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Full Text of HB1730  102nd General Assembly

HB1730 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB1730

 

Introduced 2/17/2021, by Rep. Jim Durkin

 

SYNOPSIS AS INTRODUCED:
 
105 ILCS 5/5-1  from Ch. 122, par. 5-1

    Amends the Trustees of Schools Article of the School Code. Provides that the school board of a school district in a Class II county school unit may, by proper resolution, withdraw from the jurisdiction and authority of the trustees of schools and the township treasurer of a township in which all or any part of the school district is located. Requires the school board to elect or appoint its own school treasurer. Thereafter, provides that the trustees of schools shall no longer have or exercise any powers and duties with respect to the school district or the school district's business, operations, or assets; requires the township trustees to transfer and deliver to the school board all books and records relating to the school district's business and affairs; and provides that legal title to school buildings and school sites located within the school district shall be deemed transferred by operation of law to and shall vest in the school board. Effective immediately.


LRB102 11850 CMG 17186 b

 

 

A BILL FOR

 

HB1730LRB102 11850 CMG 17186 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 School Code is amended by changing Section
55-1 as follows:
 
6    (105 ILCS 5/5-1)  (from Ch. 122, par. 5-1)
7    Sec. 5-1. County school units.
8    (a) The territory in each county, exclusive of any school
9district governed by any special act which requires the
10district to appoint its own school treasurer, shall constitute
11a county school unit. County school units of less than
122,000,000 inhabitants shall be known as Class I county school
13units and the office of township trustees, where existing on
14July 1, 1962, in such units shall be abolished on that date and
15all books and records of such former township trustees shall
16be forthwith thereafter transferred to the county board of
17school trustees. County school units of 2,000,000 or more
18inhabitants shall be known as Class II county school units and
19shall retain the office of township trustees unless otherwise
20provided in subsection (b) or (c).
21    (b) Notwithstanding subsections (a) and (c), the school
22board of any elementary school district having a fall, 1989
23aggregate enrollment of at least 2,500 but less than 6,500

 

 

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1pupils and having boundaries that are coterminous with the
2boundaries of a high school district, and the school board of
3any high school district having a fall, 1989 aggregate
4enrollment of at least 2,500 but less than 6,500 pupils and
5having boundaries that are coterminous with the boundaries of
6an elementary school district, may, whenever the territory of
7such school district forms a part of a Class II county school
8unit, by proper resolution withdraw such school district from
9the jurisdiction and authority of the trustees of schools of
10the township in which such school district is located and from
11the jurisdiction and authority of the township treasurer in
12such Class II county school unit; provided that the school
13board of any such school district shall, upon the adoption and
14passage of such resolution, thereupon elect or appoint its own
15school treasurer as provided in Section 8-1. Upon the adoption
16and passage of such resolution and the election or appointment
17by the school board of its own school treasurer: (1) the
18trustees of schools in such township shall no longer have or
19exercise any powers and duties with respect to the school
20district governed by such school board or with respect to the
21school business, operations or assets of such school district;
22and (2) all books and records of the township trustees
23relating to the school business and affairs of such school
24district shall be transferred and delivered to the school
25board of such school district. Upon the effective date of this
26amendatory Act of 1993, the legal title to, and all right,

 

 

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1title and interest formerly held by the township trustees in
2any school buildings and school sites used and occupied by the
3school board of such school district for school purposes, that
4legal title, right, title and interest thereafter having been
5transferred to and vested in the regional board of school
6trustees under P.A. 87-473 until the abolition of that
7regional board of school trustees by P.A. 87-969, shall be
8deemed transferred by operation of law to and shall vest in the
9school board of that school district.
10    Notwithstanding subsections (a) and (c), the school boards
11of Oak Park & River Forest District 200, Oak Park Elementary
12School District 97, and River Forest School District 90 may,
13by proper resolution, withdraw from the jurisdiction and
14authority of the trustees of schools of Proviso and Cicero
15Townships and the township treasurer, provided that the school
16board shall, upon the adoption and passage of the resolution,
17elect or appoint its own school treasurer as provided in
18Section 8-1 of this Code. Upon the adoption and passage of the
19resolution and the election or appointment by the school board
20of its own school treasurer: (1) the trustees of schools in the
21township or townships shall no longer have or exercise any
22powers or duties with respect to the school district or with
23respect to the school business, operations, or assets of the
24school district; (2) all books and records of the trustees of
25schools and all moneys, securities, loanable funds, and other
26assets relating to the school business and affairs of the

 

 

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1school district shall be transferred and delivered to the
2school board; and (3) all legal title to and all right, title,
3and interest formerly held by the trustees of schools in any
4common school lands, school buildings, or school sites used
5and occupied by the school board and all rights of property and
6causes of action pertaining to or constituting a part of the
7common school lands, buildings, or sites shall be deemed
8transferred by operation of law to and shall vest in the school
9board.
10    Notwithstanding subsections (a) and (c), the respective
11school boards of Berwyn North School District 98, Berwyn South
12School District 100, Cicero School District 99, and J.S.
13Morton High School District 201 may, by proper resolution,
14withdraw from the jurisdiction and authority of the trustees
15of schools of Cicero Township and the township treasurer,
16provided that the school board shall, upon the adoption and
17passage of the resolution, elect or appoint its own school
18treasurer as provided in Section 8-1 of this Code. Upon the
19adoption and passage of the resolution and the election or
20appointment by the school board of its own school treasurer:
21(1) the trustees of schools in the township shall no longer
22have or exercise any powers or duties with respect to the
23school district or with respect to the school business,
24operations, or assets of the school district; (2) all books
25and records of the trustees of schools and all moneys,
26securities, loanable funds, and other assets relating to the

 

 

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1school business and affairs of the school district shall be
2transferred and delivered to the school board; and (3) all
3legal title to and all right, title, and interest formerly
4held by the trustees of schools in any common school lands,
5school buildings, or school sites used and occupied by the
6school board and all rights of property and causes of action
7pertaining to or constituting a part of the common school
8lands, buildings, or sites shall be deemed transferred by
9operation of law to and shall vest in the school board.
10    Notwithstanding subsections (a) and (c) of this Section
11and upon final judgment, including the exhaustion of all
12appeals or a settlement between all parties, regarding claims
13set forth in the case of Township Trustees of Schools Township
1438 North, Range 12 East v. Lyons Township High School District
15No. 204 case N. 13 CH 23386 pending in 2018 in the Circuit
16Court of Cook County, Illinois, County Department, Chancery
17Division, and all related pending claims, the school board of
18Lyons Township High School District 204 may commence, by
19proper resolution, to withdraw from the jurisdiction and
20authority of the trustees of schools of Lyons Township and the
21township treasurer, provided that the school board shall, upon
22the adoption and passage of the resolution, elect or appoint
23its own school treasurer as provided in Section 8-1 of this
24Code. Upon the adoption and passage of the resolution and the
25election or appointment by the school board of its own school
26treasurer commencing with the first day of the succeeding

 

 

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1fiscal year, but not prior to July 1, 2019: (1) the trustees of
2schools in the township shall no longer have or exercise any
3powers or duties with respect to the school district or with
4respect to the school business, operations, or assets of the
5school district; (2) all books and records of the trustees of
6schools and all moneys, securities, loanable funds, and other
7assets relating to the school business and affairs of the
8school district shall be transferred and delivered to the
9school board, allowing for a reasonable period of time not to
10exceed 90 days to liquidate any pooled investments; and (3)
11all legal title to and all right, title, and interest formerly
12held by the trustees of schools in any common school lands,
13school buildings, or school sites used and occupied by the
14school board and all rights of property and causes of action
15pertaining to or constituting a part of the common school
16lands, buildings, or sites shall be deemed transferred by
17operation of law to and shall vest in the school board. The
18changes made to this Section by this amendatory Act of the
19100th General Assembly are prospective only, starting from the
20effective date of this amendatory Act of the 100th General
21Assembly, and shall not affect any legal action pending on the
22effective date of this amendatory Act of the 100th General
23Assembly in the Illinois courts in which Lyons Township High
24School District 204 is a listed party.
25    Notwithstanding subsections (a) and (c), the school board
26of a school district in a Class II county school unit may

 

 

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1withdraw from the jurisdiction and authority of the trustees
2of schools of a township in which all or a part of the school
3district is located and from the jurisdiction and authority of
4the township treasurer by proper resolution, provided that the
5school board of the school district shall, upon the adoption
6and passage of the resolution, thereupon elect or appoint its
7own school treasurer as provided in Section 8-1. Upon the
8adoption and passage of a resolution and the election or
9appointment by the school board of its own school treasurer:
10(1) the trustees of schools shall no longer have or exercise
11any powers and duties with respect to the school district
12governed by the school board or with respect to the school
13business, operations, or assets of the school district; and
14(2) all books and records of the township trustees relating to
15the school business and affairs of the school district shall
16be transferred and delivered to the school board of the school
17district. Upon withdrawal, the legal title to and all right,
18title, and interest formerly held by the township trustees in
19any school buildings and school sites used and occupied by the
20school board of the withdrawing school district for school
21purposes, that legal title, right, title, and interest
22thereafter having been transferred to and vested in the
23regional board of school trustees under Public Act 87-473
24until the abolition of that regional board of school trustees
25by Public Act 87-969, shall be deemed transferred by operation
26of law to and shall vest in the school board of that school

 

 

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1district.
2    (c) Notwithstanding the provisions of subsection (a), the
3offices of township treasurer and trustee of schools of any
4township located in a Class II county school unit shall be
5abolished as provided in this subsection if all of the
6following conditions are met:
7        (1) During the same 30 day period, each school board
8    of each elementary and unit school district that is
9    subject to the jurisdiction and authority of the township
10    treasurer and trustees of schools of the township in which
11    those offices are sought to be abolished gives written
12    notice by certified mail, return receipt requested to the
13    township treasurer and trustees of schools of that
14    township of the date of a meeting of the school board, to
15    be held not more than 90 nor less than 60 days after the
16    date when the notice is given, at which meeting the school
17    board is to consider and vote upon the question of whether
18    there shall be submitted to the electors of the school
19    district a proposition to abolish the offices of township
20    treasurer and trustee of schools of that township. None of
21    the notices given under this paragraph to the township
22    treasurer and trustees of schools of a township shall be
23    deemed sufficient or in compliance with the requirements
24    of this paragraph unless all of those notices are given
25    within the same 30 day period.
26        (2) Each school board of each elementary and unit

 

 

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1    school district that is subject to the jurisdiction and
2    authority of the township treasurer and trustees of
3    schools of the township in which those offices are sought
4    to be abolished, by the affirmative vote of at least 5
5    members of the school board at a school board meeting of
6    which notice is given as required by paragraph (1) of this
7    subsection, adopts a resolution requiring the secretary of
8    the school board to certify to the proper election
9    authorities for submission to the electors of the school
10    district at the next consolidated election in accordance
11    with the general election law a proposition to abolish the
12    offices of township treasurer and trustee of schools of
13    that township. None of the resolutions adopted under this
14    paragraph by any elementary or unit school districts that
15    are subject to the jurisdiction and authority of the
16    township treasurer and trustees of schools of the township
17    in which those offices are sought to be abolished shall be
18    deemed in compliance with the requirements of this
19    paragraph or sufficient to authorize submission of the
20    proposition to abolish those offices to a referendum of
21    the electors in any such school district unless all of the
22    school boards of all of the elementary and unit school
23    districts that are subject to the jurisdiction and
24    authority of the township treasurer and trustees of
25    schools of that township adopt such a resolution in
26    accordance with the provisions of this paragraph.

 

 

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1        (3) The school boards of all of the elementary and
2    unit school districts that are subject to the jurisdiction
3    and authority of the township treasurer and trustees of
4    schools of the township in which those offices are sought
5    to be abolished submit a proposition to abolish the
6    offices of township treasurer and trustee of schools of
7    that township to the electors of their respective school
8    districts at the same consolidated election in accordance
9    with the general election law, the ballot in each such
10    district to be in substantially the following form:
11    -------------------------------------------------------------
12
OFFICIAL BALLOT
13            Shall the offices of township
14            treasurer and                       YES
15            trustee of                      -------------
16            schools of Township .....           NO
17            Range ..... be abolished?
18    -------------------------------------------------------------
19        (4) At the consolidated election at which the
20    proposition to abolish the offices of township treasurer
21    and trustee of schools of a township is submitted to the
22    electors of each elementary and unit school district that
23    is subject to the jurisdiction and authority of the
24    township treasurer and trustee of schools of that
25    township, a majority of the electors voting on the
26    proposition in each such elementary and unit school

 

 

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1    district votes in favor of the proposition as submitted to
2    them.
3    If in each elementary and unit school district that is
4subject to the jurisdiction and authority of the township
5treasurer and trustees of schools of the township in which
6those offices are sought to be abolished a majority of the
7electors in each such district voting at the consolidated
8election on the proposition to abolish the offices of township
9treasurer and trustee of schools of that township votes in
10favor of the proposition as submitted to them, the proposition
11shall be deemed to have passed; but if in any such elementary
12or unit school district a majority of the electors voting on
13that proposition in that district fails to vote in favor of the
14proposition as submitted to them, then notwithstanding the
15vote of the electors in any other such elementary or unit
16school district on that proposition the proposition shall not
17be deemed to have passed in any of those elementary or unit
18school districts, and the offices of township treasurer and
19trustee of schools of the township in which those offices were
20sought to be abolished shall not be abolished, unless in each
21of those elementary and unit school districts remaining
22subject to the jurisdiction and authority of the township
23treasurer and trustees of schools of that township proceedings
24are again initiated to abolish those offices and all of the
25proceedings and conditions prescribed in paragraphs (1)
26through (4) of this subsection are repeated and met in each of

 

 

HB1730- 12 -LRB102 11850 CMG 17186 b

1those elementary and unit school districts.
2    Notwithstanding the foregoing provisions of this Section
3or any other provision of the School Code, the offices of
4township treasurer and trustee of schools of a township that
5has a population of less than 200,000 and that contains a unit
6school district and is located in a Class II county school unit
7shall also be abolished as provided in this subsection if all
8of the conditions set forth in paragraphs (1), (2), and (3) of
9this subsection are met and if the following additional
10condition is met:
11        The electors in all of the school districts subject to
12    the jurisdiction and authority of the township treasurer
13    and trustees of schools of the township in which those
14    offices are sought to be abolished shall vote at the
15    consolidated election on the proposition to abolish the
16    offices of township treasurer and trustee of schools of
17    that township. If a majority of the electors in all of the
18    school districts combined voting on the proposition vote
19    in favor of the proposition, then the proposition shall be
20    deemed to have passed; but if a majority of the electors
21    voting on the proposition in all of the school district
22    fails to vote in favor of the proposition as submitted to
23    them, then the proposition shall not be deemed to have
24    passed and the offices of township treasurer and trustee
25    of schools of the township in which those offices were
26    sought to be abolished shall not be abolished, unless and

 

 

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1    until the proceedings detailed in paragraphs (1) through
2    (3) of this subsection and the conditions set forth in
3    this paragraph are met.
4    If the proposition to abolish the offices of township
5treasurer and trustee of schools of a township is deemed to
6have passed at the consolidated election as provided in this
7subsection, those offices shall be deemed abolished by
8operation of law effective on January 1 of the calendar year
9immediately following the calendar year in which that
10consolidated election is held, provided that if after the
11election, the trustees of schools by resolution elect to
12abolish the offices of township treasurer and trustee of
13schools effective on July 1 immediately following the
14election, then the offices shall be abolished on July 1
15immediately following the election. On the date that the
16offices of township treasurer and trustee of schools of a
17township are deemed abolished by operation of law, the school
18board of each elementary and unit school district and the
19school board of each high school district that is subject to
20the jurisdiction and authority of the township treasurer and
21trustees of schools of that township at the time those offices
22are abolished: (i) shall appoint its own school treasurer as
23provided in Section 8-1; and (ii) unless the term of the
24contract of a township treasurer expires on the date that the
25office of township treasurer is abolished, shall pay to the
26former township treasurer its proportionate share of any

 

 

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1aggregate compensation that, were the office of township
2treasurer not abolished at that time, would have been payable
3to the former township treasurer after that date over the
4remainder of the term of the contract of the former township
5treasurer that began prior to but ends after that date. In
6addition, on the date that the offices of township treasurer
7and trustee of schools of a township are deemed abolished as
8provided in this subsection, the school board of each
9elementary school, high school and unit school district that
10until that date is subject to the jurisdiction and authority
11of the township treasurer and trustees of schools of that
12township shall be deemed by operation of law to have agreed and
13assumed to pay and, when determined, shall pay to the Illinois
14Municipal Retirement Fund a proportionate share of the
15unfunded liability existing in that Fund at the time these
16offices are abolished in that calendar year for all annuities
17or other benefits then or thereafter to become payable from
18that Fund with respect to all periods of service performed
19prior to that date as a participating employee in that Fund by
20persons serving during those periods of service as a trustee
21of schools, township treasurer or regular employee in the
22office of the township treasurer of that township. That
23unfunded liability shall be actuarially determined by the
24board of trustees of the Illinois Municipal Retirement Fund,
25and the board of trustees shall thereupon notify each school
26board required to pay a proportionate share of that unfunded

 

 

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1liability of the aggregate amount of the unfunded liability so
2determined. The amount so paid to the Illinois Municipal
3Retirement Fund by each of those school districts shall be
4credited to the account of the township in that Fund. For each
5elementary school, high school and unit school district under
6the jurisdiction and authority of a township treasurer and
7trustees of schools of a township in which those offices are
8abolished as provided in this subsection, each such district's
9proportionate share of the aggregate compensation payable to
10the former township treasurer as provided in this paragraph
11and each such district's proportionate share of the aggregate
12amount of the unfunded liability payable to the Illinois
13Municipal Retirement Fund as provided in this paragraph shall
14be computed in accordance with the ratio that the number of
15pupils in average daily attendance in each such district for
16the school year last ending prior to the date on which the
17offices of township treasurer and trustee of schools of that
18township are abolished bears to the aggregate number of pupils
19in average daily attendance in all of those districts as so
20reported for that school year.
21    Upon abolition of the offices of township treasurer and
22trustee of schools of a township as provided in this
23subsection: (i) the regional board of school trustees, in its
24corporate capacity, shall be deemed the successor in interest
25to the former trustees of schools of that township with
26respect to the common school lands and township loanable funds

 

 

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1of the township; (ii) all right, title and interest existing
2or vested in the former trustees of schools of that township in
3the common school lands and township loanable funds of the
4township, and all records, moneys, securities and other
5assets, rights of property and causes of action pertaining to
6or constituting a part of those common school lands or
7township loanable funds, shall be transferred to and deemed
8vested by operation of law in the regional board of school
9trustees, which shall hold legal title to, manage and operate
10all common school lands and township loanable funds of the
11township, receive the rents, issues and profits therefrom, and
12have and exercise with respect thereto the same powers and
13duties as are provided by this Code to be exercised by regional
14boards of school trustees when acting as township land
15commissioners in counties having at least 220,000 but fewer
16than 2,000,000 inhabitants; (iii) the regional board of school
17trustees shall select to serve as its treasurer with respect
18to the common school lands and township loanable funds of the
19township a person from time to time also serving as the
20appointed school treasurer of any school district that was
21subject to the jurisdiction and authority of the township
22treasurer and trustees of schools of that township at the time
23those offices were abolished, and the person selected to also
24serve as treasurer of the regional board of school trustees
25shall have his compensation for services in that capacity
26fixed by the regional board of school trustees, to be paid from

 

 

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1the township loanable funds, and shall make to the regional
2board of school trustees the reports required to be made by
3treasurers of township land commissioners, give bond as
4required by treasurers of township land commissioners, and
5perform the duties and exercise the powers of treasurers of
6township land commissioners; (iv) the regional board of school
7trustees shall designate in the manner provided by Section
88-7, insofar as applicable, a depositary for its treasurer,
9and the proceeds of all rents, issues and profits from the
10common school lands and township loanable funds of that
11township shall be deposited and held in the account maintained
12for those purposes with that depositary and shall be expended
13and distributed therefrom as provided in Section 15-24 and
14other applicable provisions of this Code; and (v) whenever
15there is vested in the trustees of schools of a township at the
16time that office is abolished under this subsection the legal
17title to any school buildings or school sites used or occupied
18for school purposes by any elementary school, high school or
19unit school district subject to the jurisdiction and authority
20of those trustees of school at the time that office is
21abolished, the legal title to those school buildings and
22school sites shall be deemed transferred by operation of law
23to and invested in the school board of that school district, in
24its corporate capacity under Section 10-22.35B of this Code,
25the same to be held, sold, exchanged leased or otherwise
26transferred in accordance with applicable provisions of this

 

 

HB1730- 18 -LRB102 11850 CMG 17186 b

1Code.
2    Notwithstanding Section 2-3.25g of this Code, a waiver of
3a mandate established under this Section may not be requested.
4(Source: P.A. 100-374, eff. 8-25-17; 100-921, eff. 8-17-18.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.