Full Text of HB6041 96th General Assembly
HB6041 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB6041
Introduced 2/10/2010, by Rep. Roger L. Eddy SYNOPSIS AS INTRODUCED: |
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105 ILCS 5/17-2A |
from Ch. 122, par. 17-2A |
105 ILCS 5/20-1 |
from Ch. 122, par. 20-1 |
105 ILCS 5/20-2 | from Ch. 122, par. 20-2 |
105 ILCS 5/20-3 | from Ch. 122, par. 20-3 |
105 ILCS 5/20-4 |
from Ch. 122, par. 20-4 |
105 ILCS 5/20-5 | from Ch. 122, par. 20-5 |
105 ILCS 5/20-7 |
from Ch. 122, par. 20-7 |
105 ILCS 5/20-8 |
from Ch. 122, par. 20-8 |
105 ILCS 5/20-9 |
from Ch. 122, par. 20-9 |
105 ILCS 5/20-10 new |
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Amends the School Code. Deletes a provision applicable to school districts with a population of less than 500,000 requiring that permanent interfund transfers not otherwise authorized by law must be made to the fund of the school
district most in need of the funds being transferred. Allows school districts to increase, abate, maintain, abolish, and re-create working cash funds. Provides that moneys in the working cash fund may be used by the school board for any and all school purposes. Makes other changes. Effective immediately.
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A BILL FOR
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HB6041 |
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LRB096 16820 MJR 36442 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 |
| 17-2A, 20-1, 20-2, 20-3, 20-4, 20-5, 20-7, 20-8, and 20-9 and | 6 |
| by adding Section 20-10 as follows:
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| (105 ILCS 5/17-2A) (from Ch. 122, par. 17-2A)
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| Sec. 17-2A. Interfund Transfers. The school board of any | 9 |
| district having a population of less than
500,000 inhabitants | 10 |
| may, by proper resolution following a public hearing
set by the | 11 |
| school board or the president of the school board
(that is | 12 |
| preceded (i) by at least one published notice over the name of
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| the clerk
or secretary of the board, occurring at least 7 days | 14 |
| and not more than 30
days
prior to the hearing, in a newspaper | 15 |
| of general circulation within the
school
district and (ii) by | 16 |
| posted notice over the name of the clerk or secretary of
the | 17 |
| board, at least 48 hours before the hearing, at the principal | 18 |
| office of the
school board or at the building where the hearing | 19 |
| is to be held if a principal
office does not exist, with both | 20 |
| notices setting forth the time, date, place,
and subject matter | 21 |
| of the
hearing), transfer money from (1) the Educational Fund | 22 |
| to the Operations
and
Maintenance Fund or the Transportation | 23 |
| Fund, (2) the Operations and
Maintenance Fund to the |
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LRB096 16820 MJR 36442 b |
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| Educational Fund or the Transportation Fund, or (3) the
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| Transportation Fund to the Educational Fund or the Operations | 3 |
| and Maintenance
Fund of said
district,
provided that, except | 4 |
| during the period from July 1, 2003 through June 30,
2010, such | 5 |
| transfer is made solely for the purpose of meeting one-time,
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| non-recurring expenses. Except during the period from July 1, | 7 |
| 2003 through
June 30, 2010, any other permanent interfund | 8 |
| transfers authorized
by any provision or judicial | 9 |
| interpretation of this Code for which the
transferee fund is | 10 |
| not precisely and specifically set forth in the provision of
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| this Code authorizing such transfer shall be made to the fund | 12 |
| of the school
district most in need of the funds being | 13 |
| transferred, as determined by
resolution of the school board.
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| (Source: P.A. 94-176, eff. 7-12-05; 95-53, eff. 8-10-07.)
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| (105 ILCS 5/20-1) (from Ch. 122, par. 20-1)
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| Sec. 20-1. Authority to create working cash fund. In each | 17 |
| school district,
whether organized under general law or special | 18 |
| charter, having a population
of less than 500,000 inhabitants, | 19 |
| a fund to be known as a "Working Cash
Fund" may be created, | 20 |
| increased, abated, maintained maintained , and administered | 21 |
| abolished, and re-created in the manner prescribed
in this | 22 |
| Article, for the purpose of enabling the district to have in | 23 |
| its
treasury at all time sufficient money to meet demands | 24 |
| thereon for ordinary
and necessary expenditures for corporate | 25 |
| purposes.
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| (Source: P.A. 80-272.)
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| (105 ILCS 5/20-2)
(from Ch. 122, par. 20-2)
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| Sec. 20-2. Indebtedness and bonds. For the purpose of | 4 |
| creating re-creating, or increasing a working
cash fund, the | 5 |
| school board of any such district may incur an indebtedness and
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| issue bonds as evidence thereof in an amount or amounts not | 7 |
| exceeding in the
aggregate 85% of the taxes permitted to be | 8 |
| levied for educational purposes for
the then current year to be | 9 |
| determined by multiplying the maximum educational
tax rate or | 10 |
| rates
applicable to such school district by the last assessed | 11 |
| valuation or assessed valuations as
determined at the time of | 12 |
| the issue of said bonds plus 85% of the last known
entitlement | 13 |
| of such district to taxes as by law now or hereafter enacted or
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| amended, imposed by the General Assembly of the State of | 15 |
| Illinois to replace
revenue lost by units of local government | 16 |
| and school districts as a result of
the abolition of ad valorem | 17 |
| personal property taxes, pursuant to Article IX,
Section 5, | 18 |
| paragraph (c) of the Constitution of the State of Illinois. The
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| bonds shall bear interest at not more than the maximum rate | 20 |
| authorized by law the
Bond Authorization Act, as amended at the | 21 |
| time of the making of the contract,
if issued before January 1, | 22 |
| 1972 and not more than the maximum rate authorized
by the Bond | 23 |
| Authorization Act, as amended at the time of the making of the
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| contract, if issued after January 1, 1972 and shall mature | 25 |
| within 20 years from
the date thereof. Subject to the foregoing |
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| limitations as to amount, the bonds
may be issued in an amount | 2 |
| including existing indebtedness which will not
exceed the | 3 |
| constitutional limitation as to debt, notwithstanding any | 4 |
| statutory
debt limitation to the contrary. The school
board | 5 |
| shall before or at the time
of issuing the bonds provide for | 6 |
| the collection of a direct annual tax upon all
the taxable | 7 |
| property within the district sufficient to pay the principal
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| thereof at maturity and to pay the interest thereon as it falls | 9 |
| due, which tax
shall be in addition to the maximum amount of | 10 |
| all other taxes, either
educational; transportation; | 11 |
| operations and maintenance; or fire prevention and
safety fund | 12 |
| taxes, now or hereafter authorized and in addition to any
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| limitations upon the levy of taxes as provided by Sections 17-2 | 14 |
| through 17-9.
The bonds may be issued redeemable at the option | 15 |
| of the school board of the
district issuing them on any | 16 |
| interest payment date on or after 5 years from
date of issue.
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| With respect to instruments for the payment of money issued | 18 |
| under this
Section either before, on, or after the effective | 19 |
| date of this amendatory
Act of 1989, it is and always has been | 20 |
| the intention of the General
Assembly (i) that the Omnibus Bond | 21 |
| Acts are and always have been
supplementary grants of power to | 22 |
| issue instruments in accordance with the
Omnibus Bond Acts, | 23 |
| regardless of any provision of this Act that may appear
to be | 24 |
| or to have been more restrictive than those Acts, (ii) that the
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| provisions of this Section are not a limitation on the | 26 |
| supplementary
authority granted by the Omnibus Bond Acts, and |
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| (iii) that instruments
issued under this Section within the | 2 |
| supplementary authority granted by the
Omnibus Bond Acts are | 3 |
| not invalid because of any provision of this Act that
may | 4 |
| appear to be or to have been more restrictive than those Acts.
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| (Source: P.A. 94-234, eff. 7-1-06; 94-1019, eff. 7-10-06.)
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| (105 ILCS 5/20-3)
(from Ch. 122, par. 20-3)
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| Sec. 20-3. Tax levy. For the purpose of providing moneys | 8 |
| for a
working cash fund, the school board of any such school | 9 |
| district may also
levy annually upon all the taxable property | 10 |
| of their district a tax,
known as the "working cash fund tax," | 11 |
| not to exceed 0.05% of
value, as
equalized or assessed by the | 12 |
| Department of Revenue;
provided that no such tax shall be | 13 |
| levied if bonds are issued in
amount or amounts equal in the | 14 |
| aggregate to the limitation set forth in
Section 20-2 for the | 15 |
| creation re-creation, or increase of a working cash fund. The | 16 |
| collection of the tax
shall not be anticipated by the issuance | 17 |
| of any warrants drawn against
it. The tax shall be levied and | 18 |
| collected, except as otherwise provided
in this Section, in | 19 |
| like manner as the general taxes of the district,
and shall be | 20 |
| in addition to the maximum of all other taxes, either
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| educational; transportation; operations and maintenance; or | 22 |
| fire
prevention and safety fund taxes, now or hereafter to be | 23 |
| levied for school
purposes. It may be levied by separate | 24 |
| resolution by the last Tuesday in
December September in each | 25 |
| year or it may be included in the certificate of tax levy
filed |
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LRB096 16820 MJR 36442 b |
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| under Section 17-11.
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| (Source: P.A. 94-234, eff. 7-1-06 .)
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| (105 ILCS 5/20-4) (from Ch. 122, par. 20-4)
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| Sec. 20-4. Use and reimbursement of fund. This Section | 5 |
| shall not
apply in any school district which does not operate a | 6 |
| working cash fund.
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| Moneys derived from the issuance of bonds as authorized by | 8 |
| Section
20-2, or from any tax levied pursuant to Section 20-3, | 9 |
| shall be used
only for the purposes and in the manner | 10 |
| hereinafter provided in this Article . Moneys in
the fund shall | 11 |
| not be regarded as current assets available for school
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| purposes. The school board may appropriate moneys to the | 13 |
| working cash
fund up to the maximum amount allowable in the | 14 |
| fund, and the working cash
fund may receive such appropriations | 15 |
| and any other contributions. Moneys
in the fund may shall not | 16 |
| be used by the school board for any and all in any manner other
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| than to provide moneys with which to meet ordinary and | 18 |
| necessary
disbursements for salaries and other school purposes | 19 |
| and may be
transferred in whole or in part to the general funds | 20 |
| or both of the
school district and disbursed therefrom in | 21 |
| anticipation of the collection of
taxes lawfully levied for any | 22 |
| or all purposes, or in anticipation of such taxes
as by law now | 23 |
| or hereafter enacted or amended are imposed by the General
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| Assembly of the State of Illinois to replace revenue lost by | 25 |
| units of local
government and school districts as a result of |
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HB6041 |
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LRB096 16820 MJR 36442 b |
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| the abolition of ad valorem
personal property taxes, pursuant | 2 |
| to Article IX, Section 5(c) of the
Constitution of the State of | 3 |
| Illinois. Moneys so transferred to any other fund
shall be | 4 |
| deemed to be transferred in anticipation of the collection of | 5 |
| that
part of the taxes so levied or to be received which is in | 6 |
| excess of the amount
thereof required to pay any warrants or | 7 |
| notes and the interest thereon
theretofore and thereafter | 8 |
| issued in anticipation of the collection thereof and
such taxes | 9 |
| when collected shall be applied to the payment of any such | 10 |
| warrants
and the interest thereon, the amount estimated to be | 11 |
| required to satisfy debt
service and pension or retirement | 12 |
| obligations, as set forth in Section 12 of
the State Revenue | 13 |
| Sharing Act and then to the reimbursement of such working
cash | 14 |
| fund as hereinafter provided.
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| Upon receipt by the school district of any taxes in | 16 |
| anticipation of
the collection whereof moneys of the working | 17 |
| cash fund have been so
transferred for disbursement, the fund | 18 |
| shall immediately be reimbursed
therefrom until the full amount | 19 |
| so transferred has been retransferred to
the fund. Unless the | 20 |
| taxes so received and applied to the reimbursement
of the | 21 |
| working cash fund prior to the first day of the eighth month
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| following the month in which due and unpaid real property taxes | 23 |
| begin to
bear interest are sufficient to effect a complete | 24 |
| reimbursement of such
fund for any moneys transferred therefrom | 25 |
| in anticipation of the
collection of such taxes, the working | 26 |
| cash fund shall be reimbursed for
the amount of the deficiency |
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LRB096 16820 MJR 36442 b |
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| therein from any other revenues accruing to
the educational | 2 |
| fund, and the school board shall make provisions for the
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| immediate reimbursement of the amount of any such deficiency in | 4 |
| its next
annual tax levy.
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| (Source: P.A. 87-984; 87-1168; 88-45.)
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| (105 ILCS 5/20-5)
(from Ch. 122, par. 20-5)
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| Sec. 20-5. Transfer to other fund. This Section shall not | 8 |
| apply in any
school district which does not operate a working | 9 |
| cash fund.
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| Moneys in , including interest earned from investment of the | 11 |
| working cash fund as
in this Section provided, shall be | 12 |
| transferred from the working cash fund to
another fund of the | 13 |
| district only upon the authority of the school board which
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| shall from time to time by separate resolution direct the | 15 |
| school treasurer to
make transfers of such sums as may be | 16 |
| required for the purposes herein
authorized.
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| The resolution shall set forth (a) the taxes in | 18 |
| anticipation of which
such transfer is to be made and from | 19 |
| which the working cash fund is to
be reimbursed; (b) the entire | 20 |
| amount of taxes extended, or which the school
board estimates | 21 |
| will be extended or received, for any year in anticipation of
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| the collection of all or part of which such transfer is to be | 23 |
| made; (c) the
aggregate amount of warrants or notes theretofore | 24 |
| issued in anticipation of the
collection of such taxes together | 25 |
| with the amount of interest accrued and which
the school board |
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LRB096 16820 MJR 36442 b |
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| estimates will accrue thereon; (d) the aggregate amount of
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| receipts from taxes imposed to replace revenue lost by units of | 3 |
| local
government and school districts as a result of the | 4 |
| abolition of ad valorem
personal property taxes, pursuant to | 5 |
| Article IX, Section 5(c) of the
Constitution of the State of | 6 |
| Illinois, which the corporate authorities estimate
will be set | 7 |
| aside for the payment of the proportionate amount of debt | 8 |
| service
and pension or retirement obligations, as required by | 9 |
| Section 12 of the State
Revenue Sharing Act; and (e) the | 10 |
| aggregate amount of money theretofore
transferred from the | 11 |
| working cash fund to the other fund in anticipation of the
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| collection of such taxes. The amount which any such resolution | 13 |
| shall direct the
treasurer so to transfer, in anticipation of | 14 |
| the collection of taxes levied or
to be received for any year, | 15 |
| together with the aggregate amount of such
anticipation tax | 16 |
| warrants or notes theretofore drawn against such taxes and the
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| amount of interest accrued and estimated to accrue thereon and | 18 |
| the aggregate
amount of such transfers to be made in | 19 |
| anticipation of the collection of such
taxes and the amount | 20 |
| estimated to be required to satisfy debt service and
pension or | 21 |
| retirement obligations, as set forth in Section 12 of the State
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| Revenue Sharing Act, shall not exceed 85% of the actual or | 23 |
| estimated amount of
such taxes extended or to be extended or to | 24 |
| be received as set forth in such
resolution. At any time moneys | 25 |
| are
available in the working cash fund they
shall be | 26 |
| transferred to such other funds of the district the educational |
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| fund and used for any and all disbursed for the payment of
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| salaries and other school purposes expenses so as to avoid, | 3 |
| whenever possible, the
issuance of anticipation tax warrants or | 4 |
| notes.
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| Moneys earned as interest from the investment of the | 6 |
| working cash fund, or
any portion thereof, may be transferred | 7 |
| from the working cash fund to another
fund of the district that | 8 |
| is most in need of the interest without any requirement of | 9 |
| repayment to the working cash
fund, upon the authority of the | 10 |
| school board by separate resolution directing
the school | 11 |
| treasurer to make such transfer and stating the purpose in | 12 |
| accordance with Section 9(c) of the Local Government Debt | 13 |
| Reform Act therefore as
one herein authorized .
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| (Source: P.A. 94-234, eff. 7-1-06 .)
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| (105 ILCS 5/20-7) (from Ch. 122, par. 20-7)
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| Sec. 20-7. Resolution for issuance of bonds - Submission to | 17 |
| voters - Ballot. No school district may issue bonds under this | 18 |
| Article unless it adopts a
resolution declaring its intention | 19 |
| to issue bonds for the purpose therein
provided and directs | 20 |
| that notice of such intention be published at least
once in a | 21 |
| newspaper published and having a general circulation
in the | 22 |
| district, if there be one, but if there is no newspaper | 23 |
| published
in such district then by publishing such notice in a | 24 |
| newspaper having a
general circulation in the district. The | 25 |
| notice shall set forth (1)
the intention of the district to |
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LRB096 16820 MJR 36442 b |
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| issue bonds in accordance with this
Article; (2) the time | 2 |
| within which a petition may be filed requesting
the submission | 3 |
| of the proposition to issue the bonds; (3) the specific
number | 4 |
| of voters required to sign the petition; and (4) the date of
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| the prospective referendum. At the time of publication of the | 6 |
| notice and
for 30 days thereafter, the recording officer of the | 7 |
| district shall provide
a petition form to any individual | 8 |
| requesting one. If within 30 days after
the publication a | 9 |
| petition is filed with the recording officer of the
district, | 10 |
| signed by the voters of the district equal to 10% or more of | 11 |
| the
registered voters of the district requesting that the | 12 |
| proposition to issue
bonds as authorized by this Article be | 13 |
| submitted to the voters thereof,
then the district shall not be | 14 |
| authorized to issue such bonds until the
proposition has been | 15 |
| certified to the proper election authorities and has
been | 16 |
| submitted to and approved by a majority of the voters voting on | 17 |
| the
proposition at a regular scheduled election in accordance | 18 |
| with the general
election law. If no such petition is so filed, | 19 |
| or if any and all petitions
filed are invalid, the district may | 20 |
| issue the bonds. In addition to the
requirements of the general | 21 |
| election law the notice of the election shall
set forth the | 22 |
| intention of the district to issue bonds under this Article.
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| The proposition shall be in substantially the
following form:
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| OFFICIAL BALLOT
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| -------------------------------------------------------------
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| Shall the Board board of....
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HB6041 |
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LRB096 16820 MJR 36442 b |
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| of School District district number.... YES
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| County, Illinois, be authorized
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| to issue bonds for a working --------------------------
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| cash fund as provided for
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| by Article 20 of the NO
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| School Code?
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| -------------------------------------------------------------
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| (Source: P.A. 87-767 .)
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| (105 ILCS 5/20-8) (from Ch. 122, par. 20-8)
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| Sec. 20-8. Abolishment of working cash fund. Any school | 11 |
| district may abolish
its working cash fund, upon the adoption | 12 |
| of a resolution so providing, and
direct the transfer of any | 13 |
| balance in such fund to the educational fund at the
close of | 14 |
| the then current school year. Any outstanding loans to other | 15 |
| funds of the district the
transportation; operations and | 16 |
| maintenance; or fire prevention and safety fund
shall be paid | 17 |
| or become payable to the educational fund at the close of the
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| then current school year. Thereafter, all outstanding taxes of | 19 |
| such school
district levied pursuant to Section 20-3 shall be | 20 |
| collected and paid into the
educational fund.
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| Any balance in any working cash fund that is created in any | 22 |
| school
district on or after the effective date of this | 23 |
| amendatory Act of 1991
(including all outstanding loans from | 24 |
| any such working cash fund to other funds of the district the
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| educational, transportation, operations and maintenance, or |
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| fire prevention and
safety fund of the district and all | 2 |
| outstanding taxes levied by the district
under Section 20-3 to | 3 |
| provide moneys for any such working cash fund) may, when
such | 4 |
| working cash fund is abolished, be used and applied for the | 5 |
| purpose of
reducing, by the balance in that working cash fund | 6 |
| at the close of the school
year in which the fund so created is | 7 |
| abolished, the amount of the taxes that
the school board of the | 8 |
| school district otherwise would be authorized or
required to | 9 |
| levy for educational purposes for the immediately succeeding | 10 |
| school
year.
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| Any obligation incurred by any school district pursuant to | 12 |
| Section 20-2
shall be discharged as therein provided.
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| (Source: P.A. 86-970; 87-643; 87-984.)
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| (105 ILCS 5/20-9) (from Ch. 122, par. 20-9)
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| Sec. 20-9.
A Nothing in this Article prevents a school | 16 |
| district which has
abolished or abated its working cash fund | 17 |
| has the authority to again create from again creating a working
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| cash fund at any time in the manner provided in this Article.
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| (Source: Laws 1967, p. 642.)
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| (105 ILCS 5/20-10 new) | 21 |
| Sec. 20-10. Abatement of working cash fund. Any school | 22 |
| district may abate its working cash fund at any time, upon the | 23 |
| adoption of a resolution so providing, and direct the transfer | 24 |
| at any time of moneys in that fund to any fund or funds of the |
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| district most in need of the money, providing that the district | 2 |
| maintains an amount to the credit of the working cash fund, | 3 |
| including taxes levied pursuant to Section 20-3 and not yet | 4 |
| collected and amounts transferred pursuant to Section 20-4 and | 5 |
| to be reimbursed to the working cash fund, at least equal to | 6 |
| 0.05% of the then current value, as equalized or assessed by | 7 |
| the Department of Revenue, of the taxable property in the | 8 |
| district. If necessary to effectuate the abatement, any | 9 |
| outstanding loans to other funds of the district may be paid or | 10 |
| become payable to the fund or funds to which the abatement is | 11 |
| made. Any abatement of a school district's working cash fund | 12 |
| prior to the effective date of this amendatory Act of the 96th | 13 |
| General Assembly that would have complied with the provisions | 14 |
| of this Section is hereby validated.
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| Section 99. Effective date. This Act takes effect upon | 16 |
| becoming law.
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