Full Text of HB1784 95th General Assembly
HB1784 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB1784
Introduced 2/23/2007, by Rep. Roger L. Eddy SYNOPSIS AS INTRODUCED: |
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105 ILCS 5/1A-8 |
from Ch. 122, par. 1A-8 |
105 ILCS 5/18-11 |
from Ch. 122, par. 18-11 |
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Amends the School Code. Provides that a school district must not be certified by the State Board of Education to be in financial difficulty as a result of the failure of the Comptroller to disburse certain School Code reimbursements for receipt by the school district no later than June 30th of each year. Provides that if moneys are available in the Common School Fund for State aid payments, then, as soon as may be after the 10th and 20th days of each of the months of July (instead of August) through the following June (instead of July), the State Comptroller shall draw his or her warrants upon the State Treasurer. Effective July 1, 2007.
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A BILL FOR
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HB1784 |
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LRB095 05131 NHT 31273 b |
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| AN ACT concerning education.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The School Code is amended by changing Sections | 5 |
| 1A-8 and 18-11 as follows:
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| (105 ILCS 5/1A-8) (from Ch. 122, par. 1A-8)
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| Sec. 1A-8. Powers of the Board in Assisting Districts | 8 |
| Deemed in Financial
Difficulties. To promote the financial | 9 |
| integrity of school districts, the
State Board of Education | 10 |
| shall be provided the necessary powers to promote
sound | 11 |
| financial management and continue operation of the public | 12 |
| schools.
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| The State Superintendent of Education may require a school | 14 |
| district, including any district subject to Article 34A of this | 15 |
| Code, to share financial information relevant to a proper | 16 |
| investigation of the district's financial condition and the | 17 |
| delivery of appropriate State financial, technical, and | 18 |
| consulting services to the district if the district (i) has | 19 |
| been designated, through the State Board of Education's School | 20 |
| District Financial Profile System, as on financial warning or | 21 |
| financial watch status, (ii) has failed to file an annual | 22 |
| financial report, annual budget, deficit reduction plan, or | 23 |
| other financial information as required by law, or (iii) has |
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| been identified, through the district's annual audit or other | 2 |
| financial and management information, as in serious financial | 3 |
| difficulty in the current or next school year. In addition to | 4 |
| financial, technical, and consulting services provided by the | 5 |
| State Board of Education, at the request of a school district, | 6 |
| the State Superintendent may provide for an independent | 7 |
| financial consultant to assist the district review its | 8 |
| financial condition and options.
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| The State Board of Education, after proper investigation of | 10 |
| a district's
financial condition, may certify that a district, | 11 |
| including any district
subject to Article 34A, is in financial | 12 |
| difficulty
when any of the following conditions occur:
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| (1) The district has issued school or teacher orders | 14 |
| for wages as permitted in Sections
8-16, 32-7.2 and 34-76 | 15 |
| of this Code;
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| (2) The district has issued tax anticipation warrants | 17 |
| or tax
anticipation notes in anticipation of a second | 18 |
| year's taxes when warrants or
notes in anticipation of | 19 |
| current year taxes are still outstanding, as
authorized by | 20 |
| Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has | 21 |
| issued short-term debt against 2 future revenue sources, | 22 |
| such as, but not limited to, tax anticipation warrants and | 23 |
| general State Aid certificates or tax anticipation | 24 |
| warrants and revenue anticipation notes;
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| (3) The district has for 2 consecutive years shown an | 26 |
| excess
of expenditures and other financing uses over |
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| revenues and other financing
sources and beginning fund | 2 |
| balances on its annual financial report for the
aggregate | 3 |
| totals of the Educational, Operations and Maintenance,
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| Transportation, and Working Cash Funds;
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| (4) The district refuses to provide financial | 6 |
| information or cooperate with the State Superintendent in | 7 |
| an investigation of the district's financial condition.
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| No school district shall be certified by the State Board of | 9 |
| Education to be in financial difficulty by
reason of any of the | 10 |
| above circumstances (i) arising as a result of the failure
of | 11 |
| the county to make any distribution of property tax money due | 12 |
| the district
at the time such distribution is due ; (ii) arising | 13 |
| as a result of the failure of the Comptroller to disburse | 14 |
| reimbursements authorized under Sections 14-3.01b, 14-7.03, | 15 |
| 14-7.02, 14-7.02a, 14-13.01, 18-3, 18-11, 18-4.3, and 29-5 for | 16 |
| receipt by the school district no later than June 30th of each | 17 |
| year ; or (iii) if the district clearly demonstrates
to the | 18 |
| satisfaction of the State Board of Education at the time of its
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| determination that such condition no longer exists. If the | 20 |
| State Board of
Education certifies that a district in a city | 21 |
| with 500,000 inhabitants or
more is in financial difficulty, | 22 |
| the State Board shall so notify the
Governor and the Mayor of | 23 |
| the city in which the district is located. The
State Board of | 24 |
| Education may require school districts certified in
financial | 25 |
| difficulty, except those districts subject to Article 34A, to
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| develop, adopt and submit a financial plan within 45 days after
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| certification of financial difficulty. The financial plan | 2 |
| shall be
developed according to guidelines presented to the | 3 |
| district by the State
Board of Education within 14 days of | 4 |
| certification. Such guidelines shall
address the specific | 5 |
| nature of each district's financial difficulties. Any
proposed | 6 |
| budget of the district shall be consistent with the financial | 7 |
| plan
submitted to and
approved by the State Board of Education.
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| A district certified to be in financial difficulty, other | 9 |
| than a district
subject to Article 34A, shall report to the | 10 |
| State Board of Education at
such times and in such manner as | 11 |
| the State Board may direct, concerning the
district's | 12 |
| compliance with each financial plan. The State Board may review
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| the district's operations, obtain budgetary data and financial | 14 |
| statements,
require the district to produce reports, and have | 15 |
| access to any other
information in the possession of the | 16 |
| district that it deems relevant. The
State Board may issue | 17 |
| recommendations or directives within its powers to
the district | 18 |
| to assist in compliance with the financial plan. The district
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| shall produce such budgetary data, financial statements, | 20 |
| reports and other
information and comply with such directives. | 21 |
| If the State Board of Education
determines that a district has | 22 |
| failed to comply with its financial plan, the
State Board of | 23 |
| Education may rescind approval of the plan and appoint a
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| Financial Oversight Panel for the district as provided in | 25 |
| Section 1B-4. This
action shall be taken only after the | 26 |
| district has been given notice and an
opportunity to appear |
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| before the State Board of Education to discuss its
failure to | 2 |
| comply with its financial plan.
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| No bonds, notes, teachers orders, tax anticipation | 4 |
| warrants or other
evidences of indebtedness shall be issued or | 5 |
| sold by a school district or
be legally binding upon or | 6 |
| enforceable against a local board of education
of a district | 7 |
| certified to be in financial difficulty unless and until the
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| financial plan required under this Section has been approved by | 9 |
| the State
Board of Education.
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| Any financial watch list distributed by the State Board of | 11 |
| Education
pursuant to this Section shall designate those school | 12 |
| districts on the
watch list that would not otherwise be on the | 13 |
| watch list were it not for the
inability or refusal of the | 14 |
| State of Illinois to make timely
disbursements of any payments | 15 |
| due school districts or to fully reimburse
school districts for | 16 |
| mandated categorical programs pursuant to
reimbursement | 17 |
| formulas provided in this School Code.
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| (Source: P.A. 94-234, eff. 7-1-06 .)
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| (105 ILCS 5/18-11) (from Ch. 122, par. 18-11)
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| Sec. 18-11. Payment of claims.
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| (a) Except as provided in subsection (b) of this Section, | 22 |
| and except as
provided in subsection (c) of this Section with | 23 |
| respect to payments made under
Sections 18-8 through 18-10 for | 24 |
| fiscal year 1994 only, as soon as may
be after the 10th and | 25 |
| 20th days of each of the months of July
August through the
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| following June
July if moneys are available in the common | 2 |
| school fund
in the State treasury for payments under Sections | 3 |
| 18-8 through 18-10 the State
Comptroller shall draw his | 4 |
| warrants upon the State Treasurer as directed by
the State | 5 |
| Board of Education pursuant to Section 2-3.17b and
in | 6 |
| accordance with the transfers from the General Revenue Fund to | 7 |
| the
Common School Fund as specified in Section 8a of the State | 8 |
| Finance Act.
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| Each such semimonthly warrant shall
be in an amount equal | 10 |
| to 1/24 of the total amount to be distributed to school
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| districts for the fiscal year.
The amount of payments made in | 12 |
| June
July of each year shall be
considered as payments for | 13 |
| claims covering the school year that commenced
during the | 14 |
| immediately preceding calendar year.
If the payments provided | 15 |
| for under Sections 18-8 through 18-10 have been
assigned as | 16 |
| security for State aid anticipation certificates pursuant to
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| Section 18-18, the State Board of Education shall pay the | 18 |
| appropriate amount of
the payment, as specified in the | 19 |
| notification required by Section 18-18,
directly to the | 20 |
| assignee.
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| (b) As soon as may be after the 10th and 20th days of each | 22 |
| of the months
of June, 1982 through July, 1983, if moneys are | 23 |
| available in the Common
School Fund in the State treasury for | 24 |
| payments under Sections 18-8 through
18-10, the State | 25 |
| Comptroller shall draw his warrants upon the State Treasurer
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| proportionate for the various counties payable to the regional
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| superintendent of schools in accordance with the transfers from | 2 |
| the General
Revenue Fund to the Common School Fund as specified | 3 |
| in Section 8a of
the State Finance Act.
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| Each such semimonthly warrant for the months of June and | 5 |
| July, 1982 shall
be in an amount equal to 1/24 of the total | 6 |
| amount to be distributed to school
districts by the regional | 7 |
| superintendent for school year 1981-1982.
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| Each such semimonthly warrant for the months of August, | 9 |
| 1982 through July,
1983 shall be in an amount equal to 1/24 of | 10 |
| the total amount to be distributed
to school districts by the | 11 |
| regional superintendent for school year 1982-1983.
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| The State Superintendent of Education shall, from monies | 13 |
| appropriated for
such purpose, compensate districts for | 14 |
| interest lost arising from the
change in payments in June, 1982 | 15 |
| to payments in the months of June and July,
1982, for claims | 16 |
| arising from school year 1981-1982. The amount appropriated
for | 17 |
| such purpose shall be based upon the Prime Commercial Rate in | 18 |
| effect
May 15, 1982. The amount of such compensation shall be | 19 |
| equal to the ratio
of the district's net State aid entitlement | 20 |
| for school year 1981-1982 divided
by the total net State aid | 21 |
| entitlement times the funds appropriated for
such purpose. | 22 |
| Payment in full of the amount of compensation derived from
the | 23 |
| computation required in the preceding sentence shall be made as | 24 |
| soon
as may be after July 1, 1982 upon warrants payable to the | 25 |
| several regional
superintendents of schools.
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| The State Superintendent of Education shall, from monies |
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| appropriated for
such purpose, compensate districts for | 2 |
| interest lost arising from the change
in payments in June, 1983 | 3 |
| to payments in the months of June and July, 1983,
for claims | 4 |
| arising from school year 1982-1983. The amount appropriated
for | 5 |
| such purpose shall be based upon an interest rate of no less | 6 |
| than 15
per cent or the Prime Commercial Rate in effect May 15, | 7 |
| 1983, whichever
is greater. The amount of such compensation | 8 |
| shall be equal to the ratio
of the district's net State aid | 9 |
| entitlement for school year 1982-1983 divided
by the total net | 10 |
| State aid entitlement times the funds appropriated for
such | 11 |
| purpose. Payment in full of the amount of compensation derived | 12 |
| from
the computation required in the preceding sentence shall | 13 |
| be made as soon as
may be after July 1, 1983 upon warrants | 14 |
| payable to the several regional
superintendents of schools.
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| The State Superintendent of Education shall, from monies | 16 |
| appropriated
for such purpose, compensate districts for | 17 |
| interest lost arising from the
change in payments in June, 1992 | 18 |
| and each year thereafter to payments in the
months of June and | 19 |
| July, 1992 and each year thereafter. The amount
appropriated | 20 |
| for such purpose shall be based upon the Prime Commercial Rate
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| in effect June 15, 1992 and June 15 annually thereafter. The | 22 |
| amount of
such compensation shall be equal to the ratio of the | 23 |
| district's net State
aid entitlement divided by the total net | 24 |
| State aid entitlement times the
amount of funds appropriated | 25 |
| for such purpose. Payment of the compensation
shall be made as | 26 |
| soon as may be after July 1 upon warrants payable
to the |
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| several regional superintendents of schools.
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| The regional superintendents shall make payments to their | 3 |
| respective school
districts as soon as may be after receipt of | 4 |
| the warrants unless the payments
have been assigned as security | 5 |
| for State aid anticipation certificates pursuant
to Section | 6 |
| 18-18. If such an assignment has been made, the regional
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| superintendent shall, as soon as may be after receipt of the | 8 |
| warrants, pay
the appropriate amount of the payment as | 9 |
| specified in the notification
required by Section 18-18, | 10 |
| directly to the assignee.
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| As used in this Section, "Prime Commercial Rate" means such | 12 |
| prime rate
as from time to time is publicly announced by the | 13 |
| largest commercial banking
institution in this State, measured | 14 |
| in terms of total assets.
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| (c) With respect to all school districts but for fiscal | 16 |
| year 1994 only,
as soon as may be after the 10th and 20th days | 17 |
| of August, 1993 and as soon as
may be after the 10th and 20th | 18 |
| days of each of the months of
October, 1993 through July, 1994 | 19 |
| if moneys are available in the Common School
Fund in
the State | 20 |
| treasury for payments under Sections 18-8 through 18-10, the
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| State Comptroller shall draw his warrants upon the State | 22 |
| Treasurer as
directed
by the State Board of Education in | 23 |
| accordance with transfers from the General Revenue
Fund to the | 24 |
| Common School Fund as specified in Section 8a of the State
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| Finance Act. The warrant for the 10th
day of August, 1993 and | 26 |
| each semimonthly warrant for the months of October,
1993 |
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| through July, 1994 shall be in an amount equal to 1/24 of the | 2 |
| total amount
to be distributed to that school district
for
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| fiscal year 1994, and the warrant for the 20th day of August, | 4 |
| 1993 shall be in
an
amount equal to 3/24 of that total. The | 5 |
| amount of payments made in July of
1994 shall be considered as | 6 |
| payments for claims covering the school
year that commenced | 7 |
| during the immediately preceding calendar year.
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| (Source: P.A. 87-14; 87-887; 87-895; 88-45; 88-89; 88-641, eff. | 9 |
| 9-9-94.)
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| Section 99. Effective date. This Act takes effect July 1, | 11 |
| 2007.
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