HB5574 97TH GENERAL ASSEMBLY

LRB097 15032 NHT 63466 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5574

Introduced 2/15/2012, by Rep. Roger L. Eddy

SYNOPSIS AS INTRODUCED:

105 ILCS 230/5-35

Amends the School Construction Law. Provides that with respect to a school district that (i) has an approved school construction project for which a grant entitlement was issued for Fiscal Year 2003 or any fiscal year thereafter, but a grant is not awarded until after Fiscal Year 2011 and (ii) passes a referendum at any time from the date of the amendatory Act through July 1, 2014 to reorganize or form a cooperative high school with one or more surrounding school districts, the grant index used to determine the district's grant amount must be 1.00; provided that the maximum amount of the grant must be the recognized project cost and the reorganization must result from either an elementary or high school district reorganizing into a unit school district or a unit school district reorganizing with one or more other unit school districts. Provides that the newly reorganized district, but not the cooperative high school itself, must have an enrollment of no less than 500 students. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning schools.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The School Construction Law is amended by changing Section 5-35 as follows:

(105 ILCS 230/5-35)

Sec. 5-35. School construction project grant amounts; permitted use; prohibited use.

(a) The product of the district's grant index and the recognized project cost, as determined by the Capital Development Board, for an approved school construction project shall equal the amount of the grant the Capital Development Board shall provide to the eligible district. However, with respect to a school district that (i) has an approved school construction project for which a grant entitlement was issued for Fiscal Year 2003 or any fiscal year thereafter, but a grant is not awarded until after Fiscal Year 2011, and (ii) passes a referendum at any time from the date of this amendatory Act of the 97th General Assembly through July 1, 2014 to reorganize or form a cooperative high school under Section 10-22.22c of this Code with one or more surrounding school districts, the grant index used to determine the district's grant amount must be 1.00; provided that the maximum amount of the grant must be the recognized project cost. In order to benefit from this increased grant index, however, the reorganization must result from either an elementary or high school district reorganizing, in accordance with Article 11E of this Code, into a unit school district or a unit school district reorganizing, in accordance with Article 11E of this Code, with one or more other unit school districts; and the newly reorganized district, but not the cooperative high school itself, must have an enrollment of no less than 500 students. The grant index shall not be used in cases where the General Assembly and the Governor approve appropriations designated for specifically identified school district construction projects.

The average of the grant indexes of the member districts in a joint agreement shall be used to calculate the amount of a school construction project grant awarded to an eligible Type 40 area vocational center.

(b) In each fiscal year in which school construction project grants are awarded, 20% of the total amount awarded statewide shall be awarded to a school district with a population exceeding 500,000, provided such district complies with the provisions of this Article.

In addition to the uses otherwise authorized by this Law, any school district with a population exceeding 500,000 is authorized to use any or all of the school construction project grants (i) to pay debt service, as defined in the Local Government Debt Reform Act, on bonds, as defined in the Local Government Debt Reform Act, issued to finance one or more school construction projects and (ii) to the extent that any such bond is a lease or other installment or financing contract between the school district and a public building commission that has issued bonds to finance one or more qualifying school construction projects, to make lease payments under the lease.

(b-5) In addition to the uses otherwise authorized by this Law, any school district that (1) was organized prior to 1860 and (2) is located in part in a city originally incorporated prior to 1840 is authorized to use any or all of the school construction project grants (i) to pay debt service on bonds, as those terms are defined in the Local Government Debt Reform Act, that are issued to finance one or more school construction projects and (ii) to the extent that any such bond is a lease or other installment or financing contract between the school district and a public building commission that has issued bonds to finance one or more qualifying school construction projects, to make lease payments under the lease.

(c) No portion of a school construction project grant awarded by the Capital Development Board shall be used by a school district for any on-going operational costs.

(Source: P.A. 96-731, eff. 8-25-09; 96-1467, eff. 8-20-10.)

Section 99. Effective date. This Act takes effect upon becoming law.