Full Text of HB6041 96th General Assembly
HB6041eng 96TH GENERAL ASSEMBLY
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HB6041 Engrossed |
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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 |
| 20-1, 20-2, 20-3, 20-4, 20-5, 20-7, 20-8, and 20-9 and by | 6 |
| adding Section 20-10 as follows:
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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 | 9 |
| school district,
whether organized under general law or special | 10 |
| charter, having a population
of less than 500,000 inhabitants, | 11 |
| a fund to be known as a "Working Cash
Fund" may be created and , | 12 |
| maintained consistent with the limitations of and administered | 13 |
| in the manner prescribed
in this Article, for the purpose of | 14 |
| enabling the district to have in its
treasury at all time | 15 |
| sufficient money to meet demands thereon for ordinary
and | 16 |
| necessary expenditures for corporate 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 | 20 |
| creating , re-creating, or increasing a working
cash fund, the | 21 |
| 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 |
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| exceeding in the
aggregate 85% of the taxes permitted to be | 2 |
| levied for educational purposes for
the then current year to be | 3 |
| determined by multiplying the maximum educational
tax rate or | 4 |
| rates
applicable to such school district by the last assessed | 5 |
| valuation or assessed valuations as
determined at the time of | 6 |
| the issue of said bonds plus 85% of the last known
entitlement | 7 |
| 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 | 9 |
| Illinois to replace
revenue lost by units of local government | 10 |
| and school districts as a result of
the abolition of ad valorem | 11 |
| personal property taxes, pursuant to Article IX,
Section 5, | 12 |
| 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 | 14 |
| authorized by law the
Bond Authorization Act, as amended at the | 15 |
| time of the making of the contract,
if issued before January 1, | 16 |
| 1972 and not more than the maximum rate authorized
by the Bond | 17 |
| 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 | 19 |
| within 20 years from
the date thereof. Subject to the foregoing | 20 |
| limitations as to amount, the bonds
may be issued in an amount | 21 |
| including existing indebtedness which will not
exceed the | 22 |
| constitutional limitation as to debt, notwithstanding any | 23 |
| statutory
debt limitation to the contrary. The school
board | 24 |
| shall before or at the time
of issuing the bonds provide for | 25 |
| the collection of a direct annual tax upon all
the taxable | 26 |
| 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 | 2 |
| due, which tax
shall be in addition to the maximum amount of | 3 |
| all other taxes, either
educational; transportation; | 4 |
| operations and maintenance; or fire prevention and
safety fund | 5 |
| 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 | 7 |
| through 17-9.
The bonds may be issued redeemable at the option | 8 |
| of the school board of the
district issuing them on any | 9 |
| 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 | 11 |
| under this
Section either before, on, or after the effective | 12 |
| date of this amendatory
Act of 1989, it is and always has been | 13 |
| the intention of the General
Assembly (i) that the Omnibus Bond | 14 |
| Acts are and always have been
supplementary grants of power to | 15 |
| issue instruments in accordance with the
Omnibus Bond Acts, | 16 |
| regardless of any provision of this Act that may appear
to be | 17 |
| 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 | 19 |
| supplementary
authority granted by the Omnibus Bond Acts, and | 20 |
| (iii) that instruments
issued under this Section within the | 21 |
| supplementary authority granted by the
Omnibus Bond Acts are | 22 |
| not invalid because of any provision of this Act that
may | 23 |
| 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 | 2 |
| for a
working cash fund, the school board of any such school | 3 |
| district may also
levy annually upon all the taxable property | 4 |
| of their district a tax,
known as the "working cash fund tax," | 5 |
| not to exceed 0.05% of
value, as
equalized or assessed by the | 6 |
| Department of Revenue;
provided that no such tax shall be | 7 |
| levied if bonds are issued in
amount or amounts equal in the | 8 |
| aggregate to the limitation set forth in
Section 20-2 for the | 9 |
| creation , re-creation, or increase of a working cash fund. The | 10 |
| collection of the tax
shall not be anticipated by the issuance | 11 |
| of any warrants drawn against
it. The tax shall be levied and | 12 |
| collected, except as otherwise provided
in this Section, in | 13 |
| like manner as the general taxes of the district,
and shall be | 14 |
| in addition to the maximum of all other taxes, either
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| educational; transportation; operations and maintenance; or | 16 |
| fire
prevention and safety fund taxes, now or hereafter to be | 17 |
| levied for school
purposes. It may be levied by separate | 18 |
| resolution by the last Tuesday in
December September in each | 19 |
| year or it may be included in the certificate of tax levy
filed | 20 |
| 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 | 24 |
| shall not
apply in any school district which does not operate a | 25 |
| working cash fund.
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| Moneys derived from the issuance of bonds as authorized by | 2 |
| Section
20-2, or from any tax levied pursuant to Section 20-3, | 3 |
| shall be used
only for the purposes and in the manner | 4 |
| hereinafter provided in this Article . Moneys in
the fund shall | 5 |
| not be regarded as current assets available for school
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| purposes. The school board may appropriate moneys to the | 7 |
| working cash
fund up to the maximum amount allowable in the | 8 |
| fund, and the working cash
fund may receive such appropriations | 9 |
| and any other contributions. Moneys
in the fund may shall not | 10 |
| 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 | 12 |
| necessary
disbursements for salaries and other school purposes | 13 |
| and may be
transferred in whole or in part to the general funds | 14 |
| or both of the
school district and disbursed therefrom in | 15 |
| anticipation of the collection of
taxes lawfully levied for any | 16 |
| or all purposes, or in anticipation of such taxes
as by law now | 17 |
| 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 | 19 |
| units of local
government and school districts as a result of | 20 |
| the abolition of ad valorem
personal property taxes, pursuant | 21 |
| to Article IX, Section 5(c) of the
Constitution of the State of | 22 |
| Illinois. Moneys so transferred to any other fund
shall be | 23 |
| deemed to be transferred in anticipation of the collection of | 24 |
| that
part of the taxes so levied or to be received which is in | 25 |
| excess of the amount
thereof required to pay any warrants or | 26 |
| notes and the interest thereon
theretofore and thereafter |
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| issued in anticipation of the collection thereof and
such taxes | 2 |
| when collected shall be applied to the payment of any such | 3 |
| warrants
and the interest thereon, the amount estimated to be | 4 |
| required to satisfy debt
service and pension or retirement | 5 |
| obligations, as set forth in Section 12 of
the State Revenue | 6 |
| Sharing Act and then to the reimbursement of such working
cash | 7 |
| fund as hereinafter provided.
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| Upon receipt by the school district of any taxes in | 9 |
| anticipation of
the collection whereof moneys of the working | 10 |
| cash fund have been so
transferred for disbursement, the fund | 11 |
| shall immediately be reimbursed
therefrom until the full amount | 12 |
| so transferred has been retransferred to
the fund. Unless the | 13 |
| taxes so received and applied to the reimbursement
of the | 14 |
| 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 | 16 |
| begin to
bear interest are sufficient to effect a complete | 17 |
| reimbursement of such
fund for any moneys transferred therefrom | 18 |
| in anticipation of the
collection of such taxes, the working | 19 |
| cash fund shall be reimbursed for
the amount of the deficiency | 20 |
| therein from any other revenues accruing to
the educational | 21 |
| fund, and the school board shall make provisions for the
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| immediate reimbursement of the amount of any such deficiency in | 23 |
| 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 | 2 |
| apply in any
school district which does not operate a working | 3 |
| cash fund.
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| Moneys in , including interest earned from investment of the | 5 |
| working cash fund as
in this Section provided, shall be | 6 |
| transferred from the working cash fund to
another fund of the | 7 |
| district only upon the authority of the school board which
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| shall from time to time by separate resolution direct the | 9 |
| school treasurer to
make transfers of such sums as may be | 10 |
| required for the purposes herein
authorized.
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| The resolution shall set forth (a) the taxes in | 12 |
| anticipation of which
such transfer is to be made and from | 13 |
| which the working cash fund is to
be reimbursed; (b) the entire | 14 |
| amount of taxes extended, or which the school
board estimates | 15 |
| 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 | 17 |
| made; (c) the
aggregate amount of warrants or notes theretofore | 18 |
| issued in anticipation of the
collection of such taxes together | 19 |
| with the amount of interest accrued and which
the school board | 20 |
| estimates will accrue thereon; (d) the aggregate amount of
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| receipts from taxes imposed to replace revenue lost by units of | 22 |
| local
government and school districts as a result of the | 23 |
| abolition of ad valorem
personal property taxes, pursuant to | 24 |
| Article IX, Section 5(c) of the
Constitution of the State of | 25 |
| Illinois, which the corporate authorities estimate
will be set | 26 |
| aside for the payment of the proportionate amount of debt |
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HB6041 Engrossed |
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| service
and pension or retirement obligations, as required by | 2 |
| Section 12 of the State
Revenue Sharing Act; and (e) the | 3 |
| aggregate amount of money theretofore
transferred from the | 4 |
| 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 | 6 |
| shall direct the
treasurer so to transfer, in anticipation of | 7 |
| the collection of taxes levied or
to be received for any year, | 8 |
| together with the aggregate amount of such
anticipation tax | 9 |
| warrants or notes theretofore drawn against such taxes and the
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| amount of interest accrued and estimated to accrue thereon and | 11 |
| the aggregate
amount of such transfers to be made in | 12 |
| anticipation of the collection of such
taxes and the amount | 13 |
| estimated to be required to satisfy debt service and
pension or | 14 |
| 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 | 16 |
| estimated amount of
such taxes extended or to be extended or to | 17 |
| be received as set forth in such
resolution. At any time moneys | 18 |
| are
available in the working cash fund they
shall be | 19 |
| transferred to such other funds of the district the educational | 20 |
| 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, | 22 |
| whenever possible, the
issuance of anticipation tax warrants or | 23 |
| notes.
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| Moneys earned as interest from the investment of the | 25 |
| working cash fund, or
any portion thereof, may be transferred | 26 |
| from the working cash fund to another
fund of the district that |
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| is most in need of the interest without any requirement of | 2 |
| repayment to the working cash
fund, upon the authority of the | 3 |
| school board by separate resolution directing
the school | 4 |
| treasurer to make such transfer and stating the purpose in | 5 |
| accordance with subsection (c) of Section 9 of the Local | 6 |
| Government Debt 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 | 10 |
| voters - Ballot. No school district may issue bonds under this | 11 |
| Article unless it adopts a
resolution declaring its intention | 12 |
| to issue bonds for the purpose therein
provided and directs | 13 |
| that notice of such intention be published at least
once in a | 14 |
| newspaper published and having a general circulation
in the | 15 |
| district, if there be one, but if there is no newspaper | 16 |
| published
in such district then by publishing such notice in a | 17 |
| newspaper having a
general circulation in the district. The | 18 |
| notice shall set forth (1)
the intention of the district to | 19 |
| issue bonds in accordance with this
Article; (2) the time | 20 |
| within which a petition may be filed requesting
the submission | 21 |
| of the proposition to issue the bonds; (3) the specific
number | 22 |
| 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 | 24 |
| notice and
for 30 days thereafter, the recording officer of the | 25 |
| district shall provide
a petition form to any individual |
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| requesting one. If within 30 days after
the publication a | 2 |
| petition is filed with the recording officer of the
district, | 3 |
| signed by the voters of the district equal to 10% or more of | 4 |
| the
registered voters of the district requesting that the | 5 |
| proposition to issue
bonds as authorized by this Article be | 6 |
| submitted to the voters thereof,
then the district shall not be | 7 |
| authorized to issue such bonds until the
proposition has been | 8 |
| certified to the proper election authorities and has
been | 9 |
| submitted to and approved by a majority of the voters voting on | 10 |
| the
proposition at a regular scheduled election in accordance | 11 |
| with the general
election law. If no such petition is so filed, | 12 |
| or if any and all petitions
filed are invalid, the district may | 13 |
| issue the bonds. In addition to the
requirements of the general | 14 |
| election law the notice of the election shall
set forth the | 15 |
| 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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| 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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HB6041 Engrossed |
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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 | 4 |
| district may abolish
its working cash fund, upon the adoption | 5 |
| of a resolution so providing, and
direct the transfer of any | 6 |
| balance in such fund to the educational fund at the
close of | 7 |
| the then current school year. Any outstanding loans to other | 8 |
| funds of the district the
transportation; operations and | 9 |
| maintenance; or fire prevention and safety fund
shall be paid | 10 |
| 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 | 12 |
| such school
district levied pursuant to Section 20-3 shall be | 13 |
| collected and paid into the
educational fund.
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| Any balance in any working cash fund that is created in any | 15 |
| school
district on or after the effective date of this | 16 |
| amendatory Act of 1991
(including all outstanding loans from | 17 |
| any such working cash fund to other funds the
educational, | 18 |
| transportation, operations and maintenance, or fire prevention | 19 |
| and
safety fund of the district and all outstanding taxes | 20 |
| levied by the district
under Section 20-3 to provide moneys for | 21 |
| any such working cash fund) may, when
such working cash fund is | 22 |
| abolished, be used and applied for the purpose of
reducing, by | 23 |
| the balance in that working cash fund at the close of the | 24 |
| school
year in which the fund so created is abolished, the | 25 |
| amount of the taxes that
the school board of the school |
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| district otherwise would be authorized or
required to levy for | 2 |
| educational purposes for the immediately succeeding school
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| year.
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| Any obligation incurred by any school district pursuant to | 5 |
| 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 | 9 |
| district which has
abolished or abated its working cash fund | 10 |
| 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) | 14 |
| Sec. 20-10. Abatement of working cash fund. Any school | 15 |
| district may abate its working cash fund at any time, upon the | 16 |
| adoption of a resolution so providing, and direct the transfer | 17 |
| at any time of moneys in that fund to any fund or funds of the | 18 |
| district most in need of the money, provided that the district | 19 |
| maintains an amount to the credit of the working cash fund, | 20 |
| including taxes levied pursuant to Section 20-3 and not yet | 21 |
| collected and amounts transferred pursuant to Section 20-4 and | 22 |
| to be reimbursed to the working cash fund, at least equal to | 23 |
| 0.05% of the then current value, as equalized or assessed by | 24 |
| the Department of Revenue, of the taxable property in the |
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| district. If necessary to effectuate the abatement, any | 2 |
| outstanding loans to other funds of the district may be paid or | 3 |
| become payable to the fund or funds to which the abatement is | 4 |
| made. Any abatement of a school district's working cash fund | 5 |
| prior to the effective date of this amendatory Act of the 96th | 6 |
| General Assembly that would have complied with the provisions | 7 |
| of this Section is hereby validated.
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| Section 99. Effective date. This Act takes effect upon | 9 |
| becoming law.
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