Rep. Patrick J. Verschoore

Filed: 3/2/2011

 

 


 

 


 
09700HB2846ham001LRB097 09014 PJG 51387 a

1
AMENDMENT TO HOUSE BILL 2846

2    AMENDMENT NO. ______. Amend House Bill 2846 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Local Government Debt Reform Act is amended
5by changing Section 15 as follows:
 
6    (30 ILCS 350/15)  (from Ch. 17, par. 6915)
7    Sec. 15. Double-barrelled bonds. Whenever revenue bonds
8have been authorized to be issued pursuant to applicable law or
9whenever there exists for a governmental unit a revenue source,
10the procedures set forth in this Section may be used by a
11governing body. General obligation bonds may be issued in lieu
12of such revenue bonds as authorized, and general obligation
13bonds may be issued payable from any revenue source. Such
14general obligation bonds may be referred to as "alternate
15bonds". Alternate bonds may be issued without any referendum or
16backdoor referendum except as provided in this Section, upon

 

 

09700HB2846ham001- 2 -LRB097 09014 PJG 51387 a

1the terms provided in Section 10 of this Act without reference
2to other provisions of law, but only upon the conditions
3provided in this Section. Alternate bonds shall not be regarded
4as or included in any computation of indebtedness for the
5purpose of any statutory provision or limitation except as
6expressly provided in this Section.
7    Such conditions are:
8    (a) Alternate bonds shall be issued for a lawful corporate
9purpose. If issued in lieu of revenue bonds, alternate bonds
10shall be issued for the purposes for which such revenue bonds
11shall have been authorized. If issued payable from a revenue
12source in the manner hereinafter provided, which revenue source
13is limited in its purposes or applications, then the alternate
14bonds shall be issued only for such limited purposes or
15applications. Alternate bonds may be issued payable from either
16enterprise revenues or revenue sources, or both.
17    (b) Alternate bonds shall be subject to backdoor
18referendum. The provisions of Section 5 of this Act shall apply
19to such backdoor referendum, together with the provisions
20hereof. The authorizing ordinance shall be published in a
21newspaper of general circulation in the governmental unit.
22Along with or as part of the authorizing ordinance, there shall
23be published a notice of (1) the specific number of voters
24required to sign a petition requesting that the issuance of the
25alternate bonds be submitted to referendum, (2) the time when
26such petition must be filed, (3) the date of the prospective

 

 

09700HB2846ham001- 3 -LRB097 09014 PJG 51387 a

1referendum, and (4), with respect to authorizing ordinances
2adopted on or after January 1, 1991, a statement that
3identifies any revenue source that will be used to pay debt
4service on the alternate bonds. The clerk or secretary of the
5governmental unit shall make a petition form available to
6anyone requesting one. If no petition is filed with the clerk
7or secretary within 30 days of publication of the authorizing
8ordinance and notice, the alternate bonds shall be authorized
9to be issued. But if within this 30 days period, a petition is
10filed with such clerk or secretary signed by electors numbering
11the greater of (i) 7.5% of the registered voters in the
12governmental unit or (ii) 200 of those registered voters or 15%
13of those registered voters, whichever is less, asking that the
14issuance of such alternate bonds be submitted to referendum,
15the clerk or secretary shall certify such question for
16submission at an election held in accordance with the general
17election law. The question on the ballot shall include a
18statement of any revenue source that will be used to pay debt
19service on the alternate bonds. The alternate bonds shall be
20authorized to be issued if a majority of the votes cast on the
21question at such election are in favor thereof provided that
22notice of the bond referendum, if held before July 1, 1999, has
23been given in accordance with the provisions of Section 12-5 of
24the Election Code in effect at the time of the bond referendum,
25at least 10 and not more than 45 days before the date of the
26election, notwithstanding the time for publication otherwise

 

 

09700HB2846ham001- 4 -LRB097 09014 PJG 51387 a

1imposed by Section 12-5. Notices required in connection with
2the submission of public questions on or after July 1, 1999
3shall be as set forth in Section 12-5 of the Election Code.
4Backdoor referendum proceedings for bonds and alternate bonds
5to be issued in lieu of such bonds may be conducted at the same
6time.
7    (c) To the extent payable from enterprise revenues, such
8revenues shall have been determined by the governing body to be
9sufficient to provide for or pay in each year to final maturity
10of such alternate bonds all of the following: (1) costs of
11operation and maintenance of the utility or enterprise, but not
12including depreciation, (2) debt service on all outstanding
13revenue bonds payable from such enterprise revenues, (3) all
14amounts required to meet any fund or account requirements with
15respect to such outstanding revenue bonds, (4) other
16contractual or tort liability obligations, if any, payable from
17such enterprise revenues, and (5) in each year, an amount not
18less than 1.25 times debt service of all (i) alternate bonds
19payable from such enterprise revenues previously issued and
20outstanding and (ii) alternate bonds proposed to be issued. To
21the extent payable from one or more revenue sources, such
22sources shall have been determined by the governing body to
23provide in each year, an amount not less than 1.25 times debt
24service of all alternate bonds payable from such revenue
25sources previously issued and outstanding and alternate bonds
26proposed to be issued. The 1.25 figure in the preceding

 

 

09700HB2846ham001- 5 -LRB097 09014 PJG 51387 a

1sentence shall be reduced to 1.10 if the revenue source is a
2governmental revenue source. The conditions enumerated in this
3subsection (c) need not be met for that amount of debt service
4provided for by the setting aside of proceeds of bonds or other
5moneys at the time of the delivery of such bonds. Until January
61, 2012, and notwithstanding Notwithstanding any other
7provision of this Section, a backdoor referendum is not
8required if the proceeds backing the debt are realized from
9revenues obtained from the County School Facility Occupation
10Tax Law under Section 5-1006.7 of the Counties Code.
11    (c-1) In the case of alternate bonds issued as variable
12rate bonds (including refunding bonds), debt service shall be
13projected based on the rate for the most recent date shown in
14the 20 G.O. Bond Index of average municipal bond yields as
15published in the most recent edition of The Bond Buyer
16published in New York, New York (or any successor publication
17or index, or if such publication or index is no longer
18published, then any index of long-term municipal tax-exempt
19bond yields selected by the governmental unit), as of the date
20of determination referred to in subsection (c) of this Section.
21Any interest or fees that may be payable to the provider of a
22letter of credit, line of credit, surety bond, bond insurance,
23or other credit enhancement relating to such alternate bonds
24and any fees that may be payable to any remarketing agent need
25not be taken into account for purposes of such projection. If
26the governmental unit enters into an agreement in connection

 

 

09700HB2846ham001- 6 -LRB097 09014 PJG 51387 a

1with such alternate bonds at the time of issuance thereof
2pursuant to which the governmental unit agrees for a specified
3period of time to pay an amount calculated at an agreed-upon
4rate or index based on a notional amount and the other party
5agrees to pay the governmental unit an amount calculated at an
6agreed-upon rate or index based on such notional amount,
7interest shall be projected for such specified period of time
8on the basis of the agreed-upon rate payable by the
9governmental unit.
10    (d) The determination of the sufficiency of enterprise
11revenues or a revenue source, as applicable, shall be supported
12by reference to the most recent audit of the governmental unit,
13which shall be for a fiscal year ending not earlier than 18
14months previous to the time of issuance of the alternate bonds.
15If such audit does not adequately show such enterprise revenues
16or revenue source, as applicable, or if such enterprise
17revenues or revenue source, as applicable, are shown to be
18insufficient, then the determination of sufficiency shall be
19supported by the report of an independent accountant or
20feasibility analyst, the latter having a national reputation
21for expertise in such matters, demonstrating the sufficiency of
22such revenues and explaining, if appropriate, by what means the
23revenues will be greater than as shown in the audit. Whenever
24such sufficiency is demonstrated by reference to a schedule of
25higher rates or charges for enterprise revenues or a higher tax
26imposition for a revenue source, such higher rates, charges or

 

 

09700HB2846ham001- 7 -LRB097 09014 PJG 51387 a

1taxes shall have been properly imposed by an ordinance adopted
2prior to the time of delivery of alternate bonds. The reference
3to and acceptance of an audit or report, as the case may be,
4and the determination of the governing body as to sufficiency
5of enterprise revenues or a revenue source shall be conclusive
6evidence that the conditions of this Section have been met and
7that the alternate bonds are valid.
8    (e) The enterprise revenues or revenue source, as
9applicable, shall be in fact pledged to the payment of the
10alternate bonds; and the governing body shall covenant, to the
11extent it is empowered to do so, to provide for, collect and
12apply such enterprise revenues or revenue source, as
13applicable, to the payment of the alternate bonds and the
14provision of not less than an additional .25 (or .10 for
15governmental revenue sources) times debt service. The pledge
16and establishment of rates or charges for enterprise revenues,
17or the imposition of taxes in a given rate or amount, as
18provided in this Section for alternate bonds, shall constitute
19a continuing obligation of the governmental unit with respect
20to such establishment or imposition and a continuing
21appropriation of the amounts received. All covenants relating
22to alternate bonds and the conditions and obligations imposed
23by this Section are enforceable by any bondholder of alternate
24bonds affected, any taxpayer of the governmental unit, and the
25People of the State of Illinois acting through the Attorney
26General or any designee, and in the event that any such action

 

 

09700HB2846ham001- 8 -LRB097 09014 PJG 51387 a

1results in an order finding that the governmental unit has not
2properly set rates or charges or imposed taxes to the extent it
3is empowered to do so or collected and applied enterprise
4revenues or any revenue source, as applicable, as required by
5this Act, the plaintiff in any such action shall be awarded
6reasonable attorney's fees. The intent is that such enterprise
7revenues or revenue source, as applicable, shall be sufficient
8and shall be applied to the payment of debt service on such
9alternate bonds so that taxes need not be levied, or if levied
10need not be extended, for such payment. Nothing in this Section
11shall inhibit or restrict the authority of a governing body to
12determine the lien priority of any bonds, including alternate
13bonds, which may be issued with respect to any enterprise
14revenues or revenue source.
15    In the event that alternate bonds shall have been issued
16and taxes, other than a designated revenue source, shall have
17been extended pursuant to the general obligation, full faith
18and credit promise supporting such alternate bonds, then the
19amount of such alternate bonds then outstanding shall be
20included in the computation of indebtedness of the governmental
21unit for purposes of all statutory provisions or limitations
22until such time as an audit of the governmental unit shall show
23that the alternate bonds have been paid from the enterprise
24revenues or revenue source, as applicable, pledged thereto for
25a complete fiscal year.
26    Alternate bonds may be issued to refund or advance refund

 

 

09700HB2846ham001- 9 -LRB097 09014 PJG 51387 a

1alternate bonds without meeting any of the conditions set forth
2in this Section, except that the term of the refunding bonds
3shall not be longer than the term of the refunded bonds and
4that the debt service payable in any year on the refunding
5bonds shall not exceed the debt service payable in such year on
6the refunded bonds.
7    Once issued, alternate bonds shall be and forever remain
8until paid or defeased the general obligation of the
9governmental unit, for the payment of which its full faith and
10credit are pledged, and shall be payable from the levy of taxes
11as is provided in this Act for general obligation bonds.
12    The changes made by this amendatory Act of 1990 do not
13affect the validity of bonds authorized before September 1,
141990.
15(Source: P.A. 95-675, eff. 10-11-07.)
 
16    Section 10. The Counties Code is amended by changing
17Section 5-1006.7 as follows:
 
18    (55 ILCS 5/5-1006.7)
19    Sec. 5-1006.7. School facility occupation taxes.
20    (a) In The county board of any county may impose a tax
21shall be imposed upon all persons engaged in the business of
22selling tangible personal property, other than personal
23property titled or registered with an agency of this State's
24government, at retail in the county on the gross receipts from

 

 

09700HB2846ham001- 10 -LRB097 09014 PJG 51387 a

1the sales made in the course of business to provide revenue to
2be used exclusively for school facility purposes if a
3proposition for the tax has been submitted to the electors of
4that county and approved by a majority of those voting on the
5question as provided in subsection (c). The tax under this
6Section shall may be imposed only in one-quarter percent
7increments and may not exceed 1%.
8    This additional tax may not be imposed on the sale of food
9for human consumption that is to be consumed off the premises
10where it is sold (other than alcoholic beverages, soft drinks,
11and food that has been prepared for immediate consumption) and
12prescription and non-prescription medicines, drugs, medical
13appliances and insulin, urine testing materials, syringes and
14needles used by diabetics. The Department of Revenue has full
15power to administer and enforce this subsection, to collect all
16taxes and penalties due under this subsection, to dispose of
17taxes and penalties so collected in the manner provided in this
18subsection, and to determine all rights to credit memoranda
19arising on account of the erroneous payment of a tax or penalty
20under this subsection. The Department shall deposit all taxes
21and penalties collected under this subsection into a special
22fund created for that purpose.
23    In the administration of and compliance with this
24subsection, the Department and persons who are subject to this
25subsection (i) have the same rights, remedies, privileges,
26immunities, powers, and duties, (ii) are subject to the same

 

 

09700HB2846ham001- 11 -LRB097 09014 PJG 51387 a

1conditions, restrictions, limitations, penalties, and
2definitions of terms, and (iii) shall employ the same modes of
3procedure as are set forth in Sections 1 through 1o, 2 through
42-70 (in respect to all provisions contained in those Sections
5other than the State rate of tax), 2a through 2h, 3 (except as
6to the disposition of taxes and penalties collected), 4, 5, 5a,
75b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8,
89, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
9and all provisions of the Uniform Penalty and Interest Act as
10if those provisions were set forth in this subsection.
11    The certificate of registration that is issued by the
12Department to a retailer under the Retailers' Occupation Tax
13Act permits the retailer to engage in a business that is
14taxable without registering separately with the Department
15under an ordinance or resolution under this subsection.
16    Persons subject to any tax imposed under the authority
17granted in this subsection may reimburse themselves for their
18seller's tax liability by separately stating that tax as an
19additional charge, which may be stated in combination, in a
20single amount, with State tax that sellers are required to
21collect under the Use Tax Act, pursuant to any bracketed
22schedules set forth by the Department.
23    (b) If a tax has been imposed under subsection (a), then a
24service occupation tax must also be imposed at the same rate
25upon all persons engaged, in the county, in the business of
26making sales of service, who, as an incident to making those

 

 

09700HB2846ham001- 12 -LRB097 09014 PJG 51387 a

1sales of service, transfer tangible personal property within
2the county as an incident to a sale of service.
3    This tax may not be imposed on sales of food for human
4consumption that is to be consumed off the premises where it is
5sold (other than alcoholic beverages, soft drinks, and food
6prepared for immediate consumption) and prescription and
7non-prescription medicines, drugs, medical appliances and
8insulin, urine testing materials, syringes, and needles used by
9diabetics.
10    The tax imposed under this subsection and all civil
11penalties that may be assessed as an incident thereof shall be
12collected and enforced by the Department and deposited into a
13special fund created for that purpose. The Department has full
14power to administer and enforce this subsection, to collect all
15taxes and penalties due under this subsection, to dispose of
16taxes and penalties so collected in the manner provided in this
17subsection, and to determine all rights to credit memoranda
18arising on account of the erroneous payment of a tax or penalty
19under this subsection.
20    In the administration of and compliance with this
21subsection, the Department and persons who are subject to this
22subsection shall (i) have the same rights, remedies,
23privileges, immunities, powers and duties, (ii) be subject to
24the same conditions, restrictions, limitations, penalties and
25definition of terms, and (iii) employ the same modes of
26procedure as are set forth in Sections 2 (except that that

 

 

09700HB2846ham001- 13 -LRB097 09014 PJG 51387 a

1reference to State in the definition of supplier maintaining a
2place of business in this State means the county), 2a through
32d, 3 through 3-50 (in respect to all provisions contained in
4those Sections other than the State rate of tax), 4 (except
5that the reference to the State shall be to the county), 5, 7,
68 (except that the jurisdiction to which the tax is a debt to
7the extent indicated in that Section 8 is the county), 9
8(except as to the disposition of taxes and penalties
9collected), 10, 11, 12 (except the reference therein to Section
102b of the Retailers' Occupation Tax Act), 13 (except that any
11reference to the State means the county), Section 15, 16, 17,
1218, 19, and 20 of the Service Occupation Tax Act and all
13provisions of the Uniform Penalty and Interest Act, as fully as
14if those provisions were set forth herein.
15    Persons subject to any tax imposed under the authority
16granted in this subsection may reimburse themselves for their
17serviceman's tax liability by separately stating the tax as an
18additional charge, which may be stated in combination, in a
19single amount, with State tax that servicemen are authorized to
20collect under the Service Use Tax Act, pursuant to any
21bracketed schedules set forth by the Department.
22    (c) The tax under this Section may not be imposed until, by
23ordinance or resolution of the county board, the question of
24imposing the tax has been submitted to the electors of the
25county at a regular election and approved by a majority of the
26electors voting on the question. Upon receipt of a resolution

 

 

09700HB2846ham001- 14 -LRB097 09014 PJG 51387 a

1by the county board or a resolution or resolutions by school
2district boards that represent more than 50% at least 51% of
3the student enrollment within the county, the regional
4superintendent of schools for the county or the county board,
5as the case may be, must certify the question to the proper
6election authority for submission to the electors of the county
7at the next regular election at which the question lawfully may
8be submitted to said electors, all in accordance with the
9Election Code.
10    If the county board certifies the question to the election
11authority, the The election authority must submit the question
12in substantially the following form:
13        Shall (name of county) be authorized to impose a
14    retailers' occupation tax and a service occupation tax
15    (commonly referred to as a "sales tax") at a rate of
16    (insert rate) to be used exclusively for school facility
17    purposes?
18    If the regional superintendent of schools for the county
19certifies the question to the election authority, the election
20authority must submit the question in substantially the
21following form:
22        Shall a retailers' occupation tax and a service
23    occupation tax (commonly referred to as a "sales tax") be
24    imposed in (name or county) at a rate of (interest rate) to
25    be used exclusively for school facility purposes?
26The election authority must record the votes as "Yes" or "No".

 

 

09700HB2846ham001- 15 -LRB097 09014 PJG 51387 a

1    If a majority of the electors voting on the question vote
2in the affirmative, then the tax shall be imposed at the rate
3set forth in the question the county may, thereafter, impose
4the tax.
5    For the purposes of this subsection (c), "enrollment" means
6the head count of the students residing in the county on the
7last school day of September of each year, which must be
8reported on the Illinois State Board of Education Public School
9Fall Enrollment/Housing Report.
10    (d) The Department shall immediately pay over to the State
11Treasurer, ex officio, as trustee, all taxes and penalties
12collected under this Section to be deposited into the School
13Facility Occupation Tax Fund, which shall be an unappropriated
14trust fund held outside the State treasury.
15    On or before the 25th day of each calendar month, the
16Department shall prepare and certify to the Comptroller the
17disbursement of stated sums of money to the regional
18superintendents of schools in counties from which retailers or
19servicemen have paid taxes or penalties to the Department
20during the second preceding calendar month. The amount to be
21paid to each regional superintendent of schools and disbursed
22to him or her in accordance with 3-14.31 of the School Code, is
23equal to the amount (not including credit memoranda) collected
24from the county under this Section during the second preceding
25calendar month by the Department, (i) less 2% of that amount,
26which shall be deposited into the Tax Compliance and

 

 

09700HB2846ham001- 16 -LRB097 09014 PJG 51387 a

1Administration Fund and shall be used by the Department,
2subject to appropriation, to cover the costs of the Department
3in administering and enforcing the provisions of this Section,
4on behalf of the county, (ii) plus an amount that the
5Department determines is necessary to offset any amounts that
6were erroneously paid to a different taxing body; (iii) less an
7amount equal to the amount of refunds made during the second
8preceding calendar month by the Department on behalf of the
9county; and (iv) less any amount that the Department determines
10is necessary to offset any amounts that were payable to a
11different taxing body but were erroneously paid to the county.
12When certifying the amount of a monthly disbursement to a
13regional superintendent of schools under this Section, the
14Department shall increase or decrease the amounts by an amount
15necessary to offset any miscalculation of previous
16disbursements within the previous 6 months from the time a
17miscalculation is discovered.
18    Within 10 days after receipt by the Comptroller from the
19Department of the disbursement certification to the regional
20superintendents of the schools provided for in this Section,
21the Comptroller shall cause the orders to be drawn for the
22respective amounts in accordance with directions contained in
23the certification.
24    If the Department determines that a refund should be made
25under this Section to a claimant instead of issuing a credit
26memorandum, then the Department shall notify the Comptroller,

 

 

09700HB2846ham001- 17 -LRB097 09014 PJG 51387 a

1who shall cause the order to be drawn for the amount specified
2and to the person named in the notification from the
3Department. The refund shall be paid by the Treasurer out of
4the School Facility Occupation Tax Fund.
5    (e) For the purposes of determining the local governmental
6unit whose tax is applicable, a retail sale by a producer of
7coal or another mineral mined in Illinois is a sale at retail
8at the place where the coal or other mineral mined in Illinois
9is extracted from the earth. This subsection does not apply to
10coal or another mineral when it is delivered or shipped by the
11seller to the purchaser at a point outside Illinois so that the
12sale is exempt under the United States Constitution as a sale
13in interstate or foreign commerce.
14    (f) Nothing in this Section may be construed to authorize a
15county board to impose a tax to be imposed upon the privilege
16of engaging in any business that under the Constitution of the
17United States may not be made the subject of taxation by this
18State.
19    (g) If a county board imposes a tax under this Section
20before the effective date of this amendatory Act of the 97th
21General Assembly at a rate below the rate set forth in the
22question approved by a majority of electors of that county
23voting on the question as provided in subsection (c), then the
24county board may, by ordinance, increase the rate of the tax up
25to the rate set forth in the question approved by a majority of
26electors of that county voting on the question as provided in

 

 

09700HB2846ham001- 18 -LRB097 09014 PJG 51387 a

1subsection (c). If a county board imposes a tax under this
2Section before the effective date of this amendatory Act of the
397th General Assembly, then the board may, by ordinance,
4discontinue or reduce the rate of the tax. If a tax is imposed
5under this Section on or after the effective date of this
6amendatory Act of the 97th General Assembly, then the county
7board may reduce or discontinue the tax, but only in accordance
8with subsection (h-5) of this Section. If, however, a school
9board issues bonds that are secured backed by the proceeds of
10the tax under this Section, then the county board may not
11reduce the tax rate or discontinue the tax if that rate
12reduction or discontinuance would adversely affect inhibit the
13school board's ability to pay the principal and interest on
14those bonds as they become due. If the county board reduces the
15tax rate or discontinues the tax, then a referendum must be
16held in accordance with subsection (c) of this Section in order
17to increase the rate of the tax or to reimpose the discontinued
18tax. The State of Illinois pledges to and agrees with the
19holders of bonds secured by proceeds of the tax imposed under
20this Section that the State will not limit or alter the rights
21and powers set forth in this Section so as to impair the terms
22of any contract made by school districts with such holders or
23in any way impair the rights and remedies of such holders until
24such bonds, together with interest thereon, with interest on
25any unpaid installments of interest, and all costs and expenses
26in connection with any action or proceedings by or on behalf of

 

 

09700HB2846ham001- 19 -LRB097 09014 PJG 51387 a

1such holders, are fully met and discharged.
2    The results of any election that imposes, reduces, or
3discontinues authorizes a proposition to impose a tax under
4this Section must be certified by the election authority, and
5or to change the rate of the tax along with an ordinance
6imposing the tax, or any ordinance that increases or lowers the
7rate or discontinues the tax, must be certified by the county
8clerk and, in each case, filed with the Illinois Department of
9Revenue either (i) on or before the first day of April,
10whereupon the Department shall proceed to administer and
11enforce the tax or change in the rate as of the first day of
12July next following the filing; or (ii) on or before the first
13day of October, whereupon the Department shall proceed to
14administer and enforce the tax or change in the rate as of the
15first day of January next following the filing.
16    (h) For purposes of this Section, "school facility
17purposes" means (i) the acquisition, development,
18construction, reconstruction, rehabilitation, improvement,
19financing, architectural planning, and installation of capital
20facilities consisting of buildings, structures, and durable
21equipment and for the acquisition and improvement of real
22property and interest in real property required, or expected to
23be required, in connection with the capital facilities and (ii)
24the payment of bonds or other obligations heretofore or
25hereafter issued, including bonds or other obligations
26heretofore or hereafter issued to refund or to continue to

 

 

09700HB2846ham001- 20 -LRB097 09014 PJG 51387 a

1refund bonds or other obligations issued, for school facility
2purposes, provided that the taxes levied to pay said bonds are
3abated by the amount of the taxes imposed under this Section
4that are used to pay said bonds. "School-facility purposes"
5also includes fire prevention, safety, energy conservation,
6disabled accessibility, school security, and specified repair
7purposes set forth under Section 17-2.11 of the School Code.
8    (h-5) A county board in a county where a tax has been
9imposed under this Section on or after the effective date of
10this amendatory Act of the 97th General Assembly may, by
11ordinance or resolution, submit to the voters of the county the
12question of reducing or discontinuing the tax. In the ordinance
13or resolution, the county board shall certify the question to
14the proper election authority in accordance with the Election
15Code. The election authority must submit the question in
16substantially the following form:
17        "Shall the school facility retailers' occupation tax
18    and service occupation tax (commonly referred to as the
19    "school facility sales tax") currently imposed in (name of
20    county) at a rate of (insert rate) be (reduced to (insert
21    rate))(discontinued)?"
22If a majority of the electors voting on the question vote in
23the affirmative, then, subject to the provisions of subsection
24(g) of this Section, the tax shall be reduced or discontinued
25as set forth in the question.
26    (i) This Section does not apply to Cook County.

 

 

09700HB2846ham001- 21 -LRB097 09014 PJG 51387 a

1    (j) This Section may be cited as the County School Facility
2Occupation Tax Law.
3(Source: P.A. 95-675, eff. 10-11-07.)
 
4    Section 15. The School Code is amended by changing Section
510-22.36 as follows:
 
6    (105 ILCS 5/10-22.36)  (from Ch. 122, par. 10-22.36)
7    Sec. 10-22.36. Buildings for school purposes. To build or
8purchase a building for school classroom or instructional
9purposes upon the approval of a majority of the voters upon the
10proposition at a referendum held for such purpose or in
11accordance with Section 17-2.11, 19-3.5, or 19-3.10. The board
12may initiate such referendum by resolution. The board shall
13certify the resolution and proposition to the proper election
14authority for submission in accordance with the general
15election law.
16    The questions of building one or more new buildings for
17school purposes or office facilities, and issuing bonds for the
18purpose of borrowing money to purchase one or more buildings or
19sites for such buildings or office sites, to build one or more
20new buildings for school purposes or office facilities or to
21make additions and improvements to existing school buildings,
22may be combined into one or more propositions on the ballot.
23    Before erecting, or purchasing or remodeling such a
24building the board shall submit the plans and specifications

 

 

09700HB2846ham001- 22 -LRB097 09014 PJG 51387 a

1respecting heating, ventilating, lighting, seating, water
2supply, toilets and safety against fire to the regional
3superintendent of schools having supervision and control over
4the district, for approval in accordance with Section 2-3.12.
5    Notwithstanding any of the foregoing, no referendum shall
6be required if the purchase, construction, or building of any
7such building is completed (1) occurs while the building is
8being leased by the school district or (2) is paid with with
9the expenditure of (A) funds derived from the sale or
10disposition of other buildings, land, or structures of the
11school district or (B) funds received (i) as a grant under the
12School Construction Law, or (ii) as gifts or donations,
13provided that no funds to purchase, construct, or build
14complete such building, other than lease payments, are derived
15from the district's bonded indebtedness or the tax levy of the
16district, or (iii) from the County School Facility Occupation
17Tax Law under Section 5-1006.7 of the Counties Code.
18    Notwithstanding any of the foregoing, no referendum shall
19be required if the purchase, construction, or building of any
20such building is paid with funds received from the County
21School Facility Occupation Tax Law under Section 5-1006.7 of
22the Counties Code or from the proceeds of bonds or other debt
23obligations secured by revenues obtained from that Law.
24(Source: P.A. 95-675, eff. 10-11-07; 96-517, eff. 8-14-09.)
 
25    Section 97. Severability. The provisions of this Act are

 

 

09700HB2846ham001- 23 -LRB097 09014 PJG 51387 a

1severable under Section 1.31 of the Statute on Statutes.
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.".