Illinois General Assembly - Full Text of HB3637
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Full Text of HB3637  102nd General Assembly

HB3637 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3637

 

Introduced 2/22/2021, by Rep. Thomas M. Bennett

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/6z-45
30 ILCS 350/16.5
105 ILCS 230/5-5
105 ILCS 230/5-10
105 ILCS 230/5-15
105 ILCS 230/5-20
105 ILCS 230/5-25
105 ILCS 230/5-30
105 ILCS 230/5-35
105 ILCS 230/5-50
105 ILCS 230/5-37 rep.
105 ILCS 230/5-38 rep.
105 ILCS 230/5-45 rep.
105 ILCS 230/5-57 rep.

    Amends the School Construction Law. Makes changes concerning application for a grant, a conditional grant award, the required local match and grant award amount, eligibility, the priority of school construction projects, and referendum requirements. Repeals provisions concerning carry over projects, Fiscal Year 2002 escalation, debt service grants, and a school capital needs assessment. Amends the State Finance Act and the Local Government Debt Reform Act to make related changes. Effective immediately.


LRB102 16919 CMG 22331 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3637LRB102 16919 CMG 22331 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by changing
5Section 6z-45 as follows:
 
6    (30 ILCS 105/6z-45)
7    Sec. 6z-45. The School Infrastructure Fund.
8    (a) The School Infrastructure Fund is created as a special
9fund in the State Treasury.
10    In addition to any other deposits authorized by law,
11beginning January 1, 2000, on the first day of each month, or
12as soon thereafter as may be practical, the State Treasurer
13and State Comptroller shall transfer the sum of $5,000,000
14from the General Revenue Fund to the School Infrastructure
15Fund, except that, notwithstanding any other provision of law,
16and in addition to any other transfers that may be provided for
17by law, before June 30, 2012, the Comptroller and the
18Treasurer shall transfer $45,000,000 from the General Revenue
19Fund into the School Infrastructure Fund, and, for fiscal year
202013 only, the Treasurer and the Comptroller shall transfer
21$1,250,000 from the General Revenue Fund to the School
22Infrastructure Fund on the first day of each month; provided,
23however, that no such transfers shall be made from July 1, 2001

 

 

HB3637- 2 -LRB102 16919 CMG 22331 b

1through June 30, 2003.
2    (a-5) Money in the School Infrastructure Fund may be used
3to pay the expenses of the State Board of Education, the
4Governor's Office of Management and Budget, and the Capital
5Development Board in administering programs under the School
6Construction Law, the total expenses not to exceed $1,315,000
7in any fiscal year.
8    (b) Subject to the transfer provisions set forth below,
9money in the School Infrastructure Fund shall, if and when the
10State of Illinois incurs any bonded indebtedness for the
11construction of school improvements under subsection (e) of
12Section 5 of the General Obligation Bond Act, be set aside and
13used for the purpose of paying and discharging annually the
14principal and interest on that bonded indebtedness then due
15and payable, and for no other purpose.
16    In addition to other transfers to the General Obligation
17Bond Retirement and Interest Fund made pursuant to Section 15
18of the General Obligation Bond Act, upon each delivery of
19bonds issued for construction of school improvements under the
20School Construction Law, the State Comptroller shall compute
21and certify to the State Treasurer the total amount of
22principal of, interest on, and premium, if any, on such bonds
23during the then current and each succeeding fiscal year. With
24respect to the interest payable on variable rate bonds, such
25certifications shall be calculated at the maximum rate of
26interest that may be payable during the fiscal year, after

 

 

HB3637- 3 -LRB102 16919 CMG 22331 b

1taking into account any credits permitted in the related
2indenture or other instrument against the amount of such
3interest required to be appropriated for that period.
4    On or before the last day of each month, the State
5Treasurer and State Comptroller shall transfer from the School
6Infrastructure Fund to the General Obligation Bond Retirement
7and Interest Fund an amount sufficient to pay the aggregate of
8the principal of, interest on, and premium, if any, on the
9bonds payable on their next payment date, divided by the
10number of monthly transfers occurring between the last
11previous payment date (or the delivery date if no payment date
12has yet occurred) and the next succeeding payment date.
13Interest payable on variable rate bonds shall be calculated at
14the maximum rate of interest that may be payable for the
15relevant period, after taking into account any credits
16permitted in the related indenture or other instrument against
17the amount of such interest required to be appropriated for
18that period. Interest for which moneys have already been
19deposited into the capitalized interest account within the
20General Obligation Bond Retirement and Interest Fund shall not
21be included in the calculation of the amounts to be
22transferred under this subsection.
23    (b-5) The money deposited into the School Infrastructure
24Fund from transfers pursuant to subsections (c-30) and (c-35)
25of Section 13 of the Illinois Gambling Act shall be applied,
26without further direction, as provided in subsection (b-3) of

 

 

HB3637- 4 -LRB102 16919 CMG 22331 b

1Section 5-35 of the School Construction Law.
2    (b-7) In fiscal year 2021 only, of the surplus, if any, in
3the School Infrastructure Fund after payments made pursuant to
4subsections (a-5), (b), and (b-5) of this Section, $20,000,000
5shall be transferred to the General Revenue Fund.
6    (c) The surplus, if any, in the School Infrastructure Fund
7after payments made pursuant to subsections (a-5), (b), (b-5),
8and (b-7) of this Section shall, subject to appropriation, be
9used as follows:
10    First - to make 3 payments to the School Technology
11Revolving Loan Fund as follows:
12        Transfer of $30,000,000 in fiscal year 1999;
13        Transfer of $20,000,000 in fiscal year 2000; and
14        Transfer of $10,000,000 in fiscal year 2001.
15    Second - to pay any amounts due for grants for school
16construction projects and debt service under the School
17Construction Law.
18    Third - to pay any amounts due for grants for school
19maintenance projects under the School Construction Law.
20(Source: P.A. 100-23, eff. 7-6-17; 101-31, eff. 6-28-19;
21101-636, eff. 6-10-20.)
 
22    Section 10. The Local Government Debt Reform Act is
23amended by changing Section 16.5 as follows:
 
24    (30 ILCS 350/16.5)

 

 

HB3637- 5 -LRB102 16919 CMG 22331 b

1    Sec. 16.5. Proposition for bonds. For all elections held
2after July 1, 2000, the form of a proposition to authorize the
3issuance of bonds pursuant to either a referendum or backdoor
4referendum may be as set forth in this Section as an
5alternative to the form of proposition as otherwise set forth
6by applicable law. The proposition authorized by this Section
7shall be in substantially the following form:
8        Shall (name of governmental unit) (state purpose for
9    the bond issue) and issue its bonds to the amount of $
10    (state amount) for the purpose of paying the costs
11    thereof?
12    If a school district receives a conditional grant award
13from the Capital Development Board expects to receive a school
14construction grant from the State of Illinois pursuant to
15Section 5-15 of the School Construction Law for the a school
16construction project to be financed in part with proceeds of
17the bonds a bond authorized by referendum, then the form of
18proposition may at the option of the school district
19additionally contain substantially the following language:
20        (Name of school district) expects to receive a school
21    construction grant from the State of Illinois in the
22    amount of $ (state amount) pursuant to the School
23    Construction Law to cover a portion of the total project
24    costs for the school construction project to be financed
25    in part with the proceeds of the bonds, based on the
26    conditional grant award received from the Capital

 

 

HB3637- 6 -LRB102 16919 CMG 22331 b

1    Development Board pursuant to the School Construction Law
2    (i) a grant entitlement from the State Board of Education
3    and (ii) current recognized project costs determined by
4    the Capital Development Board.
5(Source: P.A. 91-868, eff. 6-22-00; 92-879, eff. 1-13-03.)
 
6    Section 15. The School Construction Law is amended by
7changing Sections 5-5, 5-10, 5-15, 5-20, 5-25, 5-30, 5-35, and
85-50 as follows:
 
9    (105 ILCS 230/5-5)
10    Sec. 5-5. Definitions. As used in this Article:
11    "Conditional grant award" means the formal notification by
12the Capital Development Board to a school district of its
13conditional intent to award a grant to a school district to pay
14a portion of the recognized project cost for a school
15construction project. The grant award is conditioned upon
16receiving proof from the school district that it has funds
17available to cover the cost of the required local match.
18    "Grant award amount" means an amount equal to the
19recognized project cost determined by the Capital Development
20Board for a school construction project multiplied by the
21grant award percentage and then adjusted as may be required
22pursuant to subsection (d) of Section 5-15.
23    "Grant award percentage" means a percentage equal to one
24minus the required local match percentage.

 

 

HB3637- 7 -LRB102 16919 CMG 22331 b

1    "Approved school construction bonds" mean bonds that were
2approved by referendum after January 1, 1996 but prior to
3January 1, 1998 as provided in Sections 19-2 through 19-7 of
4the School Code to provide funds for the acquisition,
5development, construction, reconstruction, rehabilitation,
6improvement, architectural planning, and installation of
7capital facilities consisting of buildings, structures,
8durable-equipment, and land for educational purposes.
9    "Grant index" means a figure for each school district
10equal to one minus the ratio of the district's equalized
11assessed valuation per pupil in average daily attendance to
12the equalized assessed valuation per pupil in average daily
13attendance of the district located at the 90th percentile for
14all districts of the same category. This definition applies
15only to school construction projects for which a grant
16application was filed for the 2004 application cycle by a
17school district included on the State Board of Education's
182004 School Construction Project Application Cycle listing and
19only for the purpose of determining the amount of any
20adjustment pursuant to subsection (d) of Section 5-15 to a
21grant award amount for a project funded during the first
22application cycle opened after June 30, 2020. For the purpose
23of calculating the grant index, school districts are grouped
24into 2 categories, Category I and Category II. Category I
25consists of elementary and unit school districts. The
26equalized assessed valuation per pupil in average daily

 

 

HB3637- 8 -LRB102 16919 CMG 22331 b

1attendance of each school district in Category I shall be
2computed using its grades kindergarten through 8 average daily
3attendance figure. A unit school district's Category I grant
4index shall be used for projects or portions of projects
5constructed for elementary school pupils. Category II consists
6of high school and unit school districts. The equalized
7assessed valuation per pupil in average daily attendance of
8each school district in Category II shall be computed using
9its grades 9 through 12 average daily attendance figure. A
10unit school district's Category II grant index shall be used
11for projects or portions of projects constructed for high
12school pupils. The changes made by this amendatory Act of the
1392nd General Assembly apply to all grants made on or after the
14effective date of this amendatory Act, provided that for
15grants not yet made on the effective date of this amendatory
16Act but made in fiscal year 2001 and for grants made in fiscal
17year 2002, the grant index for a school district shall be the
18greater of (i) the grant index as calculated under this Law on
19or after the effective date of this amendatory Act or (ii) the
20grant index as calculated under this Law before the effective
21date of this amendatory Act. The grant index shall be no less
22than 0.35 and no greater than 0.75 for each district; provided
23that the grant index for districts whose equalized assessed
24valuation per pupil in average daily attendance is at the 99th
25percentile and above for all districts of the same type shall
26be 0.00.

 

 

HB3637- 9 -LRB102 16919 CMG 22331 b

1    The grant index shall be calculated for each of those
2school districts forming a reorganized school district or
3cooperative high school if one or more of the following happen
4within the current or prior 2 fiscal years:
5        (1) a new school district is created in accordance
6    with Article 11E of the School Code;
7        (2) an existing school district annexes all of the
8    territory of one or more entire other school districts in
9    accordance with Article 7 of the School Code; or
10        (3) a cooperative high school is formed in accordance
11    with Section 10-22.22c of the School Code.
12The average grant index of those school districts shall be
13used as the grant index for the newly reorganized district or
14cooperative high school.
15    "Recognized project cost" means the total project cost for
16a school construction project determined by the Capital
17Development Board to be taken into account in calculating the
18grant award amount and the required local match for a school
19construction project.
20    "Required local match" means an amount equal to the
21product of the recognized project cost determined by the
22Capital Development Board multiplied by a school district's
23required local match percentage, and then adjusted as may be
24required pursuant to Section 5-15.
25    "Required local match percentage" means a percentage equal
26to a school district's Local Capacity Percentage, as defined

 

 

HB3637- 10 -LRB102 16919 CMG 22331 b

1in Section 18-8.15 of the School Code, and as calculated by the
2State Superintendent of Education in the fiscal year in which
3the school district applies for a grant to be awarded pursuant
4to this Article, provided that the required local match
5percentage shall be no less than 10% and no greater than 90%
6for any district. With respect to a Type 40 area vocational
7center cooperative, a special education cooperative, or a
8cooperative high school, the required local match percentage
9is calculated by first multiplying each cooperative member
10district's average student enrollment utilized to calculate
11its latest Evidence-Based Funding, as defined in Section
1218-8.15 of the School Code, by the respective district's
13latest Local Capacity Percentage, as defined in Section
1418-8.15 of the School Code, to obtain a weighted average
15student enrollment. Then, the required local match percentage
16is calculated by taking the sum of all the member districts'
17weighted average student enrollment and dividing that sum by
18the sum of all the member districts' average student
19enrollment utilized to calculate the latest Evidence-Based
20Funding.
21    "School construction project" means the acquisition,
22development, construction, reconstruction, rehabilitation,
23improvement, architectural planning, and installation of
24capital facilities consisting of buildings, structures,
25durable equipment, and land for educational purposes.
26    "School district" means a school district or a Type 40

 

 

HB3637- 11 -LRB102 16919 CMG 22331 b

1area vocational center or special education cooperative that
2is jointly owned, if the joint agreement includes language
3that specifies how the debt obligation is to be paid,
4including in the event that an entity withdraws from the joint
5agreement.
6    "School district" includes a cooperative high school, if
7the cooperative agreement includes language that specifies how
8the debt obligation is to be paid, including if an entity
9withdraws from the cooperative agreement or the cooperative
10agreement is terminated which shall be considered a high
11school district for the purpose of calculating its grant
12index.
13    "School maintenance project" means a project, other than a
14school construction project, intended to provide for the
15maintenance or upkeep of buildings or structures for
16educational purposes, but does not include ongoing operational
17costs.
18(Source: P.A. 96-731, eff. 8-25-09; 96-1381, eff. 1-1-11.)
 
19    (105 ILCS 230/5-10)
20    Sec. 5-10. Grant awards. The Capital Development Board is
21authorized to make grants to school districts for school
22construction projects with funds appropriated by the General
23Assembly from the School Infrastructure Fund and the School
24Construction Fund pursuant to the provisions of this Article.
25The State Board of Education is authorized to make grants to

 

 

HB3637- 12 -LRB102 16919 CMG 22331 b

1school districts for debt service with funds appropriated by
2the General Assembly from the School Infrastructure Fund
3pursuant to the provisions of this Article.
4(Source: P.A. 90-548, eff. 1-1-98.)
 
5    (105 ILCS 230/5-15)
6    Sec. 5-15. Grant award amounts and required local match
7entitlements.
8    (a) After June 30, 2021, any time there is an
9appropriation of funds by the General Assembly from the School
10Infrastructure Fund or School Construction Fund and a release
11of the appropriated funds to the Capital Development Board for
12expenditure on grant awards pursuant to the provisions of this
13Article, the The State Board of Education is authorized to
14open an application cycle to receive grant applications from
15school districts issue grant entitlements for school
16construction projects. No grant application filed before the
17start of the first application cycle after June 30, 2021 may be
18considered. After the close of each application cycle, the
19State Board of Education and debt service and shall determine
20the approval of applications, the required local match
21percentage for each approved application, and the priority
22order for school construction project grants to be made by the
23Capital Development Board and shall then notify all applicants
24regarding their eligibility for a grant. Such notification
25shall include an estimate of the required local match. The

 

 

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1State Board of Education shall publish a list of applicants
2eligible for grants and forward it to the Capital Development
3Board. When issuing a grant entitlement for a school
4construction project, the Capital Development Board, as a part
5of that entitlement, shall certify to the district receiving
6the entitlement the dollar amount of the school construction
7project's cost that the district will be required to finance
8with non-grant funds in order to qualify to receive a school
9construction project grant under this Article from the Capital
10Development Board.
11    (b) The Capital Development Board, to the extent that
12appropriated funds have been released and proceeding through
13the list of eligible applicants in the order of priority
14determined by the State Board of Education, shall issue
15conditional grant awards to eligible school districts. An
16applicant that does not receive a conditional grant award
17notification must submit a new application during another
18application cycle in order to receive future consideration for
19a grant award.
20    (c) The conditional grant award certifies to a school
21district the recognized project costs for its school
22construction project determined by the Capital Development
23Board, the applicable required local match percentage and
24grant award percentage, the required local match and grant
25award amount calculated by multiplying the required local
26match percentage and the grant award percentage by the

 

 

HB3637- 14 -LRB102 16919 CMG 22331 b

1recognized project cost, and the required local match and
2grant award amount as those amounts may be adjusted as
3required in subsection (d).
4    (d) The required local match and grant award amount are
5calculated by multiplying the required local match percentage
6and the grant award percentage by the recognized project cost,
7provided that, only during the first application cycle after
8June 30, 2021, these amounts may be adjusted if the applicant
9had previously expended funds on a school construction project
10on the 2004 School Construction Grant List. In that case, the
11required local match shall be reduced (but not below zero) and
12the grant award amount shall be increased (to an amount no
13greater than the recognized project cost) by an amount
14determined by the Capital Development Board to be equal to the
15amount of the grant the applicant would have received pursuant
16to Section 5-35 had it been awarded a grant in 2004 based on
17the 2004 School Grant Construction List.
18(Source: P.A. 90-548, eff. 1-1-98; 91-55, eff. 6-30-99.)
 
19    (105 ILCS 230/5-20)
20    Sec. 5-20. Grant application; district facilities plan.
21School districts shall apply to the State Board of Education
22for school construction project grants and debt service
23grants. Districts filing grant applications shall submit to
24the State Board a district facilities plan that shall include,
25but not be limited to, an assessment of present and future

 

 

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1district facility needs as required by present and anticipated
2educational programming, the availability of local financial
3resources including current revenues, fund balances, and
4unused bonding capacity, a fiscal plan for meeting present and
5anticipated debt service obligations, and a maintenance plan
6and schedule that contain necessary assurances that new,
7renovated, and existing facilities are being or will be
8properly maintained. If a district that applies for a school
9construction project grant has no unused bonding capacity or
10if its unused bonding capacity may be less than the portion of
11the cost of the proposed school construction project that the
12district would be required to finance with non-grant funds,
13the amount certified by the Capital Development Board under
14Section 5-15 application and facilities plan submitted by the
15district shall set forth the estimated amount of the project's
16cost that the district proposes to finance by the issuance of
17bonds under subsection (n) of Section 19-1 of the School Code.
18The State Board of Education shall review and approve district
19facilities plans prior to prioritizing the applications
20issuing grant entitlements. Each district that receives a
21grant entitlement shall annually update its district
22facilities plan and submit the revised plan to the State Board
23for approval.
24(Source: P.A. 90-548, eff. 1-1-98; 91-55, eff. 6-30-99.)
 
25    (105 ILCS 230/5-25)

 

 

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1    Sec. 5-25. Eligibility and project standards.
2    (a) The State Board of Education shall establish
3eligibility standards for school construction project grants
4and debt service grants. These standards shall include minimum
5enrollment requirements for eligibility for school
6construction project grants of 200 students for elementary
7districts, 200 students for high school districts, and 400
8students for unit districts. The total enrollment of member
9districts forming a cooperative high school in accordance with
10subsection (c) of Section 10-22.22 of the School Code shall
11meet the minimum enrollment requirements specified in this
12subsection (a). The State Board of Education shall approve a
13district's eligibility for a school construction project grant
14or a debt service grant pursuant to the established standards.
15    For purposes only of determining a Type 40 area vocational
16center's eligibility for an entity included in a school
17construction project grant or a school maintenance project
18grant, an area vocational center shall be deemed eligible if
19one or more of its member school districts satisfy the grant
20index criteria set forth in this Law. A Type 40 area vocational
21center that makes application for school construction funds
22after August 25, 2009 (the effective date of Public Act
2396-731) shall be placed on the respective application cycle
24list. Type 40 area vocational centers must be placed last on
25the priority listing of eligible entities for the applicable
26fiscal year.

 

 

HB3637- 17 -LRB102 16919 CMG 22331 b

1    (b) The Capital Development Board shall establish project
2standards for all school construction project grants provided
3pursuant to this Article. These standards shall include space
4and capacity standards as well as the determination of
5recognized project costs that shall be eligible for State
6financial assistance and enrichment costs that shall not be
7eligible for State financial assistance.
8    (c) The State Board of Education and the Capital
9Development Board shall not establish standards that
10disapprove or otherwise establish limitations that restrict
11the eligibility of (i) a school district with a population
12exceeding 500,000 for a school construction project grant
13based on the fact that any or all of the school construction
14project grant will be used to pay debt service or to make lease
15payments, as authorized by subsection (b) of Section 5-35 of
16this Law, (ii) a school district located in whole or in part in
17a county that imposes a tax for school facility or resources
18purposes pursuant to Section 5-1006.7 of the Counties Code, or
19(iii) a school district that (1) was organized prior to 1860
20and (2) is located in part in a city originally incorporated
21prior to 1840, based on the fact that all or a part of the
22school construction project is owned by a public building
23commission and leased to the school district or the fact that
24any or all of the school construction project grant will be
25used to pay debt service or to make lease payments.
26    (d) (Blank). A reorganized school district or cooperative

 

 

HB3637- 18 -LRB102 16919 CMG 22331 b

1high school may use a school construction application that was
2submitted by a school district that formed the reorganized
3school district or cooperative high school if that application
4has not been entitled for a project by the State Board of
5Education and any one or more of the following happen within
6the current or prior 4 fiscal years:
7        (1) a new school district is created in accordance
8    with Article 11E of the School Code;
9        (2) an existing school district annexes all of the
10    territory of one or more other school districts in
11    accordance with Article 7 of the School Code; or
12        (3) a cooperative high school is formed in accordance
13    with subsection (c) of Section 10-22.22 of the School
14    Code.
15A new elementary district formed from a school district
16conversion, as defined in Section 11E-15 of the School Code,
17may use only the application of the dissolved district whose
18territory is now included in the new elementary district and
19must obtain the written approval of the local school board of
20any other school district that includes territory from that
21dissolved district. A new high school district formed from a
22school district conversion, as defined in Section 11E-15 of
23the School Code, may use only the application of any dissolved
24district whose territory is now included in the new high
25school district, but only after obtaining the written approval
26of the local school board of any other school district that

 

 

HB3637- 19 -LRB102 16919 CMG 22331 b

1includes territory from that dissolved district. A cooperative
2high school using this Section must obtain the written
3approval of the local school board of the member school
4district whose application it is using. All other eligibility
5and project standards apply to this Section.
6(Source: P.A. 101-455, eff. 8-23-19.)
 
7    (105 ILCS 230/5-30)
8    Sec. 5-30. Priority of school construction projects. The
9State Board of Education shall develop standards for the
10determination of priority needs concerning school construction
11projects based upon approved district facilities plans. Such
12standards shall call for prioritization based on the degree of
13need and project type in the following order:
14        (1) Replacement or reconstruction of school buildings
15    destroyed or damaged by flood, tornado, fire, earthquake,
16    mine subsidence, or other disasters, either man-made or
17    produced by nature;
18        (2) Projects designed to alleviate a shortage of
19    classrooms due to population growth or to replace or
20    rehabilitate aging school buildings;
21        (3) Projects resulting from interdistrict
22    reorganization of school districts contingent on local
23    referenda;
24        (4) Replacement, rehabilitation, or reconstruction of
25    school facilities determined to be severe and continuing

 

 

HB3637- 20 -LRB102 16919 CMG 22331 b

1    health or life safety hazards;
2        (5) Alterations necessary to provide accessibility for
3    qualified individuals with disabilities; and
4        (6) Other unique solutions to facility needs.
5Except for those changes absolutely necessary to comply with
6the changes made to subsection (c) of Section 5-25 of this Law
7by Public Act 96-37, the State Board of Education may not make
8any material changes to the standards in effect on May 18,
92004, unless the State Board of Education is specifically
10authorized by law.
11(Source: P.A. 96-37, eff. 7-13-09; 96-102, eff. 7-29-09;
1296-1000, eff. 7-2-10; 97-880, eff. 8-2-12.)
 
13    (105 ILCS 230/5-35)
14    Sec. 5-35. School construction project grant award
15amounts; permitted use; prohibited use.
16    (a) The grant award percentage is equal to one minus the
17required local match percentage. The grant award amount is
18equal to the grant award percentage multiplied by The product
19of the district's grant index and the recognized project cost,
20as determined by the Capital Development Board, for an
21approved school construction project, which amount may be
22adjusted as required in Section 5-15. The grant award amount
23shall equal the amount of the grant the Capital Development
24Board shall provide to the eligible district. The grant index
25shall not be used in cases where the General Assembly and the

 

 

HB3637- 21 -LRB102 16919 CMG 22331 b

1Governor approve appropriations designated for specifically
2identified school district construction projects.
3    The average of the grant indexes of the member districts
4in a joint agreement shall be used to calculate the amount of a
5school construction project grant awarded to an eligible Type
640 area vocational center.
7    (b) In each fiscal year in which school construction
8project grants are awarded, 20% of the total amount awarded
9statewide shall be awarded to a school district with a
10population exceeding 500,000, provided such district complies
11with the provisions of this Article.
12    In addition to the uses otherwise authorized by this Law,
13any school district with a population exceeding 500,000 is
14authorized to use any or all of the school construction
15project grants (i) to pay debt service, as defined in the Local
16Government Debt Reform Act, on bonds, as defined in the Local
17Government Debt Reform Act, issued to finance one or more
18school construction projects and (ii) to the extent that any
19such bond is a lease or other installment or financing
20contract between the school district and a public building
21commission that has issued bonds to finance one or more
22qualifying school construction projects, to make lease
23payments under the lease.
24    (b-3) The Capital Development Board shall make payment in
25an amount equal to 20% of each amount deposited into the School
26Infrastructure Fund pursuant to subsection (b-5) of Section

 

 

HB3637- 22 -LRB102 16919 CMG 22331 b

16z-45 of the State Finance Act to the Board of Education of the
2City of Chicago within 10 days after such deposit. The Board of
3Education of the City of Chicago shall use such moneys
4received (i) for application to the costs of a school
5construction project, (ii) to pay debt service on bonds, as
6those terms are defined in the Local Government Debt Reform
7Act, that are issued to finance one or more school
8construction projects, and (iii) to the extent that any such
9bond is a lease or other installment or financing contract
10between the school district and a public building commission
11that has issued bonds to finance one or more qualifying school
12construction projects, to make lease payments under the lease.
13The Board of Education of the City of Chicago shall submit
14quarterly to the Capital Development Board documentation
15sufficient to establish that this money is being used as
16authorized by this Section. The Capital Development Board may
17withhold payments if the documentation is not provided. The
18remaining 80% of each such deposit shall be applied in
19accordance with the provisions of subsection (a) of this
20Section; however, no portion of this remaining 80% shall be
21awarded to a school district with a population of more than
22500,000.
23    (b-5) In addition to the uses otherwise authorized by this
24Law, any school district that (1) was organized prior to 1860
25and (2) is located in part in a city originally incorporated
26prior to 1840 is authorized to use any or all of the school

 

 

HB3637- 23 -LRB102 16919 CMG 22331 b

1construction project grants (i) to pay debt service on bonds,
2as those terms are defined in the Local Government Debt Reform
3Act, that are issued to finance one or more school
4construction projects and (ii) to the extent that any such
5bond is a lease or other installment or financing contract
6between the school district and a public building commission
7that has issued bonds to finance one or more qualifying school
8construction projects, to make lease payments under the lease.
9    (c) No portion of a school construction project grant
10awarded by the Capital Development Board shall be used by a
11school district for any on-going operational costs.
12(Source: P.A. 98-18, eff. 6-7-13.)
 
13    (105 ILCS 230/5-50)
14    Sec. 5-50. Referendum requirements. A school district may
15submit a school construction project or the financing of a
16school construction project to referendum at any time.
17However, the proposition may include a reference to the school
18district's expectation of receiving a school construction
19grant from the State of Illinois only if the school district
20has received a conditional grant award for the project from
21the Capital Development Board. After the State Board of
22Education has approved all or part of a district's application
23and issued a grant entitlement for a school construction
24project grant, the district shall submit the project or the
25financing of the project to a referendum when such referendum

 

 

HB3637- 24 -LRB102 16919 CMG 22331 b

1is required by law, except for a project financed by bonds
2issued pursuant to subsection (p-70) of Section 19-1 of the
3School Code.
4(Source: P.A. 96-1438, eff. 8-20-10; 97-333, eff. 8-12-11.)
 
5    (105 ILCS 230/5-37 rep.)
6    (105 ILCS 230/5-38 rep.)
7    (105 ILCS 230/5-45 rep.)
8    (105 ILCS 230/5-57 rep.)
9    Section 20. The School Construction Law is amended by
10repealing Sections 5-37, 5-38, 5-45, and 5-57.
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.