
36 district maintaining grades K through 12 may issue bonds up to

 

 

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1 an amount, including indebtedness, not exceeding 27% of the
2 equalized assessed value of the taxable property in the
3 district if all of the following conditions are met:
4         (i) The school district has an equalized assessed
5     valuation for calendar year 2001 of at least $295,741,187
6     and a best 3 months' average daily attendance for the
7     2002-2003 school year of at least 2,394.
8         (ii) The bonds are issued to build and equip 3
9     elementary school buildings; build and equip one middle
10     school building; and alter, repair, improve, and equip all
11     existing school buildings in the district.
12         (iii) At the time of the sale of the bonds, the board
13     of education determines by resolution that the project is
14     needed because of expanding growth in the school district
15     and a projected enrollment increase.
16         (iv) The bonds are issued pursuant to Sections 19-2
17     through 19-7 of this Code.
18     (p-5) Notwithstanding any other provisions of this Section
19 or the provisions of any other law, bonds issued by a community
20 unit school district maintaining grades K through 12 shall not
21 be considered indebtedness for purposes of any statutory
22 limitation and may be issued in an amount or amounts, including
23 existing indebtedness, in excess of any heretofore or hereafter
24 imposed statutory limitation as to indebtedness, if all of the
25 following conditions are met:
26         (i) For each of the 4 most recent years, residential
27     property comprises more than 80% of the equalized assessed
28     valuation of the district.
29         (ii) At least 2 school buildings that were constructed
30     40 or more years prior to the issuance of the bonds will be
31     demolished and will be replaced by new buildings or
32     additions to one or more existing buildings.
33         (iii) Voters of the district approve a proposition for
34     the issuance of the bonds at a regularly scheduled
35     election.
36         (iv) At the time of the sale of the bonds, the school

 

 

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1     board determines by resolution that the new buildings or
2     building additions are needed because of an increase in
3     enrollment projected by the school board.
4         (v) The principal amount of the bonds, including
5     existing indebtedness, does not exceed 25% of the equalized
6     assessed value of the taxable property in the district.
7         (vi) The bonds are issued prior to January 1, 2007,
8     pursuant to Sections 19-2 through 19-7 of this Code.
9     (q) A school district must notify the State Board of
10 Education prior to issuing any form of long-term or short-term
11 debt that will result in outstanding debt that exceeds 75% of
12 the debt limit specified in this Section or any other provision
13 of law.
14 (Source: P.A. 93-13, eff. 6-9-03; 93-799, eff. 7-22-04;
15 93-1045, eff. 10-15-04; 94-234, eff. 7-1-06.)
 
16     Section 95. No acceleration or delay. Where this Act makes
17 changes in a statute that is represented in this Act by text
18 that is not yet or no longer in effect (for example, a Section
19 represented by multiple versions), the use of that text does
20 not accelerate or delay the taking effect of (i) the changes
21 made by this Act or (ii) provisions derived from any other
22 Public Act.
 
23     Section 99. Effective date. This Act takes effect upon
24 becoming law.