Sen. Andy Manar

Filed: 4/6/2016

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 231

2    AMENDMENT NO. ______. Amend Senate Bill 231 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. This Act may be referred to as the Better
5Funding for Better Schools Act.
 
6    Section 905. The Economic Development Area Tax Increment
7Allocation Act is amended by changing Section 7 as follows:
 
8    (20 ILCS 620/7)  (from Ch. 67 1/2, par. 1007)
9    Sec. 7. Creation of special tax allocation fund. If a
10municipality has adopted tax increment allocation financing
11for an economic development project area by ordinance, the
12county clerk has thereafter certified the "total initial
13equalized assessed value" of the taxable real property within
14such economic development project area in the manner provided
15in Section 6 of this Act, and the Department has approved and

 

 

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1certified the economic development project area, each year
2after the date of the certification by the county clerk of the
3"total initial equalized assessed value" until economic
4development project costs and all municipal obligations
5financing economic development project costs have been paid,
6the ad valorem taxes, if any, arising from the levies upon the
7taxable real property in the economic development project area
8by taxing districts and tax rates determined in the manner
9provided in subsection (b) of Section 6 of this Act shall be
10divided as follows:
11    (1) That portion of the taxes levied upon each taxable lot,
12block, tract or parcel of real property which is attributable
13to the lower of the current equalized assessed value or the
14initial equalized assessed value of each such taxable lot,
15block, tract, or parcel of real property existing at the time
16tax increment allocation financing was adopted, shall be
17allocated to and when collected shall be paid by the county
18collector to the respective affected taxing districts in the
19manner required by law in the absence of the adoption of tax
20increment allocation financing.
21    (2) That portion, if any, of those taxes which is
22attributable to the increase in the current equalized assessed
23valuation of each taxable lot, block, tract, or parcel of real
24property in the economic development project area, over and
25above the initial equalized assessed value of each property
26existing at the time tax increment allocation financing was

 

 

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1adopted, shall be allocated to and when collected shall be paid
2to the municipal treasurer, who shall deposit those taxes into
3a special fund called the special tax allocation fund of the
4municipality for the purpose of paying economic development
5project costs and obligations incurred in the payment thereof.
6    The municipality, by an ordinance adopting tax increment
7allocation financing, may pledge the funds in and to be
8deposited in the special tax allocation fund for the payment of
9obligations issued under this Act and for the payment of
10economic development project costs. No part of the current
11equalized assessed valuation of each property in the economic
12development project area attributable to any increase above the
13total initial equalized assessed value, of such properties
14shall be used in calculating the general State school aid
15formula, provided for in Section 18-8 of the School Code, or
16the primary State aid formula, provided for in Section 18-8.15
17of the School Code, until such time as all economic development
18projects costs have been paid as provided for in this Section.
19    When the economic development project costs, including
20without limitation all municipal obligations financing
21economic development project costs incurred under this Act,
22have been paid, all surplus funds then remaining in the special
23tax allocation fund shall be distributed by being paid by the
24municipal treasurer to the county collector, who shall
25immediately thereafter pay those funds to the taxing districts
26having taxable property in the economic development project

 

 

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1area in the same manner and proportion as the most recent
2distribution by the county collector to those taxing districts
3of real property taxes from real property in the economic
4development project area.
5    Upon the payment of all economic development project costs,
6retirement of obligations and the distribution of any excess
7monies pursuant to this Section the municipality shall adopt an
8ordinance dissolving the special tax allocation fund for the
9economic development project area, terminating the economic
10development project area, and terminating the use of tax
11increment allocation financing for the economic development
12project area. Thereafter the rates of the taxing districts
13shall be extended and taxes levied, collected and distributed
14in the manner applicable in the absence of the adoption of tax
15increment allocation financing.
16    Nothing in this Section shall be construed as relieving
17property in economic development project areas from being
18assessed as provided in the Property Tax Code, or as relieving
19owners of that property from paying a uniform rate of taxes, as
20required by Section 4 of Article IX of the Illinois
21Constitution.
22(Source: P.A. 98-463, eff. 8-16-13.)
 
23    Section 910. The State Finance Act is amended by changing
24Section 13.2 as follows:
 

 

 

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1    (30 ILCS 105/13.2)  (from Ch. 127, par. 149.2)
2    Sec. 13.2. Transfers among line item appropriations.
3    (a) Transfers among line item appropriations from the same
4treasury fund for the objects specified in this Section may be
5made in the manner provided in this Section when the balance
6remaining in one or more such line item appropriations is
7insufficient for the purpose for which the appropriation was
8made.
9    (a-1) No transfers may be made from one agency to another
10agency, nor may transfers be made from one institution of
11higher education to another institution of higher education
12except as provided by subsection (a-4).
13    (a-2) Except as otherwise provided in this Section,
14transfers may be made only among the objects of expenditure
15enumerated in this Section, except that no funds may be
16transferred from any appropriation for personal services, from
17any appropriation for State contributions to the State
18Employees' Retirement System, from any separate appropriation
19for employee retirement contributions paid by the employer, nor
20from any appropriation for State contribution for employee
21group insurance. During State fiscal year 2005, an agency may
22transfer amounts among its appropriations within the same
23treasury fund for personal services, employee retirement
24contributions paid by employer, and State Contributions to
25retirement systems; notwithstanding and in addition to the
26transfers authorized in subsection (c) of this Section, the

 

 

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1fiscal year 2005 transfers authorized in this sentence may be
2made in an amount not to exceed 2% of the aggregate amount
3appropriated to an agency within the same treasury fund. During
4State fiscal year 2007, the Departments of Children and Family
5Services, Corrections, Human Services, and Juvenile Justice
6may transfer amounts among their respective appropriations
7within the same treasury fund for personal services, employee
8retirement contributions paid by employer, and State
9contributions to retirement systems. During State fiscal year
102010, the Department of Transportation may transfer amounts
11among their respective appropriations within the same treasury
12fund for personal services, employee retirement contributions
13paid by employer, and State contributions to retirement
14systems. During State fiscal years 2010 and 2014 only, an
15agency may transfer amounts among its respective
16appropriations within the same treasury fund for personal
17services, employee retirement contributions paid by employer,
18and State contributions to retirement systems.
19Notwithstanding, and in addition to, the transfers authorized
20in subsection (c) of this Section, these transfers may be made
21in an amount not to exceed 2% of the aggregate amount
22appropriated to an agency within the same treasury fund.
23    (a-2.5) During State fiscal year 2015 only, the State's
24Attorneys Appellate Prosecutor may transfer amounts among its
25respective appropriations contained in operational line items
26within the same treasury fund. Notwithstanding, and in addition

 

 

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1to, the transfers authorized in subsection (c) of this Section,
2these transfers may be made in an amount not to exceed 4% of
3the aggregate amount appropriated to the State's Attorneys
4Appellate Prosecutor within the same treasury fund.
5    (a-3) Further, if an agency receives a separate
6appropriation for employee retirement contributions paid by
7the employer, any transfer by that agency into an appropriation
8for personal services must be accompanied by a corresponding
9transfer into the appropriation for employee retirement
10contributions paid by the employer, in an amount sufficient to
11meet the employer share of the employee contributions required
12to be remitted to the retirement system.
13    (a-4) Long-Term Care Rebalancing. The Governor may
14designate amounts set aside for institutional services
15appropriated from the General Revenue Fund or any other State
16fund that receives monies for long-term care services to be
17transferred to all State agencies responsible for the
18administration of community-based long-term care programs,
19including, but not limited to, community-based long-term care
20programs administered by the Department of Healthcare and
21Family Services, the Department of Human Services, and the
22Department on Aging, provided that the Director of Healthcare
23and Family Services first certifies that the amounts being
24transferred are necessary for the purpose of assisting persons
25in or at risk of being in institutional care to transition to
26community-based settings, including the financial data needed

 

 

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1to prove the need for the transfer of funds. The total amounts
2transferred shall not exceed 4% in total of the amounts
3appropriated from the General Revenue Fund or any other State
4fund that receives monies for long-term care services for each
5fiscal year. A notice of the fund transfer must be made to the
6General Assembly and posted at a minimum on the Department of
7Healthcare and Family Services website, the Governor's Office
8of Management and Budget website, and any other website the
9Governor sees fit. These postings shall serve as notice to the
10General Assembly of the amounts to be transferred. Notice shall
11be given at least 30 days prior to transfer.
12    (b) In addition to the general transfer authority provided
13under subsection (c), the following agencies have the specific
14transfer authority granted in this subsection:
15    The Department of Healthcare and Family Services is
16authorized to make transfers representing savings attributable
17to not increasing grants due to the births of additional
18children from line items for payments of cash grants to line
19items for payments for employment and social services for the
20purposes outlined in subsection (f) of Section 4-2 of the
21Illinois Public Aid Code.
22    The Department of Children and Family Services is
23authorized to make transfers not exceeding 2% of the aggregate
24amount appropriated to it within the same treasury fund for the
25following line items among these same line items: Foster Home
26and Specialized Foster Care and Prevention, Institutions and

 

 

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1Group Homes and Prevention, and Purchase of Adoption and
2Guardianship Services.
3    The Department on Aging is authorized to make transfers not
4exceeding 2% of the aggregate amount appropriated to it within
5the same treasury fund for the following Community Care Program
6line items among these same line items: purchase of services
7covered by the Community Care Program and Comprehensive Case
8Coordination.
9    The State Treasurer is authorized to make transfers among
10line item appropriations from the Capital Litigation Trust
11Fund, with respect to costs incurred in fiscal years 2002 and
122003 only, when the balance remaining in one or more such line
13item appropriations is insufficient for the purpose for which
14the appropriation was made, provided that no such transfer may
15be made unless the amount transferred is no longer required for
16the purpose for which that appropriation was made.
17    The State Board of Education is authorized to make
18transfers from line item appropriations within the same
19treasury fund for General State Aid, and General State Aid -
20Hold Harmless, Primary State Aid, and Hold Harmless State
21Funding, provided that no such transfer may be made unless the
22amount transferred is no longer required for the purpose for
23which that appropriation was made, to the line item
24appropriation for Transitional Assistance when the balance
25remaining in such line item appropriation is insufficient for
26the purpose for which the appropriation was made.

 

 

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1    The State Board of Education is authorized to make
2transfers between the following line item appropriations
3within the same treasury fund: Disabled Student
4Services/Materials (Section 14-13.01 of the School Code),
5Disabled Student Transportation Reimbursement (Section
614-13.01 of the School Code), Disabled Student Tuition -
7Private Tuition (Section 14-7.02 of the School Code),
8Extraordinary Special Education (Section 14-7.02b of the
9School Code), Reimbursement for Free Lunch/Breakfast Program,
10Summer School Payments (Section 18-4.3 of the School Code), and
11Transportation - Regular/Vocational Reimbursement (Section
1229-5 of the School Code). Such transfers shall be made only
13when the balance remaining in one or more such line item
14appropriations is insufficient for the purpose for which the
15appropriation was made and provided that no such transfer may
16be made unless the amount transferred is no longer required for
17the purpose for which that appropriation was made.
18    The Department of Healthcare and Family Services is
19authorized to make transfers not exceeding 4% of the aggregate
20amount appropriated to it, within the same treasury fund, among
21the various line items appropriated for Medical Assistance.
22    (c) The sum of such transfers for an agency in a fiscal
23year shall not exceed 2% of the aggregate amount appropriated
24to it within the same treasury fund for the following objects:
25Personal Services; Extra Help; Student and Inmate
26Compensation; State Contributions to Retirement Systems; State

 

 

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1Contributions to Social Security; State Contribution for
2Employee Group Insurance; Contractual Services; Travel;
3Commodities; Printing; Equipment; Electronic Data Processing;
4Operation of Automotive Equipment; Telecommunications
5Services; Travel and Allowance for Committed, Paroled and
6Discharged Prisoners; Library Books; Federal Matching Grants
7for Student Loans; Refunds; Workers' Compensation,
8Occupational Disease, and Tort Claims; and, in appropriations
9to institutions of higher education, Awards and Grants.
10Notwithstanding the above, any amounts appropriated for
11payment of workers' compensation claims to an agency to which
12the authority to evaluate, administer and pay such claims has
13been delegated by the Department of Central Management Services
14may be transferred to any other expenditure object where such
15amounts exceed the amount necessary for the payment of such
16claims.
17    (c-1) Special provisions for State fiscal year 2003.
18Notwithstanding any other provision of this Section to the
19contrary, for State fiscal year 2003 only, transfers among line
20item appropriations to an agency from the same treasury fund
21may be made provided that the sum of such transfers for an
22agency in State fiscal year 2003 shall not exceed 3% of the
23aggregate amount appropriated to that State agency for State
24fiscal year 2003 for the following objects: personal services,
25except that no transfer may be approved which reduces the
26aggregate appropriations for personal services within an

 

 

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1agency; extra help; student and inmate compensation; State
2contributions to retirement systems; State contributions to
3social security; State contributions for employee group
4insurance; contractual services; travel; commodities;
5printing; equipment; electronic data processing; operation of
6automotive equipment; telecommunications services; travel and
7allowance for committed, paroled, and discharged prisoners;
8library books; federal matching grants for student loans;
9refunds; workers' compensation, occupational disease, and tort
10claims; and, in appropriations to institutions of higher
11education, awards and grants.
12    (c-2) Special provisions for State fiscal year 2005.
13Notwithstanding subsections (a), (a-2), and (c), for State
14fiscal year 2005 only, transfers may be made among any line
15item appropriations from the same or any other treasury fund
16for any objects or purposes, without limitation, when the
17balance remaining in one or more such line item appropriations
18is insufficient for the purpose for which the appropriation was
19made, provided that the sum of those transfers by a State
20agency shall not exceed 4% of the aggregate amount appropriated
21to that State agency for fiscal year 2005.
22    (c-3) Special provisions for State fiscal year 2015.
23Notwithstanding any other provision of this Section, for State
24fiscal year 2015, transfers among line item appropriations to a
25State agency from the same State treasury fund may be made for
26operational or lump sum expenses only, provided that the sum of

 

 

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1such transfers for a State agency in State fiscal year 2015
2shall not exceed 4% of the aggregate amount appropriated to
3that State agency for operational or lump sum expenses for
4State fiscal year 2015. For the purpose of this subsection,
5"operational or lump sum expenses" includes the following
6objects: personal services; extra help; student and inmate
7compensation; State contributions to retirement systems; State
8contributions to social security; State contributions for
9employee group insurance; contractual services; travel;
10commodities; printing; equipment; electronic data processing;
11operation of automotive equipment; telecommunications
12services; travel and allowance for committed, paroled, and
13discharged prisoners; library books; federal matching grants
14for student loans; refunds; workers' compensation,
15occupational disease, and tort claims; lump sum and other
16purposes; and lump sum operations. For the purpose of this
17subsection (c-3), "State agency" does not include the Attorney
18General, the Secretary of State, the Comptroller, the
19Treasurer, or the legislative or judicial branches.
20    (d) Transfers among appropriations made to agencies of the
21Legislative and Judicial departments and to the
22constitutionally elected officers in the Executive branch
23require the approval of the officer authorized in Section 10 of
24this Act to approve and certify vouchers. Transfers among
25appropriations made to the University of Illinois, Southern
26Illinois University, Chicago State University, Eastern

 

 

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1Illinois University, Governors State University, Illinois
2State University, Northeastern Illinois University, Northern
3Illinois University, Western Illinois University, the Illinois
4Mathematics and Science Academy and the Board of Higher
5Education require the approval of the Board of Higher Education
6and the Governor. Transfers among appropriations to all other
7agencies require the approval of the Governor.
8    The officer responsible for approval shall certify that the
9transfer is necessary to carry out the programs and purposes
10for which the appropriations were made by the General Assembly
11and shall transmit to the State Comptroller a certified copy of
12the approval which shall set forth the specific amounts
13transferred so that the Comptroller may change his records
14accordingly. The Comptroller shall furnish the Governor with
15information copies of all transfers approved for agencies of
16the Legislative and Judicial departments and transfers
17approved by the constitutionally elected officials of the
18Executive branch other than the Governor, showing the amounts
19transferred and indicating the dates such changes were entered
20on the Comptroller's records.
21    (e) The State Board of Education, in consultation with the
22State Comptroller, may transfer line item appropriations for
23General State Aid or Primary State Aid between the Common
24School Fund and the Education Assistance Fund. With the advice
25and consent of the Governor's Office of Management and Budget,
26the State Board of Education, in consultation with the State

 

 

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1Comptroller, may transfer line item appropriations between the
2General Revenue Fund and the Education Assistance Fund for the
3following programs:
4        (1) Disabled Student Personnel Reimbursement (Section
5    14-13.01 of the School Code);
6        (2) Disabled Student Transportation Reimbursement
7    (subsection (b) of Section 14-13.01 of the School Code);
8        (3) Disabled Student Tuition - Private Tuition
9    (Section 14-7.02 of the School Code);
10        (4) Extraordinary Special Education (Section 14-7.02b
11    of the School Code);
12        (5) Reimbursement for Free Lunch/Breakfast Programs;
13        (6) Summer School Payments (Section 18-4.3 of the
14    School Code);
15        (7) Transportation - Regular/Vocational Reimbursement
16    (Section 29-5 of the School Code);
17        (8) Regular Education Reimbursement (Section 18-3 of
18    the School Code); and
19        (9) Special Education Reimbursement (Section 14-7.03
20    of the School Code).
21(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-2,
22eff. 3-26-15.)
 
23    Section 915. The Property Tax Code is amended by changing
24Sections 18-200 and 18-249 as follows:
 

 

 

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1    (35 ILCS 200/18-200)
2    Sec. 18-200. School Code. A school district's State aid
3shall not be reduced under the computation under subsections
45(a) through 5(h) of Part A of Section 18-8 of the School Code
5or under subsection (e) of Section 18-8.15 of the School Code
6due to the operating tax rate falling from above the minimum
7requirement of that Section of the School Code to below the
8minimum requirement of that Section of the School Code due to
9the operation of this Law.
10(Source: P.A. 87-17; 88-455.)
 
11    (35 ILCS 200/18-249)
12    Sec. 18-249. Miscellaneous provisions.
13    (a) Certification of new property. For the 1994 levy year,
14the chief county assessment officer shall certify to the county
15clerk, after all changes by the board of review or board of
16appeals, as the case may be, the assessed value of new property
17by taxing district for the 1994 levy year under rules
18promulgated by the Department.
19    (b) School Code. A school district's State aid shall not be
20reduced under the computation under subsections 5(a) through
215(h) of Part A of Section 18-8 of the School Code or under
22subsection (e) of Section 18-8.15 of the School Code due to the
23operating tax rate falling from above the minimum requirement
24of that Section of the School Code to below the minimum
25requirement of that Section of the School Code due to the

 

 

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1operation of this Law.
2    (c) Rules. The Department shall make and promulgate
3reasonable rules relating to the administration of the purposes
4and provisions of Sections 18-246 through 18-249 as may be
5necessary or appropriate.
6(Source: P.A. 89-1, eff. 2-12-95.)
 
7    Section 917. The Illinois Pension Code is amended by
8changing Sections 16-158 and 17-127 as follows:
 
9    (40 ILCS 5/16-158)   (from Ch. 108 1/2, par. 16-158)
10    (Text of Section WITH the changes made by P.A. 98-599,
11which has been held unconstitutional)
12    Sec. 16-158. Contributions by State and other employing
13units.
14    (a) The State shall make contributions to the System by
15means of appropriations from the Common School Fund and other
16State funds of amounts which, together with other employer
17contributions, employee contributions, investment income, and
18other income, will be sufficient to meet the cost of
19maintaining and administering the System on a 100% funded basis
20in accordance with actuarial recommendations by the end of
21State fiscal year 2044.
22    The Board shall determine the amount of State contributions
23required for each fiscal year on the basis of the actuarial
24tables and other assumptions adopted by the Board and the

 

 

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1recommendations of the actuary, using the formula in subsection
2(b-3).
3    (a-1) Annually, on or before November 15 through November
415, 2011, the Board shall certify to the Governor the amount of
5the required State contribution for the coming fiscal year. The
6certification under this subsection (a-1) shall include a copy
7of the actuarial recommendations upon which it is based.
8    On or before May 1, 2004, the Board shall recalculate and
9recertify to the Governor the amount of the required State
10contribution to the System for State fiscal year 2005, taking
11into account the amounts appropriated to and received by the
12System under subsection (d) of Section 7.2 of the General
13Obligation Bond Act.
14    On or before July 1, 2005, the Board shall recalculate and
15recertify to the Governor the amount of the required State
16contribution to the System for State fiscal year 2006, taking
17into account the changes in required State contributions made
18by this amendatory Act of the 94th General Assembly.
19    On or before April 1, 2011, the Board shall recalculate and
20recertify to the Governor the amount of the required State
21contribution to the System for State fiscal year 2011, applying
22the changes made by Public Act 96-889 to the System's assets
23and liabilities as of June 30, 2009 as though Public Act 96-889
24was approved on that date.
25    (a-5) On or before November 1 of each year, beginning
26November 1, 2012, the Board shall submit to the State Actuary,

 

 

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1the Governor, and the General Assembly a proposed certification
2of the amount of the required State contribution to the System
3for the next fiscal year, along with all of the actuarial
4assumptions, calculations, and data upon which that proposed
5certification is based. On or before January 1 of each year,
6beginning January 1, 2013, the State Actuary shall issue a
7preliminary report concerning the proposed certification and
8identifying, if necessary, recommended changes in actuarial
9assumptions that the Board must consider before finalizing its
10certification of the required State contributions.
11    On or before January 15, 2013 and each January 15
12thereafter, the Board shall certify to the Governor and the
13General Assembly the amount of the required State contribution
14for the next fiscal year. The certification shall include a
15copy of the actuarial recommendations upon which it is based
16and shall specifically identify the System's projected State
17normal cost for that fiscal year. The Board's certification
18must note any deviations from the State Actuary's recommended
19changes, the reason or reasons for not following the State
20Actuary's recommended changes, and the fiscal impact of not
21following the State Actuary's recommended changes on the
22required State contribution.
23    (a-10) For purposes of Section (c-5) of Section 20 of the
24Budget Stabilization Act, on or before November 1 of each year
25beginning November 1, 2014, the Board shall determine the
26amount of the State contribution to the System that would have

 

 

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1been required for the next fiscal year if this amendatory Act
2of the 98th General Assembly had not taken effect, using the
3best and most recent available data but based on the law in
4effect on May 31, 2014. The Board shall submit to the State
5Actuary, the Governor, and the General Assembly a proposed
6certification, along with the relevant law, actuarial
7assumptions, calculations, and data upon which that
8certification is based. On or before January 1, 2015 and every
9January 1 thereafter, the State Actuary shall issue a
10preliminary report concerning the proposed certification and
11identifying, if necessary, recommended changes in actuarial
12assumptions that the Board must consider before finalizing its
13certification. On or before January 15, 2015 and every January
141 thereafter, the Board shall certify to the Governor and the
15General Assembly the amount of the State contribution to the
16System that would have been required for the next fiscal year
17if this amendatory Act of the 98th General Assembly had not
18taken effect, using the best and most recent available data but
19based on the law in effect on May 31, 2014. The Board's
20certification must note any deviations from the State Actuary's
21recommended changes, the reason or reasons for not following
22the State Actuary's recommended changes, and the impact of not
23following the State Actuary's recommended changes.
24    (b) Through State fiscal year 1995, the State contributions
25shall be paid to the System in accordance with Section 18-7 of
26the School Code.

 

 

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1    (b-1) Beginning in State fiscal year 1996, on the 15th day
2of each month, or as soon thereafter as may be practicable, the
3Board shall submit vouchers for payment of State contributions
4to the System, in a total monthly amount of one-twelfth of the
5required annual State contribution certified under subsection
6(a-1). From the effective date of this amendatory Act of the
793rd General Assembly through June 30, 2004, the Board shall
8not submit vouchers for the remainder of fiscal year 2004 in
9excess of the fiscal year 2004 certified contribution amount
10determined under this Section after taking into consideration
11the transfer to the System under subsection (a) of Section
126z-61 of the State Finance Act. These vouchers shall be paid by
13the State Comptroller and Treasurer by warrants drawn on the
14funds appropriated to the System for that fiscal year.
15    If in any month the amount remaining unexpended from all
16other appropriations to the System for the applicable fiscal
17year (including the appropriations to the System under Section
188.12 of the State Finance Act and Section 1 of the State
19Pension Funds Continuing Appropriation Act) is less than the
20amount lawfully vouchered under this subsection, the
21difference shall be paid from the Common School Fund under the
22continuing appropriation authority provided in Section 1.1 of
23the State Pension Funds Continuing Appropriation Act.
24    (b-2) Allocations from the Common School Fund apportioned
25to school districts not coming under this System shall not be
26diminished or affected by the provisions of this Article.

 

 

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1    (b-3) For State fiscal years 2015 through 2044, the minimum
2contribution to the System to be made by the State for each
3fiscal year shall be an amount determined by the System to be
4equal to the sum of (1) the State's portion of the projected
5normal cost for that fiscal year, plus (2) an amount sufficient
6to bring the total assets of the System up to 100% of the total
7actuarial liabilities of the System by the end of State fiscal
8year 2044. In making these determinations, the required State
9contribution shall be calculated each year as a level
10percentage of payroll over the years remaining to and including
11fiscal year 2044 and shall be determined under the projected
12unit cost method for fiscal year 2015 and under the entry age
13normal actuarial cost method for fiscal years 2016 through
142044.
15    For State fiscal years 2012 through 2014, the minimum
16contribution to the System to be made by the State for each
17fiscal year shall be an amount determined by the System to be
18sufficient to bring the total assets of the System up to 90% of
19the total actuarial liabilities of the System by the end of
20State fiscal year 2045. In making these determinations, the
21required State contribution shall be calculated each year as a
22level percentage of payroll over the years remaining to and
23including fiscal year 2045 and shall be determined under the
24projected unit credit actuarial cost method.
25    For State fiscal years 1996 through 2005, the State
26contribution to the System, as a percentage of the applicable

 

 

09900SB0231sam001- 23 -LRB099 03162 NHT 47157 a

1employee payroll, shall be increased in equal annual increments
2so that by State fiscal year 2011, the State is contributing at
3the rate required under this Section; except that in the
4following specified State fiscal years, the State contribution
5to the System shall not be less than the following indicated
6percentages of the applicable employee payroll, even if the
7indicated percentage will produce a State contribution in
8excess of the amount otherwise required under this subsection
9and subsection (a), and notwithstanding any contrary
10certification made under subsection (a-1) before the effective
11date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
12in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
132003; and 13.56% in FY 2004.
14    Notwithstanding any other provision of this Article, the
15total required State contribution for State fiscal year 2006 is
16$534,627,700.
17    Notwithstanding any other provision of this Article, the
18total required State contribution for State fiscal year 2007 is
19$738,014,500.
20    For each of State fiscal years 2008 through 2009, the State
21contribution to the System, as a percentage of the applicable
22employee payroll, shall be increased in equal annual increments
23from the required State contribution for State fiscal year
242007, so that by State fiscal year 2011, the State is
25contributing at the rate otherwise required under this Section.
26    Notwithstanding any other provision of this Article, the

 

 

09900SB0231sam001- 24 -LRB099 03162 NHT 47157 a

1total required State contribution for State fiscal year 2010 is
2$2,089,268,000 and shall be made from the proceeds of bonds
3sold in fiscal year 2010 pursuant to Section 7.2 of the General
4Obligation Bond Act, less (i) the pro rata share of bond sale
5expenses determined by the System's share of total bond
6proceeds, (ii) any amounts received from the Common School Fund
7in fiscal year 2010, and (iii) any reduction in bond proceeds
8due to the issuance of discounted bonds, if applicable.
9    Notwithstanding any other provision of this Article, the
10total required State contribution for State fiscal year 2011 is
11the amount recertified by the System on or before April 1, 2011
12pursuant to subsection (a-1) of this Section and shall be made
13from the proceeds of bonds sold in fiscal year 2011 pursuant to
14Section 7.2 of the General Obligation Bond Act, less (i) the
15pro rata share of bond sale expenses determined by the System's
16share of total bond proceeds, (ii) any amounts received from
17the Common School Fund in fiscal year 2011, and (iii) any
18reduction in bond proceeds due to the issuance of discounted
19bonds, if applicable. This amount shall include, in addition to
20the amount certified by the System, an amount necessary to meet
21employer contributions required by the State as an employer
22under paragraph (e) of this Section, which may also be used by
23the System for contributions required by paragraph (a) of
24Section 16-127.
25    Beginning in State fiscal year 2045, the minimum State
26contribution for each fiscal year shall be the amount needed to

 

 

09900SB0231sam001- 25 -LRB099 03162 NHT 47157 a

1maintain the total assets of the System at 100% of the total
2actuarial liabilities of the System.
3    Amounts received by the System pursuant to Section 25 of
4the Budget Stabilization Act or Section 8.12 of the State
5Finance Act in any fiscal year do not reduce and do not
6constitute payment of any portion of the minimum State
7contribution required under this Article in that fiscal year.
8Such amounts shall not reduce, and shall not be included in the
9calculation of, the required State contributions under this
10Article in any future year until the System has reached a
11funding ratio of at least 100%. A reference in this Article to
12the "required State contribution" or any substantially similar
13term does not include or apply to any amounts payable to the
14System under Section 25 of the Budget Stabilization Act.
15    Notwithstanding any other provision of this Section, the
16required State contribution for State fiscal year 2005 and for
17fiscal year 2008 and each fiscal year thereafter through State
18fiscal year 2014, as calculated under this Section and
19certified under subsection (a-1), shall not exceed an amount
20equal to (i) the amount of the required State contribution that
21would have been calculated under this Section for that fiscal
22year if the System had not received any payments under
23subsection (d) of Section 7.2 of the General Obligation Bond
24Act, minus (ii) the portion of the State's total debt service
25payments for that fiscal year on the bonds issued in fiscal
26year 2003 for the purposes of that Section 7.2, as determined

 

 

09900SB0231sam001- 26 -LRB099 03162 NHT 47157 a

1and certified by the Comptroller, that is the same as the
2System's portion of the total moneys distributed under
3subsection (d) of Section 7.2 of the General Obligation Bond
4Act. In determining this maximum for State fiscal years 2008
5through 2010, however, the amount referred to in item (i) shall
6be increased, as a percentage of the applicable employee
7payroll, in equal increments calculated from the sum of the
8required State contribution for State fiscal year 2007 plus the
9applicable portion of the State's total debt service payments
10for fiscal year 2007 on the bonds issued in fiscal year 2003
11for the purposes of Section 7.2 of the General Obligation Bond
12Act, so that, by State fiscal year 2011, the State is
13contributing at the rate otherwise required under this Section.
14    (c) Payment of the required State contributions and of all
15pensions, retirement annuities, death benefits, refunds, and
16other benefits granted under or assumed by this System, and all
17expenses in connection with the administration and operation
18thereof, are obligations of the State.
19    If members are paid from special trust or federal funds
20which are administered by the employing unit, whether school
21district or other unit, the employing unit shall pay to the
22System from such funds the full accruing retirement costs based
23upon that service, which, beginning July 1, 2016 2014, shall be
24at a rate, expressed as a percentage of salary, equal to the
25total employer's minimum contribution to the System to be made
26by the State for that fiscal year, including both normal cost

 

 

09900SB0231sam001- 27 -LRB099 03162 NHT 47157 a

1and unfunded liability components, expressed as a percentage of
2payroll, as determined by the System under subsection (b-3) of
3this Section. Employer contributions, based on salary paid to
4members from federal funds, may be forwarded by the
5distributing agency of the State of Illinois to the System
6prior to allocation, in an amount determined in accordance with
7guidelines established by such agency and the System. Any
8contribution for fiscal year 2015 collected as a result of the
9change made by this amendatory Act of the 98th General Assembly
10shall be considered a State contribution under subsection (b-3)
11of this Section.
12    (d) Effective July 1, 1986, any employer of a teacher as
13defined in paragraph (8) of Section 16-106 shall pay the
14employer's normal cost of benefits based upon the teacher's
15service, in addition to employee contributions, as determined
16by the System. Such employer contributions shall be forwarded
17monthly in accordance with guidelines established by the
18System.
19    However, with respect to benefits granted under Section
2016-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
21of Section 16-106, the employer's contribution shall be 12%
22(rather than 20%) of the member's highest annual salary rate
23for each year of creditable service granted, and the employer
24shall also pay the required employee contribution on behalf of
25the teacher. For the purposes of Sections 16-133.4 and
2616-133.5, a teacher as defined in paragraph (8) of Section

 

 

09900SB0231sam001- 28 -LRB099 03162 NHT 47157 a

116-106 who is serving in that capacity while on leave of
2absence from another employer under this Article shall not be
3considered an employee of the employer from which the teacher
4is on leave.
5    (e) Beginning July 1, 1998, every employer of a teacher
6shall pay to the System an employer contribution computed as
7follows:
8        (1) Beginning July 1, 1998 through June 30, 1999, the
9    employer contribution shall be equal to 0.3% of each
10    teacher's salary.
11        (2) Beginning July 1, 1999 and thereafter, the employer
12    contribution shall be equal to 0.58% of each teacher's
13    salary.
14The school district or other employing unit may pay these
15employer contributions out of any source of funding available
16for that purpose and shall forward the contributions to the
17System on the schedule established for the payment of member
18contributions.
19    These employer contributions are intended to offset a
20portion of the cost to the System of the increases in
21retirement benefits resulting from this amendatory Act of 1998.
22    Each employer of teachers is entitled to a credit against
23the contributions required under this subsection (e) with
24respect to salaries paid to teachers for the period January 1,
252002 through June 30, 2003, equal to the amount paid by that
26employer under subsection (a-5) of Section 6.6 of the State

 

 

09900SB0231sam001- 29 -LRB099 03162 NHT 47157 a

1Employees Group Insurance Act of 1971 with respect to salaries
2paid to teachers for that period.
3    The additional 1% employee contribution required under
4Section 16-152 by this amendatory Act of 1998 is the
5responsibility of the teacher and not the teacher's employer,
6unless the employer agrees, through collective bargaining or
7otherwise, to make the contribution on behalf of the teacher.
8    If an employer is required by a contract in effect on May
91, 1998 between the employer and an employee organization to
10pay, on behalf of all its full-time employees covered by this
11Article, all mandatory employee contributions required under
12this Article, then the employer shall be excused from paying
13the employer contribution required under this subsection (e)
14for the balance of the term of that contract. The employer and
15the employee organization shall jointly certify to the System
16the existence of the contractual requirement, in such form as
17the System may prescribe. This exclusion shall cease upon the
18termination, extension, or renewal of the contract at any time
19after May 1, 1998.
20    (f) If the amount of a teacher's salary for any school year
21used to determine final average salary exceeds the member's
22annual full-time salary rate with the same employer for the
23previous school year by more than 6%, the teacher's employer
24shall pay to the System, in addition to all other payments
25required under this Section and in accordance with guidelines
26established by the System, the present value of the increase in

 

 

09900SB0231sam001- 30 -LRB099 03162 NHT 47157 a

1benefits resulting from the portion of the increase in salary
2that is in excess of 6%. This present value shall be computed
3by the System on the basis of the actuarial assumptions and
4tables used in the most recent actuarial valuation of the
5System that is available at the time of the computation. If a
6teacher's salary for the 2005-2006 school year is used to
7determine final average salary under this subsection (f), then
8the changes made to this subsection (f) by Public Act 94-1057
9shall apply in calculating whether the increase in his or her
10salary is in excess of 6%. For the purposes of this Section,
11change in employment under Section 10-21.12 of the School Code
12on or after June 1, 2005 shall constitute a change in employer.
13The System may require the employer to provide any pertinent
14information or documentation. The changes made to this
15subsection (f) by this amendatory Act of the 94th General
16Assembly apply without regard to whether the teacher was in
17service on or after its effective date.
18    Whenever it determines that a payment is or may be required
19under this subsection, the System shall calculate the amount of
20the payment and bill the employer for that amount. The bill
21shall specify the calculations used to determine the amount
22due. If the employer disputes the amount of the bill, it may,
23within 30 days after receipt of the bill, apply to the System
24in writing for a recalculation. The application must specify in
25detail the grounds of the dispute and, if the employer asserts
26that the calculation is subject to subsection (g) or (h) of

 

 

09900SB0231sam001- 31 -LRB099 03162 NHT 47157 a

1this Section, must include an affidavit setting forth and
2attesting to all facts within the employer's knowledge that are
3pertinent to the applicability of that subsection. Upon
4receiving a timely application for recalculation, the System
5shall review the application and, if appropriate, recalculate
6the amount due.
7    The employer contributions required under this subsection
8(f) may be paid in the form of a lump sum within 90 days after
9receipt of the bill. If the employer contributions are not paid
10within 90 days after receipt of the bill, then interest will be
11charged at a rate equal to the System's annual actuarially
12assumed rate of return on investment compounded annually from
13the 91st day after receipt of the bill. Payments must be
14concluded within 3 years after the employer's receipt of the
15bill.
16    (g) This subsection (g) applies only to payments made or
17salary increases given on or after June 1, 2005 but before July
181, 2011. The changes made by Public Act 94-1057 shall not
19require the System to refund any payments received before July
2031, 2006 (the effective date of Public Act 94-1057).
21    When assessing payment for any amount due under subsection
22(f), the System shall exclude salary increases paid to teachers
23under contracts or collective bargaining agreements entered
24into, amended, or renewed before June 1, 2005.
25    When assessing payment for any amount due under subsection
26(f), the System shall exclude salary increases paid to a

 

 

09900SB0231sam001- 32 -LRB099 03162 NHT 47157 a

1teacher at a time when the teacher is 10 or more years from
2retirement eligibility under Section 16-132 or 16-133.2.
3    When assessing payment for any amount due under subsection
4(f), the System shall exclude salary increases resulting from
5overload work, including summer school, when the school
6district has certified to the System, and the System has
7approved the certification, that (i) the overload work is for
8the sole purpose of classroom instruction in excess of the
9standard number of classes for a full-time teacher in a school
10district during a school year and (ii) the salary increases are
11equal to or less than the rate of pay for classroom instruction
12computed on the teacher's current salary and work schedule.
13    When assessing payment for any amount due under subsection
14(f), the System shall exclude a salary increase resulting from
15a promotion (i) for which the employee is required to hold a
16certificate or supervisory endorsement issued by the State
17Teacher Certification Board that is a different certification
18or supervisory endorsement than is required for the teacher's
19previous position and (ii) to a position that has existed and
20been filled by a member for no less than one complete academic
21year and the salary increase from the promotion is an increase
22that results in an amount no greater than the lesser of the
23average salary paid for other similar positions in the district
24requiring the same certification or the amount stipulated in
25the collective bargaining agreement for a similar position
26requiring the same certification.

 

 

09900SB0231sam001- 33 -LRB099 03162 NHT 47157 a

1    When assessing payment for any amount due under subsection
2(f), the System shall exclude any payment to the teacher from
3the State of Illinois or the State Board of Education over
4which the employer does not have discretion, notwithstanding
5that the payment is included in the computation of final
6average salary.
7    (h) When assessing payment for any amount due under
8subsection (f), the System shall exclude any salary increase
9described in subsection (g) of this Section given on or after
10July 1, 2011 but before July 1, 2014 under a contract or
11collective bargaining agreement entered into, amended, or
12renewed on or after June 1, 2005 but before July 1, 2011.
13Notwithstanding any other provision of this Section, any
14payments made or salary increases given after June 30, 2014
15shall be used in assessing payment for any amount due under
16subsection (f) of this Section.
17    (i) The System shall prepare a report and file copies of
18the report with the Governor and the General Assembly by
19January 1, 2007 that contains all of the following information:
20        (1) The number of recalculations required by the
21    changes made to this Section by Public Act 94-1057 for each
22    employer.
23        (2) The dollar amount by which each employer's
24    contribution to the System was changed due to
25    recalculations required by Public Act 94-1057.
26        (3) The total amount the System received from each

 

 

09900SB0231sam001- 34 -LRB099 03162 NHT 47157 a

1    employer as a result of the changes made to this Section by
2    Public Act 94-4.
3        (4) The increase in the required State contribution
4    resulting from the changes made to this Section by Public
5    Act 94-1057.
6    (j) For purposes of determining the required State
7contribution to the System, the value of the System's assets
8shall be equal to the actuarial value of the System's assets,
9which shall be calculated as follows:
10    As of June 30, 2008, the actuarial value of the System's
11assets shall be equal to the market value of the assets as of
12that date. In determining the actuarial value of the System's
13assets for fiscal years after June 30, 2008, any actuarial
14gains or losses from investment return incurred in a fiscal
15year shall be recognized in equal annual amounts over the
165-year period following that fiscal year.
17    (k) For purposes of determining the required State
18contribution to the system for a particular year, the actuarial
19value of assets shall be assumed to earn a rate of return equal
20to the system's actuarially assumed rate of return.
21(Source: P.A. 97-694, eff. 6-18-12; 97-813, eff. 7-13-12;
2298-599, eff. 6-1-14; 98-674, eff. 6-30-14.)
 
23    (Text of Section WITHOUT the changes made by P.A. 98-599,
24which has been held unconstitutional)
25    Sec. 16-158. Contributions by State and other employing

 

 

09900SB0231sam001- 35 -LRB099 03162 NHT 47157 a

1units.
2    (a) The State shall make contributions to the System by
3means of appropriations from the Common School Fund and other
4State funds of amounts which, together with other employer
5contributions, employee contributions, investment income, and
6other income, will be sufficient to meet the cost of
7maintaining and administering the System on a 90% funded basis
8in accordance with actuarial recommendations.
9    The Board shall determine the amount of State contributions
10required for each fiscal year on the basis of the actuarial
11tables and other assumptions adopted by the Board and the
12recommendations of the actuary, using the formula in subsection
13(b-3).
14    (a-1) Annually, on or before November 15 until November 15,
152011, the Board shall certify to the Governor the amount of the
16required State contribution for the coming fiscal year. The
17certification under this subsection (a-1) shall include a copy
18of the actuarial recommendations upon which it is based and
19shall specifically identify the System's projected State
20normal cost for that fiscal year.
21    On or before May 1, 2004, the Board shall recalculate and
22recertify to the Governor the amount of the required State
23contribution to the System for State fiscal year 2005, taking
24into account the amounts appropriated to and received by the
25System under subsection (d) of Section 7.2 of the General
26Obligation Bond Act.

 

 

09900SB0231sam001- 36 -LRB099 03162 NHT 47157 a

1    On or before July 1, 2005, the Board shall recalculate and
2recertify to the Governor the amount of the required State
3contribution to the System for State fiscal year 2006, taking
4into account the changes in required State contributions made
5by this amendatory Act of the 94th General Assembly.
6    On or before April 1, 2011, the Board shall recalculate and
7recertify to the Governor the amount of the required State
8contribution to the System for State fiscal year 2011, applying
9the changes made by Public Act 96-889 to the System's assets
10and liabilities as of June 30, 2009 as though Public Act 96-889
11was approved on that date.
12    (a-5) On or before November 1 of each year, beginning
13November 1, 2012, the Board shall submit to the State Actuary,
14the Governor, and the General Assembly a proposed certification
15of the amount of the required State contribution to the System
16for the next fiscal year, along with all of the actuarial
17assumptions, calculations, and data upon which that proposed
18certification is based. On or before January 1 of each year,
19beginning January 1, 2013, the State Actuary shall issue a
20preliminary report concerning the proposed certification and
21identifying, if necessary, recommended changes in actuarial
22assumptions that the Board must consider before finalizing its
23certification of the required State contributions. On or before
24January 15, 2013 and each January 15 thereafter, the Board
25shall certify to the Governor and the General Assembly the
26amount of the required State contribution for the next fiscal

 

 

09900SB0231sam001- 37 -LRB099 03162 NHT 47157 a

1year. The Board's certification must note any deviations from
2the State Actuary's recommended changes, the reason or reasons
3for not following the State Actuary's recommended changes, and
4the fiscal impact of not following the State Actuary's
5recommended changes on the required State contribution.
6    (b) Through State fiscal year 1995, the State contributions
7shall be paid to the System in accordance with Section 18-7 of
8the School Code.
9    (b-1) Beginning in State fiscal year 1996, on the 15th day
10of each month, or as soon thereafter as may be practicable, the
11Board shall submit vouchers for payment of State contributions
12to the System, in a total monthly amount of one-twelfth of the
13required annual State contribution certified under subsection
14(a-1). From the effective date of this amendatory Act of the
1593rd General Assembly through June 30, 2004, the Board shall
16not submit vouchers for the remainder of fiscal year 2004 in
17excess of the fiscal year 2004 certified contribution amount
18determined under this Section after taking into consideration
19the transfer to the System under subsection (a) of Section
206z-61 of the State Finance Act. These vouchers shall be paid by
21the State Comptroller and Treasurer by warrants drawn on the
22funds appropriated to the System for that fiscal year.
23    If in any month the amount remaining unexpended from all
24other appropriations to the System for the applicable fiscal
25year (including the appropriations to the System under Section
268.12 of the State Finance Act and Section 1 of the State

 

 

09900SB0231sam001- 38 -LRB099 03162 NHT 47157 a

1Pension Funds Continuing Appropriation Act) is less than the
2amount lawfully vouchered under this subsection, the
3difference shall be paid from the Common School Fund under the
4continuing appropriation authority provided in Section 1.1 of
5the State Pension Funds Continuing Appropriation Act.
6    (b-2) Allocations from the Common School Fund apportioned
7to school districts not coming under this System shall not be
8diminished or affected by the provisions of this Article.
9    (b-3) For State fiscal years 2012 through 2045, the minimum
10contribution to the System to be made by the State for each
11fiscal year shall be an amount determined by the System to be
12sufficient to bring the total assets of the System up to 90% of
13the total actuarial liabilities of the System by the end of
14State fiscal year 2045. In making these determinations, the
15required State contribution shall be calculated each year as a
16level percentage of payroll over the years remaining to and
17including fiscal year 2045 and shall be determined under the
18projected unit credit actuarial cost method.
19    For State fiscal years 1996 through 2005, the State
20contribution to the System, as a percentage of the applicable
21employee payroll, shall be increased in equal annual increments
22so that by State fiscal year 2011, the State is contributing at
23the rate required under this Section; except that in the
24following specified State fiscal years, the State contribution
25to the System shall not be less than the following indicated
26percentages of the applicable employee payroll, even if the

 

 

09900SB0231sam001- 39 -LRB099 03162 NHT 47157 a

1indicated percentage will produce a State contribution in
2excess of the amount otherwise required under this subsection
3and subsection (a), and notwithstanding any contrary
4certification made under subsection (a-1) before the effective
5date of this amendatory Act of 1998: 10.02% in FY 1999; 10.77%
6in FY 2000; 11.47% in FY 2001; 12.16% in FY 2002; 12.86% in FY
72003; and 13.56% in FY 2004.
8    Notwithstanding any other provision of this Article, the
9total required State contribution for State fiscal year 2006 is
10$534,627,700.
11    Notwithstanding any other provision of this Article, the
12total required State contribution for State fiscal year 2007 is
13$738,014,500.
14    For each of State fiscal years 2008 through 2009, the State
15contribution to the System, as a percentage of the applicable
16employee payroll, shall be increased in equal annual increments
17from the required State contribution for State fiscal year
182007, so that by State fiscal year 2011, the State is
19contributing at the rate otherwise required under this Section.
20    Notwithstanding any other provision of this Article, the
21total required State contribution for State fiscal year 2010 is
22$2,089,268,000 and shall be made from the proceeds of bonds
23sold in fiscal year 2010 pursuant to Section 7.2 of the General
24Obligation Bond Act, less (i) the pro rata share of bond sale
25expenses determined by the System's share of total bond
26proceeds, (ii) any amounts received from the Common School Fund

 

 

09900SB0231sam001- 40 -LRB099 03162 NHT 47157 a

1in fiscal year 2010, and (iii) any reduction in bond proceeds
2due to the issuance of discounted bonds, if applicable.
3    Notwithstanding any other provision of this Article, the
4total required State contribution for State fiscal year 2011 is
5the amount recertified by the System on or before April 1, 2011
6pursuant to subsection (a-1) of this Section and shall be made
7from the proceeds of bonds sold in fiscal year 2011 pursuant to
8Section 7.2 of the General Obligation Bond Act, less (i) the
9pro rata share of bond sale expenses determined by the System's
10share of total bond proceeds, (ii) any amounts received from
11the Common School Fund in fiscal year 2011, and (iii) any
12reduction in bond proceeds due to the issuance of discounted
13bonds, if applicable. This amount shall include, in addition to
14the amount certified by the System, an amount necessary to meet
15employer contributions required by the State as an employer
16under paragraph (e) of this Section, which may also be used by
17the System for contributions required by paragraph (a) of
18Section 16-127.
19    Beginning in State fiscal year 2046, the minimum State
20contribution for each fiscal year shall be the amount needed to
21maintain the total assets of the System at 90% of the total
22actuarial liabilities of the System.
23    Amounts received by the System pursuant to Section 25 of
24the Budget Stabilization Act or Section 8.12 of the State
25Finance Act in any fiscal year do not reduce and do not
26constitute payment of any portion of the minimum State

 

 

09900SB0231sam001- 41 -LRB099 03162 NHT 47157 a

1contribution required under this Article in that fiscal year.
2Such amounts shall not reduce, and shall not be included in the
3calculation of, the required State contributions under this
4Article in any future year until the System has reached a
5funding ratio of at least 90%. A reference in this Article to
6the "required State contribution" or any substantially similar
7term does not include or apply to any amounts payable to the
8System under Section 25 of the Budget Stabilization Act.
9    Notwithstanding any other provision of this Section, the
10required State contribution for State fiscal year 2005 and for
11fiscal year 2008 and each fiscal year thereafter, as calculated
12under this Section and certified under subsection (a-1), shall
13not exceed an amount equal to (i) the amount of the required
14State contribution that would have been calculated under this
15Section for that fiscal year if the System had not received any
16payments under subsection (d) of Section 7.2 of the General
17Obligation Bond Act, minus (ii) the portion of the State's
18total debt service payments for that fiscal year on the bonds
19issued in fiscal year 2003 for the purposes of that Section
207.2, as determined and certified by the Comptroller, that is
21the same as the System's portion of the total moneys
22distributed under subsection (d) of Section 7.2 of the General
23Obligation Bond Act. In determining this maximum for State
24fiscal years 2008 through 2010, however, the amount referred to
25in item (i) shall be increased, as a percentage of the
26applicable employee payroll, in equal increments calculated

 

 

09900SB0231sam001- 42 -LRB099 03162 NHT 47157 a

1from the sum of the required State contribution for State
2fiscal year 2007 plus the applicable portion of the State's
3total debt service payments for fiscal year 2007 on the bonds
4issued in fiscal year 2003 for the purposes of Section 7.2 of
5the General Obligation Bond Act, so that, by State fiscal year
62011, the State is contributing at the rate otherwise required
7under this Section.
8    (c) Payment of the required State contributions and of all
9pensions, retirement annuities, death benefits, refunds, and
10other benefits granted under or assumed by this System, and all
11expenses in connection with the administration and operation
12thereof, are obligations of the State.
13    If members are paid from special trust or federal funds
14which are administered by the employing unit, whether school
15district or other unit, the employing unit shall pay to the
16System from such funds the full accruing retirement costs based
17upon that service, which, beginning July 1, 2016 2014, shall be
18at a rate, expressed as a percentage of salary, equal to the
19total employer's minimum contribution to the System to be made
20by the State for that fiscal year, including both normal cost
21and unfunded liability components, expressed as a percentage of
22payroll, as determined by the System under subsection (b-3) of
23this Section. Employer contributions, based on salary paid to
24members from federal funds, may be forwarded by the
25distributing agency of the State of Illinois to the System
26prior to allocation, in an amount determined in accordance with

 

 

09900SB0231sam001- 43 -LRB099 03162 NHT 47157 a

1guidelines established by such agency and the System. Any
2contribution for fiscal year 2015 collected as a result of the
3change made by this amendatory Act of the 98th General Assembly
4shall be considered a State contribution under subsection (b-3)
5of this Section.
6    (d) Effective July 1, 1986, any employer of a teacher as
7defined in paragraph (8) of Section 16-106 shall pay the
8employer's normal cost of benefits based upon the teacher's
9service, in addition to employee contributions, as determined
10by the System. Such employer contributions shall be forwarded
11monthly in accordance with guidelines established by the
12System.
13    However, with respect to benefits granted under Section
1416-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
15of Section 16-106, the employer's contribution shall be 12%
16(rather than 20%) of the member's highest annual salary rate
17for each year of creditable service granted, and the employer
18shall also pay the required employee contribution on behalf of
19the teacher. For the purposes of Sections 16-133.4 and
2016-133.5, a teacher as defined in paragraph (8) of Section
2116-106 who is serving in that capacity while on leave of
22absence from another employer under this Article shall not be
23considered an employee of the employer from which the teacher
24is on leave.
25    (e) Beginning July 1, 1998, every employer of a teacher
26shall pay to the System an employer contribution computed as

 

 

09900SB0231sam001- 44 -LRB099 03162 NHT 47157 a

1follows:
2        (1) Beginning July 1, 1998 through June 30, 1999, the
3    employer contribution shall be equal to 0.3% of each
4    teacher's salary.
5        (2) Beginning July 1, 1999 and thereafter, the employer
6    contribution shall be equal to 0.58% of each teacher's
7    salary.
8The school district or other employing unit may pay these
9employer contributions out of any source of funding available
10for that purpose and shall forward the contributions to the
11System on the schedule established for the payment of member
12contributions.
13    These employer contributions are intended to offset a
14portion of the cost to the System of the increases in
15retirement benefits resulting from this amendatory Act of 1998.
16    Each employer of teachers is entitled to a credit against
17the contributions required under this subsection (e) with
18respect to salaries paid to teachers for the period January 1,
192002 through June 30, 2003, equal to the amount paid by that
20employer under subsection (a-5) of Section 6.6 of the State
21Employees Group Insurance Act of 1971 with respect to salaries
22paid to teachers for that period.
23    The additional 1% employee contribution required under
24Section 16-152 by this amendatory Act of 1998 is the
25responsibility of the teacher and not the teacher's employer,
26unless the employer agrees, through collective bargaining or

 

 

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1otherwise, to make the contribution on behalf of the teacher.
2    If an employer is required by a contract in effect on May
31, 1998 between the employer and an employee organization to
4pay, on behalf of all its full-time employees covered by this
5Article, all mandatory employee contributions required under
6this Article, then the employer shall be excused from paying
7the employer contribution required under this subsection (e)
8for the balance of the term of that contract. The employer and
9the employee organization shall jointly certify to the System
10the existence of the contractual requirement, in such form as
11the System may prescribe. This exclusion shall cease upon the
12termination, extension, or renewal of the contract at any time
13after May 1, 1998.
14    (f) If the amount of a teacher's salary for any school year
15used to determine final average salary exceeds the member's
16annual full-time salary rate with the same employer for the
17previous school year by more than 6%, the teacher's employer
18shall pay to the System, in addition to all other payments
19required under this Section and in accordance with guidelines
20established by the System, the present value of the increase in
21benefits resulting from the portion of the increase in salary
22that is in excess of 6%. This present value shall be computed
23by the System on the basis of the actuarial assumptions and
24tables used in the most recent actuarial valuation of the
25System that is available at the time of the computation. If a
26teacher's salary for the 2005-2006 school year is used to

 

 

09900SB0231sam001- 46 -LRB099 03162 NHT 47157 a

1determine final average salary under this subsection (f), then
2the changes made to this subsection (f) by Public Act 94-1057
3shall apply in calculating whether the increase in his or her
4salary is in excess of 6%. For the purposes of this Section,
5change in employment under Section 10-21.12 of the School Code
6on or after June 1, 2005 shall constitute a change in employer.
7The System may require the employer to provide any pertinent
8information or documentation. The changes made to this
9subsection (f) by this amendatory Act of the 94th General
10Assembly apply without regard to whether the teacher was in
11service on or after its effective date.
12    Whenever it determines that a payment is or may be required
13under this subsection, the System shall calculate the amount of
14the payment and bill the employer for that amount. The bill
15shall specify the calculations used to determine the amount
16due. If the employer disputes the amount of the bill, it may,
17within 30 days after receipt of the bill, apply to the System
18in writing for a recalculation. The application must specify in
19detail the grounds of the dispute and, if the employer asserts
20that the calculation is subject to subsection (g) or (h) of
21this Section, must include an affidavit setting forth and
22attesting to all facts within the employer's knowledge that are
23pertinent to the applicability of that subsection. Upon
24receiving a timely application for recalculation, the System
25shall review the application and, if appropriate, recalculate
26the amount due.

 

 

09900SB0231sam001- 47 -LRB099 03162 NHT 47157 a

1    The employer contributions required under this subsection
2(f) may be paid in the form of a lump sum within 90 days after
3receipt of the bill. If the employer contributions are not paid
4within 90 days after receipt of the bill, then interest will be
5charged at a rate equal to the System's annual actuarially
6assumed rate of return on investment compounded annually from
7the 91st day after receipt of the bill. Payments must be
8concluded within 3 years after the employer's receipt of the
9bill.
10    (g) This subsection (g) applies only to payments made or
11salary increases given on or after June 1, 2005 but before July
121, 2011. The changes made by Public Act 94-1057 shall not
13require the System to refund any payments received before July
1431, 2006 (the effective date of Public Act 94-1057).
15    When assessing payment for any amount due under subsection
16(f), the System shall exclude salary increases paid to teachers
17under contracts or collective bargaining agreements entered
18into, amended, or renewed before June 1, 2005.
19    When assessing payment for any amount due under subsection
20(f), the System shall exclude salary increases paid to a
21teacher at a time when the teacher is 10 or more years from
22retirement eligibility under Section 16-132 or 16-133.2.
23    When assessing payment for any amount due under subsection
24(f), the System shall exclude salary increases resulting from
25overload work, including summer school, when the school
26district has certified to the System, and the System has

 

 

09900SB0231sam001- 48 -LRB099 03162 NHT 47157 a

1approved the certification, that (i) the overload work is for
2the sole purpose of classroom instruction in excess of the
3standard number of classes for a full-time teacher in a school
4district during a school year and (ii) the salary increases are
5equal to or less than the rate of pay for classroom instruction
6computed on the teacher's current salary and work schedule.
7    When assessing payment for any amount due under subsection
8(f), the System shall exclude a salary increase resulting from
9a promotion (i) for which the employee is required to hold a
10certificate or supervisory endorsement issued by the State
11Teacher Certification Board that is a different certification
12or supervisory endorsement than is required for the teacher's
13previous position and (ii) to a position that has existed and
14been filled by a member for no less than one complete academic
15year and the salary increase from the promotion is an increase
16that results in an amount no greater than the lesser of the
17average salary paid for other similar positions in the district
18requiring the same certification or the amount stipulated in
19the collective bargaining agreement for a similar position
20requiring the same certification.
21    When assessing payment for any amount due under subsection
22(f), the System shall exclude any payment to the teacher from
23the State of Illinois or the State Board of Education over
24which the employer does not have discretion, notwithstanding
25that the payment is included in the computation of final
26average salary.

 

 

09900SB0231sam001- 49 -LRB099 03162 NHT 47157 a

1    (h) When assessing payment for any amount due under
2subsection (f), the System shall exclude any salary increase
3described in subsection (g) of this Section given on or after
4July 1, 2011 but before July 1, 2014 under a contract or
5collective bargaining agreement entered into, amended, or
6renewed on or after June 1, 2005 but before July 1, 2011.
7Notwithstanding any other provision of this Section, any
8payments made or salary increases given after June 30, 2014
9shall be used in assessing payment for any amount due under
10subsection (f) of this Section.
11    (i) The System shall prepare a report and file copies of
12the report with the Governor and the General Assembly by
13January 1, 2007 that contains all of the following information:
14        (1) The number of recalculations required by the
15    changes made to this Section by Public Act 94-1057 for each
16    employer.
17        (2) The dollar amount by which each employer's
18    contribution to the System was changed due to
19    recalculations required by Public Act 94-1057.
20        (3) The total amount the System received from each
21    employer as a result of the changes made to this Section by
22    Public Act 94-4.
23        (4) The increase in the required State contribution
24    resulting from the changes made to this Section by Public
25    Act 94-1057.
26    (j) For purposes of determining the required State

 

 

09900SB0231sam001- 50 -LRB099 03162 NHT 47157 a

1contribution to the System, the value of the System's assets
2shall be equal to the actuarial value of the System's assets,
3which shall be calculated as follows:
4    As of June 30, 2008, the actuarial value of the System's
5assets shall be equal to the market value of the assets as of
6that date. In determining the actuarial value of the System's
7assets for fiscal years after June 30, 2008, any actuarial
8gains or losses from investment return incurred in a fiscal
9year shall be recognized in equal annual amounts over the
105-year period following that fiscal year.
11    (k) For purposes of determining the required State
12contribution to the system for a particular year, the actuarial
13value of assets shall be assumed to earn a rate of return equal
14to the system's actuarially assumed rate of return.
15(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
1696-1511, eff. 1-27-11; 96-1554, eff. 3-18-11; 97-694, eff.
176-18-12; 97-813, eff. 7-13-12; 98-674, eff. 6-30-14.)
 
18    (40 ILCS 5/17-127)  (from Ch. 108 1/2, par. 17-127)
19    Sec. 17-127. Financing; revenues for the Fund.
20    (a) The revenues for the Fund shall consist of: (1) amounts
21paid into the Fund by contributors thereto and from employer
22contributions and State appropriations in accordance with this
23Article; (2) amounts contributed to the Fund by an Employer;
24(3) amounts contributed to the Fund pursuant to any law now in
25force or hereafter to be enacted; (4) contributions from any

 

 

09900SB0231sam001- 51 -LRB099 03162 NHT 47157 a

1other source; and (5) the earnings on investments.
2    (b) The General Assembly finds that for many years the
3State has contributed to the Fund an annual amount that is
4between 20% and 30% of the amount of the annual State
5contribution to the Article 16 retirement system, and the
6General Assembly declares that it is its goal and intention to
7continue this level of contribution to the Fund in the future.
8    (c) Beginning in State fiscal year 1999, the State shall
9include in its annual contribution to the Fund an additional
10amount equal to 0.544% of the Fund's total teacher payroll;
11except that this additional contribution need not be made in a
12fiscal year if the Board has certified in the previous fiscal
13year that the Fund is at least 90% funded, based on actuarial
14determinations. These additional State contributions are
15intended to offset a portion of the cost to the Fund of the
16increases in retirement benefits resulting from this
17amendatory Act of 1998.
18    (d) In addition to any other contribution required under
19this Article, including the contribution required under
20subsection (c), the State shall contribute to the Fund the
21following amounts:
22        (1) For State fiscal year 2017, the State shall
23    contribute $205,404,986.
24        (2) Beginning in State fiscal year 2018, the State
25    shall contribute for each fiscal year an amount to be
26    determined by the Fund, equal to the employer normal cost

 

 

09900SB0231sam001- 52 -LRB099 03162 NHT 47157 a

1    for that fiscal year, plus the amount allowed pursuant to
2    paragraph (3) of Section 17-142.1, to defray health
3    insurance costs.
4    (e) The Board shall determine the amount of State
5contributions required for each fiscal year on the basis of the
6actuarial tables and other assumptions adopted by the Board and
7the recommendations of the actuary. On or before November 1 of
8each year, beginning November 1, 2016, the Board shall submit
9to the State Actuary, the Governor, and the General Assembly a
10proposed certification of the amount of the required State
11contribution to the Fund for the next fiscal year, along with
12all of the actuarial assumptions, calculations, and data upon
13which that proposed certification is based.
14    On or before January 1 of each year, beginning January 1,
152017, the State Actuary shall issue a preliminary report
16concerning the proposed certification and identifying, if
17necessary, recommended changes in actuarial assumptions that
18the Board must consider before finalizing its certification of
19the required State contributions.
20    (f) On or before January 15, 2017 and each January 15
21thereafter, the Board shall certify to the Governor and the
22General Assembly the amount of the required State contribution
23for the next fiscal year. The certification shall include a
24copy of the actuarial recommendations upon which it is based
25and shall specifically identify the Fund's projected employer
26normal cost for that fiscal year. The Board's certification

 

 

09900SB0231sam001- 53 -LRB099 03162 NHT 47157 a

1must note any deviations from the State Actuary's recommended
2changes, the reason or reasons for not following the State
3Actuary's recommended changes, and the fiscal impact of not
4following the State Actuary's recommended changes on the
5required State contribution.
6    For the purposes of this Article, including issuing
7vouchers, and for the purposes of subsection (h) of Section 1.1
8of the State Pension Funds Continuing Appropriation Act, the
9State contribution specified for State fiscal year 2017 shall
10be deemed to have been certified, by operation of law and
11without official action by the Board or the State Actuary, in
12the amount provided in subsection (d) of this Section.
13    (g) Beginning in State fiscal year 2017, on the 15th day of
14each month, or as soon thereafter as may be practicable, the
15Board shall submit vouchers for payment of State contributions
16to the Fund, in a total monthly amount of one-twelfth of the
17required annual State contribution under subsection (d). These
18vouchers shall be paid by the State Comptroller and Treasurer
19by warrants drawn on the funds appropriated to the Fund for
20that fiscal year. If in any month the amount remaining
21unexpended from all other State appropriations to the Fund for
22the applicable fiscal year is less than the amount lawfully
23vouchered under this subsection, the difference shall be paid
24from the Common School Fund under the continuing appropriation
25authority provided in Section 1.1 of the State Pension Funds
26Continuing Appropriation Act.

 

 

09900SB0231sam001- 54 -LRB099 03162 NHT 47157 a

1(Source: P.A. 90-548, eff. 12-4-97; 90-566, eff. 1-2-98;
290-582, eff. 5-27-98; 90-655, eff. 7-30-98.)
 
3    Section 918. The State Pension Funds Continuing
4Appropriation Act is amended by changing Section 1.1 as
5follows:
 
6    (40 ILCS 15/1.1)
7    Sec. 1.1. Appropriations to certain retirement systems.
8    (a) There is hereby appropriated from the General Revenue
9Fund to the General Assembly Retirement System, on a continuing
10monthly basis, the amount, if any, by which the total available
11amount of all other appropriations to that retirement system
12for the payment of State contributions is less than the total
13amount of the vouchers for required State contributions
14lawfully submitted by the retirement system for that month
15under Section 2-134 of the Illinois Pension Code.
16    (b) There is hereby appropriated from the General Revenue
17Fund to the State Universities Retirement System, on a
18continuing monthly basis, the amount, if any, by which the
19total available amount of all other appropriations to that
20retirement system for the payment of State contributions,
21including any deficiency in the required contributions of the
22optional retirement program established under Section 15-158.2
23of the Illinois Pension Code, is less than the total amount of
24the vouchers for required State contributions lawfully

 

 

09900SB0231sam001- 55 -LRB099 03162 NHT 47157 a

1submitted by the retirement system for that month under Section
215-165 of the Illinois Pension Code.
3    (c) There is hereby appropriated from the Common School
4Fund to the Teachers' Retirement System of the State of
5Illinois, on a continuing monthly basis, the amount, if any, by
6which the total available amount of all other appropriations to
7that retirement system for the payment of State contributions
8is less than the total amount of the vouchers for required
9State contributions lawfully submitted by the retirement
10system for that month under Section 16-158 of the Illinois
11Pension Code.
12    (d) There is hereby appropriated from the General Revenue
13Fund to the Judges Retirement System of Illinois, on a
14continuing monthly basis, the amount, if any, by which the
15total available amount of all other appropriations to that
16retirement system for the payment of State contributions is
17less than the total amount of the vouchers for required State
18contributions lawfully submitted by the retirement system for
19that month under Section 18-140 of the Illinois Pension Code.
20    (e) The continuing appropriations provided by subsections
21(a), (b), (c), and (d) of this Section shall first be available
22in State fiscal year 1996. The continuing appropriations
23provided by subsection (h) of this Section shall first be
24available as provided in that subsection (h).
25    (f) For State fiscal year 2010 only, the continuing
26appropriations provided by this Section are equal to the amount

 

 

09900SB0231sam001- 56 -LRB099 03162 NHT 47157 a

1certified by each System on or before December 31, 2008, less
2(i) the gross proceeds of the bonds sold in fiscal year 2010
3under the authorization contained in subsection (a) of Section
47.2 of the General Obligation Bond Act and (ii) any amounts
5received from the State Pensions Fund.
6    (g) For State fiscal year 2011 only, the continuing
7appropriations provided by this Section are equal to the amount
8certified by each System on or before April 1, 2011, less (i)
9the gross proceeds of the bonds sold in fiscal year 2011 under
10the authorization contained in subsection (a) of Section 7.2 of
11the General Obligation Bond Act and (ii) any amounts received
12from the State Pensions Fund.
13    (h) There is hereby appropriated from the Common School
14Fund to the Public School Teachers' Pension and Retirement Fund
15of Chicago, on a continuing monthly basis, the amount, if any,
16by which the total available amount of all other State
17appropriations to that Retirement Fund for the payment of State
18contributions under subsection (d) of Section 17-127 of the
19Illinois Pension Code is less than the total amount of the
20vouchers for required State contributions lawfully submitted
21by the Retirement Fund for that month under that Section
2217-127.
23(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11;
2496-1511, eff. 1-27-11.)
 
25    Section 920. The Innovation Development and Economy Act is

 

 

09900SB0231sam001- 57 -LRB099 03162 NHT 47157 a

1amended by changing Section 33 as follows:
 
2    (50 ILCS 470/33)
3    Sec. 33. STAR Bonds School Improvement and Operations Trust
4Fund.
5    (a) The STAR Bonds School Improvement and Operations Trust
6Fund is created as a trust fund in the State treasury. Deposits
7into the Trust Fund shall be made as provided under this
8Section. Moneys in the Trust Fund shall be used by the
9Department of Revenue only for the purpose of making payments
10to school districts in educational service regions that include
11or are adjacent to the STAR bond district. Moneys in the Trust
12Fund are not subject to appropriation and shall be used solely
13as provided in this Section. All deposits into the Trust Fund
14shall be held in the Trust Fund by the State Treasurer as ex
15officio custodian separate and apart from all public moneys or
16funds of this State and shall be administered by the Department
17exclusively for the purposes set forth in this Section. All
18moneys in the Trust Fund shall be invested and reinvested by
19the State Treasurer. All interest accruing from these
20investments shall be deposited in the Trust Fund.
21    (b) Upon approval of a STAR bond district, the political
22subdivision shall immediately transmit to the county clerk of
23the county in which the district is located a certified copy of
24the ordinance creating the district, a legal description of the
25district, a map of the district, identification of the year

 

 

09900SB0231sam001- 58 -LRB099 03162 NHT 47157 a

1that the county clerk shall use for determining the total
2initial equalized assessed value of the district consistent
3with subsection (c), and a list of the parcel or tax
4identification number of each parcel of property included in
5the district.
6    (c) Upon approval of a STAR bond district, the county clerk
7immediately thereafter shall determine (i) the most recently
8ascertained equalized assessed value of each lot, block, tract,
9or parcel of real property within the STAR bond district, from
10which shall be deducted the homestead exemptions under Article
1115 of the Property Tax Code, which value shall be the initial
12equalized assessed value of each such piece of property, and
13(ii) the total equalized assessed value of all taxable real
14property within the district by adding together the most
15recently ascertained equalized assessed value of each taxable
16lot, block, tract, or parcel of real property within the
17district, from which shall be deducted the homestead exemptions
18under Article 15 of the Property Tax Code, and shall certify
19that amount as the total initial equalized assessed value of
20the taxable real property within the STAR bond district.
21    (d) In reference to any STAR bond district created within
22any political subdivision, and in respect to which the county
23clerk has certified the total initial equalized assessed value
24of the property in the area, the political subdivision may
25thereafter request the clerk in writing to adjust the initial
26equalized value of all taxable real property within the STAR

 

 

09900SB0231sam001- 59 -LRB099 03162 NHT 47157 a

1bond district by deducting therefrom the exemptions under
2Article 15 of the Property Tax Code applicable to each lot,
3block, tract, or parcel of real property within the STAR bond
4district. The county clerk shall immediately, after the written
5request to adjust the total initial equalized value is
6received, determine the total homestead exemptions in the STAR
7bond district as provided under Article 15 of the Property Tax
8Code by adding together the homestead exemptions provided by
9said Article on each lot, block, tract, or parcel of real
10property within the STAR bond district and then shall deduct
11the total of said exemptions from the total initial equalized
12assessed value. The county clerk shall then promptly certify
13that amount as the total initial equalized assessed value as
14adjusted of the taxable real property within the STAR bond
15district.
16    (e) The county clerk or other person authorized by law
17shall compute the tax rates for each taxing district with all
18or a portion of its equalized assessed value located in the
19STAR bond district. The rate per cent of tax determined shall
20be extended to the current equalized assessed value of all
21property in the district in the same manner as the rate per
22cent of tax is extended to all other taxable property in the
23taxing district.
24    (f) Beginning with the assessment year in which the first
25destination user in the first STAR bond project in a STAR bond
26district makes its first retail sales and for each assessment

 

 

09900SB0231sam001- 60 -LRB099 03162 NHT 47157 a

1year thereafter until final maturity of the last STAR bonds
2issued in the district, the county clerk or other person
3authorized by law shall determine the increase in equalized
4assessed value of all real property within the STAR bond
5district by subtracting the initial equalized assessed value of
6all property in the district certified under subsection (c)
7from the current equalized assessed value of all property in
8the district. Each year, the property taxes arising from the
9increase in equalized assessed value in the STAR bond district
10shall be determined for each taxing district and shall be
11certified to the county collector.
12    (g) Beginning with the year in which taxes are collected
13based on the assessment year in which the first destination
14user in the first STAR bond project in a STAR bond district
15makes its first retail sales and for each year thereafter until
16final maturity of the last STAR bonds issued in the district,
17the county collector shall, within 30 days after receipt of
18property taxes, transmit to the Department to be deposited into
19the STAR Bonds School Improvement and Operations Trust Fund 15%
20of property taxes attributable to the increase in equalized
21assessed value within the STAR bond district from each taxing
22district as certified in subsection (f).
23    (h) The Department shall pay to the regional superintendent
24of schools whose educational service region includes Franklin
25and Williamson Counties, for each year for which money is
26remitted to the Department and paid into the STAR Bonds School

 

 

09900SB0231sam001- 61 -LRB099 03162 NHT 47157 a

1Improvement and Operations Trust Fund, the money in the Fund as
2provided in this Section. The amount paid to each school
3district shall be allocated proportionately, based on each
4qualifying school district's fall enrollment for the
5then-current school year, such that the school district with
6the largest fall enrollment receives the largest proportionate
7share of money paid out of the Fund or by any other method or
8formula that the regional superintendent of schools deems fit,
9equitable, and in the public interest. The regional
10superintendent may allocate moneys to school districts that are
11outside of his or her educational service region or to other
12regional superintendents.
13    The Department shall determine the distributions under
14this Section using its best judgment and information. The
15Department shall be held harmless for the distributions made
16under this Section and all distributions shall be final.
17    (i) In any year that an assessment appeal is filed, the
18extension of taxes on any assessment so appealed shall not be
19delayed. In the case of an assessment that is altered, any
20taxes extended upon the unauthorized assessment or part thereof
21shall be abated, or, if already paid, shall be refunded with
22interest as provided in Section 23-20 of the Property Tax Code.
23In the case of an assessment appeal, the county collector shall
24notify the Department that an assessment appeal has been filed
25and the amount of the tax that would have been deposited in the
26STAR Bonds School Improvement and Operations Trust Fund. The

 

 

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1county collector shall hold that amount in a separate fund
2until the appeal process is final. After the appeal process is
3finalized, the county collector shall transmit to the
4Department the amount of tax that remains, if any, after all
5required refunds are made. The Department shall pay any amount
6deposited into the Trust Fund under this Section in the same
7proportion as determined for payments for that taxable year
8under subsection (h).
9    (j) In any year that ad valorem taxes are allocated to the
10STAR Bonds School Improvement and Operations Trust Fund, that
11allocation shall not reduce or otherwise impact the school aid
12provided to any school district under the general State school
13aid formula provided for in Section 18-8.05 of the School Code
14or the primary State aid formula provided for in Section
1518-8.15 of the School Code.
16(Source: P.A. 96-939, eff. 6-24-10.)
 
17    Section 925. The County Economic Development Project Area
18Property Tax Allocation Act is amended by changing Section 7 as
19follows:
 
20    (55 ILCS 85/7)  (from Ch. 34, par. 7007)
21    Sec. 7. Creation of special tax allocation fund. If a
22county has adopted property tax allocation financing by
23ordinance for an economic development project area, the
24Department has approved and certified the economic development

 

 

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1project area, and the county clerk has thereafter certified the
2"total initial equalized value" of the taxable real property
3within such economic development project area in the manner
4provided in subsection (b) of Section 6 of this Act, each year
5after the date of the certification by the county clerk of the
6"initial equalized assessed value" until economic development
7project costs and all county obligations financing economic
8development project costs have been paid, the ad valorem taxes,
9if any, arising from the levies upon the taxable real property
10in the economic development project area by taxing districts
11and tax rates determined in the manner provided in subsection
12(b) of Section 6 of this Act shall be divided as follows:
13        (1) That portion of the taxes levied upon each taxable
14    lot, block, tract or parcel of real property which is
15    attributable to the lower of the current equalized assessed
16    value or the initial equalized assessed value of each such
17    taxable lot, block, tract, or parcel of real property
18    existing at the time property tax allocation financing was
19    adopted shall be allocated and when collected shall be paid
20    by the county collector to the respective affected taxing
21    districts in the manner required by the law in the absence
22    of the adoption of property tax allocation financing.
23        (2) That portion, if any, of those taxes which is
24    attributable to the increase in the current equalized
25    assessed valuation of each taxable lot, block, tract, or
26    parcel of real property in the economic development project

 

 

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1    are, over and above the initial equalized assessed value of
2    each property existing at the time property tax allocation
3    financing was adopted shall be allocated to and when
4    collected shall be paid to the county treasurer, who shall
5    deposit those taxes into a special fund called the special
6    tax allocation fund of the county for the purpose of paying
7    economic development project costs and obligations
8    incurred in the payment thereof.
9    The county, by an ordinance adopting property tax
10allocation financing, may pledge the funds in and to be
11deposited in the special tax allocation fund for the payment of
12obligations issued under this Act and for the payment of
13economic development project costs. No part of the current
14equalized assessed valuation of each property in the economic
15development project area attributable to any increase above the
16total initial equalized assessed value of such properties shall
17be used in calculating the general State school aid formula,
18provided for in Section 18-8 of the School Code, or the primary
19State aid formula, provided for in Section 18-8.15 of the
20School Code, until such time as all economic development
21projects costs have been paid as provided for in this Section.
22    Whenever a county issues bonds for the purpose of financing
23economic development project costs, the county may provide by
24ordinance for the appointment of a trustee, which may be any
25trust company within the State, and for the establishment of
26the funds or accounts to be maintained by such trustee as the

 

 

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1county shall deem necessary to provide for the security and
2payment of the bonds. If the county provides for the
3appointment of a trustee, the trustee shall be considered the
4assignee of any payments assigned by the county pursuant to the
5ordinance and this Section. Any amounts paid to the trustee as
6assignee shall be deposited in the funds or accounts
7established pursuant to the trust agreement, and shall be held
8by the trustee in trust for the benefit of the holders of the
9bonds, and the holders shall have a lien on and a security
10interest in those bonds or accounts so long as the bonds remain
11outstanding and unpaid. Upon retirement of the bonds, the
12trustee shall pay over any excess amounts held to the county
13for deposit in the special tax allocation fund.
14    When the economic development project costs, including
15without limitation all county obligations financing economic
16development project costs incurred under this Act, have been
17paid, all surplus funds then remaining in the special tax
18allocation funds shall be distributed by being paid by the
19county treasurer to the county collector, who shall immediately
20thereafter pay those funds to the taxing districts having
21taxable property in the economic development project area in
22the same manner and proportion as the most recent distribution
23by the county collector to those taxing districts of real
24property taxes from real property in the economic development
25project area.
26    Upon the payment of all economic development project costs,

 

 

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1retirement of obligations and the distribution of any excess
2monies pursuant to this Section and not later than 23 years
3from the date of adoption of the ordinance adopting property
4tax allocation financing, the county shall adopt an ordinance
5dissolving the special tax allocation fund for the economic
6development project area and terminating the designation of the
7economic development project area as an economic development
8project area. Thereafter the rates of the taxing districts
9shall be extended and taxes levied, collected and distributed
10in the manner applicable in the absence of the adoption of
11property tax allocation financing.
12    Nothing in this Section shall be construed as relieving
13property in economic development project areas from being
14assessed as provided in the Property Tax Code or as relieving
15owners of that property from paying a uniform rate of taxes, as
16required by Section 4 of Article IX of the Illinois
17Constitution of 1970.
18(Source: P.A. 98-463, eff. 8-16-13.)
 
19    Section 930. The County Economic Development Project Area
20Tax Increment Allocation Act of 1991 is amended by changing
21Section 50 as follows:
 
22    (55 ILCS 90/50)  (from Ch. 34, par. 8050)
23    Sec. 50. Special tax allocation fund.
24    (a) If a county clerk has certified the "total initial

 

 

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1equalized assessed value" of the taxable real property within
2an economic development project area in the manner provided in
3Section 45, each year after the date of the certification by
4the county clerk of the "total initial equalized assessed
5value", until economic development project costs and all county
6obligations financing economic development project costs have
7been paid, the ad valorem taxes, if any, arising from the
8levies upon the taxable real property in the economic
9development project area by taxing districts and tax rates
10determined in the manner provided in subsection (b) of Section
1145 shall be divided as follows:
12        (1) That portion of the taxes levied upon each taxable
13    lot, block, tract, or parcel of real property that is
14    attributable to the lower of the current equalized assessed
15    value or the initial equalized assessed value of each
16    taxable lot, block, tract, or parcel of real property
17    existing at the time tax increment financing was adopted
18    shall be allocated to (and when collected shall be paid by
19    the county collector to) the respective affected taxing
20    districts in the manner required by law in the absence of
21    the adoption of tax increment allocation financing.
22        (2) That portion, if any, of the taxes that is
23    attributable to the increase in the current equalized
24    assessed valuation of each taxable lot, block, tract, or
25    parcel of real property in the economic development project
26    area, over and above the initial equalized assessed value

 

 

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1    of each property existing at the time tax increment
2    financing was adopted, shall be allocated to (and when
3    collected shall be paid to) the county treasurer, who shall
4    deposit the taxes into a special fund (called the special
5    tax allocation fund of the county) for the purpose of
6    paying economic development project costs and obligations
7    incurred in the payment of those costs.
8    (b) The county, by an ordinance adopting tax increment
9allocation financing, may pledge the monies in and to be
10deposited into the special tax allocation fund for the payment
11of obligations issued under this Act and for the payment of
12economic development project costs. No part of the current
13equalized assessed valuation of each property in the economic
14development project area attributable to any increase above the
15total initial equalized assessed value of those properties
16shall be used in calculating the general State school aid
17formula under Section 18-8 of the School Code or the primary
18State aid formula under Section 18-8.15 of the School Code
19until all economic development projects costs have been paid as
20provided for in this Section.
21    (c) When the economic development projects costs,
22including without limitation all county obligations financing
23economic development project costs incurred under this Act,
24have been paid, all surplus monies then remaining in the
25special tax allocation fund shall be distributed by being paid
26by the county treasurer to the county collector, who shall

 

 

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1immediately pay the monies to the taxing districts having
2taxable property in the economic development project area in
3the same manner and proportion as the most recent distribution
4by the county collector to those taxing districts of real
5property taxes from real property in the economic development
6project area.
7    (d) Upon the payment of all economic development project
8costs, retirement of obligations, and distribution of any
9excess monies under this Section, the county shall adopt an
10ordinance dissolving the special tax allocation fund for the
11economic development project area and terminating the
12designation of the economic development project area as an
13economic development project area. Thereafter, the rates of the
14taxing districts shall be extended and taxes shall be levied,
15collected, and distributed in the manner applicable in the
16absence of the adoption of tax increment allocation financing.
17    (e) Nothing in this Section shall be construed as relieving
18property in the economic development project areas from being
19assessed as provided in the Property Tax Code or as relieving
20owners of that property from paying a uniform rate of taxes as
21required by Section 4 of Article IX of the Illinois
22Constitution.
23(Source: P.A. 98-463, eff. 8-16-13.)
 
24    Section 935. The Illinois Municipal Code is amended by
25changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as

 

 

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1follows:
 
2    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
3    Sec. 11-74.4-3. Definitions. The following terms, wherever
4used or referred to in this Division 74.4 shall have the
5following respective meanings, unless in any case a different
6meaning clearly appears from the context.
7    (a) For any redevelopment project area that has been
8designated pursuant to this Section by an ordinance adopted
9prior to November 1, 1999 (the effective date of Public Act
1091-478), "blighted area" shall have the meaning set forth in
11this Section prior to that date.
12    On and after November 1, 1999, "blighted area" means any
13improved or vacant area within the boundaries of a
14redevelopment project area located within the territorial
15limits of the municipality where:
16        (1) If improved, industrial, commercial, and
17    residential buildings or improvements are detrimental to
18    the public safety, health, or welfare because of a
19    combination of 5 or more of the following factors, each of
20    which is (i) present, with that presence documented, to a
21    meaningful extent so that a municipality may reasonably
22    find that the factor is clearly present within the intent
23    of the Act and (ii) reasonably distributed throughout the
24    improved part of the redevelopment project area:
25            (A) Dilapidation. An advanced state of disrepair

 

 

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1        or neglect of necessary repairs to the primary
2        structural components of buildings or improvements in
3        such a combination that a documented building
4        condition analysis determines that major repair is
5        required or the defects are so serious and so extensive
6        that the buildings must be removed.
7            (B) Obsolescence. The condition or process of
8        falling into disuse. Structures have become ill-suited
9        for the original use.
10            (C) Deterioration. With respect to buildings,
11        defects including, but not limited to, major defects in
12        the secondary building components such as doors,
13        windows, porches, gutters and downspouts, and fascia.
14        With respect to surface improvements, that the
15        condition of roadways, alleys, curbs, gutters,
16        sidewalks, off-street parking, and surface storage
17        areas evidence deterioration, including, but not
18        limited to, surface cracking, crumbling, potholes,
19        depressions, loose paving material, and weeds
20        protruding through paved surfaces.
21            (D) Presence of structures below minimum code
22        standards. All structures that do not meet the
23        standards of zoning, subdivision, building, fire, and
24        other governmental codes applicable to property, but
25        not including housing and property maintenance codes.
26            (E) Illegal use of individual structures. The use

 

 

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1        of structures in violation of applicable federal,
2        State, or local laws, exclusive of those applicable to
3        the presence of structures below minimum code
4        standards.
5            (F) Excessive vacancies. The presence of buildings
6        that are unoccupied or under-utilized and that
7        represent an adverse influence on the area because of
8        the frequency, extent, or duration of the vacancies.
9            (G) Lack of ventilation, light, or sanitary
10        facilities. The absence of adequate ventilation for
11        light or air circulation in spaces or rooms without
12        windows, or that require the removal of dust, odor,
13        gas, smoke, or other noxious airborne materials.
14        Inadequate natural light and ventilation means the
15        absence of skylights or windows for interior spaces or
16        rooms and improper window sizes and amounts by room
17        area to window area ratios. Inadequate sanitary
18        facilities refers to the absence or inadequacy of
19        garbage storage and enclosure, bathroom facilities,
20        hot water and kitchens, and structural inadequacies
21        preventing ingress and egress to and from all rooms and
22        units within a building.
23            (H) Inadequate utilities. Underground and overhead
24        utilities such as storm sewers and storm drainage,
25        sanitary sewers, water lines, and gas, telephone, and
26        electrical services that are shown to be inadequate.

 

 

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1        Inadequate utilities are those that are: (i) of
2        insufficient capacity to serve the uses in the
3        redevelopment project area, (ii) deteriorated,
4        antiquated, obsolete, or in disrepair, or (iii)
5        lacking within the redevelopment project area.
6            (I) Excessive land coverage and overcrowding of
7        structures and community facilities. The
8        over-intensive use of property and the crowding of
9        buildings and accessory facilities onto a site.
10        Examples of problem conditions warranting the
11        designation of an area as one exhibiting excessive land
12        coverage are: (i) the presence of buildings either
13        improperly situated on parcels or located on parcels of
14        inadequate size and shape in relation to present-day
15        standards of development for health and safety and (ii)
16        the presence of multiple buildings on a single parcel.
17        For there to be a finding of excessive land coverage,
18        these parcels must exhibit one or more of the following
19        conditions: insufficient provision for light and air
20        within or around buildings, increased threat of spread
21        of fire due to the close proximity of buildings, lack
22        of adequate or proper access to a public right-of-way,
23        lack of reasonably required off-street parking, or
24        inadequate provision for loading and service.
25            (J) Deleterious land use or layout. The existence
26        of incompatible land-use relationships, buildings

 

 

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1        occupied by inappropriate mixed-uses, or uses
2        considered to be noxious, offensive, or unsuitable for
3        the surrounding area.
4            (K) Environmental clean-up. The proposed
5        redevelopment project area has incurred Illinois
6        Environmental Protection Agency or United States
7        Environmental Protection Agency remediation costs for,
8        or a study conducted by an independent consultant
9        recognized as having expertise in environmental
10        remediation has determined a need for, the clean-up of
11        hazardous waste, hazardous substances, or underground
12        storage tanks required by State or federal law,
13        provided that the remediation costs constitute a
14        material impediment to the development or
15        redevelopment of the redevelopment project area.
16            (L) Lack of community planning. The proposed
17        redevelopment project area was developed prior to or
18        without the benefit or guidance of a community plan.
19        This means that the development occurred prior to the
20        adoption by the municipality of a comprehensive or
21        other community plan or that the plan was not followed
22        at the time of the area's development. This factor must
23        be documented by evidence of adverse or incompatible
24        land-use relationships, inadequate street layout,
25        improper subdivision, parcels of inadequate shape and
26        size to meet contemporary development standards, or

 

 

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1        other evidence demonstrating an absence of effective
2        community planning.
3            (M) The total equalized assessed value of the
4        proposed redevelopment project area has declined for 3
5        of the last 5 calendar years prior to the year in which
6        the redevelopment project area is designated or is
7        increasing at an annual rate that is less than the
8        balance of the municipality for 3 of the last 5
9        calendar years for which information is available or is
10        increasing at an annual rate that is less than the
11        Consumer Price Index for All Urban Consumers published
12        by the United States Department of Labor or successor
13        agency for 3 of the last 5 calendar years prior to the
14        year in which the redevelopment project area is
15        designated.
16        (2) If vacant, the sound growth of the redevelopment
17    project area is impaired by a combination of 2 or more of
18    the following factors, each of which is (i) present, with
19    that presence documented, to a meaningful extent so that a
20    municipality may reasonably find that the factor is clearly
21    present within the intent of the Act and (ii) reasonably
22    distributed throughout the vacant part of the
23    redevelopment project area to which it pertains:
24            (A) Obsolete platting of vacant land that results
25        in parcels of limited or narrow size or configurations
26        of parcels of irregular size or shape that would be

 

 

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1        difficult to develop on a planned basis and in a manner
2        compatible with contemporary standards and
3        requirements, or platting that failed to create
4        rights-of-ways for streets or alleys or that created
5        inadequate right-of-way widths for streets, alleys, or
6        other public rights-of-way or that omitted easements
7        for public utilities.
8            (B) Diversity of ownership of parcels of vacant
9        land sufficient in number to retard or impede the
10        ability to assemble the land for development.
11            (C) Tax and special assessment delinquencies exist
12        or the property has been the subject of tax sales under
13        the Property Tax Code within the last 5 years.
14            (D) Deterioration of structures or site
15        improvements in neighboring areas adjacent to the
16        vacant land.
17            (E) The area has incurred Illinois Environmental
18        Protection Agency or United States Environmental
19        Protection Agency remediation costs for, or a study
20        conducted by an independent consultant recognized as
21        having expertise in environmental remediation has
22        determined a need for, the clean-up of hazardous waste,
23        hazardous substances, or underground storage tanks
24        required by State or federal law, provided that the
25        remediation costs constitute a material impediment to
26        the development or redevelopment of the redevelopment

 

 

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1        project area.
2            (F) The total equalized assessed value of the
3        proposed redevelopment project area has declined for 3
4        of the last 5 calendar years prior to the year in which
5        the redevelopment project area is designated or is
6        increasing at an annual rate that is less than the
7        balance of the municipality for 3 of the last 5
8        calendar years for which information is available or is
9        increasing at an annual rate that is less than the
10        Consumer Price Index for All Urban Consumers published
11        by the United States Department of Labor or successor
12        agency for 3 of the last 5 calendar years prior to the
13        year in which the redevelopment project area is
14        designated.
15        (3) If vacant, the sound growth of the redevelopment
16    project area is impaired by one of the following factors
17    that (i) is present, with that presence documented, to a
18    meaningful extent so that a municipality may reasonably
19    find that the factor is clearly present within the intent
20    of the Act and (ii) is reasonably distributed throughout
21    the vacant part of the redevelopment project area to which
22    it pertains:
23            (A) The area consists of one or more unused
24        quarries, mines, or strip mine ponds.
25            (B) The area consists of unused rail yards, rail
26        tracks, or railroad rights-of-way.

 

 

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1            (C) The area, prior to its designation, is subject
2        to (i) chronic flooding that adversely impacts on real
3        property in the area as certified by a registered
4        professional engineer or appropriate regulatory agency
5        or (ii) surface water that discharges from all or a
6        part of the area and contributes to flooding within the
7        same watershed, but only if the redevelopment project
8        provides for facilities or improvements to contribute
9        to the alleviation of all or part of the flooding.
10            (D) The area consists of an unused or illegal
11        disposal site containing earth, stone, building
12        debris, or similar materials that were removed from
13        construction, demolition, excavation, or dredge sites.
14            (E) Prior to November 1, 1999, the area is not less
15        than 50 nor more than 100 acres and 75% of which is
16        vacant (notwithstanding that the area has been used for
17        commercial agricultural purposes within 5 years prior
18        to the designation of the redevelopment project area),
19        and the area meets at least one of the factors itemized
20        in paragraph (1) of this subsection, the area has been
21        designated as a town or village center by ordinance or
22        comprehensive plan adopted prior to January 1, 1982,
23        and the area has not been developed for that designated
24        purpose.
25            (F) The area qualified as a blighted improved area
26        immediately prior to becoming vacant, unless there has

 

 

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1        been substantial private investment in the immediately
2        surrounding area.
3    (b) For any redevelopment project area that has been
4designated pursuant to this Section by an ordinance adopted
5prior to November 1, 1999 (the effective date of Public Act
691-478), "conservation area" shall have the meaning set forth
7in this Section prior to that date.
8    On and after November 1, 1999, "conservation area" means
9any improved area within the boundaries of a redevelopment
10project area located within the territorial limits of the
11municipality in which 50% or more of the structures in the area
12have an age of 35 years or more. Such an area is not yet a
13blighted area but because of a combination of 3 or more of the
14following factors is detrimental to the public safety, health,
15morals or welfare and such an area may become a blighted area:
16        (1) Dilapidation. An advanced state of disrepair or
17    neglect of necessary repairs to the primary structural
18    components of buildings or improvements in such a
19    combination that a documented building condition analysis
20    determines that major repair is required or the defects are
21    so serious and so extensive that the buildings must be
22    removed.
23        (2) Obsolescence. The condition or process of falling
24    into disuse. Structures have become ill-suited for the
25    original use.
26        (3) Deterioration. With respect to buildings, defects

 

 

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1    including, but not limited to, major defects in the
2    secondary building components such as doors, windows,
3    porches, gutters and downspouts, and fascia. With respect
4    to surface improvements, that the condition of roadways,
5    alleys, curbs, gutters, sidewalks, off-street parking, and
6    surface storage areas evidence deterioration, including,
7    but not limited to, surface cracking, crumbling, potholes,
8    depressions, loose paving material, and weeds protruding
9    through paved surfaces.
10        (4) Presence of structures below minimum code
11    standards. All structures that do not meet the standards of
12    zoning, subdivision, building, fire, and other
13    governmental codes applicable to property, but not
14    including housing and property maintenance codes.
15        (5) Illegal use of individual structures. The use of
16    structures in violation of applicable federal, State, or
17    local laws, exclusive of those applicable to the presence
18    of structures below minimum code standards.
19        (6) Excessive vacancies. The presence of buildings
20    that are unoccupied or under-utilized and that represent an
21    adverse influence on the area because of the frequency,
22    extent, or duration of the vacancies.
23        (7) Lack of ventilation, light, or sanitary
24    facilities. The absence of adequate ventilation for light
25    or air circulation in spaces or rooms without windows, or
26    that require the removal of dust, odor, gas, smoke, or

 

 

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1    other noxious airborne materials. Inadequate natural light
2    and ventilation means the absence or inadequacy of
3    skylights or windows for interior spaces or rooms and
4    improper window sizes and amounts by room area to window
5    area ratios. Inadequate sanitary facilities refers to the
6    absence or inadequacy of garbage storage and enclosure,
7    bathroom facilities, hot water and kitchens, and
8    structural inadequacies preventing ingress and egress to
9    and from all rooms and units within a building.
10        (8) Inadequate utilities. Underground and overhead
11    utilities such as storm sewers and storm drainage, sanitary
12    sewers, water lines, and gas, telephone, and electrical
13    services that are shown to be inadequate. Inadequate
14    utilities are those that are: (i) of insufficient capacity
15    to serve the uses in the redevelopment project area, (ii)
16    deteriorated, antiquated, obsolete, or in disrepair, or
17    (iii) lacking within the redevelopment project area.
18        (9) Excessive land coverage and overcrowding of
19    structures and community facilities. The over-intensive
20    use of property and the crowding of buildings and accessory
21    facilities onto a site. Examples of problem conditions
22    warranting the designation of an area as one exhibiting
23    excessive land coverage are: the presence of buildings
24    either improperly situated on parcels or located on parcels
25    of inadequate size and shape in relation to present-day
26    standards of development for health and safety and the

 

 

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1    presence of multiple buildings on a single parcel. For
2    there to be a finding of excessive land coverage, these
3    parcels must exhibit one or more of the following
4    conditions: insufficient provision for light and air
5    within or around buildings, increased threat of spread of
6    fire due to the close proximity of buildings, lack of
7    adequate or proper access to a public right-of-way, lack of
8    reasonably required off-street parking, or inadequate
9    provision for loading and service.
10        (10) Deleterious land use or layout. The existence of
11    incompatible land-use relationships, buildings occupied by
12    inappropriate mixed-uses, or uses considered to be
13    noxious, offensive, or unsuitable for the surrounding
14    area.
15        (11) Lack of community planning. The proposed
16    redevelopment project area was developed prior to or
17    without the benefit or guidance of a community plan. This
18    means that the development occurred prior to the adoption
19    by the municipality of a comprehensive or other community
20    plan or that the plan was not followed at the time of the
21    area's development. This factor must be documented by
22    evidence of adverse or incompatible land-use
23    relationships, inadequate street layout, improper
24    subdivision, parcels of inadequate shape and size to meet
25    contemporary development standards, or other evidence
26    demonstrating an absence of effective community planning.

 

 

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1        (12) The area has incurred Illinois Environmental
2    Protection Agency or United States Environmental
3    Protection Agency remediation costs for, or a study
4    conducted by an independent consultant recognized as
5    having expertise in environmental remediation has
6    determined a need for, the clean-up of hazardous waste,
7    hazardous substances, or underground storage tanks
8    required by State or federal law, provided that the
9    remediation costs constitute a material impediment to the
10    development or redevelopment of the redevelopment project
11    area.
12        (13) The total equalized assessed value of the proposed
13    redevelopment project area has declined for 3 of the last 5
14    calendar years for which information is available or is
15    increasing at an annual rate that is less than the balance
16    of the municipality for 3 of the last 5 calendar years for
17    which information is available or is increasing at an
18    annual rate that is less than the Consumer Price Index for
19    All Urban Consumers published by the United States
20    Department of Labor or successor agency for 3 of the last 5
21    calendar years for which information is available.
22    (c) "Industrial park" means an area in a blighted or
23conservation area suitable for use by any manufacturing,
24industrial, research or transportation enterprise, of
25facilities to include but not be limited to factories, mills,
26processing plants, assembly plants, packing plants,

 

 

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1fabricating plants, industrial distribution centers,
2warehouses, repair overhaul or service facilities, freight
3terminals, research facilities, test facilities or railroad
4facilities.
5    (d) "Industrial park conservation area" means an area
6within the boundaries of a redevelopment project area located
7within the territorial limits of a municipality that is a labor
8surplus municipality or within 1 1/2 miles of the territorial
9limits of a municipality that is a labor surplus municipality
10if the area is annexed to the municipality; which area is zoned
11as industrial no later than at the time the municipality by
12ordinance designates the redevelopment project area, and which
13area includes both vacant land suitable for use as an
14industrial park and a blighted area or conservation area
15contiguous to such vacant land.
16    (e) "Labor surplus municipality" means a municipality in
17which, at any time during the 6 months before the municipality
18by ordinance designates an industrial park conservation area,
19the unemployment rate was over 6% and was also 100% or more of
20the national average unemployment rate for that same time as
21published in the United States Department of Labor Bureau of
22Labor Statistics publication entitled "The Employment
23Situation" or its successor publication. For the purpose of
24this subsection, if unemployment rate statistics for the
25municipality are not available, the unemployment rate in the
26municipality shall be deemed to be the same as the unemployment

 

 

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1rate in the principal county in which the municipality is
2located.
3    (f) "Municipality" shall mean a city, village,
4incorporated town, or a township that is located in the
5unincorporated portion of a county with 3 million or more
6inhabitants, if the county adopted an ordinance that approved
7the township's redevelopment plan.
8    (g) "Initial Sales Tax Amounts" means the amount of taxes
9paid under the Retailers' Occupation Tax Act, Use Tax Act,
10Service Use Tax Act, the Service Occupation Tax Act, the
11Municipal Retailers' Occupation Tax Act, and the Municipal
12Service Occupation Tax Act by retailers and servicemen on
13transactions at places located in a State Sales Tax Boundary
14during the calendar year 1985.
15    (g-1) "Revised Initial Sales Tax Amounts" means the amount
16of taxes paid under the Retailers' Occupation Tax Act, Use Tax
17Act, Service Use Tax Act, the Service Occupation Tax Act, the
18Municipal Retailers' Occupation Tax Act, and the Municipal
19Service Occupation Tax Act by retailers and servicemen on
20transactions at places located within the State Sales Tax
21Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
22    (h) "Municipal Sales Tax Increment" means an amount equal
23to the increase in the aggregate amount of taxes paid to a
24municipality from the Local Government Tax Fund arising from
25sales by retailers and servicemen within the redevelopment
26project area or State Sales Tax Boundary, as the case may be,

 

 

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1for as long as the redevelopment project area or State Sales
2Tax Boundary, as the case may be, exist over and above the
3aggregate amount of taxes as certified by the Illinois
4Department of Revenue and paid under the Municipal Retailers'
5Occupation Tax Act and the Municipal Service Occupation Tax Act
6by retailers and servicemen, on transactions at places of
7business located in the redevelopment project area or State
8Sales Tax Boundary, as the case may be, during the base year
9which shall be the calendar year immediately prior to the year
10in which the municipality adopted tax increment allocation
11financing. For purposes of computing the aggregate amount of
12such taxes for base years occurring prior to 1985, the
13Department of Revenue shall determine the Initial Sales Tax
14Amounts for such taxes and deduct therefrom an amount equal to
154% of the aggregate amount of taxes per year for each year the
16base year is prior to 1985, but not to exceed a total deduction
17of 12%. The amount so determined shall be known as the
18"Adjusted Initial Sales Tax Amounts". For purposes of
19determining the Municipal Sales Tax Increment, the Department
20of Revenue shall for each period subtract from the amount paid
21to the municipality from the Local Government Tax Fund arising
22from sales by retailers and servicemen on transactions located
23in the redevelopment project area or the State Sales Tax
24Boundary, as the case may be, the certified Initial Sales Tax
25Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
26Initial Sales Tax Amounts for the Municipal Retailers'

 

 

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1Occupation Tax Act and the Municipal Service Occupation Tax
2Act. For the State Fiscal Year 1989, this calculation shall be
3made by utilizing the calendar year 1987 to determine the tax
4amounts received. For the State Fiscal Year 1990, this
5calculation shall be made by utilizing the period from January
61, 1988, until September 30, 1988, to determine the tax amounts
7received from retailers and servicemen pursuant to the
8Municipal Retailers' Occupation Tax and the Municipal Service
9Occupation Tax Act, which shall have deducted therefrom
10nine-twelfths of the certified Initial Sales Tax Amounts, the
11Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
12Tax Amounts as appropriate. For the State Fiscal Year 1991,
13this calculation shall be made by utilizing the period from
14October 1, 1988, to June 30, 1989, to determine the tax amounts
15received from retailers and servicemen pursuant to the
16Municipal Retailers' Occupation Tax and the Municipal Service
17Occupation Tax Act which shall have deducted therefrom
18nine-twelfths of the certified Initial Sales Tax Amounts,
19Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
20Tax Amounts as appropriate. For every State Fiscal Year
21thereafter, the applicable period shall be the 12 months
22beginning July 1 and ending June 30 to determine the tax
23amounts received which shall have deducted therefrom the
24certified Initial Sales Tax Amounts, the Adjusted Initial Sales
25Tax Amounts or the Revised Initial Sales Tax Amounts, as the
26case may be.

 

 

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1    (i) "Net State Sales Tax Increment" means the sum of the
2following: (a) 80% of the first $100,000 of State Sales Tax
3Increment annually generated within a State Sales Tax Boundary;
4(b) 60% of the amount in excess of $100,000 but not exceeding
5$500,000 of State Sales Tax Increment annually generated within
6a State Sales Tax Boundary; and (c) 40% of all amounts in
7excess of $500,000 of State Sales Tax Increment annually
8generated within a State Sales Tax Boundary. If, however, a
9municipality established a tax increment financing district in
10a county with a population in excess of 3,000,000 before
11January 1, 1986, and the municipality entered into a contract
12or issued bonds after January 1, 1986, but before December 31,
131986, to finance redevelopment project costs within a State
14Sales Tax Boundary, then the Net State Sales Tax Increment
15means, for the fiscal years beginning July 1, 1990, and July 1,
161991, 100% of the State Sales Tax Increment annually generated
17within a State Sales Tax Boundary; and notwithstanding any
18other provision of this Act, for those fiscal years the
19Department of Revenue shall distribute to those municipalities
20100% of their Net State Sales Tax Increment before any
21distribution to any other municipality and regardless of
22whether or not those other municipalities will receive 100% of
23their Net State Sales Tax Increment. For Fiscal Year 1999, and
24every year thereafter until the year 2007, for any municipality
25that has not entered into a contract or has not issued bonds
26prior to June 1, 1988 to finance redevelopment project costs

 

 

09900SB0231sam001- 89 -LRB099 03162 NHT 47157 a

1within a State Sales Tax Boundary, the Net State Sales Tax
2Increment shall be calculated as follows: By multiplying the
3Net State Sales Tax Increment by 90% in the State Fiscal Year
41999; 80% in the State Fiscal Year 2000; 70% in the State
5Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
6State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
7in the State Fiscal Year 2005; 20% in the State Fiscal Year
82006; and 10% in the State Fiscal Year 2007. No payment shall
9be made for State Fiscal Year 2008 and thereafter.
10    Municipalities that issued bonds in connection with a
11redevelopment project in a redevelopment project area within
12the State Sales Tax Boundary prior to July 29, 1991, or that
13entered into contracts in connection with a redevelopment
14project in a redevelopment project area before June 1, 1988,
15shall continue to receive their proportional share of the
16Illinois Tax Increment Fund distribution until the date on
17which the redevelopment project is completed or terminated. If,
18however, a municipality that issued bonds in connection with a
19redevelopment project in a redevelopment project area within
20the State Sales Tax Boundary prior to July 29, 1991 retires the
21bonds prior to June 30, 2007 or a municipality that entered
22into contracts in connection with a redevelopment project in a
23redevelopment project area before June 1, 1988 completes the
24contracts prior to June 30, 2007, then so long as the
25redevelopment project is not completed or is not terminated,
26the Net State Sales Tax Increment shall be calculated,

 

 

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1beginning on the date on which the bonds are retired or the
2contracts are completed, as follows: By multiplying the Net
3State Sales Tax Increment by 60% in the State Fiscal Year 2002;
450% in the State Fiscal Year 2003; 40% in the State Fiscal Year
52004; 30% in the State Fiscal Year 2005; 20% in the State
6Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
7payment shall be made for State Fiscal Year 2008 and
8thereafter. Refunding of any bonds issued prior to July 29,
91991, shall not alter the Net State Sales Tax Increment.
10    (j) "State Utility Tax Increment Amount" means an amount
11equal to the aggregate increase in State electric and gas tax
12charges imposed on owners and tenants, other than residential
13customers, of properties located within the redevelopment
14project area under Section 9-222 of the Public Utilities Act,
15over and above the aggregate of such charges as certified by
16the Department of Revenue and paid by owners and tenants, other
17than residential customers, of properties within the
18redevelopment project area during the base year, which shall be
19the calendar year immediately prior to the year of the adoption
20of the ordinance authorizing tax increment allocation
21financing.
22    (k) "Net State Utility Tax Increment" means the sum of the
23following: (a) 80% of the first $100,000 of State Utility Tax
24Increment annually generated by a redevelopment project area;
25(b) 60% of the amount in excess of $100,000 but not exceeding
26$500,000 of the State Utility Tax Increment annually generated

 

 

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1by a redevelopment project area; and (c) 40% of all amounts in
2excess of $500,000 of State Utility Tax Increment annually
3generated by a redevelopment project area. For the State Fiscal
4Year 1999, and every year thereafter until the year 2007, for
5any municipality that has not entered into a contract or has
6not issued bonds prior to June 1, 1988 to finance redevelopment
7project costs within a redevelopment project area, the Net
8State Utility Tax Increment shall be calculated as follows: By
9multiplying the Net State Utility Tax Increment by 90% in the
10State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
11in the State Fiscal Year 2001; 60% in the State Fiscal Year
122002; 50% in the State Fiscal Year 2003; 40% in the State
13Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
14State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
15No payment shall be made for the State Fiscal Year 2008 and
16thereafter.
17    Municipalities that issue bonds in connection with the
18redevelopment project during the period from June 1, 1988 until
193 years after the effective date of this Amendatory Act of 1988
20shall receive the Net State Utility Tax Increment, subject to
21appropriation, for 15 State Fiscal Years after the issuance of
22such bonds. For the 16th through the 20th State Fiscal Years
23after issuance of the bonds, the Net State Utility Tax
24Increment shall be calculated as follows: By multiplying the
25Net State Utility Tax Increment by 90% in year 16; 80% in year
2617; 70% in year 18; 60% in year 19; and 50% in year 20.

 

 

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1Refunding of any bonds issued prior to June 1, 1988, shall not
2alter the revised Net State Utility Tax Increment payments set
3forth above.
4    (l) "Obligations" mean bonds, loans, debentures, notes,
5special certificates or other evidence of indebtedness issued
6by the municipality to carry out a redevelopment project or to
7refund outstanding obligations.
8    (m) "Payment in lieu of taxes" means those estimated tax
9revenues from real property in a redevelopment project area
10derived from real property that has been acquired by a
11municipality which according to the redevelopment project or
12plan is to be used for a private use which taxing districts
13would have received had a municipality not acquired the real
14property and adopted tax increment allocation financing and
15which would result from levies made after the time of the
16adoption of tax increment allocation financing to the time the
17current equalized value of real property in the redevelopment
18project area exceeds the total initial equalized value of real
19property in said area.
20    (n) "Redevelopment plan" means the comprehensive program
21of the municipality for development or redevelopment intended
22by the payment of redevelopment project costs to reduce or
23eliminate those conditions the existence of which qualified the
24redevelopment project area as a "blighted area" or
25"conservation area" or combination thereof or "industrial park
26conservation area," and thereby to enhance the tax bases of the

 

 

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1taxing districts which extend into the redevelopment project
2area. On and after November 1, 1999 (the effective date of
3Public Act 91-478), no redevelopment plan may be approved or
4amended that includes the development of vacant land (i) with a
5golf course and related clubhouse and other facilities or (ii)
6designated by federal, State, county, or municipal government
7as public land for outdoor recreational activities or for
8nature preserves and used for that purpose within 5 years prior
9to the adoption of the redevelopment plan. For the purpose of
10this subsection, "recreational activities" is limited to mean
11camping and hunting. Each redevelopment plan shall set forth in
12writing the program to be undertaken to accomplish the
13objectives and shall include but not be limited to:
14        (A) an itemized list of estimated redevelopment
15    project costs;
16        (B) evidence indicating that the redevelopment project
17    area on the whole has not been subject to growth and
18    development through investment by private enterprise;
19        (C) an assessment of any financial impact of the
20    redevelopment project area on or any increased demand for
21    services from any taxing district affected by the plan and
22    any program to address such financial impact or increased
23    demand;
24        (D) the sources of funds to pay costs;
25        (E) the nature and term of the obligations to be
26    issued;

 

 

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1        (F) the most recent equalized assessed valuation of the
2    redevelopment project area;
3        (G) an estimate as to the equalized assessed valuation
4    after redevelopment and the general land uses to apply in
5    the redevelopment project area;
6        (H) a commitment to fair employment practices and an
7    affirmative action plan;
8        (I) if it concerns an industrial park conservation
9    area, the plan shall also include a general description of
10    any proposed developer, user and tenant of any property, a
11    description of the type, structure and general character of
12    the facilities to be developed, a description of the type,
13    class and number of new employees to be employed in the
14    operation of the facilities to be developed; and
15        (J) if property is to be annexed to the municipality,
16    the plan shall include the terms of the annexation
17    agreement.
18    The provisions of items (B) and (C) of this subsection (n)
19shall not apply to a municipality that before March 14, 1994
20(the effective date of Public Act 88-537) had fixed, either by
21its corporate authorities or by a commission designated under
22subsection (k) of Section 11-74.4-4, a time and place for a
23public hearing as required by subsection (a) of Section
2411-74.4-5. No redevelopment plan shall be adopted unless a
25municipality complies with all of the following requirements:
26        (1) The municipality finds that the redevelopment

 

 

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1    project area on the whole has not been subject to growth
2    and development through investment by private enterprise
3    and would not reasonably be anticipated to be developed
4    without the adoption of the redevelopment plan.
5        (2) The municipality finds that the redevelopment plan
6    and project conform to the comprehensive plan for the
7    development of the municipality as a whole, or, for
8    municipalities with a population of 100,000 or more,
9    regardless of when the redevelopment plan and project was
10    adopted, the redevelopment plan and project either: (i)
11    conforms to the strategic economic development or
12    redevelopment plan issued by the designated planning
13    authority of the municipality, or (ii) includes land uses
14    that have been approved by the planning commission of the
15    municipality.
16        (3) The redevelopment plan establishes the estimated
17    dates of completion of the redevelopment project and
18    retirement of obligations issued to finance redevelopment
19    project costs. Those dates may not be later than the dates
20    set forth under Section 11-74.4-3.5.
21        A municipality may by municipal ordinance amend an
22    existing redevelopment plan to conform to this paragraph
23    (3) as amended by Public Act 91-478, which municipal
24    ordinance may be adopted without further hearing or notice
25    and without complying with the procedures provided in this
26    Act pertaining to an amendment to or the initial approval

 

 

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1    of a redevelopment plan and project and designation of a
2    redevelopment project area.
3        (3.5) The municipality finds, in the case of an
4    industrial park conservation area, also that the
5    municipality is a labor surplus municipality and that the
6    implementation of the redevelopment plan will reduce
7    unemployment, create new jobs and by the provision of new
8    facilities enhance the tax base of the taxing districts
9    that extend into the redevelopment project area.
10        (4) If any incremental revenues are being utilized
11    under Section 8(a)(1) or 8(a)(2) of this Act in
12    redevelopment project areas approved by ordinance after
13    January 1, 1986, the municipality finds: (a) that the
14    redevelopment project area would not reasonably be
15    developed without the use of such incremental revenues, and
16    (b) that such incremental revenues will be exclusively
17    utilized for the development of the redevelopment project
18    area.
19        (5) If the redevelopment plan will not result in
20    displacement of residents from 10 or more inhabited
21    residential units, and the municipality certifies in the
22    plan that such displacement will not result from the plan,
23    a housing impact study need not be performed. If, however,
24    the redevelopment plan would result in the displacement of
25    residents from 10 or more inhabited residential units, or
26    if the redevelopment project area contains 75 or more

 

 

09900SB0231sam001- 97 -LRB099 03162 NHT 47157 a

1    inhabited residential units and no certification is made,
2    then the municipality shall prepare, as part of the
3    separate feasibility report required by subsection (a) of
4    Section 11-74.4-5, a housing impact study.
5        Part I of the housing impact study shall include (i)
6    data as to whether the residential units are single family
7    or multi-family units, (ii) the number and type of rooms
8    within the units, if that information is available, (iii)
9    whether the units are inhabited or uninhabited, as
10    determined not less than 45 days before the date that the
11    ordinance or resolution required by subsection (a) of
12    Section 11-74.4-5 is passed, and (iv) data as to the racial
13    and ethnic composition of the residents in the inhabited
14    residential units. The data requirement as to the racial
15    and ethnic composition of the residents in the inhabited
16    residential units shall be deemed to be fully satisfied by
17    data from the most recent federal census.
18        Part II of the housing impact study shall identify the
19    inhabited residential units in the proposed redevelopment
20    project area that are to be or may be removed. If inhabited
21    residential units are to be removed, then the housing
22    impact study shall identify (i) the number and location of
23    those units that will or may be removed, (ii) the
24    municipality's plans for relocation assistance for those
25    residents in the proposed redevelopment project area whose
26    residences are to be removed, (iii) the availability of

 

 

09900SB0231sam001- 98 -LRB099 03162 NHT 47157 a

1    replacement housing for those residents whose residences
2    are to be removed, and shall identify the type, location,
3    and cost of the housing, and (iv) the type and extent of
4    relocation assistance to be provided.
5        (6) On and after November 1, 1999, the housing impact
6    study required by paragraph (5) shall be incorporated in
7    the redevelopment plan for the redevelopment project area.
8        (7) On and after November 1, 1999, no redevelopment
9    plan shall be adopted, nor an existing plan amended, nor
10    shall residential housing that is occupied by households of
11    low-income and very low-income persons in currently
12    existing redevelopment project areas be removed after
13    November 1, 1999 unless the redevelopment plan provides,
14    with respect to inhabited housing units that are to be
15    removed for households of low-income and very low-income
16    persons, affordable housing and relocation assistance not
17    less than that which would be provided under the federal
18    Uniform Relocation Assistance and Real Property
19    Acquisition Policies Act of 1970 and the regulations under
20    that Act, including the eligibility criteria. Affordable
21    housing may be either existing or newly constructed
22    housing. For purposes of this paragraph (7), "low-income
23    households", "very low-income households", and "affordable
24    housing" have the meanings set forth in the Illinois
25    Affordable Housing Act. The municipality shall make a good
26    faith effort to ensure that this affordable housing is

 

 

09900SB0231sam001- 99 -LRB099 03162 NHT 47157 a

1    located in or near the redevelopment project area within
2    the municipality.
3        (8) On and after November 1, 1999, if, after the
4    adoption of the redevelopment plan for the redevelopment
5    project area, any municipality desires to amend its
6    redevelopment plan to remove more inhabited residential
7    units than specified in its original redevelopment plan,
8    that change shall be made in accordance with the procedures
9    in subsection (c) of Section 11-74.4-5.
10        (9) For redevelopment project areas designated prior
11    to November 1, 1999, the redevelopment plan may be amended
12    without further joint review board meeting or hearing,
13    provided that the municipality shall give notice of any
14    such changes by mail to each affected taxing district and
15    registrant on the interested party registry, to authorize
16    the municipality to expend tax increment revenues for
17    redevelopment project costs defined by paragraphs (5) and
18    (7.5), subparagraphs (E) and (F) of paragraph (11), and
19    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
20    long as the changes do not increase the total estimated
21    redevelopment project costs set out in the redevelopment
22    plan by more than 5% after adjustment for inflation from
23    the date the plan was adopted.
24    (o) "Redevelopment project" means any public and private
25development project in furtherance of the objectives of a
26redevelopment plan. On and after November 1, 1999 (the

 

 

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1effective date of Public Act 91-478), no redevelopment plan may
2be approved or amended that includes the development of vacant
3land (i) with a golf course and related clubhouse and other
4facilities or (ii) designated by federal, State, county, or
5municipal government as public land for outdoor recreational
6activities or for nature preserves and used for that purpose
7within 5 years prior to the adoption of the redevelopment plan.
8For the purpose of this subsection, "recreational activities"
9is limited to mean camping and hunting.
10    (p) "Redevelopment project area" means an area designated
11by the municipality, which is not less in the aggregate than 1
121/2 acres and in respect to which the municipality has made a
13finding that there exist conditions which cause the area to be
14classified as an industrial park conservation area or a
15blighted area or a conservation area, or a combination of both
16blighted areas and conservation areas.
17    (p-1) Notwithstanding any provision of this Act to the
18contrary, on and after August 25, 2009 (the effective date of
19Public Act 96-680), a redevelopment project area may include
20areas within a one-half mile radius of an existing or proposed
21Regional Transportation Authority Suburban Transit Access
22Route (STAR Line) station without a finding that the area is
23classified as an industrial park conservation area, a blighted
24area, a conservation area, or a combination thereof, but only
25if the municipality receives unanimous consent from the joint
26review board created to review the proposed redevelopment

 

 

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1project area.
2    (q) "Redevelopment project costs", except for
3redevelopment project areas created pursuant to subsection
4(p-1), means and includes the sum total of all reasonable or
5necessary costs incurred or estimated to be incurred, and any
6such costs incidental to a redevelopment plan and a
7redevelopment project. Such costs include, without limitation,
8the following:
9        (1) Costs of studies, surveys, development of plans,
10    and specifications, implementation and administration of
11    the redevelopment plan including but not limited to staff
12    and professional service costs for architectural,
13    engineering, legal, financial, planning or other services,
14    provided however that no charges for professional services
15    may be based on a percentage of the tax increment
16    collected; except that on and after November 1, 1999 (the
17    effective date of Public Act 91-478), no contracts for
18    professional services, excluding architectural and
19    engineering services, may be entered into if the terms of
20    the contract extend beyond a period of 3 years. In
21    addition, "redevelopment project costs" shall not include
22    lobbying expenses. After consultation with the
23    municipality, each tax increment consultant or advisor to a
24    municipality that plans to designate or has designated a
25    redevelopment project area shall inform the municipality
26    in writing of any contracts that the consultant or advisor

 

 

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1    has entered into with entities or individuals that have
2    received, or are receiving, payments financed by tax
3    increment revenues produced by the redevelopment project
4    area with respect to which the consultant or advisor has
5    performed, or will be performing, service for the
6    municipality. This requirement shall be satisfied by the
7    consultant or advisor before the commencement of services
8    for the municipality and thereafter whenever any other
9    contracts with those individuals or entities are executed
10    by the consultant or advisor;
11        (1.5) After July 1, 1999, annual administrative costs
12    shall not include general overhead or administrative costs
13    of the municipality that would still have been incurred by
14    the municipality if the municipality had not designated a
15    redevelopment project area or approved a redevelopment
16    plan;
17        (1.6) The cost of marketing sites within the
18    redevelopment project area to prospective businesses,
19    developers, and investors;
20        (2) Property assembly costs, including but not limited
21    to acquisition of land and other property, real or
22    personal, or rights or interests therein, demolition of
23    buildings, site preparation, site improvements that serve
24    as an engineered barrier addressing ground level or below
25    ground environmental contamination, including, but not
26    limited to parking lots and other concrete or asphalt

 

 

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1    barriers, and the clearing and grading of land;
2        (3) Costs of rehabilitation, reconstruction or repair
3    or remodeling of existing public or private buildings,
4    fixtures, and leasehold improvements; and the cost of
5    replacing an existing public building if pursuant to the
6    implementation of a redevelopment project the existing
7    public building is to be demolished to use the site for
8    private investment or devoted to a different use requiring
9    private investment; including any direct or indirect costs
10    relating to Green Globes or LEED certified construction
11    elements or construction elements with an equivalent
12    certification;
13        (4) Costs of the construction of public works or
14    improvements, including any direct or indirect costs
15    relating to Green Globes or LEED certified construction
16    elements or construction elements with an equivalent
17    certification, except that on and after November 1, 1999,
18    redevelopment project costs shall not include the cost of
19    constructing a new municipal public building principally
20    used to provide offices, storage space, or conference
21    facilities or vehicle storage, maintenance, or repair for
22    administrative, public safety, or public works personnel
23    and that is not intended to replace an existing public
24    building as provided under paragraph (3) of subsection (q)
25    of Section 11-74.4-3 unless either (i) the construction of
26    the new municipal building implements a redevelopment

 

 

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1    project that was included in a redevelopment plan that was
2    adopted by the municipality prior to November 1, 1999 or
3    (ii) the municipality makes a reasonable determination in
4    the redevelopment plan, supported by information that
5    provides the basis for that determination, that the new
6    municipal building is required to meet an increase in the
7    need for public safety purposes anticipated to result from
8    the implementation of the redevelopment plan;
9        (5) Costs of job training and retraining projects,
10    including the cost of "welfare to work" programs
11    implemented by businesses located within the redevelopment
12    project area;
13        (6) Financing costs, including but not limited to all
14    necessary and incidental expenses related to the issuance
15    of obligations and which may include payment of interest on
16    any obligations issued hereunder including interest
17    accruing during the estimated period of construction of any
18    redevelopment project for which such obligations are
19    issued and for not exceeding 36 months thereafter and
20    including reasonable reserves related thereto;
21        (7) To the extent the municipality by written agreement
22    accepts and approves the same, all or a portion of a taxing
23    district's capital costs resulting from the redevelopment
24    project necessarily incurred or to be incurred within a
25    taxing district in furtherance of the objectives of the
26    redevelopment plan and project.

 

 

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1        (7.5) For redevelopment project areas designated (or
2    redevelopment project areas amended to add or increase the
3    number of tax-increment-financing assisted housing units)
4    on or after November 1, 1999, an elementary, secondary, or
5    unit school district's increased costs attributable to
6    assisted housing units located within the redevelopment
7    project area for which the developer or redeveloper
8    receives financial assistance through an agreement with
9    the municipality or because the municipality incurs the
10    cost of necessary infrastructure improvements within the
11    boundaries of the assisted housing sites necessary for the
12    completion of that housing as authorized by this Act, and
13    which costs shall be paid by the municipality from the
14    Special Tax Allocation Fund when the tax increment revenue
15    is received as a result of the assisted housing units and
16    shall be calculated annually as follows:
17            (A) for foundation districts, excluding any school
18        district in a municipality with a population in excess
19        of 1,000,000, by multiplying the district's increase
20        in attendance resulting from the net increase in new
21        students enrolled in that school district who reside in
22        housing units within the redevelopment project area
23        that have received financial assistance through an
24        agreement with the municipality or because the
25        municipality incurs the cost of necessary
26        infrastructure improvements within the boundaries of

 

 

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1        the housing sites necessary for the completion of that
2        housing as authorized by this Act since the designation
3        of the redevelopment project area by the most recently
4        available per capita tuition cost as defined in Section
5        10-20.12a of the School Code less any increase in
6        general State aid as defined in Section 18-8.05 of the
7        School Code or primary State aid as defined in Section
8        18-8.15 of the School Code attributable to these added
9        new students subject to the following annual
10        limitations:
11                (i) for unit school districts with a district
12            average 1995-96 Per Capita Tuition Charge of less
13            than $5,900, no more than 25% of the total amount
14            of property tax increment revenue produced by
15            those housing units that have received tax
16            increment finance assistance under this Act;
17                (ii) for elementary school districts with a
18            district average 1995-96 Per Capita Tuition Charge
19            of less than $5,900, no more than 17% of the total
20            amount of property tax increment revenue produced
21            by those housing units that have received tax
22            increment finance assistance under this Act; and
23                (iii) for secondary school districts with a
24            district average 1995-96 Per Capita Tuition Charge
25            of less than $5,900, no more than 8% of the total
26            amount of property tax increment revenue produced

 

 

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1            by those housing units that have received tax
2            increment finance assistance under this Act.
3            (B) For alternate method districts, flat grant
4        districts, and foundation districts with a district
5        average 1995-96 Per Capita Tuition Charge equal to or
6        more than $5,900, excluding any school district with a
7        population in excess of 1,000,000, by multiplying the
8        district's increase in attendance resulting from the
9        net increase in new students enrolled in that school
10        district who reside in housing units within the
11        redevelopment project area that have received
12        financial assistance through an agreement with the
13        municipality or because the municipality incurs the
14        cost of necessary infrastructure improvements within
15        the boundaries of the housing sites necessary for the
16        completion of that housing as authorized by this Act
17        since the designation of the redevelopment project
18        area by the most recently available per capita tuition
19        cost as defined in Section 10-20.12a of the School Code
20        less any increase in general state aid as defined in
21        Section 18-8.05 of the School Code or primary State aid
22        as defined in Section 18-8.15 of the School Code
23        attributable to these added new students subject to the
24        following annual limitations:
25                (i) for unit school districts, no more than 40%
26            of the total amount of property tax increment

 

 

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1            revenue produced by those housing units that have
2            received tax increment finance assistance under
3            this Act;
4                (ii) for elementary school districts, no more
5            than 27% of the total amount of property tax
6            increment revenue produced by those housing units
7            that have received tax increment finance
8            assistance under this Act; and
9                (iii) for secondary school districts, no more
10            than 13% of the total amount of property tax
11            increment revenue produced by those housing units
12            that have received tax increment finance
13            assistance under this Act.
14            (C) For any school district in a municipality with
15        a population in excess of 1,000,000, the following
16        restrictions shall apply to the reimbursement of
17        increased costs under this paragraph (7.5):
18                (i) no increased costs shall be reimbursed
19            unless the school district certifies that each of
20            the schools affected by the assisted housing
21            project is at or over its student capacity;
22                (ii) the amount reimbursable shall be reduced
23            by the value of any land donated to the school
24            district by the municipality or developer, and by
25            the value of any physical improvements made to the
26            schools by the municipality or developer; and

 

 

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1                (iii) the amount reimbursed may not affect
2            amounts otherwise obligated by the terms of any
3            bonds, notes, or other funding instruments, or the
4            terms of any redevelopment agreement.
5        Any school district seeking payment under this
6        paragraph (7.5) shall, after July 1 and before
7        September 30 of each year, provide the municipality
8        with reasonable evidence to support its claim for
9        reimbursement before the municipality shall be
10        required to approve or make the payment to the school
11        district. If the school district fails to provide the
12        information during this period in any year, it shall
13        forfeit any claim to reimbursement for that year.
14        School districts may adopt a resolution waiving the
15        right to all or a portion of the reimbursement
16        otherwise required by this paragraph (7.5). By
17        acceptance of this reimbursement the school district
18        waives the right to directly or indirectly set aside,
19        modify, or contest in any manner the establishment of
20        the redevelopment project area or projects;
21        (7.7) For redevelopment project areas designated (or
22    redevelopment project areas amended to add or increase the
23    number of tax-increment-financing assisted housing units)
24    on or after January 1, 2005 (the effective date of Public
25    Act 93-961), a public library district's increased costs
26    attributable to assisted housing units located within the

 

 

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1    redevelopment project area for which the developer or
2    redeveloper receives financial assistance through an
3    agreement with the municipality or because the
4    municipality incurs the cost of necessary infrastructure
5    improvements within the boundaries of the assisted housing
6    sites necessary for the completion of that housing as
7    authorized by this Act shall be paid to the library
8    district by the municipality from the Special Tax
9    Allocation Fund when the tax increment revenue is received
10    as a result of the assisted housing units. This paragraph
11    (7.7) applies only if (i) the library district is located
12    in a county that is subject to the Property Tax Extension
13    Limitation Law or (ii) the library district is not located
14    in a county that is subject to the Property Tax Extension
15    Limitation Law but the district is prohibited by any other
16    law from increasing its tax levy rate without a prior voter
17    referendum.
18        The amount paid to a library district under this
19    paragraph (7.7) shall be calculated by multiplying (i) the
20    net increase in the number of persons eligible to obtain a
21    library card in that district who reside in housing units
22    within the redevelopment project area that have received
23    financial assistance through an agreement with the
24    municipality or because the municipality incurs the cost of
25    necessary infrastructure improvements within the
26    boundaries of the housing sites necessary for the

 

 

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1    completion of that housing as authorized by this Act since
2    the designation of the redevelopment project area by (ii)
3    the per-patron cost of providing library services so long
4    as it does not exceed $120. The per-patron cost shall be
5    the Total Operating Expenditures Per Capita for the library
6    in the previous fiscal year. The municipality may deduct
7    from the amount that it must pay to a library district
8    under this paragraph any amount that it has voluntarily
9    paid to the library district from the tax increment
10    revenue. The amount paid to a library district under this
11    paragraph (7.7) shall be no more than 2% of the amount
12    produced by the assisted housing units and deposited into
13    the Special Tax Allocation Fund.
14        A library district is not eligible for any payment
15    under this paragraph (7.7) unless the library district has
16    experienced an increase in the number of patrons from the
17    municipality that created the tax-increment-financing
18    district since the designation of the redevelopment
19    project area.
20        Any library district seeking payment under this
21    paragraph (7.7) shall, after July 1 and before September 30
22    of each year, provide the municipality with convincing
23    evidence to support its claim for reimbursement before the
24    municipality shall be required to approve or make the
25    payment to the library district. If the library district
26    fails to provide the information during this period in any

 

 

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1    year, it shall forfeit any claim to reimbursement for that
2    year. Library districts may adopt a resolution waiving the
3    right to all or a portion of the reimbursement otherwise
4    required by this paragraph (7.7). By acceptance of such
5    reimbursement, the library district shall forfeit any
6    right to directly or indirectly set aside, modify, or
7    contest in any manner whatsoever the establishment of the
8    redevelopment project area or projects;
9        (8) Relocation costs to the extent that a municipality
10    determines that relocation costs shall be paid or is
11    required to make payment of relocation costs by federal or
12    State law or in order to satisfy subparagraph (7) of
13    subsection (n);
14        (9) Payment in lieu of taxes;
15        (10) Costs of job training, retraining, advanced
16    vocational education or career education, including but
17    not limited to courses in occupational, semi-technical or
18    technical fields leading directly to employment, incurred
19    by one or more taxing districts, provided that such costs
20    (i) are related to the establishment and maintenance of
21    additional job training, advanced vocational education or
22    career education programs for persons employed or to be
23    employed by employers located in a redevelopment project
24    area; and (ii) when incurred by a taxing district or taxing
25    districts other than the municipality, are set forth in a
26    written agreement by or among the municipality and the

 

 

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1    taxing district or taxing districts, which agreement
2    describes the program to be undertaken, including but not
3    limited to the number of employees to be trained, a
4    description of the training and services to be provided,
5    the number and type of positions available or to be
6    available, itemized costs of the program and sources of
7    funds to pay for the same, and the term of the agreement.
8    Such costs include, specifically, the payment by community
9    college districts of costs pursuant to Sections 3-37, 3-38,
10    3-40 and 3-40.1 of the Public Community College Act and by
11    school districts of costs pursuant to Sections 10-22.20a
12    and 10-23.3a of The School Code;
13        (11) Interest cost incurred by a redeveloper related to
14    the construction, renovation or rehabilitation of a
15    redevelopment project provided that:
16            (A) such costs are to be paid directly from the
17        special tax allocation fund established pursuant to
18        this Act;
19            (B) such payments in any one year may not exceed
20        30% of the annual interest costs incurred by the
21        redeveloper with regard to the redevelopment project
22        during that year;
23            (C) if there are not sufficient funds available in
24        the special tax allocation fund to make the payment
25        pursuant to this paragraph (11) then the amounts so due
26        shall accrue and be payable when sufficient funds are

 

 

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1        available in the special tax allocation fund;
2            (D) the total of such interest payments paid
3        pursuant to this Act may not exceed 30% of the total
4        (i) cost paid or incurred by the redeveloper for the
5        redevelopment project plus (ii) redevelopment project
6        costs excluding any property assembly costs and any
7        relocation costs incurred by a municipality pursuant
8        to this Act; and
9            (E) the cost limits set forth in subparagraphs (B)
10        and (D) of paragraph (11) shall be modified for the
11        financing of rehabilitated or new housing units for
12        low-income households and very low-income households,
13        as defined in Section 3 of the Illinois Affordable
14        Housing Act. The percentage of 75% shall be substituted
15        for 30% in subparagraphs (B) and (D) of paragraph (11).
16            (F) Instead of the eligible costs provided by
17        subparagraphs (B) and (D) of paragraph (11), as
18        modified by this subparagraph, and notwithstanding any
19        other provisions of this Act to the contrary, the
20        municipality may pay from tax increment revenues up to
21        50% of the cost of construction of new housing units to
22        be occupied by low-income households and very
23        low-income households as defined in Section 3 of the
24        Illinois Affordable Housing Act. The cost of
25        construction of those units may be derived from the
26        proceeds of bonds issued by the municipality under this

 

 

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1        Act or other constitutional or statutory authority or
2        from other sources of municipal revenue that may be
3        reimbursed from tax increment revenues or the proceeds
4        of bonds issued to finance the construction of that
5        housing.
6            The eligible costs provided under this
7        subparagraph (F) of paragraph (11) shall be an eligible
8        cost for the construction, renovation, and
9        rehabilitation of all low and very low-income housing
10        units, as defined in Section 3 of the Illinois
11        Affordable Housing Act, within the redevelopment
12        project area. If the low and very low-income units are
13        part of a residential redevelopment project that
14        includes units not affordable to low and very
15        low-income households, only the low and very
16        low-income units shall be eligible for benefits under
17        subparagraph (F) of paragraph (11). The standards for
18        maintaining the occupancy by low-income households and
19        very low-income households, as defined in Section 3 of
20        the Illinois Affordable Housing Act, of those units
21        constructed with eligible costs made available under
22        the provisions of this subparagraph (F) of paragraph
23        (11) shall be established by guidelines adopted by the
24        municipality. The responsibility for annually
25        documenting the initial occupancy of the units by
26        low-income households and very low-income households,

 

 

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1        as defined in Section 3 of the Illinois Affordable
2        Housing Act, shall be that of the then current owner of
3        the property. For ownership units, the guidelines will
4        provide, at a minimum, for a reasonable recapture of
5        funds, or other appropriate methods designed to
6        preserve the original affordability of the ownership
7        units. For rental units, the guidelines will provide,
8        at a minimum, for the affordability of rent to low and
9        very low-income households. As units become available,
10        they shall be rented to income-eligible tenants. The
11        municipality may modify these guidelines from time to
12        time; the guidelines, however, shall be in effect for
13        as long as tax increment revenue is being used to pay
14        for costs associated with the units or for the
15        retirement of bonds issued to finance the units or for
16        the life of the redevelopment project area, whichever
17        is later.
18        (11.5) If the redevelopment project area is located
19    within a municipality with a population of more than
20    100,000, the cost of day care services for children of
21    employees from low-income families working for businesses
22    located within the redevelopment project area and all or a
23    portion of the cost of operation of day care centers
24    established by redevelopment project area businesses to
25    serve employees from low-income families working in
26    businesses located in the redevelopment project area. For

 

 

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1    the purposes of this paragraph, "low-income families"
2    means families whose annual income does not exceed 80% of
3    the municipal, county, or regional median income, adjusted
4    for family size, as the annual income and municipal,
5    county, or regional median income are determined from time
6    to time by the United States Department of Housing and
7    Urban Development.
8        (12) Unless explicitly stated herein the cost of
9    construction of new privately-owned buildings shall not be
10    an eligible redevelopment project cost.
11        (13) After November 1, 1999 (the effective date of
12    Public Act 91-478), none of the redevelopment project costs
13    enumerated in this subsection shall be eligible
14    redevelopment project costs if those costs would provide
15    direct financial support to a retail entity initiating
16    operations in the redevelopment project area while
17    terminating operations at another Illinois location within
18    10 miles of the redevelopment project area but outside the
19    boundaries of the redevelopment project area municipality.
20    For purposes of this paragraph, termination means a closing
21    of a retail operation that is directly related to the
22    opening of the same operation or like retail entity owned
23    or operated by more than 50% of the original ownership in a
24    redevelopment project area, but it does not mean closing an
25    operation for reasons beyond the control of the retail
26    entity, as documented by the retail entity, subject to a

 

 

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1    reasonable finding by the municipality that the current
2    location contained inadequate space, had become
3    economically obsolete, or was no longer a viable location
4    for the retailer or serviceman.
5        (14) No cost shall be a redevelopment project cost in a
6    redevelopment project area if used to demolish, remove, or
7    substantially modify a historic resource, after August 26,
8    2008 (the effective date of Public Act 95-934), unless no
9    prudent and feasible alternative exists. "Historic
10    resource" for the purpose of this item (14) means (i) a
11    place or structure that is included or eligible for
12    inclusion on the National Register of Historic Places or
13    (ii) a contributing structure in a district on the National
14    Register of Historic Places. This item (14) does not apply
15    to a place or structure for which demolition, removal, or
16    modification is subject to review by the preservation
17    agency of a Certified Local Government designated as such
18    by the National Park Service of the United States
19    Department of the Interior.
20    If a special service area has been established pursuant to
21the Special Service Area Tax Act or Special Service Area Tax
22Law, then any tax increment revenues derived from the tax
23imposed pursuant to the Special Service Area Tax Act or Special
24Service Area Tax Law may be used within the redevelopment
25project area for the purposes permitted by that Act or Law as
26well as the purposes permitted by this Act.

 

 

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1    (q-1) For redevelopment project areas created pursuant to
2subsection (p-1), redevelopment project costs are limited to
3those costs in paragraph (q) that are related to the existing
4or proposed Regional Transportation Authority Suburban Transit
5Access Route (STAR Line) station.
6    (r) "State Sales Tax Boundary" means the redevelopment
7project area or the amended redevelopment project area
8boundaries which are determined pursuant to subsection (9) of
9Section 11-74.4-8a of this Act. The Department of Revenue shall
10certify pursuant to subsection (9) of Section 11-74.4-8a the
11appropriate boundaries eligible for the determination of State
12Sales Tax Increment.
13    (s) "State Sales Tax Increment" means an amount equal to
14the increase in the aggregate amount of taxes paid by retailers
15and servicemen, other than retailers and servicemen subject to
16the Public Utilities Act, on transactions at places of business
17located within a State Sales Tax Boundary pursuant to the
18Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
19Tax Act, and the Service Occupation Tax Act, except such
20portion of such increase that is paid into the State and Local
21Sales Tax Reform Fund, the Local Government Distributive Fund,
22the Local Government Tax Fund and the County and Mass Transit
23District Fund, for as long as State participation exists, over
24and above the Initial Sales Tax Amounts, Adjusted Initial Sales
25Tax Amounts or the Revised Initial Sales Tax Amounts for such
26taxes as certified by the Department of Revenue and paid under

 

 

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1those Acts by retailers and servicemen on transactions at
2places of business located within the State Sales Tax Boundary
3during the base year which shall be the calendar year
4immediately prior to the year in which the municipality adopted
5tax increment allocation financing, less 3.0% of such amounts
6generated under the Retailers' Occupation Tax Act, Use Tax Act
7and Service Use Tax Act and the Service Occupation Tax Act,
8which sum shall be appropriated to the Department of Revenue to
9cover its costs of administering and enforcing this Section.
10For purposes of computing the aggregate amount of such taxes
11for base years occurring prior to 1985, the Department of
12Revenue shall compute the Initial Sales Tax Amount for such
13taxes and deduct therefrom an amount equal to 4% of the
14aggregate amount of taxes per year for each year the base year
15is prior to 1985, but not to exceed a total deduction of 12%.
16The amount so determined shall be known as the "Adjusted
17Initial Sales Tax Amount". For purposes of determining the
18State Sales Tax Increment the Department of Revenue shall for
19each period subtract from the tax amounts received from
20retailers and servicemen on transactions located in the State
21Sales Tax Boundary, the certified Initial Sales Tax Amounts,
22Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
23Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
24the Service Use Tax Act and the Service Occupation Tax Act. For
25the State Fiscal Year 1989 this calculation shall be made by
26utilizing the calendar year 1987 to determine the tax amounts

 

 

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1received. For the State Fiscal Year 1990, this calculation
2shall be made by utilizing the period from January 1, 1988,
3until September 30, 1988, to determine the tax amounts received
4from retailers and servicemen, which shall have deducted
5therefrom nine-twelfths of the certified Initial Sales Tax
6Amounts, Adjusted Initial Sales Tax Amounts or the Revised
7Initial Sales Tax Amounts as appropriate. For the State Fiscal
8Year 1991, this calculation shall be made by utilizing the
9period from October 1, 1988, until June 30, 1989, to determine
10the tax amounts received from retailers and servicemen, which
11shall have deducted therefrom nine-twelfths of the certified
12Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
13Amounts or the Revised Initial Sales Tax Amounts as
14appropriate. For every State Fiscal Year thereafter, the
15applicable period shall be the 12 months beginning July 1 and
16ending on June 30, to determine the tax amounts received which
17shall have deducted therefrom the certified Initial Sales Tax
18Amounts, Adjusted Initial Sales Tax Amounts or the Revised
19Initial Sales Tax Amounts. Municipalities intending to receive
20a distribution of State Sales Tax Increment must report a list
21of retailers to the Department of Revenue by October 31, 1988
22and by July 31, of each year thereafter.
23    (t) "Taxing districts" means counties, townships, cities
24and incorporated towns and villages, school, road, park,
25sanitary, mosquito abatement, forest preserve, public health,
26fire protection, river conservancy, tuberculosis sanitarium

 

 

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1and any other municipal corporations or districts with the
2power to levy taxes.
3    (u) "Taxing districts' capital costs" means those costs of
4taxing districts for capital improvements that are found by the
5municipal corporate authorities to be necessary and directly
6result from the redevelopment project.
7    (v) As used in subsection (a) of Section 11-74.4-3 of this
8Act, "vacant land" means any parcel or combination of parcels
9of real property without industrial, commercial, and
10residential buildings which has not been used for commercial
11agricultural purposes within 5 years prior to the designation
12of the redevelopment project area, unless the parcel is
13included in an industrial park conservation area or the parcel
14has been subdivided; provided that if the parcel was part of a
15larger tract that has been divided into 3 or more smaller
16tracts that were accepted for recording during the period from
171950 to 1990, then the parcel shall be deemed to have been
18subdivided, and all proceedings and actions of the municipality
19taken in that connection with respect to any previously
20approved or designated redevelopment project area or amended
21redevelopment project area are hereby validated and hereby
22declared to be legally sufficient for all purposes of this Act.
23For purposes of this Section and only for land subject to the
24subdivision requirements of the Plat Act, land is subdivided
25when the original plat of the proposed Redevelopment Project
26Area or relevant portion thereof has been properly certified,

 

 

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1acknowledged, approved, and recorded or filed in accordance
2with the Plat Act and a preliminary plat, if any, for any
3subsequent phases of the proposed Redevelopment Project Area or
4relevant portion thereof has been properly approved and filed
5in accordance with the applicable ordinance of the
6municipality.
7    (w) "Annual Total Increment" means the sum of each
8municipality's annual Net Sales Tax Increment and each
9municipality's annual Net Utility Tax Increment. The ratio of
10the Annual Total Increment of each municipality to the Annual
11Total Increment for all municipalities, as most recently
12calculated by the Department, shall determine the proportional
13shares of the Illinois Tax Increment Fund to be distributed to
14each municipality.
15    (x) "LEED certified" means any certification level of
16construction elements by a qualified Leadership in Energy and
17Environmental Design Accredited Professional as determined by
18the U.S. Green Building Council.
19    (y) "Green Globes certified" means any certification level
20of construction elements by a qualified Green Globes
21Professional as determined by the Green Building Initiative.
22(Source: P.A. 96-328, eff. 8-11-09; 96-630, eff. 1-1-10;
2396-680, eff. 8-25-09; 96-1000, eff. 7-2-10; 97-101, eff.
241-1-12.)
 
25    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)

 

 

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1    Sec. 11-74.4-8. Tax increment allocation financing. A
2municipality may not adopt tax increment financing in a
3redevelopment project area after the effective date of this
4amendatory Act of 1997 that will encompass an area that is
5currently included in an enterprise zone created under the
6Illinois Enterprise Zone Act unless that municipality,
7pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
8amends the enterprise zone designating ordinance to limit the
9eligibility for tax abatements as provided in Section 5.4.1 of
10the Illinois Enterprise Zone Act. A municipality, at the time a
11redevelopment project area is designated, may adopt tax
12increment allocation financing by passing an ordinance
13providing that the ad valorem taxes, if any, arising from the
14levies upon taxable real property in such redevelopment project
15area by taxing districts and tax rates determined in the manner
16provided in paragraph (c) of Section 11-74.4-9 each year after
17the effective date of the ordinance until redevelopment project
18costs and all municipal obligations financing redevelopment
19project costs incurred under this Division have been paid shall
20be divided as follows:
21    (a) That portion of taxes levied upon each taxable lot,
22block, tract or parcel of real property which is attributable
23to the lower of the current equalized assessed value or the
24initial equalized assessed value of each such taxable lot,
25block, tract or parcel of real property in the redevelopment
26project area shall be allocated to and when collected shall be

 

 

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1paid by the county collector to the respective affected taxing
2districts in the manner required by law in the absence of the
3adoption of tax increment allocation financing.
4    (b) Except from a tax levied by a township to retire bonds
5issued to satisfy court-ordered damages, that portion, if any,
6of such taxes which is attributable to the increase in the
7current equalized assessed valuation of each taxable lot,
8block, tract or parcel of real property in the redevelopment
9project area over and above the initial equalized assessed
10value of each property in the project area shall be allocated
11to and when collected shall be paid to the municipal treasurer
12who shall deposit said taxes into a special fund called the
13special tax allocation fund of the municipality for the purpose
14of paying redevelopment project costs and obligations incurred
15in the payment thereof. In any county with a population of
163,000,000 or more that has adopted a procedure for collecting
17taxes that provides for one or more of the installments of the
18taxes to be billed and collected on an estimated basis, the
19municipal treasurer shall be paid for deposit in the special
20tax allocation fund of the municipality, from the taxes
21collected from estimated bills issued for property in the
22redevelopment project area, the difference between the amount
23actually collected from each taxable lot, block, tract, or
24parcel of real property within the redevelopment project area
25and an amount determined by multiplying the rate at which taxes
26were last extended against the taxable lot, block, track, or

 

 

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1parcel of real property in the manner provided in subsection
2(c) of Section 11-74.4-9 by the initial equalized assessed
3value of the property divided by the number of installments in
4which real estate taxes are billed and collected within the
5county; provided that the payments on or before December 31,
61999 to a municipal treasurer shall be made only if each of the
7following conditions are met:
8        (1) The total equalized assessed value of the
9    redevelopment project area as last determined was not less
10    than 175% of the total initial equalized assessed value.
11        (2) Not more than 50% of the total equalized assessed
12    value of the redevelopment project area as last determined
13    is attributable to a piece of property assigned a single
14    real estate index number.
15        (3) The municipal clerk has certified to the county
16    clerk that the municipality has issued its obligations to
17    which there has been pledged the incremental property taxes
18    of the redevelopment project area or taxes levied and
19    collected on any or all property in the municipality or the
20    full faith and credit of the municipality to pay or secure
21    payment for all or a portion of the redevelopment project
22    costs. The certification shall be filed annually no later
23    than September 1 for the estimated taxes to be distributed
24    in the following year; however, for the year 1992 the
25    certification shall be made at any time on or before March
26    31, 1992.

 

 

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1        (4) The municipality has not requested that the total
2    initial equalized assessed value of real property be
3    adjusted as provided in subsection (b) of Section
4    11-74.4-9.
5    The conditions of paragraphs (1) through (4) do not apply
6after December 31, 1999 to payments to a municipal treasurer
7made by a county with 3,000,000 or more inhabitants that has
8adopted an estimated billing procedure for collecting taxes. If
9a county that has adopted the estimated billing procedure makes
10an erroneous overpayment of tax revenue to the municipal
11treasurer, then the county may seek a refund of that
12overpayment. The county shall send the municipal treasurer a
13notice of liability for the overpayment on or before the
14mailing date of the next real estate tax bill within the
15county. The refund shall be limited to the amount of the
16overpayment.
17    It is the intent of this Division that after the effective
18date of this amendatory Act of 1988 a municipality's own ad
19valorem tax arising from levies on taxable real property be
20included in the determination of incremental revenue in the
21manner provided in paragraph (c) of Section 11-74.4-9. If the
22municipality does not extend such a tax, it shall annually
23deposit in the municipality's Special Tax Increment Fund an
24amount equal to 10% of the total contributions to the fund from
25all other taxing districts in that year. The annual 10% deposit
26required by this paragraph shall be limited to the actual

 

 

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1amount of municipally produced incremental tax revenues
2available to the municipality from taxpayers located in the
3redevelopment project area in that year if: (a) the plan for
4the area restricts the use of the property primarily to
5industrial purposes, (b) the municipality establishing the
6redevelopment project area is a home-rule community with a 1990
7population of between 25,000 and 50,000, (c) the municipality
8is wholly located within a county with a 1990 population of
9over 750,000 and (d) the redevelopment project area was
10established by the municipality prior to June 1, 1990. This
11payment shall be in lieu of a contribution of ad valorem taxes
12on real property. If no such payment is made, any redevelopment
13project area of the municipality shall be dissolved.
14    If a municipality has adopted tax increment allocation
15financing by ordinance and the County Clerk thereafter
16certifies the "total initial equalized assessed value as
17adjusted" of the taxable real property within such
18redevelopment project area in the manner provided in paragraph
19(b) of Section 11-74.4-9, each year after the date of the
20certification of the total initial equalized assessed value as
21adjusted until redevelopment project costs and all municipal
22obligations financing redevelopment project costs have been
23paid the ad valorem taxes, if any, arising from the levies upon
24the taxable real property in such redevelopment project area by
25taxing districts and tax rates determined in the manner
26provided in paragraph (c) of Section 11-74.4-9 shall be divided

 

 

09900SB0231sam001- 129 -LRB099 03162 NHT 47157 a

1as follows:
2        (1) That portion of the taxes levied upon each taxable
3    lot, block, tract or parcel of real property which is
4    attributable to the lower of the current equalized assessed
5    value or "current equalized assessed value as adjusted" or
6    the initial equalized assessed value of each such taxable
7    lot, block, tract, or parcel of real property existing at
8    the time tax increment financing was adopted, minus the
9    total current homestead exemptions under Article 15 of the
10    Property Tax Code in the redevelopment project area shall
11    be allocated to and when collected shall be paid by the
12    county collector to the respective affected taxing
13    districts in the manner required by law in the absence of
14    the adoption of tax increment allocation financing.
15        (2) That portion, if any, of such taxes which is
16    attributable to the increase in the current equalized
17    assessed valuation of each taxable lot, block, tract, or
18    parcel of real property in the redevelopment project area,
19    over and above the initial equalized assessed value of each
20    property existing at the time tax increment financing was
21    adopted, minus the total current homestead exemptions
22    pertaining to each piece of property provided by Article 15
23    of the Property Tax Code in the redevelopment project area,
24    shall be allocated to and when collected shall be paid to
25    the municipal Treasurer, who shall deposit said taxes into
26    a special fund called the special tax allocation fund of

 

 

09900SB0231sam001- 130 -LRB099 03162 NHT 47157 a

1    the municipality for the purpose of paying redevelopment
2    project costs and obligations incurred in the payment
3    thereof.
4    The municipality may pledge in the ordinance the funds in
5and to be deposited in the special tax allocation fund for the
6payment of such costs and obligations. No part of the current
7equalized assessed valuation of each property in the
8redevelopment project area attributable to any increase above
9the total initial equalized assessed value, or the total
10initial equalized assessed value as adjusted, of such
11properties shall be used in calculating the general State
12school aid formula, provided for in Section 18-8 of the School
13Code, or the primary State aid formula, provided for in Section
1418-8.15 of the School Code, until such time as all
15redevelopment project costs have been paid as provided for in
16this Section.
17    Whenever a municipality issues bonds for the purpose of
18financing redevelopment project costs, such municipality may
19provide by ordinance for the appointment of a trustee, which
20may be any trust company within the State, and for the
21establishment of such funds or accounts to be maintained by
22such trustee as the municipality shall deem necessary to
23provide for the security and payment of the bonds. If such
24municipality provides for the appointment of a trustee, such
25trustee shall be considered the assignee of any payments
26assigned by the municipality pursuant to such ordinance and

 

 

09900SB0231sam001- 131 -LRB099 03162 NHT 47157 a

1this Section. Any amounts paid to such trustee as assignee
2shall be deposited in the funds or accounts established
3pursuant to such trust agreement, and shall be held by such
4trustee in trust for the benefit of the holders of the bonds,
5and such holders shall have a lien on and a security interest
6in such funds or accounts so long as the bonds remain
7outstanding and unpaid. Upon retirement of the bonds, the
8trustee shall pay over any excess amounts held to the
9municipality for deposit in the special tax allocation fund.
10    When such redevelopment projects costs, including without
11limitation all municipal obligations financing redevelopment
12project costs incurred under this Division, have been paid, all
13surplus funds then remaining in the special tax allocation fund
14shall be distributed by being paid by the municipal treasurer
15to the Department of Revenue, the municipality and the county
16collector; first to the Department of Revenue and the
17municipality in direct proportion to the tax incremental
18revenue received from the State and the municipality, but not
19to exceed the total incremental revenue received from the State
20or the municipality less any annual surplus distribution of
21incremental revenue previously made; with any remaining funds
22to be paid to the County Collector who shall immediately
23thereafter pay said funds to the taxing districts in the
24redevelopment project area in the same manner and proportion as
25the most recent distribution by the county collector to the
26affected districts of real property taxes from real property in

 

 

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1the redevelopment project area.
2    Upon the payment of all redevelopment project costs, the
3retirement of obligations, the distribution of any excess
4monies pursuant to this Section, and final closing of the books
5and records of the redevelopment project area, the municipality
6shall adopt an ordinance dissolving the special tax allocation
7fund for the redevelopment project area and terminating the
8designation of the redevelopment project area as a
9redevelopment project area. Title to real or personal property
10and public improvements acquired by or for the municipality as
11a result of the redevelopment project and plan shall vest in
12the municipality when acquired and shall continue to be held by
13the municipality after the redevelopment project area has been
14terminated. Municipalities shall notify affected taxing
15districts prior to November 1 if the redevelopment project area
16is to be terminated by December 31 of that same year. If a
17municipality extends estimated dates of completion of a
18redevelopment project and retirement of obligations to finance
19a redevelopment project, as allowed by this amendatory Act of
201993, that extension shall not extend the property tax
21increment allocation financing authorized by this Section.
22Thereafter the rates of the taxing districts shall be extended
23and taxes levied, collected and distributed in the manner
24applicable in the absence of the adoption of tax increment
25allocation financing.
26    Nothing in this Section shall be construed as relieving

 

 

09900SB0231sam001- 133 -LRB099 03162 NHT 47157 a

1property in such redevelopment project areas from being
2assessed as provided in the Property Tax Code or as relieving
3owners of such property from paying a uniform rate of taxes, as
4required by Section 4 of Article IX of the Illinois
5Constitution.
6(Source: P.A. 98-463, eff. 8-16-13.)
 
7    (65 ILCS 5/11-74.6-35)
8    Sec. 11-74.6-35. Ordinance for tax increment allocation
9financing.
10    (a) A municipality, at the time a redevelopment project
11area is designated, may adopt tax increment allocation
12financing by passing an ordinance providing that the ad valorem
13taxes, if any, arising from the levies upon taxable real
14property within the redevelopment project area by taxing
15districts and tax rates determined in the manner provided in
16subsection (b) of Section 11-74.6-40 each year after the
17effective date of the ordinance until redevelopment project
18costs and all municipal obligations financing redevelopment
19project costs incurred under this Act have been paid shall be
20divided as follows:
21        (1) That portion of the taxes levied upon each taxable
22    lot, block, tract or parcel of real property that is
23    attributable to the lower of the current equalized assessed
24    value or the initial equalized assessed value or the
25    updated initial equalized assessed value of each taxable

 

 

09900SB0231sam001- 134 -LRB099 03162 NHT 47157 a

1    lot, block, tract or parcel of real property in the
2    redevelopment project area shall be allocated to and when
3    collected shall be paid by the county collector to the
4    respective affected taxing districts in the manner
5    required by law without regard to the adoption of tax
6    increment allocation financing.
7        (2) That portion, if any, of those taxes that is
8    attributable to the increase in the current equalized
9    assessed value of each taxable lot, block, tract or parcel
10    of real property in the redevelopment project area, over
11    and above the initial equalized assessed value or the
12    updated initial equalized assessed value of each property
13    in the project area, shall be allocated to and when
14    collected shall be paid by the county collector to the
15    municipal treasurer who shall deposit that portion of those
16    taxes into a special fund called the special tax allocation
17    fund of the municipality for the purpose of paying
18    redevelopment project costs and obligations incurred in
19    the payment of those costs and obligations. In any county
20    with a population of 3,000,000 or more that has adopted a
21    procedure for collecting taxes that provides for one or
22    more of the installments of the taxes to be billed and
23    collected on an estimated basis, the municipal treasurer
24    shall be paid for deposit in the special tax allocation
25    fund of the municipality, from the taxes collected from
26    estimated bills issued for property in the redevelopment

 

 

09900SB0231sam001- 135 -LRB099 03162 NHT 47157 a

1    project area, the difference between the amount actually
2    collected from each taxable lot, block, tract, or parcel of
3    real property within the redevelopment project area and an
4    amount determined by multiplying the rate at which taxes
5    were last extended against the taxable lot, block, track,
6    or parcel of real property in the manner provided in
7    subsection (b) of Section 11-74.6-40 by the initial
8    equalized assessed value or the updated initial equalized
9    assessed value of the property divided by the number of
10    installments in which real estate taxes are billed and
11    collected within the county, provided that the payments on
12    or before December 31, 1999 to a municipal treasurer shall
13    be made only if each of the following conditions are met:
14            (A) The total equalized assessed value of the
15        redevelopment project area as last determined was not
16        less than 175% of the total initial equalized assessed
17        value.
18            (B) Not more than 50% of the total equalized
19        assessed value of the redevelopment project area as
20        last determined is attributable to a piece of property
21        assigned a single real estate index number.
22            (C) The municipal clerk has certified to the county
23        clerk that the municipality has issued its obligations
24        to which there has been pledged the incremental
25        property taxes of the redevelopment project area or
26        taxes levied and collected on any or all property in

 

 

09900SB0231sam001- 136 -LRB099 03162 NHT 47157 a

1        the municipality or the full faith and credit of the
2        municipality to pay or secure payment for all or a
3        portion of the redevelopment project costs. The
4        certification shall be filed annually no later than
5        September 1 for the estimated taxes to be distributed
6        in the following year.
7    The conditions of paragraphs (A) through (C) do not apply
8after December 31, 1999 to payments to a municipal treasurer
9made by a county with 3,000,000 or more inhabitants that has
10adopted an estimated billing procedure for collecting taxes. If
11a county that has adopted the estimated billing procedure makes
12an erroneous overpayment of tax revenue to the municipal
13treasurer, then the county may seek a refund of that
14overpayment. The county shall send the municipal treasurer a
15notice of liability for the overpayment on or before the
16mailing date of the next real estate tax bill within the
17county. The refund shall be limited to the amount of the
18overpayment.
19    (b) It is the intent of this Act that a municipality's own
20ad valorem tax arising from levies on taxable real property be
21included in the determination of incremental revenue in the
22manner provided in paragraph (b) of Section 11-74.6-40.
23    (c) If a municipality has adopted tax increment allocation
24financing for a redevelopment project area by ordinance and the
25county clerk thereafter certifies the total initial equalized
26assessed value or the total updated initial equalized assessed

 

 

09900SB0231sam001- 137 -LRB099 03162 NHT 47157 a

1value of the taxable real property within such redevelopment
2project area in the manner provided in paragraph (a) or (b) of
3Section 11-74.6-40, each year after the date of the
4certification of the total initial equalized assessed value or
5the total updated initial equalized assessed value until
6redevelopment project costs and all municipal obligations
7financing redevelopment project costs have been paid, the ad
8valorem taxes, if any, arising from the levies upon the taxable
9real property in the redevelopment project area by taxing
10districts and tax rates determined in the manner provided in
11paragraph (b) of Section 11-74.6-40 shall be divided as
12follows:
13        (1) That portion of the taxes levied upon each taxable
14    lot, block, tract or parcel of real property that is
15    attributable to the lower of the current equalized assessed
16    value or the initial equalized assessed value, or the
17    updated initial equalized assessed value of each parcel if
18    the updated initial equalized assessed value of that parcel
19    has been certified in accordance with Section 11-74.6-40,
20    whichever has been most recently certified, of each taxable
21    lot, block, tract, or parcel of real property existing at
22    the time tax increment allocation financing was adopted in
23    the redevelopment project area, shall be allocated to and
24    when collected shall be paid by the county collector to the
25    respective affected taxing districts in the manner
26    required by law without regard to the adoption of tax

 

 

09900SB0231sam001- 138 -LRB099 03162 NHT 47157 a

1    increment allocation financing.
2        (2) That portion, if any, of those taxes that is
3    attributable to the increase in the current equalized
4    assessed value of each taxable lot, block, tract, or parcel
5    of real property in the redevelopment project area, over
6    and above the initial equalized assessed value of each
7    property existing at the time tax increment allocation
8    financing was adopted in the redevelopment project area, or
9    the updated initial equalized assessed value of each parcel
10    if the updated initial equalized assessed value of that
11    parcel has been certified in accordance with Section
12    11-74.6-40, shall be allocated to and when collected shall
13    be paid to the municipal treasurer, who shall deposit those
14    taxes into a special fund called the special tax allocation
15    fund of the municipality for the purpose of paying
16    redevelopment project costs and obligations incurred in
17    the payment thereof.
18    (d) The municipality may pledge in the ordinance the funds
19in and to be deposited in the special tax allocation fund for
20the payment of redevelopment project costs and obligations. No
21part of the current equalized assessed value of each property
22in the redevelopment project area attributable to any increase
23above the total initial equalized assessed value or the total
24initial updated equalized assessed value of the property, shall
25be used in calculating the general General State aid formula
26School Aid Formula, provided for in Section 18-8 of the School

 

 

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1Code, or the primary State aid formula, provided for in Section
218-8.15 of the School Code, until all redevelopment project
3costs have been paid as provided for in this Section.
4    Whenever a municipality issues bonds for the purpose of
5financing redevelopment project costs, that municipality may
6provide by ordinance for the appointment of a trustee, which
7may be any trust company within the State, and for the
8establishment of any funds or accounts to be maintained by that
9trustee, as the municipality deems necessary to provide for the
10security and payment of the bonds. If the municipality provides
11for the appointment of a trustee, the trustee shall be
12considered the assignee of any payments assigned by the
13municipality under that ordinance and this Section. Any amounts
14paid to the trustee as assignee shall be deposited into the
15funds or accounts established under the trust agreement, and
16shall be held by the trustee in trust for the benefit of the
17holders of the bonds. The holders of those bonds shall have a
18lien on and a security interest in those funds or accounts
19while the bonds remain outstanding and unpaid. Upon retirement
20of the bonds, the trustee shall pay over any excess amounts
21held to the municipality for deposit in the special tax
22allocation fund.
23    When the redevelopment projects costs, including without
24limitation all municipal obligations financing redevelopment
25project costs incurred under this Law, have been paid, all
26surplus funds then remaining in the special tax allocation fund

 

 

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1shall be distributed by being paid by the municipal treasurer
2to the municipality and the county collector; first to the
3municipality in direct proportion to the tax incremental
4revenue received from the municipality, but not to exceed the
5total incremental revenue received from the municipality,
6minus any annual surplus distribution of incremental revenue
7previously made. Any remaining funds shall be paid to the
8county collector who shall immediately distribute that payment
9to the taxing districts in the redevelopment project area in
10the same manner and proportion as the most recent distribution
11by the county collector to the affected districts of real
12property taxes from real property situated in the redevelopment
13project area.
14    Upon the payment of all redevelopment project costs,
15retirement of obligations and the distribution of any excess
16moneys under this Section, the municipality shall adopt an
17ordinance dissolving the special tax allocation fund for the
18redevelopment project area and terminating the designation of
19the redevelopment project area as a redevelopment project area.
20Thereafter the tax levies of taxing districts shall be
21extended, collected and distributed in the same manner
22applicable before the adoption of tax increment allocation
23financing. Municipality shall notify affected taxing districts
24prior to November if the redevelopment project area is to be
25terminated by December 31 of that same year.
26    Nothing in this Section shall be construed as relieving

 

 

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1property in a redevelopment project area from being assessed as
2provided in the Property Tax Code or as relieving owners of
3that property from paying a uniform rate of taxes, as required
4by Section 4 of Article IX of the Illinois Constitution.
5(Source: P.A. 91-474, eff. 11-1-99.)
 
6    Section 940. The Economic Development Project Area Tax
7Increment Allocation Act of 1995 is amended by changing Section
850 as follows:
 
9    (65 ILCS 110/50)
10    Sec. 50. Special tax allocation fund.
11    (a) If a county clerk has certified the "total initial
12equalized assessed value" of the taxable real property within
13an economic development project area in the manner provided in
14Section 45, each year after the date of the certification by
15the county clerk of the "total initial equalized assessed
16value", until economic development project costs and all
17municipal obligations financing economic development project
18costs have been paid, the ad valorem taxes, if any, arising
19from the levies upon the taxable real property in the economic
20development project area by taxing districts and tax rates
21determined in the manner provided in subsection (b) of Section
2245 shall be divided as follows:
23        (1) That portion of the taxes levied upon each taxable
24    lot, block, tract, or parcel of real property that is

 

 

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1    attributable to the lower of the current equalized assessed
2    value or the initial equalized assessed value of each
3    taxable lot, block, tract, or parcel of real property
4    existing at the time tax increment financing was adopted
5    shall be allocated to (and when collected shall be paid by
6    the county collector to) the respective affected taxing
7    districts in the manner required by law in the absence of
8    the adoption of tax increment allocation financing.
9        (2) That portion, if any, of the taxes that is
10    attributable to the increase in the current equalized
11    assessed valuation of each taxable lot, block, tract, or
12    parcel of real property in the economic development project
13    area, over and above the initial equalized assessed value
14    of each property existing at the time tax increment
15    financing was adopted, shall be allocated to (and when
16    collected shall be paid to) the municipal treasurer, who
17    shall deposit the taxes into a special fund (called the
18    special tax allocation fund of the municipality) for the
19    purpose of paying economic development project costs and
20    obligations incurred in the payment of those costs.
21    (b) The municipality, by an ordinance adopting tax
22increment allocation financing, may pledge the monies in and to
23be deposited into the special tax allocation fund for the
24payment of obligations issued under this Act and for the
25payment of economic development project costs. No part of the
26current equalized assessed valuation of each property in the

 

 

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1economic development project area attributable to any increase
2above the total initial equalized assessed value of those
3properties shall be used in calculating the general State
4school aid formula under Section 18-8 of the School Code or the
5primary State aid formula under Section 18-8.15 of the School
6Code, until all economic development projects costs have been
7paid as provided for in this Section.
8    (c) When the economic development projects costs,
9including without limitation all municipal obligations
10financing economic development project costs incurred under
11this Act, have been paid, all surplus monies then remaining in
12the special tax allocation fund shall be distributed by being
13paid by the municipal treasurer to the county collector, who
14shall immediately pay the monies to the taxing districts having
15taxable property in the economic development project area in
16the same manner and proportion as the most recent distribution
17by the county collector to those taxing districts of real
18property taxes from real property in the economic development
19project area.
20    (d) Upon the payment of all economic development project
21costs, retirement of obligations, and distribution of any
22excess monies under this Section and not later than 23 years
23from the date of the adoption of the ordinance establishing the
24economic development project area, the municipality shall
25adopt an ordinance dissolving the special tax allocation fund
26for the economic development project area and terminating the

 

 

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1designation of the economic development project area as an
2economic development project area. Thereafter, the rates of the
3taxing districts shall be extended and taxes shall be levied,
4collected, and distributed in the manner applicable in the
5absence of the adoption of tax increment allocation financing.
6    (e) Nothing in this Section shall be construed as relieving
7property in the economic development project areas from being
8assessed as provided in the Property Tax Code or as relieving
9owners or lessees of that property from paying a uniform rate
10of taxes as required by Section 4 of Article IX of the Illinois
11Constitution.
12(Source: P.A. 98-463, eff. 8-16-13.)
 
13    Section 945. The School Code is amended by changing
14Sections 1A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1C-2, 1D-1, 1E-20,
151F-20, 1F-62, 1H-20, 1H-70, 2-3.28, 2-3.33, 2-3.51.5, 2-3.66,
162-3.66b, 2-3.84, 2-3.109a, 3-14.21, 7-14A, 10-17a, 10-19,
1710-22.5a, 10-22.20, 10-29, 11E-135, 13A-8, 13B-20.20, 13B-45,
1813B-50, 13B-50.10, 13B-50.15, 14-7.02, 14-7.02b, 14-7.03,
1914-13.01, 14C-1, 14C-12, 17-1, 17-1.2, 17-1.5, 17-2.11, 17-2A,
2018-4.3, 18-8.05, 18-8.10, 18-9, 18-12, 26-16, 27-8.1, 27A-9,
2127A-11, 29-5, 34-2.3, 34-8.4, 34-18, 34-18.30, 34-43.1, and
2234-53 and by adding Sections 17-3.6 and 18-8.15 as follows:
 
23    (105 ILCS 5/1A-8)  (from Ch. 122, par. 1A-8)
24    Sec. 1A-8. Powers of the Board in Assisting Districts

 

 

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1Deemed in Financial Difficulties. To promote the financial
2integrity of school districts, the State Board of Education
3shall be provided the necessary powers to promote sound
4financial management and continue operation of the public
5schools.
6    (a) The State Superintendent of Education may require a
7school district, including any district subject to Article 34A
8of this Code, to share financial information relevant to a
9proper investigation of the district's financial condition and
10the delivery of appropriate State financial, technical, and
11consulting services to the district if the district (i) has
12been designated, through the State Board of Education's School
13District Financial Profile System, as on financial warning or
14financial watch status, (ii) has failed to file an annual
15financial report, annual budget, deficit reduction plan, or
16other financial information as required by law, (iii) has been
17identified, through the district's annual audit or other
18financial and management information, as in serious financial
19difficulty in the current or next school year, or (iv) is
20determined to be likely to fail to fully meet any regularly
21scheduled, payroll-period obligations when due or any debt
22service payments when due or both. In addition to financial,
23technical, and consulting services provided by the State Board
24of Education, at the request of a school district, the State
25Superintendent may provide for an independent financial
26consultant to assist the district review its financial

 

 

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1condition and options.
2    (b) The State Board of Education, after proper
3investigation of a district's financial condition, may certify
4that a district, including any district subject to Article 34A,
5is in financial difficulty when any of the following conditions
6occur:
7        (1) The district has issued school or teacher orders
8    for wages as permitted in Sections 8-16, 32-7.2 and 34-76
9    of this Code.
10        (2) The district has issued tax anticipation warrants
11    or tax anticipation notes in anticipation of a second
12    year's taxes when warrants or notes in anticipation of
13    current year taxes are still outstanding, as authorized by
14    Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has
15    issued short-term debt against 2 future revenue sources,
16    such as, but not limited to, tax anticipation warrants and
17    general State aid or primary State aid Aid certificates or
18    tax anticipation warrants and revenue anticipation notes.
19        (3) The district has for 2 consecutive years shown an
20    excess of expenditures and other financing uses over
21    revenues and other financing sources and beginning fund
22    balances on its annual financial report for the aggregate
23    totals of the Educational, Operations and Maintenance,
24    Transportation, and Working Cash Funds.
25        (4) The district refuses to provide financial
26    information or cooperate with the State Superintendent in

 

 

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1    an investigation of the district's financial condition.
2        (5) The district is likely to fail to fully meet any
3    regularly scheduled, payroll-period obligations when due
4    or any debt service payments when due or both.
5    No school district shall be certified by the State Board of
6Education to be in financial difficulty solely by reason of any
7of the above circumstances arising as a result of (i) the
8failure of the county to make any distribution of property tax
9money due the district at the time such distribution is due or
10(ii) the failure of this State to make timely payments of
11general State aid, primary State aid, or any of the mandated
12categoricals; or if the district clearly demonstrates to the
13satisfaction of the State Board of Education at the time of its
14determination that such condition no longer exists. If the
15State Board of Education certifies that a district in a city
16with 500,000 inhabitants or more is in financial difficulty,
17the State Board shall so notify the Governor and the Mayor of
18the city in which the district is located. The State Board of
19Education may require school districts certified in financial
20difficulty, except those districts subject to Article 34A, to
21develop, adopt and submit a financial plan within 45 days after
22certification of financial difficulty. The financial plan
23shall be developed according to guidelines presented to the
24district by the State Board of Education within 14 days of
25certification. Such guidelines shall address the specific
26nature of each district's financial difficulties. Any proposed

 

 

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1budget of the district shall be consistent with the financial
2plan submitted to and approved by the State Board of Education.
3    A district certified to be in financial difficulty, other
4than a district subject to Article 34A, shall report to the
5State Board of Education at such times and in such manner as
6the State Board may direct, concerning the district's
7compliance with each financial plan. The State Board may review
8the district's operations, obtain budgetary data and financial
9statements, require the district to produce reports, and have
10access to any other information in the possession of the
11district that it deems relevant. The State Board may issue
12recommendations or directives within its powers to the district
13to assist in compliance with the financial plan. The district
14shall produce such budgetary data, financial statements,
15reports and other information and comply with such directives.
16If the State Board of Education determines that a district has
17failed to comply with its financial plan, the State Board of
18Education may rescind approval of the plan and appoint a
19Financial Oversight Panel for the district as provided in
20Section 1B-4. This action shall be taken only after the
21district has been given notice and an opportunity to appear
22before the State Board of Education to discuss its failure to
23comply with its financial plan.
24    No bonds, notes, teachers orders, tax anticipation
25warrants or other evidences of indebtedness shall be issued or
26sold by a school district or be legally binding upon or

 

 

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1enforceable against a local board of education of a district
2certified to be in financial difficulty unless and until the
3financial plan required under this Section has been approved by
4the State Board of Education.
5    Any financial profile compiled and distributed by the State
6Board of Education in Fiscal Year 2009 or any fiscal year
7thereafter shall incorporate such adjustments as may be needed
8in the profile scores to reflect the financial effects of the
9inability or refusal of the State of Illinois to make timely
10disbursements of any general State aid, primary State aid, or
11mandated categorical aid payments due school districts or to
12fully reimburse school districts for mandated categorical
13programs pursuant to reimbursement formulas provided in this
14School Code.
15(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
1697-429, eff. 8-16-11.)
 
17    (105 ILCS 5/1B-5)  (from Ch. 122, par. 1B-5)
18    Sec. 1B-5. When a petition for emergency financial
19assistance for a school district is allowed by the State Board
20under Section 1B-4, the State Superintendent shall within 10
21days thereafter appoint 3 members to serve at the State
22Superintendent's pleasure on a Financial Oversight Panel for
23the district. The State Superintendent shall designate one of
24the members of the Panel to serve as its Chairman. In the event
25of vacancy or resignation the State Superintendent shall

 

 

09900SB0231sam001- 150 -LRB099 03162 NHT 47157 a

1appoint a successor within 10 days of receiving notice thereof.
2    Members of the Panel shall be selected primarily on the
3basis of their experience and education in financial
4management, with consideration given to persons knowledgeable
5in education finance. A member of the Panel may not be a board
6member or employee of the district for which the Panel is
7constituted, nor may a member have a direct financial interest
8in that district.
9    Panel members shall serve without compensation, but may be
10reimbursed for travel and other necessary expenses incurred in
11the performance of their official duties by the State Board.
12The amount reimbursed Panel members for their expenses shall be
13charged to the school district as part of any emergency
14financial assistance and incorporated as a part of the terms
15and conditions for repayment of such assistance or shall be
16deducted from the district's general State aid or primary State
17aid as provided in Section 1B-8.
18    The first meeting of the Panel shall be held at the call of
19the Chairman. The Panel may elect such other officers as it
20deems appropriate. The Panel shall prescribe the times and
21places for its meetings and the manner in which regular and
22special meetings may be called, and shall comply with the Open
23Meetings Act.
24    Two members of the Panel shall constitute a quorum, and the
25affirmative vote of 2 members shall be necessary for any
26decision or action to be taken by the Panel.

 

 

09900SB0231sam001- 151 -LRB099 03162 NHT 47157 a

1    The Panel and the State Superintendent shall cooperate with
2each other in the exercise of their respective powers. The
3Panel shall report not later than September 1 annually to the
4State Board and the State Superintendent with respect to its
5activities and the condition of the school district for the
6previous fiscal year.
7    Any Financial Oversight Panel established under this
8Article shall remain in existence for not less than 3 years nor
9more than 10 years from the date the State Board grants the
10petition under Section 1B-4. If after 3 years the school
11district has repaid all of its obligations resulting from
12emergency State financial assistance provided under this
13Article and has improved its financial situation, the board of
14education may, not more frequently than once in any 12 month
15period, petition the State Board to dissolve the Financial
16Oversight Panel, terminate the oversight responsibility, and
17remove the district's certification under Section 1A-8 as a
18district in financial difficulty. In acting on such a petition
19the State Board shall give additional weight to the
20recommendations of the State Superintendent and the Financial
21Oversight Panel.
22(Source: P.A. 88-618, eff. 9-9-94.)
 
23    (105 ILCS 5/1B-6)  (from Ch. 122, par. 1B-6)
24    Sec. 1B-6. General powers. The purpose of the Financial
25Oversight Panel shall be to exercise financial control over the

 

 

09900SB0231sam001- 152 -LRB099 03162 NHT 47157 a

1board of education, and, when approved by the State Board and
2the State Superintendent of Education, to furnish financial
3assistance so that the board can provide public education
4within the board's jurisdiction while permitting the board to
5meet its obligations to its creditors and the holders of its
6notes and bonds. Except as expressly limited by this Article,
7the Panel shall have all powers necessary to meet its
8responsibilities and to carry out its purposes and the purposes
9of this Article, including, but not limited to, the following
10powers:
11    (a) to sue and be sued;
12    (b) to provide for its organization and internal
13management;
14    (c) to appoint a Financial Administrator to serve as the
15chief executive officer of the Panel. The Financial
16Administrator may be an individual, partnership, corporation,
17including an accounting firm, or other entity determined by the
18Panel to be qualified to serve; and to appoint other officers,
19agents, and employees of the Panel, define their duties and
20qualifications and fix their compensation and employee
21benefits;
22    (d) to approve the local board of education appointments to
23the positions of treasurer in a Class I county school unit and
24in each school district which forms a part of a Class II county
25school unit but which no longer is subject to the jurisdiction
26and authority of a township treasurer or trustees of schools of

 

 

09900SB0231sam001- 153 -LRB099 03162 NHT 47157 a

1a township because the district has withdrawn from the
2jurisdiction and authority of the township treasurer and the
3trustees of schools of the township or because those offices
4have been abolished as provided in subsection (b) or (c) of
5Section 5-1, and chief school business official, if such
6official is not the superintendent of the district. Either the
7board or the Panel may remove such treasurer or chief school
8business official;
9    (e) to approve any and all bonds, notes, teachers orders,
10tax anticipation warrants, and other evidences of indebtedness
11prior to issuance or sale by the school district; and
12notwithstanding any other provision of The School Code, as now
13or hereafter amended, no bonds, notes, teachers orders, tax
14anticipation warrants or other evidences of indebtedness shall
15be issued or sold by the school district or be legally binding
16upon or enforceable against the local board of education unless
17and until the approval of the Panel has been received;
18    (f) to approve all property tax levies of the school
19district and require adjustments thereto as the Panel deems
20necessary or advisable;
21    (g) to require and approve a school district financial
22plan;
23    (h) to approve and require revisions of the school district
24budget;
25    (i) to approve all contracts and other obligations as the
26Panel deems necessary and appropriate;

 

 

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1    (j) to authorize emergency State financial assistance,
2including requirements regarding the terms and conditions of
3repayment of such assistance, and to require the board of
4education to levy a separate local property tax, subject to the
5limitations of Section 1B-8, sufficient to repay such
6assistance consistent with the terms and conditions of
7repayment and the district's approved financial plan and
8budget;
9    (k) to request the regional superintendent to make
10appointments to fill all vacancies on the local school board as
11provided in Section 10-10;
12    (l) to recommend dissolution or reorganization of the
13school district to the General Assembly if in the Panel's
14judgment the circumstances so require;
15    (m) to direct a phased reduction in the oversight
16responsibilities of the Financial Administrator and of the
17Panel as the circumstances permit;
18    (n) to determine the amount of emergency State financial
19assistance to be made available to the school district, and to
20establish an operating budget for the Panel to be supported by
21funds available from such assistance, with the assistance and
22the budget required to be approved by the State Superintendent;
23    (o) to procure insurance against any loss in such amounts
24and from such insurers as it deems necessary;
25    (p) to engage the services of consultants for rendering
26professional and technical assistance and advice on matters

 

 

09900SB0231sam001- 155 -LRB099 03162 NHT 47157 a

1within the Panel's power;
2    (q) to contract for and to accept any gifts, grants or
3loans of funds or property or financial or other aid in any
4form from the federal government, State government, unit of
5local government, school district or any agency or
6instrumentality thereof, or from any other private or public
7source, and to comply with the terms and conditions thereof;
8    (r) to pay the expenses of its operations based on the
9Panel's budget as approved by the State Superintendent from
10emergency financial assistance funds available to the district
11or from deductions from the district's general State aid or
12primary State aid;
13    (s) to do any and all things necessary or convenient to
14carry out its purposes and exercise the powers given to the
15Panel by this Article; and
16    (t) to recommend the creation of a school finance authority
17pursuant to Article 1F of this Code.
18(Source: P.A. 91-357, eff. 7-29-99; 92-855, eff. 12-6-02.)
 
19    (105 ILCS 5/1B-7)  (from Ch. 122, par. 1B-7)
20    Sec. 1B-7. Financial Administrator; Powers and Duties. The
21Financial Administrator appointed by the Financial Oversight
22Panel shall serve as the Panel's chief executive officer. The
23Financial Administrator shall exercise the powers and duties
24required by the Panel, including but not limited to the
25following:

 

 

09900SB0231sam001- 156 -LRB099 03162 NHT 47157 a

1    (a) to provide guidance and recommendations to the local
2board and officials of the school district in developing the
3district's financial plan and budget prior to board action;
4    (b) to direct the local board to reorganize its financial
5accounts, budgetary systems, and internal accounting and
6financial controls, in whatever manner the Panel deems
7appropriate to achieve greater financial responsibility and to
8reduce financial inefficiency, and to provide technical
9assistance to aid the district in accomplishing the
10reorganization;
11    (c) to make recommendations to the Financial Oversight
12Panel concerning the school district's financial plan and
13budget, and all other matters within the scope of the Panel's
14authority;
15    (d) to prepare and recommend to the Panel a proposal for
16emergency State financial assistance for the district,
17including recommended terms and conditions of repayment, and an
18operations budget for the Panel to be funded from the emergency
19assistance or from deductions from the district's general State
20aid or primary State aid;
21    (e) to require the local board to prepare and submit
22preliminary staffing and budgetary analyses annually prior to
23February 1 in such manner and form as the Financial
24Administrator shall prescribe; and
25    (f) subject to the direction of the Panel, to do all other
26things necessary or convenient to carry out its purposes and

 

 

09900SB0231sam001- 157 -LRB099 03162 NHT 47157 a

1exercise the powers given to the Panel under this Article.
2(Source: P.A. 88-618, eff. 9-9-94.)
 
3    (105 ILCS 5/1B-8)  (from Ch. 122, par. 1B-8)
4    Sec. 1B-8. There is created in the State Treasury a special
5fund to be known as the School District Emergency Financial
6Assistance Fund (the "Fund"). The School District Emergency
7Financial Assistance Fund shall consist of appropriations,
8loan repayments, grants from the federal government, and
9donations from any public or private source. Moneys in the Fund
10may be appropriated only to the Illinois Finance Authority and
11the State Board for those purposes authorized under this
12Article and Articles 1F and 1H of this Code. The appropriation
13may be allocated and expended by the State Board for
14contractual services to provide technical assistance or
15consultation to school districts to assess their financial
16condition and to Financial Oversight Panels that petition for
17emergency financial assistance grants. The Illinois Finance
18Authority may provide loans to school districts which are the
19subject of an approved petition for emergency financial
20assistance under Section 1B-4, 1F-62, or 1H-65 of this Code.
21Neither the State Board of Education nor the Illinois Finance
22Authority may collect any fees for providing these services.
23    From the amount allocated to each such school district
24under this Article the State Board shall identify a sum
25sufficient to cover all approved costs of the Financial

 

 

09900SB0231sam001- 158 -LRB099 03162 NHT 47157 a

1Oversight Panel established for the respective school
2district. If the State Board and State Superintendent of
3Education have not approved emergency financial assistance in
4conjunction with the appointment of a Financial Oversight
5Panel, the Panel's approved costs shall be paid from deductions
6from the district's general State aid or primary State aid.
7    The Financial Oversight Panel may prepare and file with the
8State Superintendent a proposal for emergency financial
9assistance for the school district and for its operations
10budget. No expenditures from the Fund shall be authorized by
11the State Superintendent until he or she has approved the
12request of the Panel, either as submitted or in such lesser
13amount determined by the State Superintendent.
14    The maximum amount of an emergency financial assistance
15loan which may be allocated to any school district under this
16Article, including moneys necessary for the operations of the
17Panel, shall not exceed $4,000 times the number of pupils
18enrolled in the school district during the school year ending
19June 30 prior to the date of approval by the State Board of the
20petition for emergency financial assistance, as certified to
21the local board and the Panel by the State Superintendent. An
22emergency financial assistance grant shall not exceed $1,000
23times the number of such pupils. A district may receive both a
24loan and a grant.
25    The payment of an emergency State financial assistance
26grant or loan shall be subject to appropriation by the General

 

 

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1Assembly. Payment of the emergency State financial assistance
2loan is subject to the applicable provisions of the Illinois
3Finance Authority Act. Emergency State financial assistance
4allocated and paid to a school district under this Article may
5be applied to any fund or funds from which the local board of
6education of that district is authorized to make expenditures
7by law.
8    Any emergency financial assistance grant proposed by the
9Financial Oversight Panel and approved by the State
10Superintendent may be paid in its entirety during the initial
11year of the Panel's existence or spread in equal or declining
12amounts over a period of years not to exceed the period of the
13Panel's existence. An emergency financial assistance loan
14proposed by the Financial Oversight Panel and approved by the
15Illinois Finance Authority may be paid in its entirety during
16the initial year of the Panel's existence or spread in equal or
17declining amounts over a period of years not to exceed the
18period of the Panel's existence. All loans made by the Illinois
19Finance Authority for a school district shall be required to be
20repaid, with simple interest over the term of the loan at a
21rate equal to 50% of the one-year Constant Maturity Treasury
22(CMT) yield as last published by the Board of Governors of the
23Federal Reserve System before the date on which the district's
24loan is approved by the Illinois Finance Authority, not later
25than the date the Financial Oversight Panel ceases to exist.
26The Panel shall establish and the Illinois Finance Authority

 

 

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1shall approve the terms and conditions, including the schedule,
2of repayments. The schedule shall provide for repayments
3commencing July 1 of each year or upon each fiscal year's
4receipt of moneys from a tax levy for emergency financial
5assistance. Repayment shall be incorporated into the annual
6budget of the school district and may be made from any fund or
7funds of the district in which there are moneys available. An
8emergency financial assistance loan to the Panel or district
9shall not be considered part of the calculation of a district's
10debt for purposes of the limitation specified in Section 19-1
11of this Code. Default on repayment is subject to the Illinois
12Grant Funds Recovery Act. When moneys are repaid as provided
13herein they shall not be made available to the local board for
14further use as emergency financial assistance under this
15Article at any time thereafter. All repayments required to be
16made by a school district shall be received by the State Board
17and deposited in the School District Emergency Financial
18Assistance Fund.
19    In establishing the terms and conditions for the repayment
20obligation of the school district the Panel shall annually
21determine whether a separate local property tax levy is
22required. The board of any school district with a tax rate for
23educational purposes for the prior year of less than 120% of
24the maximum rate for educational purposes authorized by Section
2517-2 shall provide for a separate tax levy for emergency
26financial assistance repayment purposes. Such tax levy shall

 

 

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1not be subject to referendum approval. The amount of the levy
2shall be equal to the amount necessary to meet the annual
3repayment obligations of the district as established by the
4Panel, or 20% of the amount levied for educational purposes for
5the prior year, whichever is less. However, no district shall
6be required to levy the tax if the district's operating tax
7rate as determined under Section 18-8, or 18-8.05, or 18-8.15
8exceeds 200% of the district's tax rate for educational
9purposes for the prior year.
10(Source: P.A. 97-429, eff. 8-16-11.)
 
11    (105 ILCS 5/1C-1)
12    Sec. 1C-1. Purpose. The purpose of this Article is to
13permit greater flexibility and efficiency in the distribution
14and use of certain State funds available to local education
15agencies for the improvement of the quality of educational
16services pursuant to locally established priorities.
17    Through fiscal year 2016, this This Article does not apply
18to school districts having a population in excess of 500,000
19inhabitants.
20(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;
2189-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
 
22    (105 ILCS 5/1C-2)
23    Sec. 1C-2. Block grants.
24    (a) For fiscal year 1999, and each fiscal year thereafter,

 

 

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1the State Board of Education shall award to school districts
2block grants as described in subsection (c). The State Board of
3Education may adopt rules and regulations necessary to
4implement this Section. In accordance with Section 2-3.32, all
5state block grants are subject to an audit. Therefore, block
6grant receipts and block grant expenditures shall be recorded
7to the appropriate fund code.
8    (b) (Blank).
9    (c) An Early Childhood Education Block Grant shall be
10created by combining the following programs: Preschool
11Education, Parental Training and Prevention Initiative. These
12funds shall be distributed to school districts and other
13entities on a competitive basis, except that the State Board of
14Education shall award to a school district having a population
15exceeding 500,000 inhabitants 37% of the funds in each fiscal
16year. Not less than 14% of this grant shall be used to fund
17programs for children ages 0-3, which percentage shall increase
18to at least 20% by Fiscal Year 2016. However, if, in a given
19fiscal year, the amount appropriated for the Early Childhood
20Education Block Grant is insufficient to increase the
21percentage of the grant to fund programs for children ages 0-3
22without reducing the amount of the grant for existing providers
23of preschool education programs, then the percentage of the
24grant to fund programs for children ages 0-3 may be held steady
25instead of increased.
26(Source: P.A. 98-645, eff. 7-1-14.)
 

 

 

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1    (105 ILCS 5/1D-1)
2    Sec. 1D-1. Block grant funding.
3    (a) For fiscal year 1996 through fiscal year 2016 and each
4fiscal year thereafter, the State Board of Education shall
5award to a school district having a population exceeding
6500,000 inhabitants a general education block grant and an
7educational services block grant, determined as provided in
8this Section, in lieu of distributing to the district separate
9State funding for the programs described in subsections (b) and
10(c). The provisions of this Section, however, do not apply to
11any federal funds that the district is entitled to receive. In
12accordance with Section 2-3.32, all block grants are subject to
13an audit. Therefore, block grant receipts and block grant
14expenditures shall be recorded to the appropriate fund code for
15the designated block grant.
16    (b) The general education block grant shall include the
17following programs: REI Initiative, Summer Bridges, Preschool
18At Risk, K-6 Comprehensive Arts, School Improvement Support,
19Urban Education, Scientific Literacy, Substance Abuse
20Prevention, Second Language Planning, Staff Development,
21Outcomes and Assessment, K-6 Reading Improvement, 7-12
22Continued Reading Improvement, Truants' Optional Education,
23Hispanic Programs, Agriculture Education, Parental Education,
24Prevention Initiative, Report Cards, and Criminal Background
25Investigations. Notwithstanding any other provision of law,

 

 

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1all amounts paid under the general education block grant from
2State appropriations to a school district in a city having a
3population exceeding 500,000 inhabitants shall be appropriated
4and expended by the board of that district for any of the
5programs included in the block grant or any of the board's
6lawful purposes.
7    (c) The educational services block grant shall include the
8following programs: Regular and Vocational Transportation,
9State Lunch and Free Breakfast Program, Special Education
10(Personnel, Transportation, Orphanage, Private Tuition),
11funding for children requiring special education services,
12Summer School, Educational Service Centers, and
13Administrator's Academy. This subsection (c) does not relieve
14the district of its obligation to provide the services required
15under a program that is included within the educational
16services block grant. It is the intention of the General
17Assembly in enacting the provisions of this subsection (c) to
18relieve the district of the administrative burdens that impede
19efficiency and accompany single-program funding. The General
20Assembly encourages the board to pursue mandate waivers
21pursuant to Section 2-3.25g.
22    The funding program included in the educational services
23block grant for funding for children requiring special
24education services in each fiscal year shall be treated in that
25fiscal year as a payment to the school district in respect of
26services provided or costs incurred in the prior fiscal year,

 

 

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1calculated in each case as provided in this Section. Nothing in
2this Section shall change the nature of payments for any
3program that, apart from this Section, would be or, prior to
4adoption or amendment of this Section, was on the basis of a
5payment in a fiscal year in respect of services provided or
6costs incurred in the prior fiscal year, calculated in each
7case as provided in this Section.
8    (d) For fiscal year 1996 through fiscal year 2016 and each
9fiscal year thereafter, the amount of the district's block
10grants shall be determined as follows: (i) with respect to each
11program that is included within each block grant, the district
12shall receive an amount equal to the same percentage of the
13current fiscal year appropriation made for that program as the
14percentage of the appropriation received by the district from
15the 1995 fiscal year appropriation made for that program, and
16(ii) the total amount that is due the district under the block
17grant shall be the aggregate of the amounts that the district
18is entitled to receive for the fiscal year with respect to each
19program that is included within the block grant that the State
20Board of Education shall award the district under this Section
21for that fiscal year. In the case of the Summer Bridges
22program, the amount of the district's block grant shall be
23equal to 44% of the amount of the current fiscal year
24appropriation made for that program.
25    (e) The district is not required to file any application or
26other claim in order to receive the block grants to which it is

 

 

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1entitled under this Section. The State Board of Education shall
2make payments to the district of amounts due under the
3district's block grants on a schedule determined by the State
4Board of Education.
5    (f) A school district to which this Section applies shall
6report to the State Board of Education on its use of the block
7grants in such form and detail as the State Board of Education
8may specify. In addition, the report must include the following
9description for the district, which must also be reported to
10the General Assembly: block grant allocation and expenditures
11by program; population and service levels by program; and
12administrative expenditures by program. The State Board of
13Education shall ensure that the reporting requirements for the
14district are the same as for all other school districts in this
15State.
16    (g) Through fiscal year 2016, this This paragraph provides
17for the treatment of block grants under Article 1C for purposes
18of calculating the amount of block grants for a district under
19this Section. Those block grants under Article 1C are, for this
20purpose, treated as included in the amount of appropriation for
21the various programs set forth in paragraph (b) above. The
22appropriation in each current fiscal year for each block grant
23under Article 1C shall be treated for these purposes as
24appropriations for the individual program included in that
25block grant. The proportion of each block grant so allocated to
26each such program included in it shall be the proportion which

 

 

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1the appropriation for that program was of all appropriations
2for such purposes now in that block grant, in fiscal 1995.
3    Payments to the school district under this Section with
4respect to each program for which payments to school districts
5generally, as of the date of this amendatory Act of the 92nd
6General Assembly, are on a reimbursement basis shall continue
7to be made to the district on a reimbursement basis, pursuant
8to the provisions of this Code governing those programs.
9    (h) Notwithstanding any other provision of law, any school
10district receiving a block grant under this Section may
11classify all or a portion of the funds that it receives in a
12particular fiscal year from any block grant authorized under
13this Code or from general State aid pursuant to Section 18-8.05
14of this Code (other than supplemental general State aid) as
15funds received in connection with any funding program for which
16it is entitled to receive funds from the State in that fiscal
17year (including, without limitation, any funding program
18referred to in subsection (c) of this Section), regardless of
19the source or timing of the receipt. The district may not
20classify more funds as funds received in connection with the
21funding program than the district is entitled to receive in
22that fiscal year for that program. Any classification by a
23district must be made by a resolution of its board of
24education. The resolution must identify the amount of any block
25grant or general State aid to be classified under this
26subsection (h) and must specify the funding program to which

 

 

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1the funds are to be treated as received in connection
2therewith. This resolution is controlling as to the
3classification of funds referenced therein. A certified copy of
4the resolution must be sent to the State Superintendent of
5Education. The resolution shall still take effect even though a
6copy of the resolution has not been sent to the State
7Superintendent of Education in a timely manner. No
8classification under this subsection (h) by a district shall
9affect the total amount or timing of money the district is
10entitled to receive under this Code. No classification under
11this subsection (h) by a district shall in any way relieve the
12district from or affect any requirements that otherwise would
13apply with respect to the block grant as provided in this
14Section, including any accounting of funds by source, reporting
15expenditures by original source and purpose, reporting
16requirements, or requirements of provision of services.
17(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;
1897-813, eff. 7-13-12.)
 
19    (105 ILCS 5/1E-20)
20    (This Section scheduled to be repealed in accordance with
21105 ILCS 5/1E-165)
22    Sec. 1E-20. Members of Authority; meetings.
23    (a) When a petition for a School Finance Authority is
24allowed by the State Board under Section 1E-15 of this Code,
25the State Superintendent shall within 10 days thereafter

 

 

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1appoint 5 members to serve on a School Finance Authority for
2the district. Of the initial members, 2 shall be appointed to
3serve a term of 2 years and 3 shall be appointed to serve a term
4of 3 years. Thereafter, each member shall serve for a term of 3
5years and until his or her successor has been appointed. The
6State Superintendent shall designate one of the members of the
7Authority to serve as its Chairperson. In the event of vacancy
8or resignation, the State Superintendent shall, within 10 days
9after receiving notice, appoint a successor to serve out that
10member's term. The State Superintendent may remove a member for
11incompetence, malfeasance, neglect of duty, or other just
12cause.
13    Members of the Authority shall be selected primarily on the
14basis of their experience and education in financial
15management, with consideration given to persons knowledgeable
16in education finance. Two members of the Authority shall be
17residents of the school district that the Authority serves. A
18member of the Authority may not be a member of the district's
19school board or an employee of the district nor may a member
20have a direct financial interest in the district.
21    Authority members shall serve without compensation, but
22may be reimbursed by the State Board for travel and other
23necessary expenses incurred in the performance of their
24official duties. Unless paid from bonds issued under Section
251E-65 of this Code, the amount reimbursed members for their
26expenses shall be charged to the school district as part of any

 

 

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1emergency financial assistance and incorporated as a part of
2the terms and conditions for repayment of the assistance or
3shall be deducted from the district's general State aid or
4primary State aid as provided in Section 1B-8 of this Code.
5    The Authority may elect such officers as it deems
6appropriate.
7    (b) The first meeting of the Authority shall be held at the
8call of the Chairperson. The Authority shall prescribe the
9times and places for its meetings and the manner in which
10regular and special meetings may be called and shall comply
11with the Open Meetings Act.
12    Three members of the Authority shall constitute a quorum.
13When a vote is taken upon any measure before the Authority, a
14quorum being present, a majority of the votes of the members
15voting on the measure shall determine the outcome.
16(Source: P.A. 92-547, eff. 6-13-02.)
 
17    (105 ILCS 5/1F-20)
18(This Section scheduled to be repealed in accordance with 105
19ILCS 5/1F-165)
20    Sec. 1F-20. Members of Authority; meetings.
21    (a) Upon establishment of a School Finance Authority under
22Section 1F-15 of this Code, the State Superintendent shall
23within 15 days thereafter appoint 5 members to serve on a
24School Finance Authority for the district. Of the initial
25members, 2 shall be appointed to serve a term of 2 years and 3

 

 

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1shall be appointed to serve a term of 3 years. Thereafter, each
2member shall serve for a term of 3 years and until his or her
3successor has been appointed. The State Superintendent shall
4designate one of the members of the Authority to serve as its
5Chairperson. In the event of vacancy or resignation, the State
6Superintendent shall, within 10 days after receiving notice,
7appoint a successor to serve out that member's term. The State
8Superintendent may remove a member for incompetence,
9malfeasance, neglect of duty, or other just cause.
10    Members of the Authority shall be selected primarily on the
11basis of their experience and education in financial
12management, with consideration given to persons knowledgeable
13in education finance. Two members of the Authority shall be
14residents of the school district that the Authority serves. A
15member of the Authority may not be a member of the district's
16school board or an employee of the district nor may a member
17have a direct financial interest in the district.
18    Authority members shall be paid a stipend approved by the
19State Superintendent of not more than $100 per meeting and may
20be reimbursed by the State Board for travel and other necessary
21expenses incurred in the performance of their official duties.
22Unless paid from bonds issued under Section 1F-65 of this Code,
23the amount reimbursed members for their expenses shall be
24charged to the school district as part of any emergency
25financial assistance and incorporated as a part of the terms
26and conditions for repayment of the assistance or shall be

 

 

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1deducted from the district's general State aid or primary State
2aid as provided in Section 1B-8 of this Code.
3    The Authority may elect such officers as it deems
4appropriate.
5    (b) The first meeting of the Authority shall be held at the
6call of the Chairperson. The Authority shall prescribe the
7times and places for its meetings and the manner in which
8regular and special meetings may be called and shall comply
9with the Open Meetings Act.
10    Three members of the Authority shall constitute a quorum.
11When a vote is taken upon any measure before the Authority, a
12quorum being present, a majority of the votes of the members
13voting on the measure shall determine the outcome.
14(Source: P.A. 94-234, eff. 7-1-06.)
 
15    (105 ILCS 5/1F-62)
16(This Section scheduled to be repealed in accordance with 105
17ILCS 5/1F-165)
18    Sec. 1F-62. School District Emergency Financial Assistance
19Fund; grants and loans.
20    (a) Moneys in the School District Emergency Financial
21Assistance Fund established under Section 1B-8 of this Code may
22be allocated and expended by the State Board as grants to
23provide technical and consulting services to school districts
24to assess their financial condition and by the Illinois Finance
25Authority for emergency financial assistance loans to a School

 

 

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1Finance Authority that petitions for emergency financial
2assistance. An emergency financial assistance loan to a School
3Finance Authority or borrowing from sources other than the
4State shall not be considered as part of the calculation of a
5district's debt for purposes of the limitation specified in
6Section 19-1 of this Code. From the amount allocated to each
7School Finance Authority, the State Board shall identify a sum
8sufficient to cover all approved costs of the School Finance
9Authority. If the State Board and State Superintendent have not
10approved emergency financial assistance in conjunction with
11the appointment of a School Finance Authority, the Authority's
12approved costs shall be paid from deductions from the
13district's general State aid or primary State aid.
14    The School Finance Authority may prepare and file with the
15State Superintendent a proposal for emergency financial
16assistance for the school district and for its operations
17budget. No expenditures shall be authorized by the State
18Superintendent until he or she has approved the proposal of the
19School Finance Authority, either as submitted or in such lesser
20amount determined by the State Superintendent.
21    (b) The amount of an emergency financial assistance loan
22that may be allocated to a School Finance Authority under this
23Article, including moneys necessary for the operations of the
24School Finance Authority, and borrowing from sources other than
25the State shall not exceed, in the aggregate, $4,000 times the
26number of pupils enrolled in the district during the school

 

 

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1year ending June 30 prior to the date of approval by the State
2Board of the petition for emergency financial assistance, as
3certified to the school board and the School Finance Authority
4by the State Superintendent. However, this limitation does not
5apply to borrowing by the district secured by amounts levied by
6the district prior to establishment of the School Finance
7Authority. An emergency financial assistance grant shall not
8exceed $1,000 times the number of such pupils. A district may
9receive both a loan and a grant.
10    (c) The payment of a State emergency financial assistance
11grant or loan shall be subject to appropriation by the General
12Assembly. State emergency financial assistance allocated and
13paid to a School Finance Authority under this Article may be
14applied to any fund or funds from which the School Finance
15Authority is authorized to make expenditures by law.
16    (d) Any State emergency financial assistance proposed by
17the School Finance Authority and approved by the State
18Superintendent may be paid in its entirety during the initial
19year of the School Finance Authority's existence or spread in
20equal or declining amounts over a period of years not to exceed
21the period of the School Finance Authority's existence. The
22State Superintendent shall not approve any loan to the School
23Finance Authority unless the School Finance Authority has been
24unable to borrow sufficient funds to operate the district.
25    All loan payments made from the School District Emergency
26Financial Assistance Fund to a School Finance Authority shall

 

 

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1be required to be repaid not later than the date the School
2Finance Authority ceases to exist, with simple interest over
3the term of the loan at a rate equal to 50% of the one-year
4Constant Maturity Treasury (CMT) yield as last published by the
5Board of Governors of the Federal Reserve System before the
6date on which the School Finance Authority's loan is approved
7by the State Board.
8    The School Finance Authority shall establish and the
9Illinois Finance Authority shall approve the terms and
10conditions of the loan, including the schedule of repayments.
11The schedule shall provide for repayments commencing July 1 of
12each year or upon each fiscal year's receipt of moneys from a
13tax levy for emergency financial assistance. Repayment shall be
14incorporated into the annual budget of the district and may be
15made from any fund or funds of the district in which there are
16moneys available. Default on repayment is subject to the
17Illinois Grant Funds Recovery Act. When moneys are repaid as
18provided in this Section, they shall not be made available to
19the School Finance Authority for further use as emergency
20financial assistance under this Article at any time thereafter.
21All repayments required to be made by a School Finance
22Authority shall be received by the State Board and deposited in
23the School District Emergency Financial Assistance Fund.
24    In establishing the terms and conditions for the repayment
25obligation of the School Finance Authority, the School Finance
26Authority shall annually determine whether a separate local

 

 

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1property tax levy is required to meet that obligation. The
2School Finance Authority shall provide for a separate tax levy
3for emergency financial assistance repayment purposes. This
4tax levy shall not be subject to referendum approval. The
5amount of the levy shall not exceed the amount necessary to
6meet the annual emergency financial repayment obligations of
7the district, including principal and interest, as established
8by the School Finance Authority.
9(Source: P.A. 94-234, eff. 7-1-06.)
 
10    (105 ILCS 5/1H-20)
11    Sec. 1H-20. Members of Panel; meetings.
12    (a) Upon establishment of a Financial Oversight Panel under
13Section 1H-15 of this Code, the State Superintendent shall
14within 15 working days thereafter appoint 5 members to serve on
15a Financial Oversight Panel for the district. Members appointed
16to the Panel shall serve at the pleasure of the State
17Superintendent. The State Superintendent shall designate one
18of the members of the Panel to serve as its Chairperson. In the
19event of vacancy or resignation, the State Superintendent
20shall, within 10 days after receiving notice, appoint a
21successor to serve out that member's term.
22    (b) Members of the Panel shall be selected primarily on the
23basis of their experience and education in financial
24management, with consideration given to persons knowledgeable
25in education finance. Two members of the Panel shall be

 

 

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1residents of the school district that the Panel serves. A
2member of the Panel may not be a member of the district's
3school board or an employee of the district nor may a member
4have a direct financial interest in the district.
5    (c) Panel members may be reimbursed by the State Board for
6travel and other necessary expenses incurred in the performance
7of their official duties. The amount reimbursed members for
8their expenses shall be charged to the school district as part
9of any emergency financial assistance and incorporated as a
10part of the terms and conditions for repayment of the
11assistance or shall be deducted from the district's general
12State aid or primary State aid as provided in Section 1H-65 of
13this Code.
14    (d) With the exception of the chairperson, who shall be
15designated as provided in subsection (a) of this Section, the
16Panel may elect such officers as it deems appropriate.
17    (e) The first meeting of the Panel shall be held at the
18call of the Chairperson. The Panel shall prescribe the times
19and places for its meetings and the manner in which regular and
20special meetings may be called and shall comply with the Open
21Meetings Act. The Panel shall also comply with the Freedom of
22Information Act.
23    (f) Three members of the Panel shall constitute a quorum. A
24majority of members present is required to pass a measure.
25(Source: P.A. 97-429, eff. 8-16-11.)
 

 

 

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1    (105 ILCS 5/1H-70)
2    Sec. 1H-70. Tax anticipation warrants, tax anticipation
3notes, revenue anticipation certificates or notes, general
4State aid or primary State aid anticipation certificates, and
5lines of credit. With the approval of the State Superintendent
6and provided that the district is unable to secure short-term
7financing after 3 attempts, a Panel shall have the same power
8as a district to do the following:
9        (1) issue tax anticipation warrants under the
10    provisions of Section 17-16 of this Code against taxes
11    levied by either the school board or the Panel pursuant to
12    Section 1H-25 of this Code;
13        (2) issue tax anticipation notes under the provisions
14    of the Tax Anticipation Note Act against taxes levied by
15    either the school board or the Panel pursuant to Section
16    1H-25 of this Code;
17        (3) issue revenue anticipation certificates or notes
18    under the provisions of the Revenue Anticipation Act;
19        (4) issue general State aid or primary State aid
20    anticipation certificates under the provisions of Section
21    18-18 of this Code; and
22        (5) establish and utilize lines of credit under the
23    provisions of Section 17-17 of this Code.
24    Tax anticipation warrants, tax anticipation notes, revenue
25anticipation certificates or notes, general State aid or
26primary State aid anticipation certificates, and lines of

 

 

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1credit are considered borrowing from sources other than the
2State and are subject to Section 1H-65 of this Code.
3(Source: P.A. 97-429, eff. 8-16-11.)
 
4    (105 ILCS 5/2-3.28)  (from Ch. 122, par. 2-3.28)
5    Sec. 2-3.28. Rules and regulations of budget and accounting
6systems. To prescribe rules and regulations defining what shall
7constitute a budget and accounting system required under this
8Act. The rules and regulations shall prescribe the minimum
9extent of verification, the type of audit, the extent of the
10audit report and shall require compliance with statutory
11requirements and standards and such requirements as the State
12Board of Education deems necessary for an adequate budget and
13accounting system. For the 2018-2019 school year and
14thereafter, the rules and regulations shall prescribe a system
15for accounting for revenues and expenditures at the individual
16school level that includes without limitation the following:
17        (1) accounting for expenditures for school
18    administration, regular instruction, special education
19    instruction, instructional programs for children of
20    limited English-speaking ability, instructional support
21    services, and pupil support services;
22        (2) salary expenditures reflecting actual staff
23    salaries at each school;
24        (3) accounting for operations, including
25    non-instructional pupil services, facilities, and business

 

 

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1    services; and
2        (4) such other requirements as the State Board of
3    Education deems necessary to provide for a uniform and
4    transparent system of accounting at the school level.
5(Source: P.A. 81-1508.)
 
6    (105 ILCS 5/2-3.33)  (from Ch. 122, par. 2-3.33)
7    Sec. 2-3.33. Recomputation of claims. To recompute within
83 years from the final date for filing of a claim any claim for
9reimbursement to any school district if the claim has been
10found to be incorrect and to adjust subsequent claims
11accordingly, and to recompute and adjust any such claims within
126 years from the final date for filing when there has been an
13adverse court or administrative agency decision on the merits
14affecting the tax revenues of the school district. However, no
15such adjustment shall be made regarding equalized assessed
16valuation unless the district's equalized assessed valuation
17is changed by greater than $250,000 or 2%. Any adjustments for
18claims recomputed for the 2015-2016 school year and prior
19school years shall be applied to the apportionment of primary
20State financial aid in Section 18-8.15 of this Code beginning
21in the 2016-2017 school year and thereafter.
22    Except in the case of an adverse court or administrative
23agency decision, no recomputation of a State aid claim shall be
24made pursuant to this Section as a result of a reduction in the
25assessed valuation of a school district from the assessed

 

 

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1valuation of the district reported to the State Board of
2Education by the Department of Revenue under Section 18-8.05 or
318-8.15 of this Code unless the requirements of Section 16-15
4of the Property Tax Code and Section 2-3.84 of this Code are
5complied with in all respects.
6    This paragraph applies to all requests for recomputation of
7a general State aid or primary State aid claim received after
8June 30, 2003. In recomputing a general State aid or primary
9State aid claim that was originally calculated using an
10extension limitation equalized assessed valuation under
11paragraph (3) of subsection (G) of Section 18-8.05 of this Code
12or paragraph (2) of subsection (h) of Section 18-8.15 of this
13Code, a qualifying reduction in equalized assessed valuation
14shall be deducted from the extension limitation equalized
15assessed valuation that was used in calculating the original
16claim.
17    From the total amount of general State aid or primary State
18aid to be provided to districts, adjustments as a result of
19recomputation under this Section together with adjustments
20under Section 2-3.84 must not exceed $25 million, in the
21aggregate for all districts under both Sections combined, of
22the general State aid or primary State aid appropriation in any
23fiscal year; if necessary, amounts shall be prorated among
24districts. If it is necessary to prorate claims under this
25paragraph, then that portion of each prorated claim that is
26approved but not paid in the current fiscal year may be

 

 

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1resubmitted as a valid claim in the following fiscal year.
2(Source: P.A. 93-845, eff. 7-30-04.)
 
3    (105 ILCS 5/2-3.51.5)
4    Sec. 2-3.51.5. School Safety and Educational Improvement
5Block Grant Program. To improve the level of education and
6safety of students from kindergarten through grade 12 in school
7districts and State-recognized, non-public schools. The State
8Board of Education is authorized to fund a School Safety and
9Educational Improvement Block Grant Program.
10    (1) For school districts, the program shall provide funding
11for school safety, textbooks and software, electronic
12textbooks and the technological equipment necessary to gain
13access to and use electronic textbooks, teacher training and
14curriculum development, school improvements, school report
15cards under Section 10-17a, and criminal history records checks
16under Sections 10-21.9 and 34-18.5. For State-recognized,
17non-public schools, the program shall provide funding for
18secular textbooks and software, criminal history records
19checks, and health and safety mandates to the extent that the
20funds are expended for purely secular purposes. A school
21district or laboratory school as defined in Section 18-8, or
2218-8.05, or 18-8.15 is not required to file an application in
23order to receive the categorical funding to which it is
24entitled under this Section. Funds for the School Safety and
25Educational Improvement Block Grant Program shall be

 

 

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1distributed to school districts and laboratory schools based on
2the prior year's best 3 months average daily attendance. Funds
3for the School Safety and Educational Improvement Block Grant
4Program shall be distributed to State-recognized, non-public
5schools based on the average daily attendance figure for the
6previous school year provided to the State Board of Education.
7The State Board of Education shall develop an application that
8requires State-recognized, non-public schools to submit
9average daily attendance figures. A State-recognized,
10non-public school must submit the application and average daily
11attendance figure prior to receiving funds under this Section.
12The State Board of Education shall promulgate rules and
13regulations necessary for the implementation of this program.
14    (2) Distribution of moneys to school districts and
15State-recognized, non-public schools shall be made in 2
16semi-annual installments, one payment on or before October 30,
17and one payment prior to April 30, of each fiscal year.
18    (3) Grants under the School Safety and Educational
19Improvement Block Grant Program shall be awarded provided there
20is an appropriation for the program, and funding levels for
21each district shall be prorated according to the amount of the
22appropriation.
23    (4) The provisions of this Section are in the public
24interest, are for the public benefit, and serve secular public
25purposes.
26(Source: P.A. 98-972, eff. 8-15-14.)
 

 

 

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1    (105 ILCS 5/2-3.66)  (from Ch. 122, par. 2-3.66)
2    Sec. 2-3.66. Truants' alternative and optional education
3programs. To establish projects to offer modified
4instructional programs or other services designed to prevent
5students from dropping out of school, including programs
6pursuant to Section 2-3.41, and to serve as a part time or full
7time option in lieu of regular school attendance and to award
8grants to local school districts, educational service regions
9or community college districts from appropriated funds to
10assist districts in establishing such projects. The education
11agency may operate its own program or enter into a contract
12with another not-for-profit entity to implement the program.
13The projects shall allow dropouts, up to and including age 21,
14potential dropouts, including truants, uninvolved, unmotivated
15and disaffected students, as defined by State Board of
16Education rules and regulations, to enroll, as an alternative
17to regular school attendance, in an optional education program
18which may be established by school board policy and is in
19conformance with rules adopted by the State Board of Education.
20Truants' Alternative and Optional Education programs funded
21pursuant to this Section shall be planned by a student, the
22student's parents or legal guardians, unless the student is 18
23years or older, and school officials and shall culminate in an
24individualized optional education plan. Such plan shall focus
25on academic or vocational skills, or both, and may include, but

 

 

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1not be limited to, evening school, summer school, community
2college courses, adult education, preparation courses for high
3school equivalency testing, vocational training, work
4experience, programs to enhance self concept and parenting
5courses. School districts which are awarded grants pursuant to
6this Section shall be authorized to provide day care services
7to children of students who are eligible and desire to enroll
8in programs established and funded under this Section, but only
9if and to the extent that such day care is necessary to enable
10those eligible students to attend and participate in the
11programs and courses which are conducted pursuant to this
12Section. School districts and regional offices of education may
13claim general State aid under Section 18-8.05 or primary State
14aid under Section 18-8.15 for students enrolled in truants'
15alternative and optional education programs, provided that
16such students are receiving services that are supplemental to a
17program leading to a high school diploma and are otherwise
18eligible to be claimed for general State aid under Section
1918-8.05 or primary State aid under Section 18-8.15, as
20applicable.
21(Source: P.A. 98-718, eff. 1-1-15.)
 
22    (105 ILCS 5/2-3.66b)
23    Sec. 2-3.66b. IHOPE Program.
24    (a) There is established the Illinois Hope and Opportunity
25Pathways through Education (IHOPE) Program. The State Board of

 

 

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1Education shall implement and administer the IHOPE Program. The
2goal of the IHOPE Program is to develop a comprehensive system
3in this State to re-enroll significant numbers of high school
4dropouts in programs that will enable them to earn their high
5school diploma.
6    (b) The IHOPE Program shall award grants, subject to
7appropriation for this purpose, to educational service regions
8and a school district organized under Article 34 of this Code
9from appropriated funds to assist in establishing
10instructional programs and other services designed to
11re-enroll high school dropouts. From any funds appropriated for
12the IHOPE Program, the State Board of Education may use up to
135% for administrative costs, including the performance of a
14program evaluation and the hiring of staff to implement and
15administer the program.
16    The IHOPE Program shall provide incentive grant funds for
17regional offices of education and a school district organized
18under Article 34 of this Code to develop partnerships with
19school districts, public community colleges, and community
20groups to build comprehensive plans to re-enroll high school
21dropouts in their regions or districts.
22    Programs funded through the IHOPE Program shall allow high
23school dropouts, up to and including age 21 notwithstanding
24Section 26-2 of this Code, to re-enroll in an educational
25program in conformance with rules adopted by the State Board of
26Education. Programs may include without limitation

 

 

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1comprehensive year-round programming, evening school, summer
2school, community college courses, adult education, vocational
3training, work experience, programs to enhance self-concept,
4and parenting courses. Any student in the IHOPE Program who
5wishes to earn a high school diploma must meet the
6prerequisites to receiving a high school diploma specified in
7Section 27-22 of this Code and any other graduation
8requirements of the student's district of residence. Any
9student who successfully completes the requirements for his or
10her graduation shall receive a diploma identifying the student
11as graduating from his or her district of residence.
12    (c) In order to be eligible for funding under the IHOPE
13Program, an interested regional office of education or a school
14district organized under Article 34 of this Code shall develop
15an IHOPE Plan to be approved by the State Board of Education.
16The State Board of Education shall develop rules for the IHOPE
17Program that shall set forth the requirements for the
18development of the IHOPE Plan. Each Plan shall involve school
19districts, public community colleges, and key community
20programs that work with high school dropouts located in an
21educational service region or the City of Chicago before the
22Plan is sent to the State Board for approval. No funds may be
23distributed to a regional office of education or a school
24district organized under Article 34 of this Code until the
25State Board has approved the Plan.
26    (d) A regional office of education or a school district

 

 

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1organized under Article 34 of this Code may operate its own
2program funded by the IHOPE Program or enter into a contract
3with other not-for-profit entities, including school
4districts, public community colleges, and not-for-profit
5community-based organizations, to operate a program.
6    A regional office of education or a school district
7organized under Article 34 of this Code that receives an IHOPE
8grant from the State Board of Education may provide funds under
9a sub-grant, as specified in the IHOPE Plan, to other
10not-for-profit entities to provide services according to the
11IHOPE Plan that was developed. These other entities may include
12school districts, public community colleges, or not-for-profit
13community-based organizations or a cooperative partnership
14among these entities.
15    (e) In order to distribute funding based upon the need to
16ensure delivery of programs that will have the greatest impact,
17IHOPE Program funding must be distributed based upon the
18proportion of dropouts in the educational service region or
19school district, in the case of a school district organized
20under Article 34 of this Code, to the total number of dropouts
21in this State. This formula shall employ the dropout data
22provided by school districts to the State Board of Education.
23    A regional office of education or a school district
24organized under Article 34 of this Code may claim State aid
25under Section 18-8.05 or 18-8.15 of this Code for students
26enrolled in a program funded by the IHOPE Program, provided

 

 

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1that the State Board of Education has approved the IHOPE Plan
2and that these students are receiving services that are meeting
3the requirements of Section 27-22 of this Code for receipt of a
4high school diploma and are otherwise eligible to be claimed
5for general State aid under Section 18-8.05 of this Code or
6primary State aid under Section 18-8.15 of this Code, including
7provisions related to the minimum number of days of pupil
8attendance pursuant to Section 10-19 of this Code and the
9minimum number of daily hours of school work and any exceptions
10thereto as defined by the State Board of Education in rules.
11    (f) IHOPE categories of programming may include the
12following:
13        (1) Full-time programs that are comprehensive,
14    year-round programs.
15        (2) Part-time programs combining work and study
16    scheduled at various times that are flexible to the needs
17    of students.
18        (3) Online programs and courses in which students take
19    courses and complete on-site, supervised tests that
20    measure the student's mastery of a specific course needed
21    for graduation. Students may take courses online and earn
22    credit or students may prepare to take supervised tests for
23    specific courses for credit leading to receipt of a high
24    school diploma.
25        (4) Dual enrollment in which students attend high
26    school classes in combination with community college

 

 

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1    classes or students attend community college classes while
2    simultaneously earning high school credit and eventually a
3    high school diploma.
4    (g) In order to have successful comprehensive programs
5re-enrolling and graduating low-skilled high school dropouts,
6programs funded through the IHOPE Program shall include all of
7the following components:
8        (1) Small programs (70 to 100 students) at a separate
9    school site with a distinct identity. Programs may be
10    larger with specific need and justification, keeping in
11    mind that it is crucial to keep programs small to be
12    effective.
13        (2) Specific performance-based goals and outcomes and
14    measures of enrollment, attendance, skills, credits,
15    graduation, and the transition to college, training, and
16    employment.
17        (3) Strong, experienced leadership and teaching staff
18    who are provided with ongoing professional development.
19        (4) Voluntary enrollment.
20        (5) High standards for student learning, integrating
21    work experience, and education, including during the
22    school year and after school, and summer school programs
23    that link internships, work, and learning.
24        (6) Comprehensive programs providing extensive support
25    services.
26        (7) Small teams of students supported by full-time paid

 

 

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1    mentors who work to retain and help those students
2    graduate.
3        (8) A comprehensive technology learning center with
4    Internet access and broad-based curriculum focusing on
5    academic and career subject areas.
6        (9) Learning opportunities that incorporate action
7    into study.
8    (h) Programs funded through the IHOPE Program must report
9data to the State Board of Education as requested. This
10information shall include, but is not limited to, student
11enrollment figures, attendance information, course completion
12data, graduation information, and post-graduation information,
13as available.
14    (i) Rules must be developed by the State Board of Education
15to set forth the fund distribution process to regional offices
16of education and a school district organized under Article 34
17of this Code, the planning and the conditions upon which an
18IHOPE Plan would be approved by State Board, and other rules to
19develop the IHOPE Program.
20(Source: P.A. 96-106, eff. 7-30-09.)
 
21    (105 ILCS 5/2-3.84)  (from Ch. 122, par. 2-3.84)
22    Sec. 2-3.84. In calculating the amount of State aid to be
23apportioned to the various school districts in this State, the
24State Board of Education shall incorporate and deduct the total
25aggregate adjustments to assessments made by the State Property

 

 

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1Tax Appeal Board or Cook County Board of Appeals, as reported
2pursuant to Section 16-15 of the Property Tax Code or Section
3129.1 of the Revenue Act of 1939 by the Department of Revenue,
4from the equalized assessed valuation that is otherwise to be
5utilized in the initial calculation.
6    From the total amount of general State aid or primary State
7aid to be provided to districts, adjustments under this Section
8together with adjustments as a result of recomputation under
9Section 2-3.33 must not exceed $25 million, in the aggregate
10for all districts under both Sections combined, of the general
11State aid or primary State aid appropriation in any fiscal
12year; if necessary, amounts shall be prorated among districts.
13If it is necessary to prorate claims under this paragraph, then
14that portion of each prorated claim that is approved but not
15paid in the current fiscal year may be resubmitted as a valid
16claim in the following fiscal year.
17(Source: P.A. 93-845, eff. 7-30-04.)
 
18    (105 ILCS 5/2-3.109a)
19    Sec. 2-3.109a. Laboratory schools grant eligibility. A
20laboratory school as defined in Section 18-8 or 18-8.15 may
21apply for and be eligible to receive, subject to the same
22restrictions applicable to school districts, any grant
23administered by the State Board of Education that is available
24for school districts.
25(Source: P.A. 90-566, eff. 1-2-98.)
 

 

 

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1    (105 ILCS 5/3-14.21)  (from Ch. 122, par. 3-14.21)
2    Sec. 3-14.21. Inspection of schools.
3    (a) The regional superintendent shall inspect and survey
4all public schools under his or her supervision and notify the
5board of education, or the trustees of schools in a district
6with trustees, in writing before July 30, whether or not the
7several schools in their district have been kept as required by
8law, using forms provided by the State Board of Education which
9are based on the Health/Life Safety Code for Public Schools
10adopted under Section 2-3.12. The regional superintendent
11shall report his or her findings to the State Board of
12Education on forms provided by the State Board of Education.
13    (b) If the regional superintendent determines that a school
14board has failed in a timely manner to correct urgent items
15identified in a previous life-safety report completed under
16Section 2-3.12 or as otherwise previously ordered by the
17regional superintendent, the regional superintendent shall
18order the school board to adopt and submit to the regional
19superintendent a plan for the immediate correction of the
20building violations. This plan shall be adopted following a
21public hearing that is conducted by the school board on the
22violations and the plan and that is preceded by at least 7
23days' prior notice of the hearing published in a newspaper of
24general circulation within the school district. If the regional
25superintendent determines in the next annual inspection that

 

 

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1the plan has not been completed and that the violations have
2not been corrected, the regional superintendent shall submit a
3report to the State Board of Education with a recommendation
4that the State Board withhold from payments of general State
5aid or primary State aid due to the district an amount
6necessary to correct the outstanding violations. The State
7Board, upon notice to the school board and to the regional
8superintendent, shall consider the report at a meeting of the
9State Board, and may order that a sufficient amount of general
10State aid or primary State aid be withheld from payments due to
11the district to correct the violations. This amount shall be
12paid to the regional superintendent who shall contract on
13behalf of the school board for the correction of the
14outstanding violations.
15    (c) The Office of the State Fire Marshal or a qualified
16fire official, as defined in Section 2-3.12 of this Code, to
17whom the State Fire Marshal has delegated his or her authority
18shall conduct an annual fire safety inspection of each school
19building in this State. The State Fire Marshal or the fire
20official shall coordinate its inspections with the regional
21superintendent. The inspection shall be based on the fire
22safety code authorized in Section 2-3.12 of this Code. Any
23violations shall be reported in writing to the regional
24superintendent and shall reference the specific code sections
25where a discrepancy has been identified within 15 days after
26the inspection has been conducted. The regional superintendent

 

 

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1shall address those violations that are not corrected in a
2timely manner pursuant to subsection (b) of this Section. The
3inspection must be at no cost to the school district.
4    (d) If a municipality or, in the case of an unincorporated
5area, a county or, if applicable, a fire protection district
6wishes to perform new construction inspections under the
7jurisdiction of a regional superintendent, then the entity must
8register this wish with the regional superintendent. These
9inspections must be based on the building code authorized in
10Section 2-3.12 of this Code. The inspections must be at no cost
11to the school district.
12(Source: P.A. 96-734, eff. 8-25-09.)
 
13    (105 ILCS 5/7-14A)  (from Ch. 122, par. 7-14A)
14    Sec. 7-14A. Annexation Compensation. There shall be no
15accounting made after a mere change in boundaries when no new
16district is created, except that those districts whose
17enrollment increases by 90% or more as a result of annexing
18territory detached from another district pursuant to this
19Article are eligible for supplementary State aid payments in
20accordance with Section 11E-135 of this Code. Eligible annexing
21districts shall apply to the State Board of Education for
22supplementary State aid payments by submitting enrollment
23figures for the year immediately preceding and the year
24immediately following the effective date of the boundary change
25for both the district gaining territory and the district losing

 

 

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1territory. Copies of any intergovernmental agreements between
2the district gaining territory and the district losing
3territory detailing any transfer of fund balances and staff
4must also be submitted. In all instances of changes in
5boundaries, the district losing territory shall not count the
6average daily attendance of pupils living in the territory
7during the year preceding the effective date of the boundary
8change in its claim for reimbursement under Section 18-8 or
918-8.15 for the school year following the effective date of the
10change in boundaries and the district receiving the territory
11shall count the average daily attendance of pupils living in
12the territory during the year preceding the effective date of
13the boundary change in its claim for reimbursement under
14Section 18-8 or 18-8.15 for the school year following the
15effective date of the change in boundaries. The changes to this
16Section made by this amendatory Act of the 95th General
17Assembly are intended to be retroactive and applicable to any
18annexation taking effect on or after July 1, 2004.
19(Source: P.A. 95-707, eff. 1-11-08.)
 
20    (105 ILCS 5/10-17a)  (from Ch. 122, par. 10-17a)
21    Sec. 10-17a. State, school district, and school report
22cards.
23    (1) By October 31, 2013 and October 31 of each subsequent
24school year, the State Board of Education, through the State
25Superintendent of Education, shall prepare a State report card,

 

 

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1school district report cards, and school report cards, and
2shall by the most economic means provide to each school
3district in this State, including special charter districts and
4districts subject to the provisions of Article 34, the report
5cards for the school district and each of its schools.
6    (2) In addition to any information required by federal law,
7the State Superintendent shall determine the indicators and
8presentation of the school report card, which must include, at
9a minimum, the most current data possessed by the State Board
10of Education related to the following:
11        (A) school characteristics and student demographics,
12    including average class size, average teaching experience,
13    student racial/ethnic breakdown, and the percentage of
14    students classified as low-income; the percentage of
15    students classified as English learners; the percentage of
16    students who have individualized education plans or 504
17    plans that provide for special education services; the
18    percentage of students who annually transferred in or out
19    of the school district; the per-pupil operating
20    expenditure of the school district; and the per-pupil State
21    average operating expenditure for the district type
22    (elementary, high school, or unit);
23        (B) curriculum information, including, where
24    applicable, Advanced Placement, International
25    Baccalaureate or equivalent courses, dual enrollment
26    courses, foreign language classes, school personnel

 

 

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1    resources (including Career Technical Education teachers),
2    before and after school programs, extracurricular
3    activities, subjects in which elective classes are
4    offered, health and wellness initiatives (including the
5    average number of days of Physical Education per week per
6    student), approved programs of study, awards received,
7    community partnerships, and special programs such as
8    programming for the gifted and talented, students with
9    disabilities, and work-study students;
10        (C) student outcomes, including, where applicable, the
11    percentage of students deemed proficient on assessments of
12    State standards, the percentage of students in the eighth
13    grade who pass Algebra, the percentage of students enrolled
14    in post-secondary institutions (including colleges,
15    universities, community colleges, trade/vocational
16    schools, and training programs leading to career
17    certification within 2 semesters of high school
18    graduation), the percentage of students graduating from
19    high school who are college and career ready, and the
20    percentage of graduates enrolled in community colleges,
21    colleges, and universities who are in one or more courses
22    that the community college, college, or university
23    identifies as a developmental course;
24        (D) student progress, including, where applicable, the
25    percentage of students in the ninth grade who have earned 5
26    credits or more without failing more than one core class, a

 

 

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1    measure of students entering kindergarten ready to learn, a
2    measure of growth, and the percentage of students who enter
3    high school on track for college and career readiness;
4        (E) the school environment, including, where
5    applicable, the percentage of students with less than 10
6    absences in a school year, the percentage of teachers with
7    less than 10 absences in a school year for reasons other
8    than professional development, leaves taken pursuant to
9    the federal Family Medical Leave Act of 1993, long-term
10    disability, or parental leaves, the 3-year average of the
11    percentage of teachers returning to the school from the
12    previous year, the number of different principals at the
13    school in the last 6 years, 2 or more indicators from any
14    school climate survey selected or approved by the State and
15    administered pursuant to Section 2-3.153 of this Code, with
16    the same or similar indicators included on school report
17    cards for all surveys selected or approved by the State
18    pursuant to Section 2-3.153 of this Code, and the combined
19    percentage of teachers rated as proficient or excellent in
20    their most recent evaluation; and
21        (F) a school district's and its individual schools'
22    balanced accountability measure, in accordance with
23    Section 2-3.25a of this Code.
24    The school report card shall also provide information that
25allows for comparing the current outcome, progress, and
26environment data to the State average, to the school data from

 

 

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1the past 5 years, and to the outcomes, progress, and
2environment of similar schools based on the type of school and
3enrollment of low-income students, special education students,
4and English learners.
5    (3) At the discretion of the State Superintendent, the
6school district report card shall include a subset of the
7information identified in paragraphs (A) through (E) of
8subsection (2) of this Section, as well as information relating
9to the operating expense per pupil and other finances of the
10school district, and the State report card shall include a
11subset of the information identified in paragraphs (A) through
12(E) of subsection (2) of this Section. The school district
13report card shall include the total and per pupil normal cost
14amount the State contributed to the Teachers' Retirement System
15of the State of Illinois in the prior fiscal year for the
16district's employees, which shall be reported to the State
17Board of Education by the Teachers' Retirement System of the
18State of Illinois.
19    (4) Notwithstanding anything to the contrary in this
20Section, in consultation with key education stakeholders, the
21State Superintendent shall at any time have the discretion to
22amend or update any and all metrics on the school, district, or
23State report card.
24    (5) Annually, no more than 30 calendar days after receipt
25of the school district and school report cards from the State
26Superintendent of Education, each school district, including

 

 

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1special charter districts and districts subject to the
2provisions of Article 34, shall present such report cards at a
3regular school board meeting subject to applicable notice
4requirements, post the report cards on the school district's
5Internet web site, if the district maintains an Internet web
6site, make the report cards available to a newspaper of general
7circulation serving the district, and, upon request, send the
8report cards home to a parent (unless the district does not
9maintain an Internet web site, in which case the report card
10shall be sent home to parents without request). If the district
11posts the report card on its Internet web site, the district
12shall send a written notice home to parents stating (i) that
13the report card is available on the web site, (ii) the address
14of the web site, (iii) that a printed copy of the report card
15will be sent to parents upon request, and (iv) the telephone
16number that parents may call to request a printed copy of the
17report card.
18    (6) Nothing contained in this amendatory Act of the 98th
19General Assembly repeals, supersedes, invalidates, or
20nullifies final decisions in lawsuits pending on the effective
21date of this amendatory Act of the 98th General Assembly in
22Illinois courts involving the interpretation of Public Act
2397-8.
24(Source: P.A. 98-463, eff. 8-16-13; 98-648, eff. 7-1-14; 99-30,
25eff. 7-10-15; 99-193, eff. 7-30-15; revised 10-21-15.)
 

 

 

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1    (105 ILCS 5/10-19)  (from Ch. 122, par. 10-19)
2    Sec. 10-19. Length of school term - experimental programs.
3Each school board shall annually prepare a calendar for the
4school term, specifying the opening and closing dates and
5providing a minimum term of at least 185 days to insure 176
6days of actual pupil attendance, computable under Section
718-8.05 or 18-8.15, except that for the 1980-1981 school year
8only 175 days of actual pupil attendance shall be required
9because of the closing of schools pursuant to Section 24-2 on
10January 29, 1981 upon the appointment by the President of that
11day as a day of thanksgiving for the freedom of the Americans
12who had been held hostage in Iran. Any days allowed by law for
13teachers' institutes but not used as such or used as parental
14institutes as provided in Section 10-22.18d shall increase the
15minimum term by the school days not so used. Except as provided
16in Section 10-19.1, the board may not extend the school term
17beyond such closing date unless that extension of term is
18necessary to provide the minimum number of computable days. In
19case of such necessary extension school employees shall be paid
20for such additional time on the basis of their regular
21contracts. A school board may specify a closing date earlier
22than that set on the annual calendar when the schools of the
23district have provided the minimum number of computable days
24under this Section. Nothing in this Section prevents the board
25from employing superintendents of schools, principals and
26other nonteaching personnel for a period of 12 months, or in

 

 

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1the case of superintendents for a period in accordance with
2Section 10-23.8, or prevents the board from employing other
3personnel before or after the regular school term with payment
4of salary proportionate to that received for comparable work
5during the school term.
6    A school board may make such changes in its calendar for
7the school term as may be required by any changes in the legal
8school holidays prescribed in Section 24-2. A school board may
9make changes in its calendar for the school term as may be
10necessary to reflect the utilization of teachers' institute
11days as parental institute days as provided in Section
1210-22.18d.
13    The calendar for the school term and any changes must be
14submitted to and approved by the regional superintendent of
15schools before the calendar or changes may take effect.
16    With the prior approval of the State Board of Education and
17subject to review by the State Board of Education every 3
18years, any school board may, by resolution of its board and in
19agreement with affected exclusive collective bargaining
20agents, establish experimental educational programs, including
21but not limited to programs for e-learning days as authorized
22under Section 10-20.56 of this Code, self-directed learning, or
23outside of formal class periods, which programs when so
24approved shall be considered to comply with the requirements of
25this Section as respects numbers of days of actual pupil
26attendance and with the other requirements of this Act as

 

 

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1respects courses of instruction.
2(Source: P.A. 98-756, eff. 7-16-14; 99-194, eff. 7-30-15.)
 
3    (105 ILCS 5/10-22.5a)  (from Ch. 122, par. 10-22.5a)
4    Sec. 10-22.5a. Attendance by dependents of United States
5military personnel, foreign exchange students, and certain
6nonresident pupils.
7    (a) To enter into written agreements with cultural exchange
8organizations, or with nationally recognized eleemosynary
9institutions that promote excellence in the arts, mathematics,
10or science. The written agreements may provide for tuition free
11attendance at the local district school by foreign exchange
12students, or by nonresident pupils of eleemosynary
13institutions. The local board of education, as part of the
14agreement, may require that the cultural exchange program or
15the eleemosynary institutions provide services to the district
16in exchange for the waiver of nonresident tuition.
17    To enter into written agreements with adjacent school
18districts to provide for tuition free attendance by a student
19of the adjacent district when requested for the student's
20health and safety by the student or parent and both districts
21determine that the student's health or safety will be served by
22such attendance. Districts shall not be required to enter into
23such agreements nor be required to alter existing
24transportation services due to the attendance of such
25non-resident pupils.

 

 

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1    (a-5) If, at the time of enrollment, a dependent of United
2States military personnel is housed in temporary housing
3located outside of a school district, but will be living within
4the district within 60 days after the time of initial
5enrollment, the dependent must be allowed to enroll, subject to
6the requirements of this subsection (a-5), and must not be
7charged tuition. Any United States military personnel
8attempting to enroll a dependent under this subsection (a-5)
9shall provide proof that the dependent will be living within
10the district within 60 days after the time of initial
11enrollment. Proof of residency may include, but is not limited
12to, postmarked mail addressed to the military personnel and
13sent to an address located within the district, a lease
14agreement for occupancy of a residence located within the
15district, or proof of ownership of a residence located within
16the district.
17    (b) Nonresident pupils and foreign exchange students
18attending school on a tuition free basis under such agreements
19and nonresident dependents of United States military personnel
20attending school on a tuition free basis may be counted for the
21purposes of determining the apportionment of State aid provided
22under Section 18-8.05 or 18-8.15 of this Code. No organization
23or institution participating in agreements authorized under
24this Section may exclude any individual for participation in
25its program on account of the person's race, color, sex,
26religion or nationality.

 

 

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1(Source: P.A. 98-739, eff. 7-16-14.)
 
2    (105 ILCS 5/10-22.20)  (from Ch. 122, par. 10-22.20)
3    Sec. 10-22.20. Classes for adults and youths whose
4schooling has been interrupted; conditions for State
5reimbursement; use of child care facilities.
6    (a) To establish special classes for the instruction (1) of
7persons of age 21 years or over and (2) of persons less than
8age 21 and not otherwise in attendance in public school, for
9the purpose of providing adults in the community and youths
10whose schooling has been interrupted with such additional basic
11education, vocational skill training, and other instruction as
12may be necessary to increase their qualifications for
13employment or other means of self-support and their ability to
14meet their responsibilities as citizens, including courses of
15instruction regularly accepted for graduation from elementary
16or high schools and for Americanization and high school
17equivalency testing review classes.
18    The board shall pay the necessary expenses of such classes
19out of school funds of the district, including costs of student
20transportation and such facilities or provision for child-care
21as may be necessary in the judgment of the board to permit
22maximum utilization of the courses by students with children,
23and other special needs of the students directly related to
24such instruction. The expenses thus incurred shall be subject
25to State reimbursement, as provided in this Section. The board

 

 

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1may make a tuition charge for persons taking instruction who
2are not subject to State reimbursement, such tuition charge not
3to exceed the per capita cost of such classes.
4    The cost of such instruction, including the additional
5expenses herein authorized, incurred for recipients of
6financial aid under the Illinois Public Aid Code, or for
7persons for whom education and training aid has been authorized
8under Section 9-8 of that Code, shall be assumed in its
9entirety from funds appropriated by the State to the Illinois
10Community College Board.
11    (b) The Illinois Community College Board shall establish
12the standards for the courses of instruction reimbursed under
13this Section. The Illinois Community College Board shall
14supervise the administration of the programs. The Illinois
15Community College Board shall determine the cost of instruction
16in accordance with standards established by the Illinois
17Community College Board, including therein other incidental
18costs as herein authorized, which shall serve as the basis of
19State reimbursement in accordance with the provisions of this
20Section. In the approval of programs and the determination of
21the cost of instruction, the Illinois Community College Board
22shall provide for the maximum utilization of federal funds for
23such programs. The Illinois Community College Board shall also
24provide for:
25        (1) the development of an index of need for program
26    planning and for area funding allocations, as defined by

 

 

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1    the Illinois Community College Board;
2        (2) the method for calculating hours of instruction, as
3    defined by the Illinois Community College Board, claimable
4    for reimbursement and a method to phase in the calculation
5    and for adjusting the calculations in cases where the
6    services of a program are interrupted due to circumstances
7    beyond the control of the program provider;
8        (3) a plan for the reallocation of funds to increase
9    the amount allocated for grants based upon program
10    performance as set forth in subsection (d) below; and
11        (4) the development of standards for determining
12    grants based upon performance as set forth in subsection
13    (d) below and a plan for the phased-in implementation of
14    those standards.
15    For instruction provided by school districts and community
16college districts beginning July 1, 1996 and thereafter,
17reimbursement provided by the Illinois Community College Board
18for classes authorized by this Section shall be provided from
19funds appropriated for the reimbursement criteria set forth in
20subsection (c) below.
21    (c) Upon the annual approval of the Illinois Community
22College Board, reimbursement shall be first provided for
23transportation, child care services, and other special needs of
24the students directly related to instruction and then from the
25funds remaining an amount equal to the product of the total
26credit hours or units of instruction approved by the Illinois

 

 

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1Community College Board, multiplied by the following:
2        (1) For adult basic education, the maximum
3    reimbursement per credit hour or per unit of instruction
4    shall be equal to (i) through fiscal year 2016, the general
5    state aid per pupil foundation level established in
6    subsection (B) of Section 18-8.05, divided by 60, or (ii)
7    in fiscal year 2017 and thereafter, the foundation level
8    established pursuant to subsection (b) of Section 18-8.15
9    of this Code, divided by 60;
10        (2) The maximum reimbursement per credit hour or per
11    unit of instruction in subparagraph (1) above shall be
12    weighted for students enrolled in classes defined as
13    vocational skills and approved by the Illinois Community
14    College Board by 1.25;
15        (3) The maximum reimbursement per credit hour or per
16    unit of instruction in subparagraph (1) above shall be
17    multiplied by .90 for students enrolled in classes defined
18    as adult secondary education programs and approved by the
19    Illinois Community College Board;
20        (4) (Blank); and
21        (5) Funding for program years after 1999-2000 shall be
22    determined by the Illinois Community College Board.
23    (d) Upon its annual approval, the Illinois Community
24College Board shall provide grants to eligible programs for
25supplemental activities to improve or expand services under the
26Adult Education Act. Eligible programs shall be determined

 

 

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1based upon performance outcomes of students in the programs as
2set by the Illinois Community College Board.
3    (e) Reimbursement under this Section shall not exceed the
4actual costs of the approved program.
5    If the amount appropriated to the Illinois Community
6College Board for reimbursement under this Section is less than
7the amount required under this Act, the apportionment shall be
8proportionately reduced.
9    School districts and community college districts may
10assess students up to $3.00 per credit hour, for classes other
11than Adult Basic Education level programs, if needed to meet
12program costs.
13    (f) An education plan shall be established for each adult
14or youth whose schooling has been interrupted and who is
15participating in the instructional programs provided under
16this Section.
17    Each school board and community college shall keep an
18accurate and detailed account of the students assigned to and
19receiving instruction under this Section who are subject to
20State reimbursement and shall submit reports of services
21provided commencing with fiscal year 1997 as required by the
22Illinois Community College Board.
23    For classes authorized under this Section, a credit hour or
24unit of instruction is equal to 15 hours of direct instruction
25for students enrolled in approved adult education programs at
26midterm and making satisfactory progress, in accordance with

 

 

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1standards established by the Illinois Community College Board.
2    (g) Upon proof submitted to the Illinois Department of
3Human Services of the payment of all claims submitted under
4this Section, that Department shall apply for federal funds
5made available therefor and any federal funds so received shall
6be paid into the General Revenue Fund in the State Treasury.
7    School districts or community colleges providing classes
8under this Section shall submit applications to the Illinois
9Community College Board for preapproval in accordance with the
10standards established by the Illinois Community College Board.
11Payments shall be made by the Illinois Community College Board
12based upon approved programs. Interim expenditure reports may
13be required by the Illinois Community College Board. Final
14claims for the school year shall be submitted to the regional
15superintendents for transmittal to the Illinois Community
16College Board. Final adjusted payments shall be made by
17September 30.
18    If a school district or community college district fails to
19provide, or is providing unsatisfactory or insufficient
20classes under this Section, the Illinois Community College
21Board may enter into agreements with public or private
22educational or other agencies other than the public schools for
23the establishment of such classes.
24    (h) If a school district or community college district
25establishes child-care facilities for the children of
26participants in classes established under this Section, it may

 

 

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1extend the use of these facilities to students who have
2obtained employment and to other persons in the community whose
3children require care and supervision while the parent or other
4person in charge of the children is employed or otherwise
5absent from the home during all or part of the day. It may make
6the facilities available before and after as well as during
7regular school hours to school age and preschool age children
8who may benefit thereby, including children who require care
9and supervision pending the return of their parent or other
10person in charge of their care from employment or other
11activity requiring absence from the home.
12    The Illinois Community College Board shall pay to the board
13the cost of care in the facilities for any child who is a
14recipient of financial aid under the Illinois Public Aid Code.
15    The board may charge for care of children for whom it
16cannot make claim under the provisions of this Section. The
17charge shall not exceed per capita cost, and to the extent
18feasible, shall be fixed at a level which will permit
19utilization by employed parents of low or moderate income. It
20may also permit any other State or local governmental agency or
21private agency providing care for children to purchase care.
22    After July 1, 1970 when the provisions of Section 10-20.20
23become operative in the district, children in a child-care
24facility shall be transferred to the kindergarten established
25under that Section for such portion of the day as may be
26required for the kindergarten program, and only the prorated

 

 

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1costs of care and training provided in the Center for the
2remaining period shall be charged to the Illinois Department of
3Human Services or other persons or agencies paying for such
4care.
5    (i) The provisions of this Section shall also apply to
6school districts having a population exceeding 500,000.
7    (j) In addition to claiming reimbursement under this
8Section, a school district may claim general State aid under
9Section 18-8.05 or primary State aid under Section 18-8.15 for
10any student under age 21 who is enrolled in courses accepted
11for graduation from elementary or high school and who otherwise
12meets the requirements of Section 18-8.05 or 18-8.15, as
13applicable.
14(Source: P.A. 98-718, eff. 1-1-15.)
 
15    (105 ILCS 5/10-29)
16    Sec. 10-29. Remote educational programs.
17    (a) For purposes of this Section, "remote educational
18program" means an educational program delivered to students in
19the home or other location outside of a school building that
20meets all of the following criteria:
21        (1) A student may participate in the program only after
22    the school district, pursuant to adopted school board
23    policy, and a person authorized to enroll the student under
24    Section 10-20.12b of this Code determine that a remote
25    educational program will best serve the student's

 

 

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1    individual learning needs. The adopted school board policy
2    shall include, but not be limited to, all of the following:
3            (A) Criteria for determining that a remote
4        educational program will best serve a student's
5        individual learning needs. The criteria must include
6        consideration of, at a minimum, a student's prior
7        attendance, disciplinary record, and academic history.
8            (B) Any limitations on the number of students or
9        grade levels that may participate in a remote
10        educational program.
11            (C) A description of the process that the school
12        district will use to approve participation in the
13        remote educational program. The process must include
14        without limitation a requirement that, for any student
15        who qualifies to receive services pursuant to the
16        federal Individuals with Disabilities Education
17        Improvement Act of 2004, the student's participation
18        in a remote educational program receive prior approval
19        from the student's individualized education program
20        team.
21            (D) A description of the process the school
22        district will use to develop and approve a written
23        remote educational plan that meets the requirements of
24        subdivision (5) of this subsection (a).
25            (E) A description of the system the school district
26        will establish to calculate the number of clock hours a

 

 

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1        student is participating in instruction in accordance
2        with the remote educational program.
3            (F) A description of the process for renewing a
4        remote educational program at the expiration of its
5        term.
6            (G) Such other terms and provisions as the school
7        district deems necessary to provide for the
8        establishment and delivery of a remote educational
9        program.
10        (2) The school district has determined that the remote
11    educational program's curriculum is aligned to State
12    learning standards and that the program offers instruction
13    and educational experiences consistent with those given to
14    students at the same grade level in the district.
15        (3) The remote educational program is delivered by
16    instructors that meet the following qualifications:
17            (A) they are certificated under Article 21 of this
18        Code;
19            (B) they meet applicable highly qualified criteria
20        under the federal No Child Left Behind Act of 2001; and
21            (C) they have responsibility for all of the
22        following elements of the program: planning
23        instruction, diagnosing learning needs, prescribing
24        content delivery through class activities, assessing
25        learning, reporting outcomes to administrators and
26        parents and guardians, and evaluating the effects of

 

 

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1        instruction.
2        (4) During the period of time from and including the
3    opening date to the closing date of the regular school term
4    of the school district established pursuant to Section
5    10-19 of this Code, participation in a remote educational
6    program may be claimed for general State aid purposes under
7    Section 18-8.05 of this Code or primary State aid purposes
8    under Section 18-8.15 of this Code on any calendar day,
9    notwithstanding whether the day is a day of pupil
10    attendance or institute day on the school district's
11    calendar or any other provision of law restricting
12    instruction on that day. If the district holds year-round
13    classes in some buildings, the district shall classify each
14    student's participation in a remote educational program as
15    either on a year-round or a non-year-round schedule for
16    purposes of claiming general State aid or primary State
17    aid. Outside of the regular school term of the district,
18    the remote educational program may be offered as part of
19    any summer school program authorized by this Code.
20        (5) Each student participating in a remote educational
21    program must have a written remote educational plan that
22    has been approved by the school district and a person
23    authorized to enroll the student under Section 10-20.12b of
24    this Code. The school district and a person authorized to
25    enroll the student under Section 10-20.12b of this Code
26    must approve any amendment to a remote educational plan.

 

 

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1    The remote educational plan must include, but is not
2    limited to, all of the following:
3            (A) Specific achievement goals for the student
4        aligned to State learning standards.
5            (B) A description of all assessments that will be
6        used to measure student progress, which description
7        shall indicate the assessments that will be
8        administered at an attendance center within the school
9        district.
10            (C) A description of the progress reports that will
11        be provided to the school district and the person or
12        persons authorized to enroll the student under Section
13        10-20.12b of