Full Text of SB2149 97th General Assembly
SB2149 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB2149 Introduced 2/10/2011, by Sen. John M. Sullivan SYNOPSIS AS INTRODUCED: |
| | Creates the Financial Oversight Panel Law of the School Code. Allows a school district (other than the Chicago school district) to petition the State Board of Education for the establishment of a Financial Oversight Panel for the district. Allows the State Board to establish a Financial Oversight Panel without a petition from a district. Contains provisions concerning duties of the district; members and meetings of a Panel; powers of a Panel; officers of a Panel; collective bargaining agreements; deposits and investments; cash and bank accounts; the financial, management, and budgetary structure; the School District Emergency Financial Assistance Fund; grants and loans; the issuance of bonds; a tax levy; a debt service fund; a debt service reserve fund; bond anticipation notes; tax anticipation warrants; reports; a Panel audit; Panel property being exempt from taxation; sanctions; and abolition of a Panel. Makes related changes in the School Code and the Property Tax Code. Effective July 1, 2011.
|
| |
| | FISCAL NOTE ACT MAY APPLY | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
| | A BILL FOR |
|
| | | SB2149 | | LRB097 10095 NHT 50275 b |
|
| 1 | | AN ACT concerning education.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by changing | 5 | | Sections 18-50.1, 18-92, and 18-241 as follows:
| 6 | | (35 ILCS 200/18-50.1)
| 7 | | Sec. 18-50.1. School Finance Authority and Financial | 8 | | Oversight Panel levies.
Notwithstanding any other law to the | 9 | | contrary, any
levy adopted by a School Finance Authority | 10 | | created under Article 1F of
the School Code or a Financial | 11 | | Oversight Panel established under Article 1H of the School Code | 12 | | is valid and shall be extended by the county clerk if it is
| 13 | | certified to the county clerk by the Authority or Panel in | 14 | | sufficient time to allow
the county clerk to include the levy | 15 | | in the extension for the taxable year.
| 16 | | (Source: P.A. 92-855, eff. 12-6-02.)
| 17 | | (35 ILCS 200/18-92)
| 18 | | Sec. 18-92. Downstate School Finance Authority for | 19 | | Elementary
Districts Law and Financial Oversight Panel Law . The | 20 | | provisions of the Truth in Taxation Law are subject to
the | 21 | | Downstate School Finance Authority for Elementary Districts | 22 | | Law and the Financial Oversight Panel Law of the School Code .
|
| | | SB2149 | - 2 - | LRB097 10095 NHT 50275 b |
|
| 1 | | (Source: P.A. 95-331, eff. 8-21-07.)
| 2 | | (35 ILCS 200/18-241)
| 3 | | Sec. 18-241. School Finance Authority and Financial | 4 | | Oversight Panel .
| 5 | | (a) A School Finance Authority established under Article 1E | 6 | | or 1F of
the School Code shall not be a taxing district for | 7 | | purposes of this Law. A Financial Oversight Panel established | 8 | | under Article 1H of the School Code shall not be a taxing | 9 | | district for purposes of this Law.
| 10 | | (b) This Law shall not apply to the extension of taxes for | 11 | | a
school district for the levy year in which a School Finance
| 12 | | Authority for the district is created pursuant to Article 1E or | 13 | | 1F of the
School Code. This Law shall not apply to the | 14 | | extension of taxes for a school district for the levy year in | 15 | | which a Financial Oversight Panel for the district is created | 16 | | pursuant to Article 1H of the School Code.
| 17 | | (Source: P.A. 92-547, eff. 6-13-02; 93-501, eff. 8-11-03.)
| 18 | | Section 15. The School Code is amended by changing Section | 19 | | 1B-8 and by adding Article 1H as follows:
| 20 | | (105 ILCS 5/1B-8) (from Ch. 122, par. 1B-8)
| 21 | | Sec. 1B-8. There is created in the State Treasury a
special | 22 | | fund to be known as the School District Emergency
Financial | 23 | | Assistance Fund (the "Fund"). The School District Emergency
|
| | | SB2149 | - 3 - | LRB097 10095 NHT 50275 b |
|
| 1 | | Financial Assistance Fund shall consist of appropriations, | 2 | | loan repayments, grants from the
federal government, and | 3 | | donations from any public or private source. Moneys in
the Fund
| 4 | | may be appropriated only to the Illinois Finance Authority and
| 5 | | the State Board for
those purposes authorized under this | 6 | | Article and Articles
Article 1F and 1H of this Code.
The | 7 | | appropriation may be
allocated and expended by the State Board | 8 | | for contractual services as
grants to provide technical | 9 | | assistance and consultation consulting services to school | 10 | | districts to assess their financial condition to Financial | 11 | | Oversight Panels that petition for emergency financial | 12 | | assistance grants. The and by the Illinois Finance Authority | 13 | | may provide as
loans to school districts which are the subject | 14 | | of an
approved petition for emergency financial assistance | 15 | | under
Section 1B-4 ,
or 1F-62 , or 1H-65 of this Code. Neither | 16 | | the State Board of Education nor the Illinois Finance Authority | 17 | | may collect any fees for providing these services. | 18 | | From the amount allocated to each such school
district | 19 | | under this Article the State Board shall identify a sum | 20 | | sufficient to
cover all approved costs of the Financial | 21 | | Oversight Panel
established for the respective school | 22 | | district. If the State Board and State
Superintendent of | 23 | | Education have not approved emergency financial assistance in
| 24 | | conjunction with the appointment of a Financial Oversight | 25 | | Panel, the Panel's
approved costs shall be paid from deductions | 26 | | from the district's general State
aid.
|
| | | SB2149 | - 4 - | LRB097 10095 NHT 50275 b |
|
| 1 | | The Financial Oversight Panel may prepare and file
with the | 2 | | State Superintendent a proposal for emergency
financial | 3 | | assistance for the school district and for its
operations | 4 | | budget. No expenditures shall be
authorized by the State | 5 | | Superintendent until he or she has approved
the proposal of the | 6 | | Panel, either as submitted or in such
lesser amount determined | 7 | | by the State Superintendent.
| 8 | | The maximum amount of an emergency financial assistance | 9 | | loan
which may be allocated to any school district under this
| 10 | | Article, including moneys necessary for the operations of
the | 11 | | Panel, shall not exceed $4,000 times the number of pupils
| 12 | | enrolled in the school district during the school year
ending | 13 | | June 30 prior to the date of approval by the State
Board of the | 14 | | petition for emergency financial assistance, as
certified to | 15 | | the local board and the Panel by the State
Superintendent.
An | 16 | | emergency financial assistance grant shall not exceed $1,000 | 17 | | times the
number of such pupils. A district may receive both a | 18 | | loan and a grant.
| 19 | | The payment of an emergency State financial assistance | 20 | | grant or loan
shall be subject to appropriation by the General | 21 | | Assembly.
Emergency State financial assistance allocated and | 22 | | paid to a school
district under this Article may be applied to | 23 | | any fund or funds from which
the local board of education of | 24 | | that district is authorized to make
expenditures by law.
| 25 | | Any emergency financial assistance proposed by the
| 26 | | Financial Oversight Panel and approved by the State
|
| | | SB2149 | - 5 - | LRB097 10095 NHT 50275 b |
|
| 1 | | Superintendent may be paid in its entirety during the
initial | 2 | | year of the Panel's existence or spread in equal or
declining | 3 | | amounts over a period of years not to exceed the
period of the | 4 | | Panel's existence. All
loan payments made from the School | 5 | | District Emergency Financial
Assistance Fund for a
school | 6 | | district shall be required to be repaid, with simple interest | 7 | | over
the term of the loan at a rate equal to 50% of the one-year | 8 | | Constant Maturity
Treasury (CMT) yield as last published by the | 9 | | Board of Governors of the Federal
Reserve System before the | 10 | | date on which the district's loan is
approved
by the State | 11 | | Board of Education, not later than the
date the
Financial | 12 | | Oversight Panel ceases to exist. The Panel shall
establish and | 13 | | the Illinois Finance Authority shall
approve the terms and | 14 | | conditions, including the schedule, of
repayments. The | 15 | | schedule shall provide for repayments
commencing July 1 of each | 16 | | year or upon each fiscal year's receipt of moneys from a tax | 17 | | levy for emergency financial assistance. Repayment shall be | 18 | | incorporated into the
annual budget of the school district and | 19 | | may be made from any fund or funds
of the district in which | 20 | | there are moneys available. Default on repayment is subject to | 21 | | the Illinois Grant Funds Recovery Act. When moneys are repaid
| 22 | | as provided herein they shall not be made available to the | 23 | | local board for
further use as emergency financial assistance | 24 | | under this Article at any
time thereafter. All repayments | 25 | | required to be made by a school district
shall be received by | 26 | | the State Board and deposited in the School District
Emergency |
| | | SB2149 | - 6 - | LRB097 10095 NHT 50275 b |
|
| 1 | | Financial Assistance Fund.
| 2 | | In establishing the terms and conditions for the
repayment | 3 | | obligation of the school district the Panel shall
annually | 4 | | determine whether a separate local property tax levy is
| 5 | | required. The board of any school district with a tax rate
for | 6 | | educational purposes for the prior year of less than
120% of | 7 | | the maximum rate for educational purposes authorized
by Section | 8 | | 17-2 shall provide for a separate
tax levy for emergency | 9 | | financial assistance repayment
purposes. Such tax levy shall | 10 | | not be subject to referendum approval. The
amount of the levy | 11 | | shall be equal to the
amount necessary to meet the annual | 12 | | repayment obligations of
the district as established by the | 13 | | Panel, or 20% of the
amount levied for educational purposes for | 14 | | the prior year,
whichever is less. However, no district shall | 15 | | be
required to levy the tax if the district's operating tax
| 16 | | rate as determined under Section
18-8 or 18-8.05 exceeds 200% | 17 | | of the district's tax rate for educational
purposes for the | 18 | | prior year.
| 19 | | (Source: P.A. 94-234, eff. 7-1-06 .)
| 20 | | (105 ILCS 5/Art. 1H heading new)
| 21 | | ARTICLE 1H. FINANCIAL OVERSIGHT PANELS | 22 | | (105 ILCS 5/1H-1 new) | 23 | | Sec. 1H-1. Short title. This Article may be cited as the | 24 | | Financial Oversight Panel Law. |
| | | SB2149 | - 7 - | LRB097 10095 NHT 50275 b |
|
| 1 | | (105 ILCS 5/1H-5 new) | 2 | | Sec. 1H-5. Findings; purpose; intent. | 3 | | (a) The General Assembly finds all of the following: | 4 | | (1) A fundamental goal of the people of this State, as | 5 | | expressed in Section 1 of Article X of the Illinois | 6 | | Constitution, is the educational development of all | 7 | | persons to the limits of their capacities. When a board of | 8 | | education faces financial difficulties, continued | 9 | | operation of the public school system is threatened. | 10 | | (2) A sound financial structure is essential to the | 11 | | continued operation of any school system. It is vital to | 12 | | commercial, educational, and cultural interests that | 13 | | public schools remain in operation. To achieve that goal, | 14 | | public school systems must have effective access to the | 15 | | private market to borrow short and long term funds. | 16 | | (3) To promote the financial integrity of districts, as | 17 | | defined in this Article, it is necessary to provide for the | 18 | | creation of financial oversight panels with the powers | 19 | | necessary to promote sound financial management and to | 20 | | ensure the continued operation of the public schools. | 21 | | (b) It is the purpose of this Article to provide a secure | 22 | | financial basis for the continued operation of public schools. | 23 | | The intention of the General Assembly, in creating this | 24 | | Article, is to establish procedures, provide powers, and impose | 25 | | restrictions to ensure the financial and educational integrity |
| | | SB2149 | - 8 - | LRB097 10095 NHT 50275 b |
|
| 1 | | of the public schools, while leaving principal responsibility | 2 | | for the educational policies of public schools to the boards of | 3 | | education within the State, consistent with the requirements | 4 | | for satisfying the public policy and purpose set forth in this | 5 | | Article.
| 6 | | (105 ILCS 5/1H-10 new) | 7 | | Sec. 1H-10. Definitions. As used in this Article: | 8 | | "Bonds" means bonds authorized to be issued by the Panel | 9 | | under Section 1H-70 of this Code. | 10 | | "Budget" means the annual budget of the district required | 11 | | under Section 17-1 of this Code, as in effect from time to | 12 | | time. | 13 | | "Chairperson" means the Chairperson of the Panel. | 14 | | "District" means any school district having a population of | 15 | | not more than 500,000 that has had a Financial Oversight Panel | 16 | | established under this Article. | 17 | | "Financial plan" means the financial plan of the district | 18 | | to be developed pursuant to this Article, as in effect from | 19 | | time to time. | 20 | | "Fiscal year" means the fiscal year of the district. | 21 | | "Obligations" means bonds and notes of the Panel. | 22 | | "Panel" means a Financial Oversight Panel created under | 23 | | this Article. | 24 | | "State Board" means the State Board of Education. | 25 | | "State Superintendent" means the State Superintendent of |
| | | SB2149 | - 9 - | LRB097 10095 NHT 50275 b |
|
| 1 | | Education. | 2 | | (105 ILCS 5/1H-15 new) | 3 | | Sec. 1H-15. Establishment of Financial Oversight Panels; | 4 | | duties of district. | 5 | | (a) A school district may petition the State Board for the | 6 | | establishment of a Financial Oversight Panel for the district. | 7 | | The petition shall cite the reasons why the creation of a | 8 | | Financial Oversight Panel for the district is necessary. The | 9 | | State Board may grant the petition upon determining that the | 10 | | approval of the petition is in the best educational and | 11 | | financial interests of the district. The State Board may | 12 | | establish a Financial Oversight Panel without a petition from a | 13 | | district if the State Board determines that such action is in | 14 | | the best educational and financial interests of the district. | 15 | | (b) Upon establishment of a Financial Oversight Panel, all | 16 | | of the following shall occur: | 17 | | (1) There is established a body both corporate and | 18 | | politic to be known as the "(Name of School District) | 19 | | Financial Oversight Panel", which in this name shall | 20 | | exercise all authority vested in a Panel by this Article. | 21 | | (2) The duties and obligations of the district under | 22 | | Article 1B of this Code shall be transferred and become | 23 | | duties and obligations owed by the district to the | 24 | | Financial Oversight Panel. | 25 | | (c) In the event of a conflict between the provisions of |
| | | SB2149 | - 10 - | LRB097 10095 NHT 50275 b |
|
| 1 | | this Article and the provisions of Article 1B of this Code, the | 2 | | provisions of this Article control. | 3 | | (d) Any school district having a Financial Oversight Panel | 4 | | established under Article 1B of this Code or any Financial | 5 | | Oversight Panel established under Article 1B may petition the | 6 | | State Board for the establishment of a Financial Oversight | 7 | | Panel under this Article and concurrent dissolution of the | 8 | | Article 1B Panel. All records, papers, books, funds, or other | 9 | | assets or liabilities belonging to the dissolving Financial | 10 | | Oversight Panel shall be transferred to the newly established | 11 | | Financial Oversight Panel. | 12 | | (105 ILCS 5/1H-20 new) | 13 | | Sec. 1H-20. Members of Panel; meetings. | 14 | | (a) Upon establishment of a Financial Oversight Panel under | 15 | | Section 1H-15 of this Code, the State Superintendent shall | 16 | | within 15 working days thereafter appoint 5 members to serve on | 17 | | a Financial Oversight Panel for the district. Members appointed | 18 | | to the Panel shall serve at the pleasure of the State | 19 | | Superintendent. The State Superintendent shall designate one | 20 | | of the members of the Panel to serve as its Chairperson. In the | 21 | | event of vacancy or resignation, the State Superintendent | 22 | | shall, within 10 days after receiving notice, appoint a | 23 | | successor to serve out that member's term. The State | 24 | | Superintendent may remove a member for incompetence, | 25 | | malfeasance, neglect of duty, or other just cause. |
| | | SB2149 | - 11 - | LRB097 10095 NHT 50275 b |
|
| 1 | | (b) Members of the Panel shall be selected primarily on the | 2 | | basis of their experience and education in financial | 3 | | management, with consideration given to persons knowledgeable | 4 | | in education finance. Two members of the Panel shall be | 5 | | residents of the school district that the Panel serves. A | 6 | | member of the Panel may not be a member of the district's | 7 | | school board or an employee of the district nor may a member | 8 | | have a direct financial interest in the district. | 9 | | (c) Panel members may be reimbursed by the State Board for | 10 | | travel and other necessary expenses incurred in the performance | 11 | | of their official duties. Unless paid from bonds issued under | 12 | | Section 1H-70 of this Code, the amount reimbursed members for | 13 | | their expenses shall be charged to the school district as part | 14 | | of any emergency financial assistance and incorporated as a | 15 | | part of the terms and conditions for repayment of the | 16 | | assistance or shall be deducted from the district's general | 17 | | State aid as provided in Section 1H-65 of this Code. | 18 | | (d) With the exception of the chairperson, who shall be | 19 | | designated as provided in subsection (a) of this Section, the | 20 | | Panel may elect such officers as it deems appropriate. | 21 | | (e) The first meeting of the Panel shall be held at the | 22 | | call of the Chairperson. The Panel shall prescribe the times | 23 | | and places for its meetings and the manner in which regular and | 24 | | special meetings may be called and shall comply with the Open | 25 | | Meetings Act. | 26 | | (f) Three members of the Panel shall constitute a quorum. |
| | | SB2149 | - 12 - | LRB097 10095 NHT 50275 b |
|
| 1 | | When a vote is taken upon any measure before the Panel, a | 2 | | quorum being present, a majority of the votes of the members | 3 | | voting on the measure shall determine the outcome. | 4 | | (105 ILCS 5/1H-25 new) | 5 | | Sec. 1H-25. General powers. The purposes of the Panel shall | 6 | | be to exercise financial control over the district and to | 7 | | furnish financial assistance so that the district can provide | 8 | | public education within the district's jurisdiction while | 9 | | permitting the district to meet its obligations to its | 10 | | creditors and the holders of its debt. Except as expressly | 11 | | limited by this Article, the Panel shall have all powers | 12 | | granted to a voluntary or involuntary Financial Oversight Panel | 13 | | and to a Financial Administrator under Article 1B of this Code | 14 | | and all other powers necessary to meet its responsibilities and | 15 | | to carry out its purposes and the purposes of this Article, | 16 | | including without limitation all of the following powers, | 17 | | provided that the Panel shall have no power to terminate any | 18 | | employee without following the statutory procedures for such | 19 | | terminations set forth in this Code: | 20 | | (1) To sue and to be sued. | 21 | | (2) To make, cancel, modify, and execute contracts, | 22 | | leases, subleases, and all other instruments or agreements | 23 | | necessary or convenient for the exercise of the powers and | 24 | | functions granted by this Article, subject to Section 1H-45 | 25 | | of this Code. The Panel may at a regular or special meeting |
| | | SB2149 | - 13 - | LRB097 10095 NHT 50275 b |
|
| 1 | | find that the district has insufficient or inadequate funds | 2 | | with respect to any contract, other than collective | 3 | | bargaining agreements. | 4 | | (3) To purchase real or personal property necessary or | 5 | | convenient for its purposes; to execute and deliver deeds | 6 | | for real property held in its own name; and to sell, lease, | 7 | | or otherwise dispose of such of its property as, in the | 8 | | judgment of the Panel, is no longer necessary for its | 9 | | purposes. | 10 | | (4) To appoint officers, agents, and employees of the | 11 | | Panel, including a chief executive officer, a chief fiscal | 12 | | officer, and a chief educational officer; to define their | 13 | | duties and qualifications; and to fix their compensation | 14 | | and employee benefits. | 15 | | (5) To transfer to the district such sums of money as | 16 | | are not required for other purposes. | 17 | | (6) To borrow money, including without limitation | 18 | | accepting State loans, and to issue obligations pursuant to | 19 | | this Article; to fund, refund, or advance refund the same; | 20 | | to provide for the rights of the holders of its | 21 | | obligations; and to repay any advances. | 22 | | (7) To levy all property tax levies that otherwise | 23 | | could be levied by the district, and to make levies | 24 | | pursuant to Section 1H-65 of this Code. This levy or levies | 25 | | shall be exempt from the Truth in Taxation Law. | 26 | | (8) Subject to the provisions of any contract with or |
| | | SB2149 | - 14 - | LRB097 10095 NHT 50275 b |
|
| 1 | | for the benefit of the holders of its obligations, to | 2 | | purchase or redeem its obligations. | 3 | | (9) To procure all necessary goods and services for the | 4 | | Panel in compliance with the purchasing laws and | 5 | | requirements applicable to the district. | 6 | | (10) To do any and all things necessary or convenient | 7 | | to carry out its purposes and exercise the powers given to | 8 | | it by this Article. | 9 | | (11) To recommend annexation, consolidation, | 10 | | dissolution, or reorganization of the district, in whole or | 11 | | in part, to the State Board if in the Panel's judgment the | 12 | | circumstances so require. No such proposal for annexation, | 13 | | consolidation, dissolution, or reorganization shall occur | 14 | | unless the Panel and the school boards of all other | 15 | | districts directly affected by the annexation, | 16 | | consolidation, dissolution, or reorganization have each | 17 | | approved by majority vote the annexation, consolidation, | 18 | | dissolution, or reorganization. Notwithstanding any other | 19 | | law to the contrary, upon approval of the proposal by the | 20 | | State Board, the State Board and all other affected | 21 | | entities shall forthwith implement the proposal. When a | 22 | | dissolution and annexation becomes effective for purposes | 23 | | of administration and attendance, the positions of | 24 | | teachers in contractual continued service in the district | 25 | | being dissolved shall be transferred to the annexing | 26 | | district or districts, pursuant to the provisions of |
| | | SB2149 | - 15 - | LRB097 10095 NHT 50275 b |
|
| 1 | | Section 24-12 of this Code. In the event that the territory | 2 | | is added to 2 or more districts, the decision on which | 3 | | positions shall be transferred to which annexing districts | 4 | | shall be made by giving consideration to the proportionate | 5 | | percentage of pupils transferred and the annexing | 6 | | districts' staffing needs, and the transfer of teachers in | 7 | | contractual continued service into positions shall be | 8 | | based upon the request of those teachers in contractual | 9 | | continued service in order of seniority in the dissolving | 10 | | district. The status of all teachers in contractual | 11 | | continued service transferred to an annexing district | 12 | | shall not be lost, and the board of the annexing district | 13 | | is subject to this Code with respect to teachers in | 14 | | contractual continued service who are transferred in the | 15 | | same manner as if the person were the annexing district's | 16 | | employee and had been its employee during the time the | 17 | | person was actually employed by the board of the dissolving | 18 | | district from which the position was transferred. | 19 | | (105 ILCS 5/1H-30 new) | 20 | | Sec. 1H-30. Chief executive officer. The Panel may appoint | 21 | | a chief executive officer who, under the direction of the | 22 | | Panel, shall supervise the Panel's staff, including the chief | 23 | | educational officer and the chief fiscal officer, and shall | 24 | | have ultimate responsibility for implementing the policies, | 25 | | procedures, directives, and decisions of the Panel. The chief |
| | | SB2149 | - 16 - | LRB097 10095 NHT 50275 b |
|
| 1 | | executive officer shall have the authority to determine the | 2 | | agenda and order of business at school board meetings, as | 3 | | needed in order to carry forward and implement the objectives | 4 | | and priorities of the school board and Financial Oversight | 5 | | Panel in the administration and management of the district. The | 6 | | chief executive officer is not required to hold any certificate | 7 | | issued under Article 21 of this Code. The chief executive | 8 | | officer shall have the powers and duties as assigned by the | 9 | | Panel in accordance with this Code. | 10 | | (105 ILCS 5/1H-35 new) | 11 | | Sec. 1H-35. Chief educational officer. The Panel may at a | 12 | | regular or special meeting find that cause exists to cancel the | 13 | | contract of the school district's superintendent who is serving | 14 | | at the time the Panel is established. If there is no | 15 | | superintendent, then the Panel may appoint a chief educational | 16 | | officer for the district, who shall have all of the powers and | 17 | | duties of a school district superintendent under this Code and | 18 | | such other duties as may be assigned by the Panel in accordance | 19 | | with this Code. The chief educational officer shall report to | 20 | | the Panel or the chief executive officer appointed by the | 21 | | Panel. The district shall not thereafter employ a | 22 | | superintendent during the period that a chief educational | 23 | | officer is serving in the district. The chief educational | 24 | | officer is not required to hold any certificate issued under | 25 | | Article 21 of this Code. |
| | | SB2149 | - 17 - | LRB097 10095 NHT 50275 b |
|
| 1 | | (105 ILCS 5/1H-40 new) | 2 | | Sec. 1H-40. Chief fiscal officer. The Panel may appoint a | 3 | | chief fiscal officer who, under the direction of the Panel or | 4 | | the chief executive officer appointed by the Panel, shall have | 5 | | all of the powers and duties of the district's chief school | 6 | | business official and any other duties regarding budgeting, | 7 | | accounting, and other financial matters that are assigned by | 8 | | the Panel, in accordance with this Code. The district may not | 9 | | employ a chief school business official during the period that | 10 | | the chief fiscal officer is serving in the district. The chief | 11 | | fiscal officer is not required to hold a certificate issued | 12 | | under Article 21 of this Code. | 13 | | (105 ILCS 5/1H-41 new)
| 14 | | Sec. 1H-41. Superintendent. The Panel may employ a | 15 | | superintendent who, under the direction of the Panel or the | 16 | | chief executive officer appointed by the Panel, shall have all | 17 | | of the powers and duties of a school district superintendent | 18 | | under this Code assigned by the Panel and such other duties as | 19 | | may be assigned by the Panel in accordance with this Code. The | 20 | | superintendent shall report to the Panel or the chief executive | 21 | | officer appointed by the Panel. The superintendent shall hold a | 22 | | certificate with a superintendent endorsement issued under | 23 | | Article 21 of this Code. |
| | | SB2149 | - 18 - | LRB097 10095 NHT 50275 b |
|
| 1 | | (105 ILCS 5/1H-42 new)
| 2 | | Sec. 1H-42. Chief school business official. The Panel may | 3 | | employ a chief school business official who, under the | 4 | | direction of the Panel or the chief executive officer appointed | 5 | | by the Panel, shall have all of the powers and duties of a | 6 | | chief school business official under this Code assigned by the | 7 | | Panel and such other duties as may be assigned by the Panel in | 8 | | accordance with this Code. The chief school business official | 9 | | shall report to the Panel or the chief executive officer | 10 | | appointed by the Panel. The chief school business official | 11 | | shall hold a certificate with a chief school business official | 12 | | endorsement issued under Article 21 of this Code. | 13 | | (105 ILCS 5/1H-45 new) | 14 | | Sec. 1H-45. Collective bargaining agreements. The Panel | 15 | | shall have the power to negotiate collective bargaining | 16 | | agreements with the district's employees in lieu of and on | 17 | | behalf of the district. Upon concluding bargaining, the | 18 | | district shall execute the agreements negotiated by the Panel, | 19 | | and the district shall be bound by and shall administer the | 20 | | agreements in all respects as if the agreements had been | 21 | | negotiated by the district itself. | 22 | | (105 ILCS 5/1H-50 new) | 23 | | Sec. 1H-50. Deposits and investments. | 24 | | (a) The Panel shall have the power to establish checking |
| | | SB2149 | - 19 - | LRB097 10095 NHT 50275 b |
|
| 1 | | and whatever other banking accounts it may deem appropriate for | 2 | | conducting its affairs. | 3 | | (b) Subject to the provisions of any contract with or for | 4 | | the benefit of the holders of its obligations, the Panel may | 5 | | invest any funds not required for immediate use or | 6 | | disbursement, as provided in the Public Funds Investment Act. | 7 | | (105 ILCS 5/1H-55 new) | 8 | | Sec. 1H-55. Cash accounts and bank accounts. | 9 | | (a) The Panel shall require the district or any officer of | 10 | | the district, including the district's treasurer, to establish | 11 | | and maintain separate cash accounts and separate bank accounts | 12 | | in accordance with such rules, standards, and procedures as the | 13 | | Panel may prescribe. | 14 | | (b) The Panel shall have the power to assume exclusive | 15 | | administration of the cash accounts and bank accounts of the | 16 | | district, to establish and maintain whatever new cash accounts | 17 | | and bank accounts it may deem appropriate, and to withdraw | 18 | | funds from these accounts for the lawful expenditures of the | 19 | | district. | 20 | | (105 ILCS 5/1H-60 new) | 21 | | Sec. 1H-60. Financial, management, and budgetary | 22 | | structure. Upon direction of the Panel, the district shall | 23 | | reorganize the financial accounts, management, and budgetary | 24 | | systems of the district in whatever manner the Panel deems |
| | | SB2149 | - 20 - | LRB097 10095 NHT 50275 b |
|
| 1 | | appropriate to achieve greater financial responsibility and to | 2 | | reduce financial inefficiency. | 3 | | (105 ILCS 5/1H-65 new) | 4 | | Sec. 1H-65. School District Emergency Financial Assistance | 5 | | Fund; grants and loans. | 6 | | (a) Moneys in the School District Emergency Financial | 7 | | Assistance Fund established under Section 1B-8 of this Code may | 8 | | be allocated and expended by the State Board for contractual | 9 | | services to provide technical assistance and consultation to | 10 | | school districts to assess their financial condition or to | 11 | | Panels that petition for emergency financial assistance grants | 12 | | and by the Illinois Finance Authority as loans to school | 13 | | districts that are the subject of an approved petition for | 14 | | emergency financial assistance under Section 1B-4, 1F-62, or | 15 | | 1H-65 of this Code. Neither the State Board of Education nor | 16 | | the Illinois Finance Authority may collect any fees for | 17 | | providing these services. From the amount allocated to each | 18 | | such school district, the State Board shall identify a sum | 19 | | sufficient to cover all approved costs of the Panel established | 20 | | for the respective school district. If the State Board and | 21 | | State Superintendent of Education have not approved emergency | 22 | | financial assistance in conjunction with the appointment of a | 23 | | Panel, the Panel's approved costs shall be paid from deductions | 24 | | from the district's general State aid. An emergency financial | 25 | | assistance loan to a Panel or borrowing from sources other than |
| | | SB2149 | - 21 - | LRB097 10095 NHT 50275 b |
|
| 1 | | the State shall not be considered as part of the calculation of | 2 | | a district's debt for purposes of the limitation specified in | 3 | | Section 19-1 of this Code. | 4 | | (b) The Panel may prepare and file with the State | 5 | | Superintendent a proposal for emergency financial assistance | 6 | | for the school district and for its operations budget. No | 7 | | expenditures shall be authorized by the State Superintendent | 8 | | until he or she has approved the proposal of the Panel, either | 9 | | as submitted or in such lesser amount determined by the State | 10 | | Superintendent. | 11 | | (c) The amount of an emergency financial assistance loan | 12 | | that may be allocated to a Panel under this Article, including | 13 | | (i) moneys necessary for the operations of the Panel and (ii) | 14 | | borrowing from sources other than the State shall not exceed, | 15 | | in the aggregate, $4,000 times the number of pupils enrolled in | 16 | | the district during the school year ending June 30 prior to the | 17 | | date of approval of the petition for emergency financial | 18 | | assistance by the State Board. However, this limitation does | 19 | | not apply to borrowing by the district secured by amounts | 20 | | levied by the district prior to establishment of the Panel. An | 21 | | emergency financial assistance grant shall not exceed $1,000 | 22 | | times the number of such pupils. A district may receive both a | 23 | | loan and a grant. | 24 | | (d) The payment of a State emergency financial assistance | 25 | | grant or loan is subject to appropriation by the General | 26 | | Assembly. State emergency financial assistance allocated and |
| | | SB2149 | - 22 - | LRB097 10095 NHT 50275 b |
|
| 1 | | paid to a Panel under this Article may be applied to any fund | 2 | | or funds from which the Panel is authorized to make | 3 | | expenditures by law. | 4 | | (e) Any State emergency financial assistance proposed by | 5 | | the Panel and approved by the State Superintendent may be paid | 6 | | in its entirety during the initial year of the Panel's | 7 | | existence or spread in equal or variable amounts over a period | 8 | | of years not to exceed the period of the Panel's existence. The | 9 | | State Superintendent shall not approve any loan to the Panel | 10 | | unless the Panel has been unable to borrow sufficient funds to | 11 | | operate the district. | 12 | | (f) All loan payments made from the School District | 13 | | Emergency Financial Assistance Fund to a Panel shall be | 14 | | required to be repaid not later than the date the Panel ceases | 15 | | to exist, with simple interest over the term of the loan at a | 16 | | rate equal to 50% of the one-year Constant Maturity Treasury | 17 | | (CMT) yield as last published by the Board of Governors of the | 18 | | Federal Reserve System before the date on which the Financial | 19 | | Oversight Panel's loan is approved by the State Superintendent. | 20 | | (g) The Panel shall establish and the Illinois Finance | 21 | | Authority shall approve the terms and conditions of the loan, | 22 | | including the schedule of repayments. The schedule shall | 23 | | provide for repayments commencing July 1 of each year or upon | 24 | | each fiscal year's receipt of moneys from a tax levy for | 25 | | emergency financial assistance. Repayment shall be | 26 | | incorporated into the annual budget of the district and may be |
| | | SB2149 | - 23 - | LRB097 10095 NHT 50275 b |
|
| 1 | | made from any fund or funds of the district in which there are | 2 | | moneys available. Default on repayment is subject to the | 3 | | Illinois Grant Funds Recovery Act. When moneys are repaid as | 4 | | provided in this Section, they shall not be made available to | 5 | | the Panel for further use as emergency financial assistance | 6 | | under this Article at any time thereafter. All repayments | 7 | | required to be made by a Panel shall be deposited into the | 8 | | School District Emergency Financial Assistance Fund. | 9 | | (h) In establishing the terms and conditions for the | 10 | | repayment obligation of the Panel, the Panel shall annually | 11 | | determine whether a separate local property tax levy is | 12 | | required to meet that obligation. The Financial Oversight Panel | 13 | | shall provide for a separate tax levy for emergency financial | 14 | | assistance repayment purposes. This tax levy shall not be | 15 | | subject to referendum approval. The amount of the levy shall | 16 | | not exceed the amount necessary to meet the annual emergency | 17 | | financial repayment obligations of the district, including | 18 | | principal and interest, as established by the Panel, and shall | 19 | | not be subject to the provisions of the Property Tax Extension | 20 | | Limitation Law. | 21 | | (105 ILCS 5/1H-70 new) | 22 | | Sec. 1H-70. Power to issue bonds. | 23 | | (a) The Panel may incur indebtedness by the issuance of | 24 | | negotiable full faith and credit general obligation bonds of | 25 | | the Panel in an outstanding amount not to exceed at any time, |
| | | SB2149 | - 24 - | LRB097 10095 NHT 50275 b |
|
| 1 | | including existing indebtedness, 15% of the district's most | 2 | | recent equalized assessed valuation, excluding Bonds of the | 3 | | Panel that have been refunded, for (i) the purpose of providing | 4 | | the district with moneys for ordinary and necessary | 5 | | expenditures and other operational needs of the district; (ii) | 6 | | payment or refunding of outstanding debt obligations or tax | 7 | | anticipation warrants of the district, the proceeds of which | 8 | | were used to provide financing for the district; (iii) payment | 9 | | of fees for arrangements as provided in subsection (b) of | 10 | | Section 1H-75 of this Code; (iv) payment of interest on Bonds; | 11 | | (v) establishment of reserves to secure Bonds; (vi) the payment | 12 | | of costs of issuance of Bonds; (vii) payment of principal of or | 13 | | interest or redemption premium on any Bonds or notes of the | 14 | | Panel; and (viii) all other expenditures of the Panel | 15 | | incidental to and necessary or convenient for carrying out its | 16 | | corporate purposes and powers. | 17 | | (b) The Panel may from time to time (i) issue Bonds to | 18 | | refund any outstanding Bonds or notes of the Panel, whether the | 19 | | Bonds or notes to be refunded have or have not matured or | 20 | | become redeemable, and (ii) issue Bonds partly to refund Bonds | 21 | | or notes then outstanding and partly for any other purpose set | 22 | | forth in this Section. | 23 | | (c) Bonds issued in accordance with subsection (a) of this | 24 | | Section are not subject to any other statutory limitation as to | 25 | | debt, including without limitation that established by the | 26 | | Local Government Debt Limitation Act, and may be issued without |
| | | SB2149 | - 25 - | LRB097 10095 NHT 50275 b |
|
| 1 | | referendum. | 2 | | (105 ILCS 5/1H-75 new) | 3 | | Sec. 1H-75. Terms of bonds. | 4 | | (a) Whenever the Panel desires or is required to issue | 5 | | Bonds as provided in this Article, it shall adopt a resolution | 6 | | designating the amount of the Bonds to be issued, the purposes | 7 | | for which the proceeds of the Bonds are to be used, and the | 8 | | manner in which the proceeds shall be held pending the | 9 | | application thereof. The Bonds shall be issued in the corporate | 10 | | name of the Panel and shall bear such date or dates and shall | 11 | | mature at such time or times, not exceeding 20 years from their | 12 | | date, as the resolution may provide. The Bonds may be issued as | 13 | | serial bonds payable in installments, as term bonds with | 14 | | sinking fund installments, or as a combination of these as the | 15 | | Panel may determine in the resolution. The Bonds shall be in | 16 | | such denominations as the Panel may determine. The Bonds shall | 17 | | be in such form, carry such registration privileges, be | 18 | | executed in such manner, be payable at such place or places, | 19 | | and be subject to such terms of redemption at such redemption | 20 | | prices, including premium, as the resolution may provide. The | 21 | | Bonds shall be sold by the Panel at public or private sale, as | 22 | | determined by the Panel. | 23 | | (b) In connection with the issuance of its Bonds, the Panel | 24 | | may enter into arrangements to provide additional security and | 25 | | liquidity for the Bonds. These may include without limitation |
| | | SB2149 | - 26 - | LRB097 10095 NHT 50275 b |
|
| 1 | | municipal bond insurance, letters of credit, lines of credit by | 2 | | which the Panel may borrow funds to pay or redeem its Bonds, | 3 | | and purchase or remarketing arrangements for ensuring the | 4 | | ability of owners of the Panel's Bonds to sell their Bonds or | 5 | | to have their Bonds redeemed. The Panel may enter into | 6 | | contracts and may agree to pay fees to persons providing the | 7 | | arrangements, including from Bond proceeds, but only under | 8 | | circumstances in which the total interest paid or to be paid on | 9 | | the Bonds, together with the fees for the arrangements (being | 10 | | treated as if interest), would not, taken together, cause the | 11 | | Bonds to bear interest, calculated to their absolute maturity, | 12 | | at a rate in excess of the maximum rate allowed by law. | 13 | | The resolution of the Panel authorizing the issuance of its | 14 | | Bonds may provide that interest rates may vary from time to | 15 | | time depending upon criteria established by the Panel, which | 16 | | may include without limitation a variation in interest rates as | 17 | | may be necessary to cause the Bonds to be remarketable from | 18 | | time to time at a price equal to their principal amount, and | 19 | | may provide for appointment of a national banking association, | 20 | | bank, trust company, investment banker, or other financial | 21 | | institution to serve as a remarketing agent in that connection. | 22 | | The resolution of the Panel authorizing the issuance of its | 23 | | Bonds may provide that alternative interest rates or provisions | 24 | | shall apply during such times as the Bonds are held by a person | 25 | | providing a letter of credit or other credit enhancement | 26 | | arrangement for those Bonds. |
| | | SB2149 | - 27 - | LRB097 10095 NHT 50275 b |
|
| 1 | | (105 ILCS 5/1H-80 new) | 2 | | Sec. 1H-80. Tax levy. | 3 | | (a) Before or at the time of issuing any Bonds, the Panel | 4 | | shall provide by resolution for the levy and collection of a | 5 | | direct annual tax upon all the taxable property located within | 6 | | the district, without limit as to rate or amount, sufficient to | 7 | | pay and discharge the principal thereof at maturity or on | 8 | | sinking fund installment dates and to pay the interest thereon | 9 | | as it falls due. The taxes as levied shall also include | 10 | | additional amounts to the extent that the collections in the | 11 | | prior years were insufficient to pay and discharge the | 12 | | principal thereof at maturity, sinking fund installments, if | 13 | | any, and interest thereon as it fell due, and the amount so | 14 | | collected shall be placed in the debt service reserve fund. The | 15 | | tax shall be in addition to and exclusive of the maximum of all | 16 | | taxes that the Panel or the district is authorized by law to | 17 | | levy for any and all school purposes. The resolution shall be | 18 | | in force upon its adoption. | 19 | | (b) The levy shall be for the sole benefit of the holders | 20 | | of the Bonds, and the holders of the Bonds shall have a | 21 | | security interest in and lien upon all rights, claims, and | 22 | | interests of the Panel arising pursuant to the levy and all | 23 | | present and future proceeds of the levy until the principal of | 24 | | and sinking fund installments and interest on the Bonds are | 25 | | paid in full. All proceeds from the levy shall be deposited by |
| | | SB2149 | - 28 - | LRB097 10095 NHT 50275 b |
|
| 1 | | each county collector directly into the debt service fund | 2 | | established pursuant to Section 1H-85 of this Code, shall be | 3 | | applied solely for the payment of principal of and sinking fund | 4 | | installments and interest on the Bonds, and shall not be used | 5 | | for any other purpose. | 6 | | (c) Upon the filing in the office of the county clerk of | 7 | | each county where the school district is located of a duly | 8 | | certified copy of the resolution, it shall be the duty of each | 9 | | county clerk to extend the tax provided for in the resolution, | 10 | | including an amount determined by the Panel to cover loss and | 11 | | cost of collection and also deferred collections and abatements | 12 | | in the amount of the taxes as extended on the collectors' | 13 | | books. The tax shall be separate and apart from all other taxes | 14 | | of the Panel or the district and shall be separately identified | 15 | | by the collectors. | 16 | | (105 ILCS 5/1H-85 new) | 17 | | Sec. 1H-85. Debt service fund. The Panel shall establish a | 18 | | debt service fund for the Bonds, to be maintained by a paying | 19 | | agent, escrow agent, depository, or corporate trustee, which | 20 | | may be any trust company or bank having the power of a trust | 21 | | company within this State, separate and segregated from all | 22 | | other funds and accounts of the Panel and the district. All | 23 | | moneys on deposit in the debt service fund shall be held in | 24 | | trust in the debt service fund for the benefit of the holders | 25 | | of the Bonds, shall be applied solely for the payment of the |
| | | SB2149 | - 29 - | LRB097 10095 NHT 50275 b |
|
| 1 | | principal of and sinking fund installment, redemption premium, | 2 | | if any, and interest on the Bonds, and shall not be used for | 3 | | any other purpose. The holders of the Bonds shall have a | 4 | | security interest in and lien upon all such moneys. | 5 | | (105 ILCS 5/1H-90 new) | 6 | | Sec. 1H-90. Debt service reserve fund. | 7 | | (a) The Panel may create and establish a debt service | 8 | | reserve fund to be maintained by a paying agent, escrow agent, | 9 | | depository, or corporate trustee, which may be any trust | 10 | | company or bank having the power of a trust company within the | 11 | | State, separate and segregated from all other funds and | 12 | | accounts of the Panel. The Panel may pay the following into the | 13 | | debt service reserve fund: | 14 | | (1) any proceeds from the sale of Bonds to the extent | 15 | | provided in the resolution authorizing the issuance of the | 16 | | Bonds; and | 17 | | (2) any other moneys that may be available to the Panel | 18 | | for the purpose of the fund. | 19 | | (b) The amount to be accumulated in the debt service | 20 | | reserve fund shall be determined by the Panel, but shall not | 21 | | exceed the maximum amount of interest, principal, and sinking | 22 | | fund installments due in any succeeding calendar year. | 23 | | (c) All moneys on deposit in the debt service reserve fund | 24 | | shall be held in trust for the benefit of the holders of the | 25 | | Bonds, shall be applied solely for the payment of principal of |
| | | SB2149 | - 30 - | LRB097 10095 NHT 50275 b |
|
| 1 | | and sinking fund installments and interest on the Bonds to the | 2 | | extent not paid from the debt service fund, and shall not be | 3 | | used for any other purpose. | 4 | | (d) Any moneys in the debt service reserve fund in excess | 5 | | of the amount determined by the Panel pursuant to a resolution | 6 | | authorizing the issuance of Bonds may be withdrawn by the Panel | 7 | | and used for any of its lawful purposes. | 8 | | (e) In computing the amount of the debt service reserve | 9 | | fund, investments shall be valued as the Panel provides in the | 10 | | resolution authorizing the issuance of the Bonds. | 11 | | (105 ILCS 5/1H-95 new) | 12 | | Sec. 1H-95. Bond anticipation notes. | 13 | | (a) After the issuance of Bonds has been authorized, the | 14 | | Panel shall have power to issue from time to time, pursuant to | 15 | | a resolution or resolutions of the Panel, negotiable bond | 16 | | anticipation notes of the Panel in anticipation of the issuance | 17 | | of Bonds. | 18 | | (b) Bond anticipation notes shall mature not later than 2 | 19 | | years after the date of issuance, may be made redeemable prior | 20 | | to their maturity, and may be sold in such manner, in such | 21 | | denominations, and at such price or prices and shall bear | 22 | | interest at such rate or rates not to exceed the maximum annual | 23 | | rate authorized by law as a resolution authorizing the issuance | 24 | | of the bond anticipation notes may provide. | 25 | | (c) The bond anticipation notes may be made payable as to |
| | | SB2149 | - 31 - | LRB097 10095 NHT 50275 b |
|
| 1 | | both principal and interest from the proceeds of the Bonds. The | 2 | | Panel may provide for payment of interest on the bond | 3 | | anticipation notes from direct annual taxes upon all of the | 4 | | taxable property located within the district that are | 5 | | authorized to be levied annually for that purpose, without | 6 | | limit as to rate or amount, sufficient to pay the interest as | 7 | | it falls due, in the manner, subject to the security interest | 8 | | and lien, and with the effect provided in Section 1H-80 of this | 9 | | Code. | 10 | | (d) The Panel is authorized to issue renewal notes in the | 11 | | event it is unable to issue Bonds to pay outstanding bond | 12 | | anticipation notes, on terms the Panel deems reasonable. | 13 | | (e) A debt service fund shall be established in the manner | 14 | | provided in Section 1H-85 of this Code by the Panel for the | 15 | | bond anticipation notes, and the proceeds of any tax levy made | 16 | | pursuant to this Section shall be deposited into the fund upon | 17 | | receipt. | 18 | | (105 ILCS 5/1H-100 new) | 19 | | Sec. 1H-100. Vesting powers in trustee or other authorized | 20 | | agent. The resolution authorizing issuance of the Bonds shall | 21 | | vest in a trustee, paying agent, escrow agent, or depository | 22 | | such rights, powers, and duties in trust as the Panel may | 23 | | determine and may contain such provisions for protecting and | 24 | | enforcing the rights and remedies of the holders of the Bonds | 25 | | and limiting such rights and remedies as may be reasonable and |
| | | SB2149 | - 32 - | LRB097 10095 NHT 50275 b |
|
| 1 | | proper and not in violation of law, including covenants setting | 2 | | forth the duties of the Panel in relation to the exercise of | 3 | | its corporate powers and the custody, safeguarding, and | 4 | | application of all moneys. The resolution shall provide for the | 5 | | manner in which moneys in the various funds and accounts of the | 6 | | Panel may be invested and the disposition of the earnings on | 7 | | the investments. | 8 | | (105 ILCS 5/1H-105 new) | 9 | | Sec. 1H-105. Discharge of bonds. | 10 | | (a) If the Panel pays or causes to be paid to the holders | 11 | | of all Bonds then outstanding the principal, redemption price, | 12 | | if any, and interest to become due on the Bonds, at the times | 13 | | and in the manner stipulated therein and in the resolution | 14 | | authorizing the issuance of the Bonds, then the covenants, | 15 | | agreements, and other obligations of the Panel to the | 16 | | Bondholders shall be discharged and satisfied. | 17 | | (b) Bonds or interest installments for the payment or | 18 | | redemption of which moneys have been set aside and held in | 19 | | trust by the trustee or other authorized agent provided for in | 20 | | Section 1H-100 of this Code, through deposit by the Panel of | 21 | | funds for the payment, redemption, or otherwise, at the | 22 | | maturity or redemption date, are deemed to have been paid | 23 | | within the meaning and with the effect expressed in subsection | 24 | | (a) of this Section. All outstanding Bonds of any series, prior | 25 | | to the maturity or redemption date, are deemed to have been |
| | | SB2149 | - 33 - | LRB097 10095 NHT 50275 b |
|
| 1 | | paid within the meaning and with the effect expressed in | 2 | | subsection (a) of this Section if (1) there has been deposited | 3 | | with the trustee or other authorized agent either (A) moneys in | 4 | | an amount that is sufficient or (B) direct obligations of the | 5 | | United States of America the principal of and the interest on | 6 | | which, when due, will provide moneys that, together with the | 7 | | moneys, if any, deposited with the trustee or other authorized | 8 | | agent at the same time, are sufficient to pay, when due, the | 9 | | principal, sinking fund installment, or redemption price, if | 10 | | applicable, of and interest due and to become due on the Bonds | 11 | | on and prior to the redemption date, sinking fund installment | 12 | | date, or maturity date, as the case may be, and (2) the Panel | 13 | | has given the trustee or other authorized agent, in form | 14 | | satisfactory to it, irrevocable instructions to give notice to | 15 | | the effect and in accordance with the procedures provided in | 16 | | the resolution authorizing the issuance of the Bonds. Neither | 17 | | direct obligations of the United States of America, moneys | 18 | | deposited with the trustee or other authorized agent, or | 19 | | principal or interest payments on the securities shall be | 20 | | withdrawn or used for any purpose other than, and shall be held | 21 | | in trust for, the payment of the principal or redemption price, | 22 | | if applicable, and interest on the Bonds. | 23 | | (105 ILCS 5/1H-110 new) | 24 | | Sec. 1H-110. Pledge of the State. The State of Illinois | 25 | | pledges to and agrees with the holders of Bonds that the State |
| | | SB2149 | - 34 - | LRB097 10095 NHT 50275 b |
|
| 1 | | will not limit or alter the rights and powers vested in the | 2 | | Panel by this Article with respect to the issuance of | 3 | | obligations so as to impair the terms of any contract made by | 4 | | the Panel with these holders or in any way impair the rights | 5 | | and remedies of these holders until the Bonds, together with | 6 | | interest on the Bonds, interest on any unpaid installments of | 7 | | interest, and all costs and expenses in connection with any | 8 | | action or proceedings by or on behalf of these holders, are | 9 | | fully met and discharged or provisions made for their payment. | 10 | | The Panel is authorized to include this pledge and agreement of | 11 | | the State in any resolution or contract with the holders of | 12 | | Bonds. | 13 | | (105 ILCS 5/1H-115 new) | 14 | | Sec. 1H-115. Statutory lien. Any pledge, assignment, lien, | 15 | | or security interest for the benefit of the holders of Bonds or | 16 | | bond anticipation notes, if any, created pursuant to this | 17 | | Article are valid and binding from the time the Bonds are | 18 | | issued, without any physical delivery or further act, and are | 19 | | valid and binding as against and prior to any claims of all | 20 | | other parties having claims of any kind in tort, contract, or | 21 | | otherwise against the State, the Panel, the district, or any | 22 | | other person, irrespective of whether the other parties have | 23 | | notice. | 24 | | (105 ILCS 5/1H-120 new) |
| | | SB2149 | - 35 - | LRB097 10095 NHT 50275 b |
|
| 1 | | Sec. 1H-120. State or district not liable on obligations. | 2 | | Obligations shall not be deemed to constitute (i) a debt or | 3 | | liability of the State, the district, or any political | 4 | | subdivision of the State or district other than the Panel or | 5 | | (ii) a pledge of the full faith and credit of the State, the | 6 | | district, or any political subdivision of the State or district | 7 | | other than the Panel but shall be payable solely from the funds | 8 | | and revenues provided for in this Article. The issuance of | 9 | | obligations shall not directly, indirectly, or contingently | 10 | | obligate the State, the district, or any political subdivision | 11 | | of the State or district other than the Panel to levy any form | 12 | | of taxation therefor or to make any appropriation for their | 13 | | payment. Nothing in this Section shall prevent or be construed | 14 | | to prevent the Panel from pledging its full faith and credit to | 15 | | the payment of obligations. Nothing in this Article shall be | 16 | | construed to authorize the Panel to create a debt of the State | 17 | | or the district within the meaning of the Constitution or laws | 18 | | of Illinois, and all obligations issued by the Panel pursuant | 19 | | to the provisions of this Article are payable and shall state | 20 | | that they are payable solely from the funds and revenues | 21 | | pledged for their payment in accordance with the resolution | 22 | | authorizing their issuance or any trust indenture executed as | 23 | | security therefor. The State or the district shall not in any | 24 | | event be liable for the payment of the principal of or interest | 25 | | on any obligations of the Panel or for the performance of any | 26 | | pledge, obligation, or agreement of any kind whatsoever that |
| | | SB2149 | - 36 - | LRB097 10095 NHT 50275 b |
|
| 1 | | may be undertaken by the Panel. No breach of any such pledge, | 2 | | obligation, or agreement may impose any liability upon the | 3 | | State or the district or any charge upon their general credit | 4 | | or against their taxing power. | 5 | | (105 ILCS 5/1H-125 new) | 6 | | Sec. 1H-125. Obligations as legal investments. The | 7 | | obligations issued under the provisions of this Article are | 8 | | hereby made securities in which all public officers and bodies | 9 | | of this State, all political subdivisions of this State, all | 10 | | persons carrying on an insurance business, all banks, bankers, | 11 | | trust companies, savings banks, and savings associations | 12 | | (including savings and loan associations, building and loan | 13 | | associations, investment companies, and other persons carrying | 14 | | on a banking business), and all credit unions, pension funds, | 15 | | administrators, and guardians who are or may be authorized to | 16 | | invest in bonds or in other obligations of the State may | 17 | | properly and legally invest funds, including capital, in their | 18 | | control or belonging to them. The obligations are also hereby | 19 | | made securities that may be deposited with and may be received | 20 | | by all public officers and bodies of the State, all political | 21 | | subdivisions of the State, and public corporations for any | 22 | | purpose for which the deposit of bonds or other obligations of | 23 | | the State is authorized. | 24 | | (105 ILCS 5/1H-130 new) |
| | | SB2149 | - 37 - | LRB097 10095 NHT 50275 b |
|
| 1 | | Sec. 1H-130. Complete authority. This Article, without | 2 | | reference to any other law, shall be deemed full and complete | 3 | | authority for the issuance of Bonds and bond anticipation notes | 4 | | as provided in this Article. | 5 | | (105 ILCS 5/1H-135 new) | 6 | | Sec. 1H-135. Tax anticipation warrants. A Panel shall have | 7 | | the same power to issue tax anticipation warrants as a school | 8 | | board under Section 17-16 of this Code. Tax anticipation | 9 | | warrants are considered borrowing from sources other than the | 10 | | State and are subject to Section 1H-65 of this Code. | 11 | | (105 ILCS 5/1H-140 new) | 12 | | Sec. 1H-140. Reports. | 13 | | (a) The Panel, upon taking office and annually thereafter, | 14 | | shall prepare and submit to the Governor, General Assembly, and | 15 | | State Superintendent a report that includes the audited | 16 | | financial statement for the preceding fiscal year, an approved | 17 | | financial plan, and a statement of the major steps necessary to | 18 | | accomplish the objectives of the financial plan. | 19 | | (b) Annual reports must be submitted on or before March 1 | 20 | | of each year. | 21 | | (c) The requirement for reporting to the General Assembly | 22 | | shall be satisfied by filing copies of the report as provided | 23 | | in Section 3.1 of the General Assembly Organization Act and by | 24 | | filing additional copies with the State Government Report |
| | | SB2149 | - 38 - | LRB097 10095 NHT 50275 b |
|
| 1 | | Distribution Center for the General Assembly as required under | 2 | | subdivision (t) of Section 7 of the State Library Act. | 3 | | (105 ILCS 5/1H-145 new) | 4 | | Sec. 1H-145. Audit of Panel. The State Superintendent may | 5 | | require a separate audit of the Panel, otherwise the activities | 6 | | of the Panel must be included in the scope of the audit of the | 7 | | school district. A copy of the audit report covering the Panel | 8 | | must be submitted to the State Superintendent. | 9 | | (105 ILCS 5/1H-150 new) | 10 | | Sec. 1H-150. Assistance by State agencies, units of local | 11 | | government, and school districts. The district shall render | 12 | | such services to and permit the use of its facilities and | 13 | | resources by the Panel at no charge as may be requested by the | 14 | | Panel. Any State agency, unit of local government, or school | 15 | | district may, within its lawful powers and duties, render such | 16 | | services to the Panel as may be requested by the Panel. Upon | 17 | | request of the Panel, any State agency, unit of local | 18 | | government, or school district is authorized and empowered to | 19 | | loan to the Panel such officers and employees as the Panel may | 20 | | deem necessary in carrying out its functions and duties. | 21 | | Officers and employees so transferred shall not lose or forfeit | 22 | | their employment status or rights. | 23 | | (105 ILCS 5/1H-155 new) |
| | | SB2149 | - 39 - | LRB097 10095 NHT 50275 b |
|
| 1 | | Sec. 1H-155. Property of Panel exempt from taxation. The | 2 | | property of the Panel is exempt from taxation. | 3 | | (105 ILCS 5/1H-160 new) | 4 | | Sec. 1H-160. Sanctions. | 5 | | (a) No member, officer, employee, or agent of the district | 6 | | may commit the district to any contract or other obligation or | 7 | | incur any liability on behalf of the district for any purpose | 8 | | if the amount of the contract, obligation, or liability is in | 9 | | excess of the amount authorized for that purpose then available | 10 | | under the financial plan and budget then in effect. | 11 | | (b) No member, officer, employee, or agent of the district | 12 | | may commit the district to any contract or other obligation on | 13 | | behalf of the district for the payment of money for any purpose | 14 | | required to be approved by the Panel unless the contract or | 15 | | other obligation has been approved by the Panel. | 16 | | (c) No member, officer, employee, or agent of the district | 17 | | may take any action in violation of any valid order of the | 18 | | Panel, may fail or refuse to take any action required by any | 19 | | such order, may prepare, present, certify, or report any | 20 | | information, including any projections or estimates, for the | 21 | | Panel or any of its agents that is false or misleading, or, | 22 | | upon learning that any such information is false or misleading, | 23 | | may fail promptly to advise the Panel or its agents. | 24 | | (d) In addition to any penalty or liability under any other | 25 | | law, any member, officer, employee, or agent of the district |
| | | SB2149 | - 40 - | LRB097 10095 NHT 50275 b |
|
| 1 | | who violates subsection (a), (b), or (c) of this Section is | 2 | | subject to appropriate administrative discipline as may be | 3 | | imposed by the Panel, including, if warranted, suspension from | 4 | | duty without pay, removal from office, or termination of | 5 | | employment. | 6 | | (105 ILCS 5/1H-165 new) | 7 | | Sec. 1H-165. Abolition of Panel. The Panel shall be | 8 | | abolished 10 years after its creation or one year after all its | 9 | | obligations issued under the provisions of this Article have | 10 | | been fully paid and discharged, whichever comes later. However, | 11 | | the State Board, upon recommendation of the Panel and if no | 12 | | obligations are outstanding, may abolish the Panel at any time | 13 | | after the Panel has been in existence for 3 years. Upon the | 14 | | abolition of the Panel, all of its records shall be transferred | 15 | | to the State Board and any property of the Panel shall pass to | 16 | | and be vested in the State Board. | 17 | | (105 ILCS 5/1H-170 new) | 18 | | Sec. 1H-170. Limitations of actions after abolition; | 19 | | indemnification; legal representation. | 20 | | (a) Abolition of the Panel pursuant to Section 1H-165 of | 21 | | this Code shall bar any remedy available against the Panel, its | 22 | | members, employees, or agents for any right or claim existing | 23 | | or any liability incurred prior to the abolition, unless the | 24 | | action or other proceeding is commenced prior to the expiration |
| | | SB2149 | - 41 - | LRB097 10095 NHT 50275 b |
|
| 1 | | of 2 years after the date of the abolition. | 2 | | (b) The Panel may indemnify any member, officer, employee, | 3 | | or agent who was or is a party or is threatened to be made a | 4 | | party to any threatened, pending, or completed action, suit, or | 5 | | proceeding, whether civil, criminal, administrative, or | 6 | | investigative, by reason of the fact that he or she was a | 7 | | member, officer, employee, or agent of the Panel, against | 8 | | expenses (including attorney's fees, judgments, fines, and | 9 | | amounts paid in settlement actually and reasonably incurred by | 10 | | him or her in connection with the action, suit, or proceeding) | 11 | | if he or she acted in good faith and in a manner that he or she | 12 | | reasonably believed to be in or not opposed to the best | 13 | | interests of the Panel and, with respect to any criminal action | 14 | | or proceeding, had no reasonable cause to believe his or her | 15 | | conduct was unlawful. The termination of any action, suit, or | 16 | | proceeding by judgment, order, settlement, or conviction or | 17 | | upon a plea of nolo contendere or its equivalent, shall not, of | 18 | | itself, create a presumption that the person did not act in | 19 | | good faith in a manner that he or she reasonably believed to be | 20 | | in or not opposed to the best interests of the Panel and, with | 21 | | respect to any criminal action or proceeding, had reasonable | 22 | | cause to believe that his or her conduct was unlawful. | 23 | | To the extent that a member, officer, employee, or agent of | 24 | | the Panel has been successful, on the merits or otherwise, in | 25 | | the defense of any such action, suit, or proceeding referred to | 26 | | in this subsection (b) or in defense of any claim, issue, or |
| | | SB2149 | - 42 - | LRB097 10095 NHT 50275 b |
|
| 1 | | matter therein, he or she shall be indemnified against | 2 | | expenses, including attorney's fees, actually and reasonably | 3 | | incurred by him or her in connection therewith. Any such | 4 | | indemnification shall be made by the Panel only as authorized | 5 | | in the specific case, upon a determination that indemnification | 6 | | of the member, officer, employee, or agent is proper in the | 7 | | circumstances because he or she has met the applicable standard | 8 | | of conduct. The determination shall be made (i) by the Panel by | 9 | | a majority vote of a quorum consisting of members who are not | 10 | | parties to the action, suit, or proceeding or (ii) if such a | 11 | | quorum is not obtainable or, even if obtainable, a quorum of | 12 | | disinterested members so directs, by independent legal counsel | 13 | | in a written opinion. | 14 | | Reasonable expenses incurred in defending an action, suit, | 15 | | or proceeding shall be paid by the Panel in advance of the | 16 | | final disposition of the action, suit, or proceeding, as | 17 | | authorized by the Panel in the specific case, upon receipt of | 18 | | an undertaking by or on behalf of the member, officer, | 19 | | employee, or agent to repay the amount, unless it is ultimately | 20 | | determined that he or she is entitled to be indemnified by the | 21 | | Panel as authorized in this Section. | 22 | | Any member, officer, employee, or agent against whom any | 23 | | action, suit, or proceeding is brought may employ his or her | 24 | | own attorney to appear on his or her behalf. | 25 | | The right to indemnification accorded by this Section shall | 26 | | not limit any other right to indemnification to which the |
| | | SB2149 | - 43 - | LRB097 10095 NHT 50275 b |
|
| 1 | | member, officer, employee, or agent may be entitled. Any rights | 2 | | under this Section shall inure to the benefit of the heirs, | 3 | | executors, and administrators of any member, officer, | 4 | | employee, or agent of the Panel. | 5 | | The Panel may purchase and maintain insurance on behalf of | 6 | | any person who is or was a member, officer, employee, or agent | 7 | | of the Panel against any liability asserted against him or her | 8 | | and incurred by him or her in any such capacity or arising out | 9 | | of his or her status as such, whether or not the Panel would | 10 | | have the power to indemnify him or her against liability under | 11 | | the provisions of this Section. | 12 | | The Panel shall be considered a State agency for purposes | 13 | | of receiving representation by the Attorney General. Members, | 14 | | officers, employees, and agents of the Panel shall be entitled | 15 | | to representation and indemnification under the State Employee | 16 | | Indemnification Act.
| 17 | | Section 99. Effective date. This Act takes effect July 1, | 18 | | 2011.
| | | | SB2149 | - 44 - | LRB097 10095 NHT 50275 b |
|
| 1 | |
INDEX
| 2 | |
Statutes amended in order of appearance
| | 3 | | 35 ILCS 200/18-50.1 | | | 4 | | 35 ILCS 200/18-92 | | | 5 | | 35 ILCS 200/18-241 | | | 6 | | 105 ILCS 5/1B-8 | from Ch. 122, par. 1B-8 | | 7 | | 105 ILCS 5/Art. 1H heading | 8 | | new | | | 9 | | 105 ILCS 5/1H-1 new | | | 10 | | 105 ILCS 5/1H-5 new | | | 11 | | 105 ILCS 5/1H-10 new | | | 12 | | 105 ILCS 5/1H-15 new | | | 13 | | 105 ILCS 5/1H-20 new | | | 14 | | 105 ILCS 5/1H-25 new | | | 15 | | 105 ILCS 5/1H-30 new | | | 16 | | 105 ILCS 5/1H-35 new | | | 17 | | 105 ILCS 5/1H-40 new | | | 18 | | 105 ILCS 5/1H-41 new | | | 19 | | 105 ILCS 5/1H-42 new | | | 20 | | 105 ILCS 5/1H-45 new | | | 21 | | 105 ILCS 5/1H-50 new | | | 22 | | 105 ILCS 5/1H-55 new | | | 23 | | 105 ILCS 5/1H-60 new | | | 24 | | 105 ILCS 5/1H-65 new | | | 25 | | 105 ILCS 5/1H-70 new | | |
| | | SB2149 | - 45 - | LRB097 10095 NHT 50275 b |
|
| 1 | | 105 ILCS 5/1H-75 new | | | 2 | | 105 ILCS 5/1H-80 new | | | 3 | | 105 ILCS 5/1H-85 new | | | 4 | | 105 ILCS 5/1H-90 new | | | 5 | | 105 ILCS 5/1H-95 new | | | 6 | | 105 ILCS 5/1H-100 new | | | 7 | | 105 ILCS 5/1H-105 new | | | 8 | | 105 ILCS 5/1H-110 new | | | 9 | | 105 ILCS 5/1H-115 new | | | 10 | | 105 ILCS 5/1H-120 new | | | 11 | | 105 ILCS 5/1H-125 new | | | 12 | | 105 ILCS 5/1H-130 new | | | 13 | | 105 ILCS 5/1H-135 new | | | 14 | | 105 ILCS 5/1H-140 new | | | 15 | | 105 ILCS 5/1H-145 new | | | 16 | | 105 ILCS 5/1H-150 new | | | 17 | | 105 ILCS 5/1H-155 new | | | 18 | | 105 ILCS 5/1H-160 new | | | 19 | | 105 ILCS 5/1H-165 new | | | 20 | | 105 ILCS 5/1H-170 new | |
| |
|