Full Text of SB2615 96th General Assembly
SB2615enr 96TH GENERAL ASSEMBLY
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SB2615 Enrolled |
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LRB096 16593 MJR 31867 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 Public Community College Act is amended by | 5 |
| changing Section 3-33.2 and by adding Section 3-33.7 as | 6 |
| follows:
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| (110 ILCS 805/3-33.2) (from Ch. 122, par. 103-33.2)
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| Sec. 3-33.2. Bonds for working cash fund. | 9 |
| (a) Except as provided in subsection (b) of this Section, | 10 |
| in In order to create, maintain
or increase such a working
cash | 11 |
| fund for the purposes mentioned in Section 3-33.1, the board | 12 |
| may incur an
indebtedness for such
purpose and issue bonds | 13 |
| therefor from time to time, in an amount or amounts
not | 14 |
| exceeding in the aggregate at any one time outstanding 75% of | 15 |
| the taxes
permitted to be levied for educational purposes and | 16 |
| for operations and
maintenance of facilities purposes for the | 17 |
| then current year to be
determined by multiplying the aggregate | 18 |
| of the authorized maximum
educational tax rate and the maximum | 19 |
| operations and maintenance tax rate
applicable to such district | 20 |
| by the last assessed valuation as determined at
the time of the | 21 |
| issue of those bonds plus 75% of the last known entitlement
of | 22 |
| such district to taxes as by law now or hereafter enacted or | 23 |
| amended,
imposed by the General Assembly of the State of |
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| Illinois to replace revenue
lost by units of local government | 2 |
| and school districts as a result of the
abolition of ad valorem | 3 |
| personal property taxes, pursuant to Article IX,
Section 5(c) | 4 |
| of the Constitution of the State of Illinois. | 5 |
| (b) For a period of 3 years after the effective date of | 6 |
| this amendatory Act of the 96th General Assembly, in order to | 7 |
| create, maintain,
or increase such a working
cash fund for the | 8 |
| purposes mentioned in Section 3-33.1, the board may incur an
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| indebtedness for such
purpose and issue bonds therefor from | 10 |
| time to time, in an amount or amounts
not exceeding in the | 11 |
| aggregate at any one time outstanding 150% of the taxes
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| permitted to be levied for educational purposes and for | 13 |
| operations and
maintenance of facilities purposes for the then | 14 |
| current year to be
determined by multiplying the aggregate of | 15 |
| the authorized maximum
educational tax rate and the maximum | 16 |
| operations and maintenance tax rate
applicable to such district | 17 |
| by the last assessed valuation as determined at
the time of the | 18 |
| issue of those bonds plus 150% of the last known entitlement
of | 19 |
| such district to taxes as by law now or hereafter enacted or | 20 |
| amended,
imposed by the General Assembly of the State of | 21 |
| Illinois to replace revenue
lost by units of local government | 22 |
| and school districts as a result of the
abolition of ad valorem | 23 |
| personal property taxes, pursuant to Article IX,
Section 5(c) | 24 |
| of the Constitution of the State of Illinois. | 25 |
| (c) The bonds may be
issued without submitting the question | 26 |
| of issuance thereof to the voters of
the community college |
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| district for approval. Any bonds issued under this
Section | 2 |
| shall bear interest at a rate of not more
the maximum rate | 3 |
| authorized by the Bond Authorization Act, as amended at the
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| time of the making of the contract, and
shall mature within 20 | 5 |
| years from the date of issue. Subject to the
foregoing | 6 |
| limitations as to amount, the bonds may be
issued in an amount | 7 |
| including existing indebtedness which will exceed any
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| statutory debt limitation.
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| (d) With respect to instruments for the payment of money | 10 |
| issued under this
Section either before, on, or after the | 11 |
| effective date of this amendatory
Act of 1989, it is and always | 12 |
| has been the intention of the General
Assembly (i) that the | 13 |
| Omnibus Bond Acts are and always have been supplementary
grants | 14 |
| of
power to issue instruments in accordance with the Omnibus | 15 |
| Bond Acts,
regardless of any provision of this Act that may | 16 |
| appear to be or to have
been more restrictive than those Acts, | 17 |
| (ii)
that the provisions of this Section are not a limitation | 18 |
| on the
supplementary authority granted by the Omnibus Bond
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| Acts,
and (iii) that instruments issued under this
Section | 20 |
| within the supplementary authority granted by the Omnibus Bond | 21 |
| Acts
are not invalid
because of any provision of this Act that | 22 |
| may appear to be or to have been
more restrictive than those | 23 |
| Acts.
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| (Source: P.A. 89-281, eff. 8-10-95.)
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| (110 ILCS 805/3-33.7 new) |
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| Sec. 3-33.7. Establishment of lines of credit. The board | 2 |
| may establish a line of credit with a bank or other financial | 3 |
| institution in an amount not to exceed the following: | 4 |
| (1) if anticipating State revenues due in the current | 5 |
| fiscal year, 85% of the amount or amounts of the revenues | 6 |
| due in the current fiscal year, as certified by the | 7 |
| President/CEO of the State Board or other official in a | 8 |
| position to provide assurances as to the amounts; and | 9 |
| (2) if anticipating State revenues expected to be due | 10 |
| in the next subsequent fiscal year, 50% of the amount or | 11 |
| amounts of the revenues due in the current fiscal year, as | 12 |
| certified by the President/CEO of the State Board or other | 13 |
| official in a position to provide assurances as to the | 14 |
| amounts. | 15 |
| All moneys so borrowed shall be repaid exclusively from the | 16 |
| anticipated revenues within 60 days after the revenues have | 17 |
| been received. Borrowing authorized under subdivisions (1) and | 18 |
| (2) of this Section shall bear interest at a rate not to exceed | 19 |
| the maximum rate authorized by the Bond Authorization Act, from | 20 |
| the date of issuance until paid. | 21 |
| Prior to establishing a line of credit under this Section, | 22 |
| the board shall authorize, by resolution, the line of credit. | 23 |
| The resolution shall set forth facts demonstrating the need for | 24 |
| the line of credit, state the amount to be borrowed, establish | 25 |
| a maximum interest rate limit not to exceed that set forth in | 26 |
| this Section, and provide a date by which the borrowed funds |
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| must be repaid. The resolution shall direct the relevant | 2 |
| officials to make arrangements to set apart and hold the | 3 |
| revenue, as received, that will be used to repay the borrowing. | 4 |
| In addition, the resolution may authorize the relevant | 5 |
| officials to make partial repayments of the borrowing as the | 6 |
| revenues become available and may contain any other terms, | 7 |
| restrictions, or limitations not inconsistent with the | 8 |
| provisions of this Section.
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| Section 99. Effective date. This Act takes effect upon | 10 |
| becoming law.
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