Full Text of SB2149 97th General Assembly
SB2149eng 97TH GENERAL ASSEMBLY |
| | SB2149 Engrossed | | 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 18-15, 18-50.1, 18-92, and 18-241 as follows:
| 6 | | (35 ILCS 200/18-15)
| 7 | | Sec. 18-15. Filing of levies of taxing districts. | 8 | | (a) Notwithstanding any other
law to the contrary, all | 9 | | taxing districts , other than a school district subject to the | 10 | | authority of a Financial Oversight Panel pursuant to Article 1H | 11 | | of the School Code, shall annually certify to the county
clerk, | 12 | | on or before the last Tuesday in December, the several amounts | 13 | | that they
have levied.
| 14 | | (b) A school district subject to the authority of a | 15 | | Financial Oversight Panel pursuant to Article 1H of the School | 16 | | Code shall file a certificate of tax levy, necessary to effect | 17 | | the implementation of the approved financial plan and the | 18 | | approval of the Panel, as otherwise provided by this Section, | 19 | | except that the certificate must be certified to the county | 20 | | clerk on or before the first Tuesday in November. | 21 | | (c) If a school district as specified in subsection (b) of | 22 | | this Section fails to certify and return the certificate of tax | 23 | | levy, necessary to effect the implementation of the approved |
| | | SB2149 Engrossed | - 2 - | LRB097 10095 NHT 50275 b |
|
| 1 | | financial plan and the approval of the Financial Oversight | 2 | | Panel, to the county clerk on or before the first Tuesday in | 3 | | November, then the Financial Oversight Panel for the school | 4 | | district shall proceed to adopt, certify, and return a | 5 | | certificate of tax levy for the school district to the county | 6 | | clerk on or before the last Tuesday in December. | 7 | | (Source: P.A. 87-17; 87-738; 87-895; 88-455.)
| 8 | | (35 ILCS 200/18-50.1)
| 9 | | Sec. 18-50.1. School Finance Authority and Financial | 10 | | Oversight Panel levies.
| 11 | | (a) Notwithstanding any other law to the contrary, any
levy | 12 | | adopted by a School Finance Authority created under Article 1F | 13 | | of
the School Code is valid and shall be extended by the county | 14 | | clerk if it is
certified to the county clerk by the Authority | 15 | | in sufficient time to allow
the county clerk to include the | 16 | | levy in the extension for the taxable year.
| 17 | | (b) Notwithstanding any other law to the contrary, any levy | 18 | | adopted by a Financial Oversight Panel created under Article 1H | 19 | | of the School Code and levied pursuant to Section 1H-75 of the | 20 | | School Code is valid and shall be extended by the county clerk | 21 | | if it is certified to the county clerk by the Panel in | 22 | | sufficient time to allow the county clerk to include the levy | 23 | | in the extension for the taxable year. | 24 | | (Source: P.A. 92-855, eff. 12-6-02.)
|
| | | SB2149 Engrossed | - 3 - | LRB097 10095 NHT 50275 b |
|
| 1 | | (35 ILCS 200/18-92)
| 2 | | Sec. 18-92. Downstate School Finance Authority for | 3 | | Elementary
Districts Law and Financial Oversight Panel Law . | 4 | | (a) The provisions of the Truth in Taxation Law are subject | 5 | | to
the Downstate School Finance Authority for Elementary | 6 | | Districts Law.
| 7 | | (b) A Financial Oversight Panel created under Article 1H of | 8 | | the School Code is subject to the provisions of the Truth in | 9 | | Taxation Law with respect to tax levies filed by it on behalf | 10 | | of a school district, as well as with respect to any tax levies | 11 | | it may file on its own behalf. | 12 | | (Source: P.A. 95-331, eff. 8-21-07.)
| 13 | | (35 ILCS 200/18-241)
| 14 | | Sec. 18-241. School Finance Authority and Financial | 15 | | Oversight Panel .
| 16 | | (a) A School Finance Authority established under Article 1E | 17 | | or 1F of
the School Code shall not be a taxing district for | 18 | | purposes of this Law. A Financial Oversight Panel established | 19 | | under Article 1H of the School Code shall not be a taxing | 20 | | district for purposes of this Law.
| 21 | | (b) This Law shall not apply to the extension of taxes for | 22 | | a
school district for the levy year in which a School Finance
| 23 | | Authority for the district is created pursuant to Article 1E or | 24 | | 1F of the
School Code. This Law shall not apply to the | 25 | | extension of taxes for the purpose of repaying an emergency |
| | | SB2149 Engrossed | - 4 - | LRB097 10095 NHT 50275 b |
|
| 1 | | financial assistance loan levied pursuant to Section 1H-65 of | 2 | | the School Code.
| 3 | | (Source: P.A. 92-547, eff. 6-13-02; 93-501, eff. 8-11-03.)
| 4 | | Section 10. The Illinois Pension Code is amended by | 5 | | changing Sections 7-105, 7-109, and 7-132 as follows:
| 6 | | (40 ILCS 5/7-105) (from Ch. 108 1/2, par. 7-105)
| 7 | | Sec. 7-105. "Municipality": A city, village, incorporated | 8 | | town, county,
township; a Financial Oversight Panel | 9 | | established pursuant to Article 1H of the School Code; and any | 10 | | school, park, sanitary, road forest preserve, water, fire
| 11 | | protection, public health, river conservancy, mosquito | 12 | | abatement,
tuberculosis sanitarium, public community college | 13 | | district, or other local
district with general continuous power | 14 | | to levy taxes on the property within
such district; now | 15 | | existing or hereafter created within the State; and, for
the | 16 | | purposes of providing annuities and benefits to its employees, | 17 | | the fund
itself.
| 18 | | (Source: P.A. 84-1308.)
| 19 | | (40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
| 20 | | Sec. 7-109. Employee.
| 21 | | (1) "Employee" means any person who:
| 22 | | (a) 1. Receives earnings as payment for the performance | 23 | | of personal
services or official duties out of the |
| | | SB2149 Engrossed | - 5 - | LRB097 10095 NHT 50275 b |
|
| 1 | | general fund of a municipality,
or out of any special | 2 | | fund or funds controlled by a municipality, or by
an | 3 | | instrumentality thereof, or a participating | 4 | | instrumentality, including,
in counties, the fees or | 5 | | earnings of any county fee office; and
| 6 | | 2. Under the usual common law rules applicable in | 7 | | determining the
employer-employee relationship, has | 8 | | the status of an employee with a
municipality, or any | 9 | | instrumentality thereof, or a participating
| 10 | | instrumentality, including aldermen, county | 11 | | supervisors and other
persons (excepting those | 12 | | employed as independent contractors) who are
paid | 13 | | compensation, fees, allowances or other emolument for | 14 | | official
duties, and, in counties, the several county | 15 | | fee offices.
| 16 | | (b) Serves as a township treasurer appointed under the | 17 | | School
Code, as heretofore or hereafter amended, and
who | 18 | | receives for such services regular compensation as | 19 | | distinguished
from per diem compensation, and any regular | 20 | | employee in the office of
any township treasurer whether or | 21 | | not his earnings are paid from the
income of the permanent | 22 | | township fund or from funds subject to
distribution to the | 23 | | several school districts and parts of school
districts as | 24 | | provided in the School Code, or from both such sources ; or | 25 | | is the chief executive officer, chief educational officer, | 26 | | chief fiscal officer, or other employee of a Financial |
| | | SB2149 Engrossed | - 6 - | LRB097 10095 NHT 50275 b |
|
| 1 | | Oversight Panel established pursuant to Article 1H of the | 2 | | School Code, other than a superintendent or certified | 3 | | school business official, except that such person shall not | 4 | | be treated as an employee under this Section if that person | 5 | | has negotiated with the Financial Oversight Panel, in | 6 | | conjunction with the school district, a contractual | 7 | | agreement for exclusion from this Section .
| 8 | | (c) Holds an elective office in a municipality, | 9 | | instrumentality
thereof or participating instrumentality.
| 10 | | (2) "Employee" does not include persons who:
| 11 | | (a) Are eligible for inclusion under any of the | 12 | | following laws:
| 13 | | 1. "An Act in relation to an Illinois State | 14 | | Teachers' Pension and
Retirement Fund", approved May | 15 | | 27, 1915, as amended;
| 16 | | 2. Articles 15 and 16 of this Code.
| 17 | | However, such persons shall be included as employees to | 18 | | the extent of
earnings that are not eligible for inclusion | 19 | | under the foregoing laws
for services not of an | 20 | | instructional nature of any kind.
| 21 | | However, any member of the armed forces who is employed | 22 | | as a teacher
of subjects in the Reserve Officers Training | 23 | | Corps of any school and who
is not certified under the law | 24 | | governing the certification of teachers
shall be included | 25 | | as an employee.
| 26 | | (b) Are designated by the governing body of a |
| | | SB2149 Engrossed | - 7 - | LRB097 10095 NHT 50275 b |
|
| 1 | | municipality in which a
pension fund is required by law to | 2 | | be established for policemen or
firemen, respectively, as | 3 | | performing police or fire protection duties,
except that | 4 | | when such persons are the heads of the police or fire
| 5 | | department and are not eligible to be included within any | 6 | | such pension
fund, they shall be included within this | 7 | | Article; provided, that such
persons shall not be excluded | 8 | | to the extent of concurrent service and
earnings not | 9 | | designated as being for police or fire protection duties.
| 10 | | However, (i) any head of a police department who was a | 11 | | participant under this
Article immediately before October | 12 | | 1, 1977 and did not elect, under Section
3-109 of this Act, | 13 | | to participate in a police pension fund shall be an
| 14 | | "employee", and (ii) any chief of police who elects to | 15 | | participate in this
Fund under Section 3-109.1 of this | 16 | | Code, regardless of whether such person
continues to be | 17 | | employed as chief of police or is employed in some other
| 18 | | rank or capacity within the police department, shall be an | 19 | | employee under
this Article for so long as such person is | 20 | | employed to perform police
duties by a participating | 21 | | municipality and has not lawfully rescinded that
election.
| 22 | | (3) All persons, including, without limitation, public | 23 | | defenders and
probation officers, who receive earnings from | 24 | | general or special funds
of a county for performance of | 25 | | personal services or official duties
within the territorial | 26 | | limits of the county, are employees of the county
(unless |
| | | SB2149 Engrossed | - 8 - | LRB097 10095 NHT 50275 b |
|
| 1 | | excluded by subsection (2) of this Section) notwithstanding | 2 | | that
they may be appointed by and are subject to the direction | 3 | | of a person or
persons other than a county board or a county | 4 | | officer. It is hereby
established that an employer-employee | 5 | | relationship under the usual
common law rules exists between | 6 | | such employees and the county paying
their salaries by reason | 7 | | of the fact that the county boards fix their
rates of | 8 | | compensation, appropriate funds for payment of their earnings
| 9 | | and otherwise exercise control over them. This finding and this
| 10 | | amendatory Act shall apply to all such employees from the date | 11 | | of
appointment whether such date is prior to or after the | 12 | | effective date of
this amendatory Act and is intended to | 13 | | clarify existing law pertaining
to their status as | 14 | | participating employees in the Fund.
| 15 | | (Source: P.A. 90-460, eff. 8-17-97.)
| 16 | | (40 ILCS 5/7-132)
(from Ch. 108 1/2, par. 7-132)
| 17 | | Sec. 7-132. Municipalities, instrumentalities and | 18 | | participating
instrumentalities included and effective dates.
| 19 | | (A) Municipalities and their instrumentalities.
| 20 | | (a) The following described municipalities, but not | 21 | | including any with
more than 1,000,000 inhabitants, and the | 22 | | instrumentalities thereof,
shall be included within and be | 23 | | subject to this Article beginning upon the
effective dates | 24 | | specified by the Board:
|
| | | SB2149 Engrossed | - 9 - | LRB097 10095 NHT 50275 b |
|
| 1 | | (1) Except as to the municipalities and | 2 | | instrumentalities thereof
specifically excluded under this | 3 | | Article, every county shall be subject to
this Article, and | 4 | | all cities, villages and incorporated towns having a
| 5 | | population in excess of 5,000 inhabitants as determined by | 6 | | the last
preceding decennial or subsequent federal census, | 7 | | shall be subject to this
Article following publication of | 8 | | the census by the Bureau of the Census.
Within 90 days | 9 | | after publication of the census, the Board shall notify
any | 10 | | municipality that has become subject to this Article as a | 11 | | result of
that census, and shall provide information to the | 12 | | corporate authorities of
the municipality explaining the | 13 | | duties and consequences of participation.
The notification | 14 | | shall also include a proposed date upon which
participation | 15 | | by the municipality will commence.
| 16 | | However, for any city, village or incorporated town | 17 | | that attains a
population over 5,000 inhabitants after | 18 | | having provided social security
coverage for its employees | 19 | | under the Social Security Enabling Act,
participation | 20 | | under this Article shall not be mandatory but may be | 21 | | elected
in accordance with subparagraph (3) or (4) of this | 22 | | paragraph (a), whichever
is applicable.
| 23 | | (2) School districts, other than those specifically
| 24 | | excluded under this Article, shall be subject to this | 25 | | Article, without
election, with respect to all employees | 26 | | thereof.
|
| | | SB2149 Engrossed | - 10 - | LRB097 10095 NHT 50275 b |
|
| 1 | | (3) Towns and all other bodies politic and corporate | 2 | | which
are formed by vote of, or are subject to control by, | 3 | | the electors in towns
and are located in towns which are | 4 | | not participating municipalities on the
effective date of | 5 | | this Act, may become subject to this Article by
election | 6 | | pursuant to Section 7-132.1.
| 7 | | (4) Any other municipality (together with its | 8 | | instrumentalities),
other than those specifically excluded | 9 | | from participation and those
described in paragraph (3) | 10 | | above, may elect to be included either by
referendum under | 11 | | Section 7-134 or by the adoption of a resolution or
| 12 | | ordinance by its governing body. A copy of such resolution | 13 | | or ordinance
duly authenticated and certified by the clerk | 14 | | of the municipality or other
appropriate official of its | 15 | | governing body shall constitute the required
notice to the | 16 | | board of such action.
| 17 | | (b) A municipality that is about to begin participation | 18 | | shall submit to
the Board an application to participate, in a | 19 | | form acceptable to the Board,
not later than 90 days prior to | 20 | | the proposed effective date of
participation. The Board shall | 21 | | act upon the application within 90 days,
and if it finds that | 22 | | the application is in conformity with its requirements
and the | 23 | | requirements of this Article, participation by the applicant | 24 | | shall
commence on a date acceptable to the municipality and | 25 | | specified by the
Board, but in no event more than one year from | 26 | | the date of application.
|
| | | SB2149 Engrossed | - 11 - | LRB097 10095 NHT 50275 b |
|
| 1 | | (c) A participating municipality which succeeds to the | 2 | | functions
of a participating municipality which is dissolved or | 3 | | terminates its
existence shall assume and be transferred the | 4 | | net accumulation balance
in the municipality reserve and the | 5 | | municipality account receivable
balance of the terminated | 6 | | municipality.
| 7 | | (d) In the case of a Veterans Assistance Commission whose | 8 | | employees
were being treated by the Fund on January 1, 1990 as | 9 | | employees of the
county served by the Commission, the Fund may | 10 | | continue to treat the
employees of the Veterans Assistance | 11 | | Commission as county employees for
the purposes of this | 12 | | Article, unless the Commission becomes a participating
| 13 | | instrumentality in accordance with subsection (B) of this | 14 | | Section.
| 15 | | (B) Participating instrumentalities.
| 16 | | (a) The participating instrumentalities designated in
| 17 | | paragraph (b) of this subsection shall be included within
and | 18 | | be subject to this Article if:
| 19 | | (1) an application to participate, in a form acceptable | 20 | | to
the Board and adopted by a two-thirds vote of the | 21 | | governing body, is
presented to the Board not later than 90 | 22 | | days prior to the proposed
effective date; and
| 23 | | (2) the Board finds that the application is in
| 24 | | conformity with its requirements, that the applicant has | 25 | | reasonable
expectation to continue as a political entity |
| | | SB2149 Engrossed | - 12 - | LRB097 10095 NHT 50275 b |
|
| 1 | | for a period of at least
10 years and has the prospective | 2 | | financial capacity to meet its
current and future | 3 | | obligations to the Fund, and that the actuarial
soundness | 4 | | of the Fund may be reasonably expected to be unimpaired by
| 5 | | approval of participation by the applicant.
| 6 | | The Board shall notify the applicant of its findings within | 7 | | 90 days
after receiving the application, and if the
Board | 8 | | approves the application, participation by the applicant shall
| 9 | | commence on the effective date specified by the Board.
| 10 | | (b) The following participating instrumentalities, so long | 11 | | as
they meet the requirements of Section 7-108 and the area | 12 | | served by them
or within their jurisdiction is not located | 13 | | entirely within a municipality
having more than one million | 14 | | inhabitants, may be included hereunder:
| 15 | | i. Township School District Trustees.
| 16 | | ii. Multiple County and Consolidated Health | 17 | | Departments created
under Division 5-25 of the Counties | 18 | | Code or its predecessor law.
| 19 | | iii. Public Building Commissions created under the | 20 | | Public Building
Commission Act, and located in counties of | 21 | | less
than 1,000,000 inhabitants.
| 22 | | iv. A multitype, consolidated or cooperative
library | 23 | | system created under the Illinois Library System Act. Any
| 24 | | library system created under the Illinois Library System | 25 | | Act that has one
or more predecessors that participated in | 26 | | the Fund may participate in the
Fund upon application. The |
| | | SB2149 Engrossed | - 13 - | LRB097 10095 NHT 50275 b |
|
| 1 | | Board shall establish procedures for
implementing the | 2 | | transfer of rights and obligations from the predecessor
| 3 | | system to the successor system.
| 4 | | v. Regional Planning Commissions created under | 5 | | Division 5-14 of the
Counties Code or its predecessor law.
| 6 | | vi. Local Public Housing Authorities created under the | 7 | | Housing
Authorities Act, located in counties of less than | 8 | | 1,000,000 inhabitants.
| 9 | | vii. Illinois Municipal League.
| 10 | | viii. Northeastern Illinois Metropolitan Area Planning | 11 | | Commission.
| 12 | | ix. Southwestern Illinois Metropolitan Area Planning | 13 | | Commission.
| 14 | | x. Illinois Association of Park Districts.
| 15 | | xi. Illinois Supervisors, County Commissioners and | 16 | | Superintendents
of Highways Association.
| 17 | | xii. Tri-City Regional Port District.
| 18 | | xiii. An association, or not-for-profit corporation, | 19 | | membership in
which is authorized under Section 85-15 of | 20 | | the Township Code.
| 21 | | xiv. Drainage Districts operating under the Illinois | 22 | | Drainage
Code.
| 23 | | xv. Local mass transit districts created under the | 24 | | Local Mass
Transit District Act.
| 25 | | xvi. Soil and water conservation districts created | 26 | | under the Soil
and Water Conservation Districts Law.
|
| | | SB2149 Engrossed | - 14 - | LRB097 10095 NHT 50275 b |
|
| 1 | | xvii. Commissions created to provide water supply or | 2 | | sewer services
or both under Division 135 or Division 136 | 3 | | of Article 11 of the Illinois
Municipal Code.
| 4 | | xviii. Public water districts created under the Public | 5 | | Water
District Act.
| 6 | | xix. Veterans Assistance Commissions established under | 7 | | Section
9 of the Military Veterans Assistance Act that
| 8 | | serve counties with a population of less than 1,000,000.
| 9 | | xx. The governing body of an entity, other than a | 10 | | vocational education
cooperative, created under an | 11 | | intergovernmental cooperative agreement
established | 12 | | between participating municipalities under the
| 13 | | Intergovernmental Cooperation Act, which by the terms of | 14 | | the agreement is
the employer of the persons performing | 15 | | services under the agreement under
the usual common law | 16 | | rules determining the employer-employee relationship.
The | 17 | | governing body of such an intergovernmental cooperative | 18 | | entity
established prior to July 1, 1988 may make | 19 | | participation retroactive to the
effective date of the | 20 | | agreement and, if so, the effective date of
participation | 21 | | shall be the date the required application is filed with | 22 | | the
fund. If any such entity is unable to pay the required | 23 | | employer
contributions to the fund, then the participating | 24 | | municipalities shall make
payment of the required | 25 | | contributions and the payments shall be allocated
as | 26 | | provided in the agreement or, if not so provided, equally |
| | | SB2149 Engrossed | - 15 - | LRB097 10095 NHT 50275 b |
|
| 1 | | among them.
| 2 | | xxi. The Illinois Municipal Electric Agency.
| 3 | | xxii. The Waukegan Port District.
| 4 | | xxiii. The Fox Waterway Agency created under the Fox | 5 | | Waterway Agency
Act.
| 6 | | xxiv. The Illinois Municipal Gas Agency.
| 7 | | xxv. The Kaskaskia Regional Port District.
| 8 | | xxvi. The Southwestern Illinois Development Authority.
| 9 | | xxvii. The Cairo Public Utility Company.
| 10 | | xxviii. Except with respect to employees who elect to | 11 | | participate in the State Employees' Retirement System of | 12 | | Illinois under Section 14-104.13 of this Code, the Chicago | 13 | | Metropolitan Agency for Planning created under the | 14 | | Regional Planning Act, provided that, with respect to the | 15 | | benefits payable pursuant to Sections 7-146, 7-150, and | 16 | | 7-164 and the requirement that eligibility for such | 17 | | benefits is conditional upon satisfying a minimum period of | 18 | | service or a minimum contribution, any employee of the | 19 | | Chicago Metropolitan Agency for Planning that was | 20 | | immediately prior to such employment an employee of the | 21 | | Chicago Area Transportation Study or the Northeastern | 22 | | Illinois Planning Commission, such employee's service at | 23 | | the Chicago Area Transportation Study or the Northeastern | 24 | | Illinois Planning Commission and contributions to the | 25 | | State Employees' Retirement System of Illinois established | 26 | | under Article 14 and the Illinois Municipal Retirement Fund |
| | | SB2149 Engrossed | - 16 - | LRB097 10095 NHT 50275 b |
|
| 1 | | shall count towards the satisfaction of such requirements.
| 2 | | xxix. United Counties Council (formerly the Urban | 3 | | Counties Council), but only if the Council has a ruling | 4 | | from the United States Internal Revenue Service that it is | 5 | | a governmental entity.
| 6 | | xxx. The Will County Governmental League, but only if | 7 | | the League has a ruling from the United States Internal | 8 | | Revenue Service that it is a governmental entity. | 9 | | (c) The governing boards of special education joint | 10 | | agreements
created under Section 10-22.31 of the School Code | 11 | | without designation of an
administrative district shall be | 12 | | included within and be subject to this
Article as participating | 13 | | instrumentalities when the joint agreement becomes
effective. | 14 | | However, the governing board of any such special education
| 15 | | joint agreement in effect before September 5, 1975 shall not be | 16 | | subject to this
Article unless the joint agreement is modified | 17 | | by the school districts to
provide that the governing board is | 18 | | subject to this Article, except as
otherwise provided by this | 19 | | Section.
| 20 | | The governing board of the Special Education District of | 21 | | Lake County shall
become subject to this Article as a | 22 | | participating instrumentality on July 1,
1997. Notwithstanding | 23 | | subdivision (a)1 of Section 7-139, on the effective date
of | 24 | | participation, employees of the governing board of the Special | 25 | | Education
District of Lake County shall receive creditable | 26 | | service for their prior
service with that employer, up to a |
| | | SB2149 Engrossed | - 17 - | LRB097 10095 NHT 50275 b |
|
| 1 | | maximum of 5 years, without any employee
contribution. | 2 | | Employees may establish creditable service for the remainder
of | 3 | | their prior service with that employer, if any, by applying in | 4 | | writing and
paying an employee contribution in an amount | 5 | | determined by the Fund, based on
the employee contribution | 6 | | rates in effect at the time of application for the
creditable | 7 | | service and the employee's salary rate on the effective date of
| 8 | | participation for that employer, plus interest at the effective | 9 | | rate from the
date of the prior service to the date of payment. | 10 | | Application for this
creditable service must be made before | 11 | | July 1, 1998; the payment may be made
at any time while the | 12 | | employee is still in service. The employer may elect to
make | 13 | | the required contribution on behalf of the employee.
| 14 | | The governing board of a special education joint agreement | 15 | | created
under Section 10-22.31 of the School Code for which an | 16 | | administrative
district has been designated, if there are | 17 | | employees of the cooperative
educational entity who are not | 18 | | employees of the administrative district,
may elect to | 19 | | participate in the Fund and be included within this Article as
| 20 | | a participating instrumentality, subject to such application | 21 | | procedures and
rules as the Board may prescribe.
| 22 | | The Boards of Control of cooperative or joint educational | 23 | | programs or
projects created and administered under Section | 24 | | 3-15.14 of the School
Code, whether or not the Boards act as | 25 | | their own administrative district,
shall be included within and | 26 | | be subject to this Article as participating
instrumentalities |
| | | SB2149 Engrossed | - 18 - | LRB097 10095 NHT 50275 b |
|
| 1 | | when the agreement establishing the cooperative or joint
| 2 | | educational program or project becomes effective.
| 3 | | The governing board of a special education joint agreement | 4 | | entered into
after June 30, 1984 and prior to September 17, | 5 | | 1985 which provides for
representation on the governing board | 6 | | by less than all the participating
districts shall be included | 7 | | within and subject to this Article as a
participating | 8 | | instrumentality. Such participation shall be effective as of
| 9 | | the date the joint agreement becomes effective.
| 10 | | The governing boards of educational service centers | 11 | | established under
Section 2-3.62 of the School Code shall be | 12 | | included within and subject to
this Article as participating | 13 | | instrumentalities. The governing boards of
vocational | 14 | | education cooperative agreements created under the
| 15 | | Intergovernmental Cooperation Act and approved by the State | 16 | | Board of
Education shall be included within and be subject to | 17 | | this
Article as participating instrumentalities. If any such | 18 | | governing boards
or boards of control are unable to pay the | 19 | | required employer contributions
to the fund, then the school | 20 | | districts served by such boards shall make
payment of required | 21 | | contributions as provided in Section 7-172. The
payments shall | 22 | | be allocated among the several school districts in
proportion | 23 | | to the number of students in average daily attendance for the
| 24 | | last full school year for each district in relation to the | 25 | | total number of
students in average attendance for such period | 26 | | for all districts served.
If such educational service centers, |
| | | SB2149 Engrossed | - 19 - | LRB097 10095 NHT 50275 b |
|
| 1 | | vocational education cooperatives or
cooperative or joint | 2 | | educational programs or projects created and
administered | 3 | | under Section 3-15.14 of the School Code are dissolved, the
| 4 | | assets and obligations shall be distributed among the districts | 5 | | in the
same proportions unless otherwise provided.
| 6 | | The governing board of Paris Cooperative High School shall | 7 | | be included within and be subject to this
Article as a | 8 | | participating instrumentality on the effective date of this | 9 | | amendatory Act of the 96th General Assembly. If the governing | 10 | | board of Paris Cooperative High School is unable to pay the | 11 | | required employer contributions
to the fund, then the school | 12 | | districts served shall make
payment of required contributions | 13 | | as provided in Section 7-172. The
payments shall be allocated | 14 | | among the several school districts in
proportion to the number | 15 | | of students in average daily attendance for the
last full | 16 | | school year for each district in relation to the total number | 17 | | of
students in average attendance for such period for all | 18 | | districts served.
If Paris Cooperative High School is | 19 | | dissolved, then the
assets and obligations shall be distributed | 20 | | among the districts in the
same proportions unless otherwise | 21 | | provided. | 22 | | Financial Oversight Panels established under Article 1H of | 23 | | the School Code shall be included within and be subject to this | 24 | | Article as a participating instrumentality on the effective | 25 | | date of this amendatory Act of the 97th General Assembly. If | 26 | | the Financial Oversight Panel is unable to pay the required |
| | | SB2149 Engrossed | - 20 - | LRB097 10095 NHT 50275 b |
|
| 1 | | employer contributions to the fund, then the school districts | 2 | | served shall make payment of required contributions as provided | 3 | | in Section 7-172. If the Financial Oversight Panel is | 4 | | dissolved, then the assets and obligations shall be distributed | 5 | | to the district served. | 6 | | (d) The governing boards of special recreation joint | 7 | | agreements
created under Section 8-10b of the Park District | 8 | | Code, operating
without
designation of an administrative | 9 | | district or an administrative
municipality appointed to | 10 | | administer the program operating under the
authority of such | 11 | | joint agreement shall be included within and be
subject to this | 12 | | Article as participating instrumentalities when the
joint | 13 | | agreement becomes effective. However, the governing board of | 14 | | any
such special recreation joint agreement in effect before | 15 | | January 1,
1980 shall not be subject to this Article unless the | 16 | | joint agreement is
modified, by the districts and | 17 | | municipalities which are parties to the
agreement, to provide | 18 | | that the governing board is subject to this Article.
| 19 | | If the Board returns any employer and employee | 20 | | contributions to any
employer which erroneously submitted such | 21 | | contributions on behalf of a
special recreation joint | 22 | | agreement, the Board shall include interest
computed from the | 23 | | end of each year to the date of payment, not compounded,
at the | 24 | | rate of 7% per annum.
| 25 | | (e) Each multi-township assessment district, the board of
| 26 | | trustees of which has adopted this Article by ordinance prior |
| | | SB2149 Engrossed | - 21 - | LRB097 10095 NHT 50275 b |
|
| 1 | | to April 1,
1982, shall be a participating instrumentality | 2 | | included within and subject
to this Article effective December | 3 | | 1, 1981. The contributions required
under Section 7-172 shall | 4 | | be included in the budget prepared under and
allocated in | 5 | | accordance with Section 2-30 of the Property Tax Code.
| 6 | | (f) The Illinois Medical District Commission created under | 7 | | the Illinois Medical District Act may be included within and | 8 | | subject to
this Article as a participating instrumentality, | 9 | | notwithstanding that the location of the District is entirely | 10 | | within the City of Chicago. To become a participating | 11 | | instrumentality, the Commission must apply to the Board in the | 12 | | manner set forth in paragraph (a) of this subsection (B). If | 13 | | the
Board approves the application, under the criteria and | 14 | | procedures set forth in paragraph (a) and any other applicable | 15 | | rules, criteria, and procedures of the Board, participation by | 16 | | the Commission shall
commence on the effective date specified | 17 | | by the Board.
| 18 | | (C) Prospective participants. | 19 | | Beginning January 1, 1992, each prospective participating
| 20 | | municipality or participating instrumentality shall pay to the | 21 | | Fund the
cost, as determined by the Board, of a study prepared | 22 | | by the Fund or its
actuary, detailing the prospective costs of | 23 | | participation in the Fund to be
expected by the municipality or | 24 | | instrumentality.
| 25 | | (Source: P.A. 95-677, eff. 10-11-07; 96-211, eff. 8-10-09; |
| | | SB2149 Engrossed | - 22 - | LRB097 10095 NHT 50275 b |
|
| 1 | | 96-551, eff. 8-17-09; 96-1000, eff. 7-2-10; 96-1046, eff. | 2 | | 7-14-10.)
| 3 | | Section 15. The School Code is amended by changing Sections | 4 | | 1A-8, 1B-8, 8-6, 10-16.9, 10-16.11, 17-1, 17-11, 19-8, and 19-9 | 5 | | and by adding Sections 1B-25, 1E-165, and 1F-165 and Article 1H | 6 | | as follows:
| 7 | | (105 ILCS 5/1A-8) (from Ch. 122, par. 1A-8)
| 8 | | Sec. 1A-8. Powers of the Board in Assisting Districts | 9 | | Deemed in Financial
Difficulties. To promote the financial | 10 | | integrity of school districts, the
State Board of Education | 11 | | shall be provided the necessary powers to promote
sound | 12 | | financial management and continue operation of the public | 13 | | schools.
| 14 | | (a) The State Superintendent of Education may require a | 15 | | school district, including any district subject to Article 34A | 16 | | of this Code, to share financial information relevant to a | 17 | | proper investigation of the district's financial condition and | 18 | | the delivery of appropriate State financial, technical, and | 19 | | consulting services to the district if the district (i) has | 20 | | been designated, through the State Board of Education's School | 21 | | District Financial Profile System, as on financial warning or | 22 | | financial watch status, (ii) has failed to file an annual | 23 | | financial report, annual budget, deficit reduction plan, or | 24 | | other financial information as required by law, (iii) has been |
| | | SB2149 Engrossed | - 23 - | LRB097 10095 NHT 50275 b |
|
| 1 | | identified, through the district's annual audit or other | 2 | | financial and management information, as in serious financial | 3 | | difficulty in the current or next school year, or (iv) is | 4 | | determined to be likely to fail to fully meet any regularly | 5 | | scheduled, payroll-period obligations when due or any debt | 6 | | service payments when due or both. In addition to financial, | 7 | | technical, and consulting services provided by the State Board | 8 | | of Education, at the request of a school district, the State | 9 | | Superintendent may provide for an independent financial | 10 | | consultant to assist the district review its financial | 11 | | condition and options.
| 12 | | (b) The State Board of Education, after proper | 13 | | investigation of a district's
financial condition, may certify | 14 | | that a district, including any district
subject to Article 34A, | 15 | | is in financial difficulty
when any of the following conditions | 16 | | occur:
| 17 | | (1) The district has issued school or teacher orders | 18 | | for wages as permitted in Sections
8-16, 32-7.2 and 34-76 | 19 | | of this Code.
| 20 | | (2) The district has issued tax anticipation warrants | 21 | | or tax
anticipation notes in anticipation of a second | 22 | | year's taxes when warrants or
notes in anticipation of | 23 | | current year taxes are still outstanding, as
authorized by | 24 | | Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has | 25 | | issued short-term debt against 2 future revenue sources, | 26 | | such as, but not limited to, tax anticipation warrants and |
| | | SB2149 Engrossed | - 24 - | LRB097 10095 NHT 50275 b |
|
| 1 | | general State Aid certificates or tax anticipation | 2 | | warrants and revenue anticipation notes.
| 3 | | (3) The district has for 2 consecutive years shown an | 4 | | excess
of expenditures and other financing uses over | 5 | | revenues and other financing
sources and beginning fund | 6 | | balances on its annual financial report for the
aggregate | 7 | | totals of the Educational, Operations and Maintenance,
| 8 | | Transportation, and Working Cash Funds.
| 9 | | (4) The district refuses to provide financial | 10 | | information or cooperate with the State Superintendent in | 11 | | an investigation of the district's financial condition. | 12 | | (5) The district is likely to fail to fully meet any | 13 | | regularly scheduled, payroll-period obligations when due | 14 | | or any debt service payments when due or both.
| 15 | | No school district shall be certified by the State Board of | 16 | | Education to be in financial difficulty solely by
reason of any | 17 | | of the above circumstances arising as a result of (i) the | 18 | | failure
of the county to make any distribution of property tax | 19 | | money due the district
at the time such distribution is due or | 20 | | (ii) the failure of this State to make timely payments of | 21 | | general State aid or any of the mandated categoricals; or if | 22 | | the district clearly demonstrates
to the satisfaction of the | 23 | | State Board of Education at the time of its
determination that | 24 | | such condition no longer exists. If the State Board of
| 25 | | Education certifies that a district in a city with 500,000 | 26 | | inhabitants or
more is in financial difficulty, the State Board |
| | | SB2149 Engrossed | - 25 - | LRB097 10095 NHT 50275 b |
|
| 1 | | shall so notify the
Governor and the Mayor of the city in which | 2 | | the district is located. The
State Board of Education may | 3 | | require school districts certified in
financial difficulty, | 4 | | except those districts subject to Article 34A, to
develop, | 5 | | adopt and submit a financial plan within 45 days after
| 6 | | certification of financial difficulty. The financial plan | 7 | | shall be
developed according to guidelines presented to the | 8 | | district by the State
Board of Education within 14 days of | 9 | | certification. Such guidelines shall
address the specific | 10 | | nature of each district's financial difficulties. Any
proposed | 11 | | budget of the district shall be consistent with the financial | 12 | | plan
submitted to and
approved by the State Board of Education.
| 13 | | A district certified to be in financial difficulty, other | 14 | | than a district
subject to Article 34A, shall report to the | 15 | | State Board of Education at
such times and in such manner as | 16 | | the State Board may direct, concerning the
district's | 17 | | compliance with each financial plan. The State Board may review
| 18 | | the district's operations, obtain budgetary data and financial | 19 | | statements,
require the district to produce reports, and have | 20 | | access to any other
information in the possession of the | 21 | | district that it deems relevant. The
State Board may issue | 22 | | recommendations or directives within its powers to
the district | 23 | | to assist in compliance with the financial plan. The district
| 24 | | shall produce such budgetary data, financial statements, | 25 | | reports and other
information and comply with such directives. | 26 | | If the State Board of Education
determines that a district has |
| | | SB2149 Engrossed | - 26 - | LRB097 10095 NHT 50275 b |
|
| 1 | | failed to comply with its financial plan, the
State Board of | 2 | | Education may rescind approval of the plan and appoint a
| 3 | | Financial Oversight Panel for the district as provided in | 4 | | Section 1B-4. This
action shall be taken only after the | 5 | | district has been given notice and an
opportunity to appear | 6 | | before the State Board of Education to discuss its
failure to | 7 | | comply with its financial plan.
| 8 | | No bonds, notes, teachers orders, tax anticipation | 9 | | warrants or other
evidences of indebtedness shall be issued or | 10 | | sold by a school district or
be legally binding upon or | 11 | | enforceable against a local board of education
of a district | 12 | | certified to be in financial difficulty unless and until the
| 13 | | financial plan required under this Section has been approved by | 14 | | the State
Board of Education.
| 15 | | Any financial profile compiled and distributed by the State | 16 | | Board of Education in Fiscal Year 2009 or any fiscal year | 17 | | thereafter
shall incorporate such adjustments as may be needed | 18 | | in the profile scores to reflect the financial effects of the
| 19 | | inability or refusal of the State of Illinois to make timely
| 20 | | disbursements of any general State aid or mandated categorical | 21 | | aid payments due school districts or to fully reimburse
school | 22 | | districts for mandated categorical programs pursuant to
| 23 | | reimbursement formulas provided in this School Code.
| 24 | | (Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10.)
| 25 | | (105 ILCS 5/1B-8) (from Ch. 122, par. 1B-8)
|
| | | SB2149 Engrossed | - 27 - | LRB097 10095 NHT 50275 b |
|
| 1 | | Sec. 1B-8. There is created in the State Treasury a
special | 2 | | fund to be known as the School District Emergency
Financial | 3 | | Assistance Fund (the "Fund"). The School District Emergency
| 4 | | Financial Assistance Fund shall consist of appropriations, | 5 | | loan repayments, grants from the
federal government, and | 6 | | donations from any public or private source. Moneys in
the Fund
| 7 | | may be appropriated only to the Illinois Finance Authority and
| 8 | | the State Board for
those purposes authorized under this | 9 | | Article and Articles
Article 1F and 1H of this Code.
The | 10 | | appropriation may be
allocated and expended by the State Board | 11 | | for contractual services as
grants to provide technical | 12 | | assistance or consultation and consulting services to school | 13 | | districts to assess their financial condition and to Financial | 14 | | Oversight Panels that petition for emergency financial | 15 | | assistance grants. The and by the Illinois Finance Authority | 16 | | may provide as
loans to school districts which are the subject | 17 | | of an
approved petition for emergency financial assistance | 18 | | under
Section 1B-4 ,
or 1F-62 , or 1H-65 of this Code. Neither | 19 | | the State Board of Education nor the Illinois Finance Authority | 20 | | may collect any fees for providing these services. | 21 | | From the amount allocated to each such school
district | 22 | | under this Article the State Board shall identify a sum | 23 | | sufficient to
cover all approved costs of the Financial | 24 | | Oversight Panel
established for the respective school | 25 | | district. If the State Board and State
Superintendent of | 26 | | Education have not approved emergency financial assistance in
|
| | | SB2149 Engrossed | - 28 - | LRB097 10095 NHT 50275 b |
|
| 1 | | conjunction with the appointment of a Financial Oversight | 2 | | Panel, the Panel's
approved costs shall be paid from deductions | 3 | | from the district's general State
aid.
| 4 | | The Financial Oversight Panel may prepare and file
with the | 5 | | State Superintendent a proposal for emergency
financial | 6 | | assistance for the school district and for its
operations | 7 | | budget. No expenditures from the Fund shall be
authorized by | 8 | | the State Superintendent until he or she has approved
the | 9 | | request proposal of the Panel, either as submitted or in such
| 10 | | lesser amount determined by the State Superintendent.
| 11 | | The maximum amount of an emergency financial assistance | 12 | | loan
which may be allocated to any school district under this
| 13 | | Article, including moneys necessary for the operations of
the | 14 | | Panel, shall not exceed $4,000 times the number of pupils
| 15 | | enrolled in the school district during the school year
ending | 16 | | June 30 prior to the date of approval by the State
Board of the | 17 | | petition for emergency financial assistance, as
certified to | 18 | | the local board and the Panel by the State
Superintendent.
An | 19 | | emergency financial assistance grant shall not exceed $1,000 | 20 | | times the
number of such pupils. A district may receive both a | 21 | | loan and a grant.
| 22 | | The payment of an emergency State financial assistance | 23 | | grant or loan
shall be subject to appropriation by the General | 24 | | Assembly. Payment of the emergency State financial assistance | 25 | | loan is subject to the applicable provisions of the Illinois | 26 | | Finance Authority Act.
Emergency State financial assistance |
| | | SB2149 Engrossed | - 29 - | LRB097 10095 NHT 50275 b |
|
| 1 | | allocated and paid to a school
district under this Article may | 2 | | be applied to any fund or funds from which
the local board of | 3 | | education of that district is authorized to make
expenditures | 4 | | by law.
| 5 | | Any emergency financial assistance grant proposed by the
| 6 | | Financial Oversight Panel and approved by the State
| 7 | | Superintendent may be paid in its entirety during the
initial | 8 | | year of the Panel's existence or spread in equal or
declining | 9 | | amounts over a period of years not to exceed the
period of the | 10 | | Panel's existence. An emergency financial assistance loan | 11 | | proposed by the Financial Oversight Panel and approved by the | 12 | | Illinois Finance Authority may be paid in its entirety during | 13 | | the initial year of the Panel's existence or spread in equal or | 14 | | declining amounts over a period of years not to exceed the | 15 | | period of the Panel's existence. All
loans loan payments made | 16 | | by the Illinois Finance Authority from the School District | 17 | | Emergency Financial
Assistance Fund for a
school district shall | 18 | | be required to be repaid, with simple interest over
the term of | 19 | | the loan at a rate equal to 50% of the one-year Constant | 20 | | Maturity
Treasury (CMT) yield as last published by the Board of | 21 | | Governors of the Federal
Reserve System before the date on | 22 | | which the district's loan is
approved
by the Illinois Finance | 23 | | Authority State Board of Education , not later than the
date the
| 24 | | Financial Oversight Panel ceases to exist. The Panel shall
| 25 | | establish and the Illinois Finance Authority shall
approve the | 26 | | terms and conditions, including the schedule, of
repayments. |
| | | SB2149 Engrossed | - 30 - | LRB097 10095 NHT 50275 b |
|
| 1 | | The schedule shall provide for repayments
commencing July 1 of | 2 | | each year or upon each fiscal year's receipt of moneys from a | 3 | | tax levy for emergency financial assistance. Repayment shall be | 4 | | incorporated into the
annual budget of the school district and | 5 | | may be made from any fund or funds
of the district in which | 6 | | there are moneys available. An emergency financial assistance | 7 | | loan to the Panel or district shall not be considered part of | 8 | | the calculation of a district's debt for purposes of the | 9 | | limitation specified in Section 19-1 of this Code. Default on | 10 | | repayment is subject to the Illinois Grant Funds Recovery Act. | 11 | | When moneys are repaid
as provided herein they shall not be | 12 | | made available to the local board for
further use as emergency | 13 | | financial assistance under this Article at any
time thereafter. | 14 | | All repayments required to be made by a school district
shall | 15 | | be received by the State Board and deposited in the School | 16 | | District
Emergency Financial Assistance Fund.
| 17 | | In establishing the terms and conditions for the
repayment | 18 | | obligation of the school district the Panel shall
annually | 19 | | determine whether a separate local property tax levy is
| 20 | | required. The board of any school district with a tax rate
for | 21 | | educational purposes for the prior year of less than
120% of | 22 | | the maximum rate for educational purposes authorized
by Section | 23 | | 17-2 shall provide for a separate
tax levy for emergency | 24 | | financial assistance repayment
purposes. Such tax levy shall | 25 | | not be subject to referendum approval. The
amount of the levy | 26 | | shall be equal to the
amount necessary to meet the annual |
| | | SB2149 Engrossed | - 31 - | LRB097 10095 NHT 50275 b |
|
| 1 | | repayment obligations of
the district as established by the | 2 | | Panel, or 20% of the
amount levied for educational purposes for | 3 | | the prior year,
whichever is less. However, no district shall | 4 | | be
required to levy the tax if the district's operating tax
| 5 | | rate as determined under Section
18-8 or 18-8.05 exceeds 200% | 6 | | of the district's tax rate for educational
purposes for the | 7 | | prior year.
| 8 | | (Source: P.A. 94-234, eff. 7-1-06 .)
| 9 | | (105 ILCS 5/1B-25 new) | 10 | | Sec. 1B-25. Establishment prohibited. No school district | 11 | | may have a Financial Oversight Panel established pursuant to | 12 | | this Article after Article 1H of this Code is established. | 13 | | (105 ILCS 5/1E-165 new) | 14 | | Sec. 1E-165. Repeal. When the Authority established | 15 | | pursuant to this Article is abolished pursuant to Section | 16 | | 1E-155, this Article shall be repealed. | 17 | | (105 ILCS 5/1F-165 new) | 18 | | Sec. 1F-165. Repeal. When the Authority established | 19 | | pursuant to this Article is abolished pursuant to Section | 20 | | 1F-155, this Article shall be repealed. | 21 | | (105 ILCS 5/Art. 1H heading new)
| 22 | | ARTICLE 1H. FINANCIAL OVERSIGHT PANELS |
| | | SB2149 Engrossed | - 32 - | LRB097 10095 NHT 50275 b |
|
| 1 | | (105 ILCS 5/1H-1 new) | 2 | | Sec. 1H-1. Short title. This Article may be cited as the | 3 | | Financial Oversight Panel Law. | 4 | | (105 ILCS 5/1H-5 new) | 5 | | Sec. 1H-5. Findings; purpose; intent. | 6 | | (a) The General Assembly finds all of the following: | 7 | | (1) A fundamental goal of the people of this State, as | 8 | | expressed in Section 1 of Article X of the Illinois | 9 | | Constitution, is the educational development of all | 10 | | persons to the limits of their capacities. When a board of | 11 | | education faces financial difficulties, continued | 12 | | operation of the public school system is threatened. | 13 | | (2) A sound financial structure is essential to the | 14 | | continued operation of any school system. It is vital to | 15 | | commercial, educational, and cultural interests that | 16 | | public schools remain in operation. To achieve that goal, | 17 | | public school systems must have effective access to the | 18 | | private market to borrow short and long term funds. | 19 | | (3) To promote the financial integrity of districts, as | 20 | | defined in this Article, it is necessary to provide for the | 21 | | creation of financial oversight panels with the powers | 22 | | necessary to promote sound financial management and to | 23 | | ensure the continued operation of the public schools. | 24 | | (b) It is the purpose of this Article to provide a secure |
| | | SB2149 Engrossed | - 33 - | LRB097 10095 NHT 50275 b |
|
| 1 | | financial basis for the continued operation of public schools. | 2 | | The intention of the General Assembly, in creating this | 3 | | Article, is to establish procedures, provide powers, and impose | 4 | | restrictions to ensure the financial and educational integrity | 5 | | of public school districts, while leaving principal | 6 | | responsibility for the educational policies of public schools | 7 | | to their boards of education, consistent with the requirements | 8 | | for satisfying the public policy and purpose set forth in this | 9 | | Article.
| 10 | | (105 ILCS 5/1H-10 new) | 11 | | Sec. 1H-10. Definitions. As used in this Article: | 12 | | "Budget" means the annual budget of the district required | 13 | | under Section 17-1 of this Code, as in effect from time to | 14 | | time. | 15 | | "Chairperson" means the Chairperson of the Panel. | 16 | | "District" means any school district having a population of | 17 | | not more than 500,000 that has had a Financial Oversight Panel | 18 | | established under this Article. | 19 | | "Financial plan" means the financial plan of the district | 20 | | to be developed pursuant to this Article, as in effect from | 21 | | time to time. | 22 | | "Fiscal year" means the fiscal year of the district. | 23 | | "Obligations" means notes or other short-term debts or | 24 | | liabilities of the Panel. | 25 | | "Panel" means a Financial Oversight Panel created under |
| | | SB2149 Engrossed | - 34 - | LRB097 10095 NHT 50275 b |
|
| 1 | | this Article. | 2 | | "State Board" means the State Board of Education. | 3 | | "State Superintendent" means the State Superintendent of | 4 | | Education. | 5 | | (105 ILCS 5/1H-15 new) | 6 | | Sec. 1H-15. Establishment of Financial Oversight Panels; | 7 | | duties of district. | 8 | | (a) A school district may petition the State Board for the | 9 | | establishment of a Financial Oversight Panel for the district | 10 | | or the State Board may establish a Panel without a petition | 11 | | from the district. The petition shall cite the reasons why the | 12 | | creation of a Financial Oversight Panel for the district is | 13 | | necessary. In determining whether or not to place a district | 14 | | under a Panel, the State Board shall consider all of the | 15 | | following: | 16 | | (1) If a Panel is in the best educational and financial | 17 | | interests of the district. | 18 | | (2) If a Panel is in the best interest of other schools | 19 | | in the area and the educational welfare of all the pupils | 20 | | therein. | 21 | | (3) Whether the board of education has complied with | 22 | | the requirements of Section 1A-8 of this Code. | 23 | | (b) Upon establishment of a Financial Oversight Panel, all | 24 | | of the following shall occur: | 25 | | (1) There is established a body both corporate and |
| | | SB2149 Engrossed | - 35 - | LRB097 10095 NHT 50275 b |
|
| 1 | | politic to be known as the "(Name of School District) | 2 | | Financial Oversight Panel", which in this name shall | 3 | | exercise all authority vested in a Panel by this Article. | 4 | | (2) The powers and duties of a Financial Oversight | 5 | | Panel established pursuant to this Article shall include | 6 | | the duties and obligations of financial oversight panels | 7 | | established under Article 1B of this Code, in addition to | 8 | | any duties and obligations established under this Article. | 9 | | However, if there is any conflict between the provisions of | 10 | | this Article and the provisions of Article 1B of this Code, | 11 | | the provisions of this Article control. | 12 | | (3) The Financial Oversight Panel, the school board, | 13 | | and the district superintendent or chief executive officer | 14 | | shall develop goals and objectives to assist the district | 15 | | in obtaining financial stability. The goals and objectives | 16 | | must be developed as part of the financial plan that the | 17 | | school board is required to develop, adopt, and submit to | 18 | | the Panel in accordance with Section 1B-12 of this Code. | 19 | | The goals and objectives must be formally reviewed at | 20 | | agreed to intervals, but at least one time per year. Review | 21 | | shall include progress made and recommendations and | 22 | | modifications needed to achieve abolition of financial | 23 | | oversight provided for under Section 1H-115 of this Code. | 24 | | (c) Any school district having a Financial Oversight Panel | 25 | | established under Article 1B of this Code or any Financial | 26 | | Oversight Panel established under Article 1B may petition the |
| | | SB2149 Engrossed | - 36 - | LRB097 10095 NHT 50275 b |
|
| 1 | | State Board for the establishment of a Financial Oversight | 2 | | Panel under this Article and concurrent dissolution of the | 3 | | Article 1B Panel. All records, papers, books, funds, or other | 4 | | assets or liabilities belonging to the dissolving Financial | 5 | | Oversight Panel shall be transferred to the newly established | 6 | | Financial Oversight Panel. | 7 | | (105 ILCS 5/1H-20 new) | 8 | | Sec. 1H-20. Members of Panel; meetings. | 9 | | (a) Upon establishment of a Financial Oversight Panel under | 10 | | Section 1H-15 of this Code, the State Superintendent shall | 11 | | within 15 working days thereafter appoint 5 members to serve on | 12 | | a Financial Oversight Panel for the district. Members appointed | 13 | | to the Panel shall serve at the pleasure of the State | 14 | | Superintendent. The State Superintendent shall designate one | 15 | | of the members of the Panel to serve as its Chairperson. In the | 16 | | event of vacancy or resignation, the State Superintendent | 17 | | shall, within 10 days after receiving notice, appoint a | 18 | | successor to serve out that member's term. | 19 | | (b) Members of the Panel shall be selected primarily on the | 20 | | basis of their experience and education in financial | 21 | | management, with consideration given to persons knowledgeable | 22 | | in education finance. Two members of the Panel shall be | 23 | | residents of the school district that the Panel serves. A | 24 | | member of the Panel may not be a member of the district's | 25 | | school board or an employee of the district nor may a member |
| | | SB2149 Engrossed | - 37 - | LRB097 10095 NHT 50275 b |
|
| 1 | | have a direct financial interest in the district. | 2 | | (c) Panel members may be reimbursed by the State Board for | 3 | | travel and other necessary expenses incurred in the performance | 4 | | of their official duties. The amount reimbursed members for | 5 | | their expenses shall be charged to the school district as part | 6 | | of any emergency financial assistance and incorporated as a | 7 | | part of the terms and conditions for repayment of the | 8 | | assistance or shall be deducted from the district's general | 9 | | State aid as provided in Section 1H-65 of this Code. | 10 | | (d) With the exception of the chairperson, who shall be | 11 | | designated as provided in subsection (a) of this Section, the | 12 | | Panel may elect such officers as it deems appropriate. | 13 | | (e) The first meeting of the Panel shall be held at the | 14 | | call of the Chairperson. The Panel shall prescribe the times | 15 | | and places for its meetings and the manner in which regular and | 16 | | special meetings may be called and shall comply with the Open | 17 | | Meetings Act. The Panel shall also comply with the Freedom of | 18 | | Information Act. | 19 | | (f) Three members of the Panel shall constitute a quorum. A | 20 | | majority of members present is required to pass a measure. | 21 | | (105 ILCS 5/1H-25 new) | 22 | | Sec. 1H-25. General powers. | 23 | | (a) The purposes of the Panel shall be to exercise | 24 | | financial control over the district and to furnish financial | 25 | | assistance so that the district can provide public education |
| | | SB2149 Engrossed | - 38 - | LRB097 10095 NHT 50275 b |
|
| 1 | | within the district's jurisdiction while permitting the | 2 | | district to meet its obligations to its creditors and the | 3 | | holders of its debt. Except as expressly limited by this | 4 | | Article, the Panel shall have all powers granted to a voluntary | 5 | | or involuntary Financial Oversight Panel and to a Financial | 6 | | Administrator under Article 1B of this Code and all other | 7 | | powers necessary to meet its responsibilities and to carry out | 8 | | its purposes and the purposes of this Article, including | 9 | | without limitation all of the following powers, provided that | 10 | | the Panel shall have no power to terminate an employee without | 11 | | following the statutory procedures for such terminations set | 12 | | forth in this Code: | 13 | | (1) To sue and to be sued. | 14 | | (2) To determine at a regular or special meeting that | 15 | | the district has insufficient or inadequate funds or other | 16 | | financial resources with respect to any contract (other | 17 | | than collective bargaining agreements), leases, subleases, | 18 | | and other instruments or agreements applicable to or | 19 | | binding upon the school board, and to make, cancel, modify, | 20 | | or execute contracts (other than collective bargaining | 21 | | agreements), leases, subleases, and all other instruments | 22 | | or agreements necessary, convenient, or otherwise | 23 | | beneficial to the district and consistent with the powers | 24 | | and functions granted by this Article or other applicable | 25 | | law. | 26 | | (3) To lease or purchase real or personal property |
| | | SB2149 Engrossed | - 39 - | LRB097 10095 NHT 50275 b |
|
| 1 | | necessary or convenient for its purposes; to execute and | 2 | | deliver deeds for real property held in its own name; and | 3 | | to sell, lease, or otherwise dispose of such of its | 4 | | property as, in the judgment of the Panel, is no longer | 5 | | necessary for its purposes. | 6 | | (4) To employ officers, agents, and employees of the | 7 | | Panel, to define their duties and qualifications, and to | 8 | | fix their compensation and benefits. | 9 | | (5) To transfer to the district such sums of money as | 10 | | are not required for other purposes. | 11 | | (6) To borrow money, including without limitation | 12 | | accepting State loans, and to issue obligations pursuant to | 13 | | this Article; to fund, refund, or advance refund the same; | 14 | | to provide for the rights of the holders of its | 15 | | obligations; and to repay any advances. | 16 | | (7) To levy all property tax levies that otherwise | 17 | | could be levied by the district if the district fails to | 18 | | certify and return the certificate of tax levy to the | 19 | | county clerk on or before the first Tuesday in November, | 20 | | and to make levies pursuant to Section 1H-65 of this Code. | 21 | | (8) Subject to the provisions of any contract with or | 22 | | for the benefit of the holders of its obligations, to | 23 | | purchase or redeem its obligations. | 24 | | (9) To procure all necessary goods and services for the | 25 | | Panel in compliance with the purchasing laws and | 26 | | requirements applicable to the district. |
| | | SB2149 Engrossed | - 40 - | LRB097 10095 NHT 50275 b |
|
| 1 | | (10) To do any and all things necessary or convenient | 2 | | to carry out its purposes and exercise the powers given to | 3 | | it by this Article. | 4 | | (11) To recommend any type of reorganization of the | 5 | | district, in whole or in part, pursuant to Article 7 or 11E | 6 | | of this Code or Section 10-22.22b or 10-22.22c of this Code | 7 | | to the General Assembly if in the Panel's judgment the | 8 | | circumstances so require. | 9 | | (b) Notwithstanding the provisions of subsection (a) of | 10 | | this Section, the Panel shall have no power to do any of the | 11 | | following: | 12 | | (1) Unilaterally cancel or modify any collective | 13 | | bargaining agreement in force upon the date of creation of | 14 | | the Panel. | 15 | | (2) Lease, sublease, buy, build, or otherwise acquire | 16 | | any additional school buildings or grounds for or on behalf | 17 | | of the district without prior approval by referendum held | 18 | | pursuant to Section 19-2 or 19-3 of this Code. | 19 | | (3) Authorize payments for or incur any debt for any | 20 | | additional school buildings or grounds as specified in | 21 | | subdivision (2) of this subsection (b) without prior | 22 | | approval via referendum pursuant to the provisions of | 23 | | Sections 19-2 through 19-7 of this Code, the provisions of | 24 | | Section 10-22.36 of this Code to the contrary | 25 | | notwithstanding. |
| | | SB2149 Engrossed | - 41 - | LRB097 10095 NHT 50275 b |
|
| 1 | | (105 ILCS 5/1H-30 new) | 2 | | Sec. 1H-30. Employees. The Panel may employ individuals | 3 | | under this Section if it is so warranted. These individuals may | 4 | | include any of the following: | 5 | | (1) A chief executive officer who shall supervise the | 6 | | Panel's staff, including the chief educational officer and | 7 | | the chief fiscal officer, and shall have ultimate | 8 | | responsibility for implementing the policies, procedures, | 9 | | directives, and decisions of the Panel. The chief executive | 10 | | officer shall have the authority to determine the agenda | 11 | | and order of business at school board meetings, as needed | 12 | | in order to carry forward and implement the objectives and | 13 | | priorities of the school board and Financial Oversight | 14 | | Panel in the administration and management of the district. | 15 | | This individual is not required to hold any certificate | 16 | | issued under Article 21 of this Code. The chief executive | 17 | | officer shall have the powers and duties as assigned by the | 18 | | Panel in accordance with this Code. | 19 | | (2) A chief educational officer, who may be employed by | 20 | | the Panel if there is no superintendent in the district or | 21 | | if the Panel, at a regular or special meeting, finds that | 22 | | cause exists to cancel the contract of the district's | 23 | | superintendent who is serving at the time the Panel is | 24 | | established. Cancellation of an existing superintendent | 25 | | contract may be done only pursuant to the same requirements | 26 | | and in the same manner as the school board may cancel the |
| | | SB2149 Engrossed | - 42 - | LRB097 10095 NHT 50275 b |
|
| 1 | | contract. A chief educational officer employed under this | 2 | | subdivision (2) shall have the powers and duties of a | 3 | | school district superintendent under this Code and such | 4 | | other duties as may be assigned by the Panel in accordance | 5 | | with this Code. | 6 | | (3) A chief fiscal officer, who may be employed by the | 7 | | Panel. This individual shall be under the direction of the | 8 | | Panel or the chief executive officer employed by the Panel | 9 | | and shall have all of the powers and duties of the | 10 | | district's chief school business official and any other | 11 | | duties regarding budgeting, accounting, and other | 12 | | financial matters that are assigned by the Panel, in | 13 | | accordance with this Code. | 14 | | (4) A superintendent, who shall be under the direction | 15 | | of the Panel or the chief executive officer employed by the | 16 | | Panel and shall have all of the powers and duties of a | 17 | | school district superintendent under this Code assigned by | 18 | | the Panel and such other duties as may be assigned by the | 19 | | Panel in accordance with this Code. | 20 | | (5) A chief school business official, who shall have | 21 | | all of the powers and duties of a chief school business | 22 | | official under this Code assigned by the Panel and such | 23 | | other duties as may be assigned by the Panel in accordance | 24 | | with this Code. | 25 | | An individual employed by the Panel as a superintendent or | 26 | | a chief school business official under this Section must hold |
| | | SB2149 Engrossed | - 43 - | LRB097 10095 NHT 50275 b |
|
| 1 | | the appropriate certification for these positions. Individuals | 2 | | employed by the Panel as a chief executive officer, chief | 3 | | educational officer, or chief fiscal officer under this Section | 4 | | are not required to hold certification. A chief educational | 5 | | officer under this Section must not be employed by the Panel | 6 | | during a period a superintendent is employed by the district | 7 | | and a chief fiscal officer under this Section must not be | 8 | | employed by the Panel during a period a chief school business | 9 | | official is employed by the district. | 10 | | Individuals employed under subdivision (2), (3), (4), or | 11 | | (5) of this Section shall report to the Panel or to the chief | 12 | | executive officer under this Section if there is one. | 13 | | (105 ILCS 5/1H-35 new) | 14 | | Sec. 1H-35. School treasurer. | 15 | | (a) In Class I county school units and in each district | 16 | | that forms part of a Class II county school unit but that has | 17 | | withdrawn from the jurisdiction and authority of the trustees | 18 | | of schools of the township in which the district is located and | 19 | | from the jurisdiction and authority of the township treasurer | 20 | | in the Class II county school unit, the Panel may, in its | 21 | | discretion, remove the treasurer appointed or elected by the | 22 | | school board of the district and appoint a new treasurer to | 23 | | succeed the removed treasurer as provided in Section 8-19 of | 24 | | this Code. | 25 | | (b) In the case of a district located in a Class II county |
| | | SB2149 Engrossed | - 44 - | LRB097 10095 NHT 50275 b |
|
| 1 | | school unit where such district is subject to the jurisdiction | 2 | | and authority of township trustees and the jurisdiction and | 3 | | authority of the township treasurer, the Panel may require | 4 | | production of bank reconciliations and other reports or | 5 | | statements as required under Sections 8-6 and 8-13 through 8-15 | 6 | | of this Code. | 7 | | (c) All school treasurers appointed or elected pursuant to | 8 | | this Section shall be subject to the provisions of Sections 8-2 | 9 | | through 8-20 and other applicable provisions of the School | 10 | | Code. | 11 | | (105 ILCS 5/1H-45 new) | 12 | | Sec. 1H-45. Collective bargaining agreements. In | 13 | | conjunction with the district, the Panel shall have the power | 14 | | to negotiate collective bargaining agreements with the | 15 | | district's employees. Upon union ratification, the district | 16 | | and the Panel shall execute the agreements negotiated by the | 17 | | Panel, and the district shall be bound by and shall administer | 18 | | the agreements in all respects as if the agreements had been | 19 | | negotiated by the district itself. | 20 | | (105 ILCS 5/1H-50 new) | 21 | | Sec. 1H-50. Deposits and investments. | 22 | | (a) The Panel shall have the power to establish checking | 23 | | and whatever other banking accounts it may deem appropriate for | 24 | | conducting its affairs. |
| | | SB2149 Engrossed | - 45 - | LRB097 10095 NHT 50275 b |
|
| 1 | | (b) Subject to the provisions of any contract with or for | 2 | | the benefit of the holders of its obligations, the Panel may | 3 | | invest any funds not required for immediate use or | 4 | | disbursement, as provided in the Public Funds Investment Act. | 5 | | (105 ILCS 5/1H-55 new) | 6 | | Sec. 1H-55. Cash accounts and bank accounts. | 7 | | (a) The Panel shall require the district or any officer of | 8 | | the district, including the district's treasurer, to establish | 9 | | and maintain separate cash accounts and separate bank accounts | 10 | | in accordance with such rules, standards, and procedures as the | 11 | | Panel may prescribe. | 12 | | (b) The Panel shall have the power to assume exclusive | 13 | | administration of the cash accounts and bank accounts of the | 14 | | district, to establish and maintain whatever new cash accounts | 15 | | and bank accounts it may deem appropriate, and to withdraw | 16 | | funds from these accounts for the lawful expenditures of the | 17 | | district. | 18 | | (105 ILCS 5/1H-60 new) | 19 | | Sec. 1H-60. Financial, management, and budgetary | 20 | | structure. Upon direction of the Panel, the district shall | 21 | | reorganize the financial accounts, management, and budgetary | 22 | | systems of the district in a manner consistent with rules | 23 | | adopted by the State Board regarding accounting, budgeting, | 24 | | financial reporting, and auditing as the Panel deems |
| | | SB2149 Engrossed | - 46 - | LRB097 10095 NHT 50275 b |
|
| 1 | | appropriate to remedy the conditions that led the Panel to be | 2 | | created and to achieve greater financial responsibility and to | 3 | | reduce financial inefficiency. | 4 | | (105 ILCS 5/1H-65 new) | 5 | | Sec. 1H-65. School district emergency financial | 6 | | assistance; grants and loans. The Panel may prepare and file | 7 | | with the State Superintendent a proposal for emergency | 8 | | financial assistance for the school district and for the | 9 | | operations budget of the Panel, in accordance with Section 1B-8 | 10 | | of this Code. A school district may receive both a loan and a | 11 | | grant. | 12 | | (105 ILCS 5/1H-70 new) | 13 | | Sec. 1H-70. Tax anticipation warrants, tax anticipation | 14 | | notes, revenue anticipation certificates or notes, general | 15 | | State aid anticipation certificates, and lines of credit. With | 16 | | the approval of the State Superintendent and provided that the | 17 | | district is unable to secure short-term financing after 3 | 18 | | attempts, a Panel shall have the same power as a district to do | 19 | | the following: | 20 | | (1) issue tax anticipation warrants under the | 21 | | provisions of Section 17-16 of this Code against taxes | 22 | | levied by either the school board or the Panel pursuant to | 23 | | Section 1H-25 of this Code; | 24 | | (2) issue tax anticipation notes under the provisions |
| | | SB2149 Engrossed | - 47 - | LRB097 10095 NHT 50275 b |
|
| 1 | | of the Tax Anticipation Note Act against taxes levied by | 2 | | either the school board or the Panel pursuant to Section | 3 | | 1H-25 of this Code; | 4 | | (3) issue revenue anticipation certificates or notes | 5 | | under the provisions of the Revenue Anticipation Act; | 6 | | (4) issue general State aid anticipation certificates | 7 | | under the provisions of Section 18-18 of this Code; and | 8 | | (5) establish and utilize lines of credit under the | 9 | | provisions of Section 17-17 of this Code. | 10 | | Tax anticipation warrants, tax anticipation notes, revenue | 11 | | anticipation certificates or notes, general State aid | 12 | | anticipation certificates, and lines of credit are considered | 13 | | borrowing from sources other than the State and are subject to | 14 | | Section 1H-65 of this Code. | 15 | | (105 ILCS 5/1H-75 new) | 16 | | Sec. 1H-75. Tax for emergency Financial Oversight Panel | 17 | | financial aid. If the Panel is unable to secure short-term | 18 | | borrowing pursuant to Section 1H-70 of this Code, the Panel: | 19 | | (1) based upon an original or amended budget filed by a | 20 | | Financial Oversight Panel and approved by the State Board | 21 | | of Education, may levy a one-time-only tax, in an amount | 22 | | not to exceed 75% of the amount expended by the school | 23 | | district subject to the oversight of the Panel in the | 24 | | immediately preceding year for educational, operations and | 25 | | maintenance, transportation, and municipal retirement |
| | | SB2149 Engrossed | - 48 - | LRB097 10095 NHT 50275 b |
|
| 1 | | purposes; as reflected in the most recently filed annual | 2 | | financial report, and as adjusted by the CPI most recently | 3 | | under the Property Tax Extension Limitation Law; | 4 | | (2) following approval by the State Board of Education, | 5 | | shall file a certificate of tax levy with the county clerk | 6 | | or clerks with whom the school district must file tax | 7 | | levies, such taxes to be extended against all the property | 8 | | of the school district upon the value of the taxable | 9 | | property within its territory, as equalized or assessed by | 10 | | the Department of Revenue; and | 11 | | (3) may issue warrants, or may provide a fund to meet | 12 | | the expenses by issuing and disposing of warrants, drawn | 13 | | against and in anticipation of the tax levied pursuant to | 14 | | this Section, for the payment of the necessary expenses of | 15 | | the district, either for transportation, educational, or | 16 | | all operations and maintenance purposes or for payments to | 17 | | the Illinois Municipal Retirement Fund, as the case may be, | 18 | | to the extent of 75% of the total amount of the tax so | 19 | | levied. The warrants shall show upon their face that they | 20 | | are payable in the numerical order of their issuance solely | 21 | | from such taxes when collected, and shall be received by | 22 | | any collector of taxes in payment of the taxes against | 23 | | which they are issued, and such taxes shall be set apart | 24 | | and held for their payment; every warrant shall bear | 25 | | interest, payable only out of the taxes against which it is | 26 | | drawn, at a rate not exceeding the maximum rate authorized |
| | | SB2149 Engrossed | - 49 - | LRB097 10095 NHT 50275 b |
|
| 1 | | by the Bond Authorization Act, as amended at the time of | 2 | | the making of the contract, if issued before July 1, 1971 | 3 | | and if issued thereafter at the rate of not to exceed the | 4 | | maximum rate authorized by the Bond Authorization Act, as | 5 | | amended at the time of the making of the contract, from the | 6 | | date of its issuance until paid or until notice shall be | 7 | | given by publication in a newspaper or otherwise that the | 8 | | money for its payment is available and that it will be paid | 9 | | on presentation, unless a lower rate of interest is | 10 | | specified therein, in which case the interest shall be | 11 | | computed and paid at the lower rate. | 12 | | (105 ILCS 5/1H-85 new) | 13 | | Sec. 1H-85. Obligations as legal investments. The | 14 | | obligations issued under the provisions of this Article are | 15 | | hereby made securities in which all public officers and bodies | 16 | | of this State, all political subdivisions of this State, all | 17 | | persons carrying on an insurance business, all banks, bankers, | 18 | | trust companies, savings banks, and savings associations | 19 | | (including savings and loan associations, building and loan | 20 | | associations, investment companies, and other persons carrying | 21 | | on a banking business), and all credit unions, pension funds, | 22 | | administrators, and guardians who are or may be authorized to | 23 | | invest in bonds or in other obligations of the State may | 24 | | properly and legally invest funds, including capital, in their | 25 | | control or belonging to them. The obligations are also hereby |
| | | SB2149 Engrossed | - 50 - | LRB097 10095 NHT 50275 b |
|
| 1 | | made securities that may be deposited with and may be received | 2 | | by all public officers and bodies of the State, all political | 3 | | subdivisions of the State, and public corporations for any | 4 | | purpose for which the deposit of bonds or other obligations of | 5 | | the State is authorized. | 6 | | (105 ILCS 5/1H-90 new) | 7 | | Sec. 1H-90. Reports. The Panel, upon taking office and | 8 | | annually thereafter, shall prepare and submit to the State | 9 | | Superintendent a report that includes the audited financial | 10 | | statement for the preceding fiscal year prepared and audited in | 11 | | compliance with the provisions of Sections 3-7 and 3-15.1 of | 12 | | this Code, an approved financial plan, and a statement of the | 13 | | major steps necessary to accomplish the objectives of the | 14 | | financial plan. This report must be submitted annually by March | 15 | | 1 of each year and must detail information from the previous | 16 | | school year. The school board must be allowed to comment on the | 17 | | annual report of the Panel, and the comments of the school | 18 | | board shall be included as an appendix to such annual report of | 19 | | the Panel. | 20 | | (105 ILCS 5/1H-95 new) | 21 | | Sec. 1H-95. Audit of Panel. The State Superintendent may | 22 | | require a separate audit of the Panel, otherwise the activities | 23 | | of the Panel must be included in the scope of the audit of the | 24 | | school district. A copy of the audit report covering the Panel |
| | | SB2149 Engrossed | - 51 - | LRB097 10095 NHT 50275 b |
|
| 1 | | must be submitted to the State Superintendent. | 2 | | (105 ILCS 5/1H-100 new) | 3 | | Sec. 1H-100. Assistance by State agencies, units of local | 4 | | government, and school districts. The district shall render | 5 | | such services to and permit the use of its facilities and | 6 | | resources by the Panel at no charge as may be requested by the | 7 | | Panel. Any State agency, unit of local government, or school | 8 | | district may, within its lawful powers and duties, render such | 9 | | services to the Panel as may be requested by the Panel. Upon | 10 | | request of the Panel, any State agency, unit of local | 11 | | government, or school district is authorized and empowered to | 12 | | loan to the Panel such officers and employees as the Panel may | 13 | | deem necessary in carrying out its functions and duties. | 14 | | Officers and employees so transferred shall not lose or forfeit | 15 | | their employment status or rights. | 16 | | (105 ILCS 5/1H-105 new) | 17 | | Sec. 1H-105. Property of Panel exempt from taxation. The | 18 | | property of the Panel is exempt from taxation. | 19 | | (105 ILCS 5/1H-110 new) | 20 | | Sec. 1H-110. Sanctions. | 21 | | (a) No member, officer, employee, or agent of the district | 22 | | may commit the district to any contract or other obligation or | 23 | | incur any liability on behalf of the district for any purpose |
| | | SB2149 Engrossed | - 52 - | LRB097 10095 NHT 50275 b |
|
| 1 | | if the amount of the contract, obligation, or liability is in | 2 | | excess of the amount authorized for that purpose then available | 3 | | under the financial plan and budget then in effect. | 4 | | (b) No member, officer, employee, or agent of the district | 5 | | may commit the district to any contract or other obligation on | 6 | | behalf of the district for the payment of money for any purpose | 7 | | required to be approved by the Panel unless the contract or | 8 | | other obligation has been approved by the Panel. | 9 | | (c) No member, officer, employee, or agent of the district | 10 | | may take any action in violation of any valid order of the | 11 | | Panel, may fail or refuse to take any action required by any | 12 | | such order, may prepare, present, certify, or report any | 13 | | information, including any projections or estimates, for the | 14 | | Panel or any of its agents that is false or misleading, or, | 15 | | upon learning that any such information is false or misleading, | 16 | | may fail promptly to advise the Panel or its agents. | 17 | | (d) In addition to any penalty or liability under any other | 18 | | law, any member, officer, employee, or agent of the district | 19 | | who violates subsection (a), (b), or (c) of this Section is | 20 | | subject to appropriate administrative discipline as may be | 21 | | imposed by the Panel, including, if warranted, suspension from | 22 | | duty without pay, removal from office, or termination of | 23 | | employment. | 24 | | (105 ILCS 5/1H-115 new) | 25 | | Sec. 1H-115. Abolition of Panel. |
| | | SB2149 Engrossed | - 53 - | LRB097 10095 NHT 50275 b |
|
| 1 | | (a) Except as provided in subsections (b), (c), and (d) of | 2 | | this Section, the Panel shall be abolished 10 years after its | 3 | | creation. | 4 | | (b) The State Board, upon recommendation of the Panel or | 5 | | petition of the school board, may abolish the Panel at any time | 6 | | after the Panel has been in existence for 3 years if no | 7 | | obligations of the Panel are outstanding or remain undefeased | 8 | | and upon investigation and finding that: | 9 | | (1) none of the factors specified in Section 1A-8 of | 10 | | this Code remain applicable to the district; and | 11 | | (2) substantial achievement of the goals and | 12 | | objectives established pursuant to the financial plan and | 13 | | required under Section 1H-15 of this Code. | 14 | | (c) The Panel of a district that otherwise meets all of the | 15 | | requirements for abolition of a Panel under subsection (b) of | 16 | | this Section except for the fact that there are outstanding | 17 | | financial obligations of the Panel may petition the State Board | 18 | | for reinstatement of all of the school boards powers and duties | 19 | | assumed by the Panel; and if approved by the State Board, then: | 20 | | (1) the Panel shall continue in operation, but its | 21 | | powers and duties shall be limited to those necessary to | 22 | | manage and administer its outstanding obligations; | 23 | | (2) the school board shall once again begin exercising | 24 | | all of the powers and duties otherwise allowed by statute; | 25 | | and | 26 | | (3) the Panel shall be abolished as provided in |
| | | SB2149 Engrossed | - 54 - | LRB097 10095 NHT 50275 b |
|
| 1 | | subsection (a) of this Section. | 2 | | (d) If the Panel of a district that otherwise meets all of | 3 | | the requirements for abolition of a Panel under subsection (b) | 4 | | of this Section, except for outstanding obligations of the | 5 | | Panel, then the district may petition the State Board for | 6 | | abolition of the Panel if the district: | 7 | | (1) establishes an irrevocable trust fund, the purpose | 8 | | of which is to provide moneys to defease the outstanding | 9 | | obligations of the Panel; and | 10 | | (2) issues funding bonds pursuant to the provisions of | 11 | | Section 19-8 and 19-9 of this Code. | 12 | | A district with a Panel that falls under these provisions | 13 | | shall be abolished as provided in subsection (a) of this | 14 | | Section. | 15 | | (105 ILCS 5/1H-120 new) | 16 | | Sec. 1H-120. Indemnification; legal representation; | 17 | | limitations of actions after abolition. | 18 | | (a) The Panel may indemnify any member, officer, employee, | 19 | | or agent who was or is a party or is threatened to be made a | 20 | | party to any threatened, pending, or completed action, suit, or | 21 | | proceeding, whether civil, criminal, administrative, or | 22 | | investigative, by reason of the fact that he or she was a | 23 | | member, officer, employee, or agent of the Panel, against | 24 | | expenses (including attorney's fees, judgments, fines, and | 25 | | amounts paid in settlement actually and reasonably incurred by |
| | | SB2149 Engrossed | - 55 - | LRB097 10095 NHT 50275 b |
|
| 1 | | him or her in connection with the action, suit, or proceeding) | 2 | | if he or she acted in good faith and in a manner that he or she | 3 | | reasonably believed to be in or not opposed to the best | 4 | | interests of the Panel and, with respect to any criminal action | 5 | | or proceeding, had no reasonable cause to believe his or her | 6 | | conduct was unlawful. The termination of any action, suit, or | 7 | | proceeding by judgment, order, settlement, or conviction or | 8 | | upon a plea of nolo contendere or its equivalent, shall not, of | 9 | | itself, create a presumption that the person did not act in | 10 | | good faith in a manner that he or she reasonably believed to be | 11 | | in or not opposed to the best interests of the Panel and, with | 12 | | respect to any criminal action or proceeding, had reasonable | 13 | | cause to believe that his or her conduct was unlawful. | 14 | | To the extent that a member, officer, employee, or agent of | 15 | | the Panel has been successful, on the merits or otherwise, in | 16 | | the defense of any such action, suit, or proceeding referred to | 17 | | in this subsection (b) or in defense of any claim, issue, or | 18 | | matter therein, he or she shall be indemnified against | 19 | | expenses, including attorney's fees, actually and reasonably | 20 | | incurred by him or her in connection therewith. Any such | 21 | | indemnification shall be made by the Panel only as authorized | 22 | | in the specific case, upon a determination that indemnification | 23 | | of the member, officer, employee, or agent is proper in the | 24 | | circumstances because he or she has met the applicable standard | 25 | | of conduct. The determination shall be made (i) by the Panel by | 26 | | a majority vote of a quorum consisting of members who are not |
| | | SB2149 Engrossed | - 56 - | LRB097 10095 NHT 50275 b |
|
| 1 | | parties to the action, suit, or proceeding or (ii) if such a | 2 | | quorum is not obtainable or, even if obtainable, a quorum of | 3 | | disinterested members so directs, by independent legal counsel | 4 | | in a written opinion. | 5 | | Reasonable expenses incurred in defending an action, suit, | 6 | | or proceeding shall be paid by the Panel in advance of the | 7 | | final disposition of the action, suit, or proceeding, as | 8 | | authorized by the Panel in the specific case, upon receipt of | 9 | | an undertaking by or on behalf of the member, officer, | 10 | | employee, or agent to repay the amount, unless it is ultimately | 11 | | determined that he or she is entitled to be indemnified by the | 12 | | Panel as authorized in this Section. | 13 | | Any member, officer, employee, or agent against whom any | 14 | | action, suit, or proceeding is brought may employ his or her | 15 | | own attorney to appear on his or her behalf. | 16 | | The right to indemnification accorded by this Section shall | 17 | | not limit any other right to indemnification to which the | 18 | | member, officer, employee, or agent may be entitled. Any rights | 19 | | under this Section shall inure to the benefit of the heirs, | 20 | | executors, and administrators of any member, officer, | 21 | | employee, or agent of the Panel. | 22 | | The Panel may purchase and maintain insurance on behalf of | 23 | | any person who is or was a member, officer, employee, or agent | 24 | | of the Panel against any liability asserted against him or her | 25 | | and incurred by him or her in any such capacity or arising out | 26 | | of his or her status as such, whether or not the Panel could |
| | | SB2149 Engrossed | - 57 - | LRB097 10095 NHT 50275 b |
|
| 1 | | have the power to indemnify him or her against liability under | 2 | | the provisions of this Section. | 3 | | (b) The Panel shall be considered a State agency for | 4 | | purposes of receiving representation by the Attorney General. | 5 | | Members, officers, employees, and agents of the Panel shall be | 6 | | entitled to representation and indemnification under the State | 7 | | Employee Indemnification Act. | 8 | | (c) Abolition of the Panel pursuant to Section 1H-115 of | 9 | | this Code shall bar any remedy available against the Panel, its | 10 | | members, employees, or agents for any right or claim existing | 11 | | or any liability incurred prior to the abolition, unless the | 12 | | action or other proceeding is commenced prior to the expiration | 13 | | of 2 years after the date of the abolition.
| 14 | | (105 ILCS 5/8-6) (from Ch. 122, par. 8-6)
| 15 | | Sec. 8-6. Custody
of school funds. | 16 | | The school treasurer shall have custody of the school funds | 17 | | and shall
keep in a cash book separate cash balances. In the | 18 | | cash book he shall enter in
separate accounts the balance, | 19 | | total of all moneys received in each fund,
and the total of the | 20 | | orders countersigned or checks signed with respect to each fund | 21 | | and extend the balances and the aggregate cash balance for all | 22 | | funds
balance at least monthly . The treasurer and shall | 23 | | reconcile such balances balance with the
accounting or | 24 | | bookkeeping department of the district in conformity with a | 25 | | template provided by the State Board of Education monthly . |
| | | SB2149 Engrossed | - 58 - | LRB097 10095 NHT 50275 b |
|
| 1 | | School districts on the financial watch or warning list that | 2 | | are required to submit deficit reduction plans in accordance | 3 | | with Section 17-1 of this Code or that are certified in | 4 | | financial difficulty in accordance with Section 1-A8 of this | 5 | | Code must transmit the cash balances as required pursuant to | 6 | | this Section 8-6 of this Code to the State Board of Education | 7 | | quarterly from the treasurer.
| 8 | | (Source: Laws 1961, p. 31.)
| 9 | | (105 ILCS 5/10-16.9 new) | 10 | | Sec. 10-16.9. Bank reconciliation reports. School | 11 | | districts on the financial watch or warning list that are | 12 | | required to submit deficit reduction plans pursuant to Section | 13 | | 17-1 of this Code or that are certified in financial difficulty | 14 | | must transmit the bank reconciliation reports from the school | 15 | | treasurer as required pursuant to Section 8-6 of this Code to | 16 | | the State Board of Education quarterly. The State Board of | 17 | | Education shall establish the dates by which the reconciliation | 18 | | reports must be submitted and provide a template for those | 19 | | districts to utilize. | 20 | | (105 ILCS 5/10-16.11 new) | 21 | | Sec. 10-16.11. Payment of outstanding obligations of a | 22 | | Financial Oversight Panel. The school board of a district | 23 | | subject to a Financial Oversight Panel pursuant to Article 1H | 24 | | of this Code that, except for the existence of outstanding |
| | | SB2149 Engrossed | - 59 - | LRB097 10095 NHT 50275 b |
|
| 1 | | financial obligations of the Financial Oversight Panel, would | 2 | | be able to seek abolition of the Panel pursuant to Section | 3 | | 1H-115 of this Code may: (1) spend surplus district funds in an | 4 | | amount sufficient to liquidate the outstanding obligations of | 5 | | the Financial Oversight Panel or (2) issue funding bonds for | 6 | | such purpose as authorized by Sections 19-8 and 19-9 of this | 7 | | Code.
| 8 | | (105 ILCS 5/17-1) (from Ch. 122, par. 17-1)
| 9 | | Sec. 17-1. Annual Budget. The board of education of each | 10 | | school
district under 500,000 inhabitants shall, within or | 11 | | before the first
quarter of each fiscal year, adopt and file | 12 | | with the State Board of Education an annual balanced budget | 13 | | which it deems
necessary to defray all necessary expenses and | 14 | | liabilities of the
district, and in such annual budget shall | 15 | | specify the objects and
purposes of each item and amount needed | 16 | | for each object or purpose.
| 17 | | The budget shall be entered upon a School District Budget | 18 | | form prepared
and provided by the State Board of Education and | 19 | | therein shall contain
a statement of the cash on hand at the
| 20 | | beginning of the fiscal year, an estimate of the cash expected | 21 | | to be
received during such fiscal year from all sources, an | 22 | | estimate of the
expenditures contemplated for such fiscal year, | 23 | | and a statement of the
estimated cash expected to be on hand at | 24 | | the end of such year. The
estimate of taxes to be received may | 25 | | be based upon the amount of actual
cash receipts that may |
| | | SB2149 Engrossed | - 60 - | LRB097 10095 NHT 50275 b |
|
| 1 | | reasonably be expected by the district during
such fiscal year, | 2 | | estimated from the experience of the district in prior
years | 3 | | and with due regard for other circumstances that may | 4 | | substantially
affect such receipts. Nothing in this Section | 5 | | shall be construed as
requiring any district to change or | 6 | | preventing any district from
changing from a cash basis of | 7 | | financing to a surplus or deficit basis of
financing; or as | 8 | | requiring any district to change or preventing any
district | 9 | | from changing its system of accounting.
| 10 | | To the extent that a school district's budget is not | 11 | | balanced, the district shall also adopt and file with the State | 12 | | Board of Education a deficit reduction plan to balance the | 13 | | district's budget within 3 years. The deficit reduction plan | 14 | | must be filed at the same time as the budget, but the State | 15 | | Superintendent of Education may extend this deadline if the | 16 | | situation warrants.
| 17 | | If, as the result of an audit performed in compliance with | 18 | | Section 3-7 of this Code, the resulting Annual Financial Report | 19 | | required to be submitted pursuant to Section 3-15.1 of this | 20 | | Code reflects a deficit as defined for purposes of the | 21 | | preceding paragraph, then the district shall, within 30 days | 22 | | after acceptance of such audit report, submit a deficit | 23 | | reduction plan. | 24 | | The board of education of each district shall fix a fiscal | 25 | | year
therefor. If the beginning of the fiscal year of a | 26 | | district is
subsequent to the time that the tax levy due to be |
| | | SB2149 Engrossed | - 61 - | LRB097 10095 NHT 50275 b |
|
| 1 | | made in such
fiscal year shall be
made, then such annual budget | 2 | | shall be adopted prior to the time such
tax levy shall be made.
| 3 | | The failure by a board of education of any district to adopt an | 4 | | annual
budget, or to comply in any respect with the provisions | 5 | | of this Section, shall
not affect the validity of any tax levy | 6 | | of the district otherwise in
conformity with the law. With | 7 | | respect to taxes levied either before, on, or
after the | 8 | | effective date of this amendatory Act of the 91st General | 9 | | Assembly,
(i) a tax levy is made
for the fiscal year in which | 10 | | the levy is due to be made regardless of which
fiscal year the | 11 | | proceeds of the levy are expended or are intended to be
| 12 | | expended, and (ii) except as otherwise provided by law, a board | 13 | | of education's
adoption of
an annual budget in conformity with | 14 | | this Section is not a prerequisite to the
adoption of a valid | 15 | | tax levy and is not a limit on the amount of the levy.
| 16 | | Such budget shall be prepared in tentative form by some | 17 | | person or
persons designated by the board, and in such | 18 | | tentative form shall be
made conveniently available to public | 19 | | inspection for at least 30 days
prior to final action thereon. | 20 | | At least 1 public hearing shall be held
as to such budget prior | 21 | | to final action thereon. Notice of availability
for public | 22 | | inspection and of such public hearing shall be given by
| 23 | | publication in a newspaper published in such district, at least | 24 | | 30 days
prior to the time of such hearing. If there is no | 25 | | newspaper published
in such district, notice of such public | 26 | | hearing shall be given by
posting notices thereof in 5 of the |
| | | SB2149 Engrossed | - 62 - | LRB097 10095 NHT 50275 b |
|
| 1 | | most public places in such district.
It shall be the duty of | 2 | | the secretary of such board to make such
tentative budget | 3 | | available to public inspection, and to arrange for such
public | 4 | | hearing. The board may from time to time make transfers between
| 5 | | the various items in any fund not exceeding in the aggregate | 6 | | 10% of the
total of such fund as set forth in the budget. The | 7 | | board may from time
to time amend such budget by the same | 8 | | procedure as is herein provided
for its original adoption.
| 9 | | Beginning July 1, 1976, the board of education, or regional
| 10 | | superintendent, or governing board responsible for the | 11 | | administration of
a joint agreement shall, by September 1 of | 12 | | each
fiscal year thereafter, adopt an annual budget for the | 13 | | joint agreement
in the same manner and subject to the same | 14 | | requirements as are provided
in this Section.
| 15 | | The State Board of Education shall exercise powers and | 16 | | duties
relating to budgets as provided in Section 2-3.27 of | 17 | | this Code and shall require school districts to submit their | 18 | | annual budgets, deficit reduction plans, and other financial | 19 | | information, including revenue and expenditure reports and | 20 | | borrowing and interfund transfer plans, in such form and within | 21 | | the timelines designated by the State Board of Education.
| 22 | | By fiscal year 1982 all school districts shall use the | 23 | | Program Budget
Accounting System.
| 24 | | In the case of a school district receiving emergency State | 25 | | financial
assistance under Article 1B, the school board shall | 26 | | also be subject to the
requirements
established under Article |
| | | SB2149 Engrossed | - 63 - | LRB097 10095 NHT 50275 b |
|
| 1 | | 1B with respect to the annual budget.
| 2 | | (Source: P.A. 94-234, eff. 7-1-06.)
| 3 | | (105 ILCS 5/17-11) (from Ch. 122, par. 17-11)
| 4 | | Sec. 17-11. Certificate of tax levy. | 5 | | (a) The school board of each district , other than a school | 6 | | district subject to the authority of a Financial Oversight | 7 | | Panel pursuant to Article 1H of this Code,
shall ascertain, as | 8 | | near as practicable, annually, how much money must be
raised by | 9 | | special tax for transportation purposes if any and for
| 10 | | educational and for operations and maintenance purposes for the
| 11 | | next ensuing year. In school districts with a population of | 12 | | less than
500,000, these amounts shall be certified and | 13 | | returned to each county clerk
on or before the last Tuesday in | 14 | | December, annually. The
certificate shall be signed by the | 15 | | president and clerk or secretary, and
may be in the following | 16 | | form:
| 17 | | CERTIFICATE OF TAX LEVY
| 18 | | We hereby certify that we require the sum of ...... | 19 | | dollars, to be levied
as a special tax for transportation | 20 | | purposes and the sum of ...... dollars
to be levied as a | 21 | | special tax for educational purposes, and the sum ......
| 22 | | dollars to be levied as a special tax for operations and | 23 | | maintenance
purposes, and the sum of ...... to be levied as a | 24 | | special tax for a working
cash fund, on the equalized assessed | 25 | | value of the taxable property of our
district, for the year |
| | | SB2149 Engrossed | - 64 - | LRB097 10095 NHT 50275 b |
|
| 1 | | (insert year).
| 2 | | Signed on (insert date).
| 3 | | A ........... B ............., President
| 4 | | C ........... D............., Clerk (Secretary)
| 5 | | Dist. No. .........., ............ County
| 6 | | (b) A failure by the school board to file the certificate | 7 | | with the county
clerk in the time required shall not vitiate | 8 | | the assessment.
| 9 | | (c) A school district subject to the authority of a | 10 | | Financial Oversight Panel pursuant to Article 1H of this Code | 11 | | shall file a certificate of tax levy as otherwise provided by | 12 | | this Section, except that such certificate shall be certified | 13 | | and returned to each county clerk on or before the first | 14 | | Tuesday in November annually. If, for whatever reason, the | 15 | | district fails to certify and return the certificate of tax | 16 | | levy to each county clerk on or before the first Tuesday in | 17 | | November annually, then the Financial Oversight Panel for such | 18 | | school district shall proceed to adopt, certify, and return a | 19 | | certificate of tax levy for such school district to each county | 20 | | clerk on or before the last Tuesday in December annually. | 21 | | (Source: P.A. 91-357, eff. 7-29-99.)
| 22 | | (105 ILCS 5/19-8)
(from Ch. 122, par. 19-8)
| 23 | | Sec. 19-8. Bonds
to pay claims. Any school district or | 24 | | non-high district operating under general law or
special |
| | | SB2149 Engrossed | - 65 - | LRB097 10095 NHT 50275 b |
|
| 1 | | charter having a population of 500,000 or less is authorized to
| 2 | | issue bonds for the purpose of paying orders issued for the | 3 | | wages of
teachers, or for the payment of claims against any | 4 | | such district , or for providing funds to effect liquidation or | 5 | | defeasance of the obligations of a Financial Oversight Panel | 6 | | pursuant to the provisions of Section 1H-115 of this Code .
| 7 | | Such bonds may be issued in an amount, including existing | 8 | | indebtedness,
in excess of any statutory limitation as to debt.
| 9 | | (Source: P.A. 94-234, eff. 7-1-06 .)
| 10 | | (105 ILCS 5/19-9) (from Ch. 122, par. 19-9)
| 11 | | Sec. 19-9. Resolution to issue bonds - Submission to | 12 | | voters. Before any district as described in Section 19-8 shall | 13 | | avail itself
of the provisions of that section the governing | 14 | | body thereof shall
examine and consider the several teachers' | 15 | | orders or claims or liabilities of a Financial Oversight Panel | 16 | | established pursuant to Article 1H of this Code, or any or all | 17 | | of these , or both,
proposed to be paid and if it appears that | 18 | | they were authorized and
allowed for proper school purposes it | 19 | | shall adopt a resolution so
declaring and set forth and | 20 | | describe in detail such teachers' orders and
claims and | 21 | | liabilities of a Financial Oversight Panel established | 22 | | pursuant to Article 1H of this Code and the adoption of the | 23 | | resolution shall establish the validity
thereof, | 24 | | notwithstanding the amount of such orders and claims and | 25 | | liabilities of a Financial Oversight Panel established |
| | | SB2149 Engrossed | - 66 - | LRB097 10095 NHT 50275 b |
|
| 1 | | pursuant to Article 1H of this Code may exceed
in whole or in | 2 | | part any applicable statutory debt limit in force at the
time | 3 | | the indebtedness evidenced by such orders and claims and | 4 | | liabilities of a Financial Oversight Panel established | 5 | | pursuant to Article 1H of this Code was incurred.
The | 6 | | resolution shall also declare the intention of the district to | 7 | | issue
bonds for the purpose of paying such teachers' orders or | 8 | | claims or liabilities of a Financial Oversight Panel | 9 | | established pursuant to Article 1H of this Code , or
both, and | 10 | | direct that notice of such intention be published at least once
| 11 | | in a newspaper published within the district and if there be no | 12 | | newspaper
published within the district then notice shall be | 13 | | published
in a newspaper having general circulation within the | 14 | | district. The
notice shall set forth (1) the time within which | 15 | | a petition may be filed
requesting the submission of the | 16 | | proposition to issue the bonds as
hereinafter in this Section | 17 | | provided; (2) the specific number of voters
required to sign | 18 | | the petition; and the date of the prospective referendum.
The | 19 | | recording officer of the district shall provide a petition form | 20 | | to
any individual requesting one. If within 30 days after such
| 21 | | publication of such notice a petition is filed with the | 22 | | recording
officer of the district, signed by the voters
of the | 23 | | district equal to 10% or more of the registered voters of the | 24 | | district
requesting that the proposition to issue bonds as | 25 | | authorized by
Section 19-8 be submitted to the voters thereof, | 26 | | then the district
shall not be authorized to issue bonds as |
| | | SB2149 Engrossed | - 67 - | LRB097 10095 NHT 50275 b |
|
| 1 | | provided by Section 19-8
until the proposition has been | 2 | | submitted to and approved by a majority
of the voters voting on | 3 | | the proposition at a regular scheduled
election. The board | 4 | | shall certify the proposition to the proper election
| 5 | | authorities for submission in accordance with the general | 6 | | election law.
If no such petition with the requisite number of | 7 | | signatures is filed within
said 30 days, or if any and all | 8 | | petitions filed are invalid, then the
district shall thereafter | 9 | | be authorized to issue bonds for the purposes and
as provided | 10 | | in Section 19-8.
| 11 | | (Source: P.A. 87-767.)
| 12 | | Section 20. The Illinois Educational Labor Relations Act is | 13 | | amended by changing Section 2 as follows:
| 14 | | (115 ILCS 5/2) (from Ch. 48, par. 1702)
| 15 | | Sec. 2. Definitions. As used in this Act:
| 16 | | (a) "Educational employer"
or "employer" means the | 17 | | governing body of a public school district, including the | 18 | | governing body of a charter school established under Article | 19 | | 27A of the School Code or of a contract school or contract | 20 | | turnaround school established under paragraph 30 of Section | 21 | | 34-18 of the School Code, combination
of public school | 22 | | districts, including the governing body of joint agreements
of | 23 | | any type formed by 2 or more school districts, public community | 24 | | college
district or State college or university, a |
| | | SB2149 Engrossed | - 68 - | LRB097 10095 NHT 50275 b |
|
| 1 | | subcontractor of instructional services of a school district | 2 | | (other than a school district organized under Article 34 of the | 3 | | School Code), combination of school districts, charter school | 4 | | established under Article 27A of the School Code, or contract | 5 | | school or contract turnaround school established under | 6 | | paragraph 30 of Section 34-18 of the School Code, and any State | 7 | | agency whose major
function is providing educational services.
| 8 | | "Educational employer" or "employer" does not include (1) a | 9 | | Financial Oversight
Panel created pursuant to Section 1A-8 of | 10 | | the School Code due to a
district
violating a financial plan or | 11 | | (2) an approved nonpublic special education facility that | 12 | | contracts with a school district or combination of school | 13 | | districts to provide special education services pursuant to | 14 | | Section 14-7.02 of the School Code, but does include a School | 15 | | Finance Authority
created
under Article 1E or 1F of the School | 16 | | Code and a Financial Oversight Panel created under Article 1B | 17 | | or 1H of the School Code . The change made by this amendatory | 18 | | Act of the 96th General Assembly to this paragraph (a) to make | 19 | | clear that the governing body of a charter school is an | 20 | | "educational employer" is declaratory of existing law.
| 21 | | (b) "Educational employee" or "employee" means any | 22 | | individual, excluding
supervisors, managerial, confidential, | 23 | | short term employees, student, and
part-time academic | 24 | | employees of community colleges employed full or part
time by | 25 | | an educational employer, but shall not include elected | 26 | | officials
and appointees of the Governor with the advice and |
| | | SB2149 Engrossed | - 69 - | LRB097 10095 NHT 50275 b |
|
| 1 | | consent of the Senate,
firefighters as defined by subsection | 2 | | (g-1) of Section 3 of the Illinois
Public Labor Relations Act, | 3 | | and peace officers employed by a State
university. For the | 4 | | purposes of this Act, part-time
academic employees of community | 5 | | colleges shall be defined as those
employees who provide less | 6 | | than 3 credit hours of instruction per
academic
semester. In | 7 | | this subsection (b), the term "student"
includes graduate | 8 | | students who are research assistants primarily
performing | 9 | | duties that involve research or graduate assistants primarily
| 10 | | performing duties that are pre-professional, but excludes | 11 | | graduate
students who are teaching assistants primarily | 12 | | performing duties that
involve the delivery and support of | 13 | | instruction and all other graduate
assistants.
| 14 | | (c) "Employee organization" or "labor organization" means | 15 | | an organization
of any kind in which membership includes | 16 | | educational employees, and which
exists for the purpose, in | 17 | | whole or in part, of dealing with employers
concerning | 18 | | grievances, employee-employer disputes, wages, rates of pay,
| 19 | | hours of employment, or conditions of work, but shall not | 20 | | include any
organization which practices discrimination in | 21 | | membership because of race,
color, creed, age, gender, national | 22 | | origin or political affiliation.
| 23 | | (d) "Exclusive representative" means the labor | 24 | | organization which has
been designated by the Illinois | 25 | | Educational Labor Relations Board as the
representative of the | 26 | | majority of educational employees in an appropriate
unit, or |
| | | SB2149 Engrossed | - 70 - | LRB097 10095 NHT 50275 b |
|
| 1 | | recognized by an educational employer prior to January 1, 1984 | 2 | | as
the exclusive representative of the employees in an | 3 | | appropriate unit or,
after January 1, 1984, recognized by an | 4 | | employer upon evidence that the
employee organization has been | 5 | | designated as the exclusive representative
by a majority of the | 6 | | employees in an appropriate unit.
| 7 | | (e) "Board" means the Illinois Educational Labor Relations | 8 | | Board.
| 9 | | (f) "Regional Superintendent" means the regional | 10 | | superintendent of
schools provided for in Articles 3 and 3A of | 11 | | The School Code.
| 12 | | (g) "Supervisor" means any individual having authority in | 13 | | the interests
of the employer to hire, transfer, suspend, lay | 14 | | off, recall, promote,
discharge, reward or discipline other | 15 | | employees within the appropriate
bargaining unit and adjust | 16 | | their grievances, or to effectively recommend
such action if | 17 | | the exercise of such authority is not of a merely routine or
| 18 | | clerical nature but requires the use of independent judgment. | 19 | | The term
"supervisor" includes only those individuals who | 20 | | devote a preponderance of
their employment time to such | 21 | | exercising authority.
| 22 | | (h) "Unfair labor practice" or "unfair practice" means any | 23 | | practice
prohibited by Section 14 of this Act.
| 24 | | (i) "Person" includes an individual, educational employee, | 25 | | educational
employer, legal representative, or employee | 26 | | organization.
|
| | | SB2149 Engrossed | - 71 - | LRB097 10095 NHT 50275 b |
|
| 1 | | (j) "Wages" means salaries or other forms of compensation | 2 | | for services
rendered.
| 3 | | (k) "Professional employee" means, in the case of a public | 4 | | community
college, State college or university, State agency | 5 | | whose major function is
providing educational services, the | 6 | | Illinois School for the Deaf, and the
Illinois School for the | 7 | | Visually Impaired, (1) any employee engaged in work
(i) | 8 | | predominantly intellectual and varied in character as opposed | 9 | | to
routine mental, manual, mechanical, or physical work; (ii) | 10 | | involving the
consistent exercise of discretion and judgment in | 11 | | its performance; (iii) of
such character that the output | 12 | | produced or the result accomplished cannot
be standardized in | 13 | | relation to a given period of time; and (iv) requiring
| 14 | | knowledge of an advanced type in a field of science or learning | 15 | | customarily
acquired by a prolonged course of specialized | 16 | | intellectual instruction and
study in an institution of higher | 17 | | learning or a hospital, as distinguished
from a general | 18 | | academic education or from an apprenticeship or from training
| 19 | | in the performance of routine mental, manual, or physical | 20 | | processes; or
(2) any employee, who (i) has completed the | 21 | | courses of specialized
intellectual instruction and study | 22 | | described in clause (iv) of paragraph
(1) of this subsection, | 23 | | and (ii) is performing related work under the
supervision of a | 24 | | professional person to qualify himself or herself to
become a | 25 | | professional as defined in paragraph (l).
| 26 | | (l) "Professional employee" means, in the case of any |
| | | SB2149 Engrossed | - 72 - | LRB097 10095 NHT 50275 b |
|
| 1 | | public school
district, or combination of school districts | 2 | | pursuant to joint agreement,
any employee who has a certificate | 3 | | issued under Article 21 or Section 34-83
of the School Code, as | 4 | | now or hereafter amended.
| 5 | | (m) "Unit" or "bargaining unit" means any group of | 6 | | employees for which
an exclusive representative is selected.
| 7 | | (n) "Confidential employee" means an employee, who (i) in | 8 | | the regular
course of his or her duties, assists and acts in a | 9 | | confidential capacity to
persons who formulate, determine and | 10 | | effectuate management policies with
regard to labor relations | 11 | | or who (ii) in the regular course of his or her
duties has | 12 | | access to information relating to the effectuation or review of
| 13 | | the employer's collective bargaining policies.
| 14 | | (o) "Managerial employee" means an individual who is | 15 | | engaged
predominantly in executive and management functions | 16 | | and is charged with the
responsibility of directing the | 17 | | effectuation of such management policies and
practices.
| 18 | | (p) "Craft employee" means a skilled journeyman, craft | 19 | | person, and his
or her apprentice or helper.
| 20 | | (q) "Short-term employee" is an employee who is employed | 21 | | for less than
2 consecutive calendar quarters during a calendar | 22 | | year and who does not
have a reasonable expectation that he or | 23 | | she will be rehired by the same
employer for the same service | 24 | | in a subsequent calendar year. Nothing in
this subsection shall | 25 | | affect the employee status of individuals who were
covered by a | 26 | | collective bargaining agreement on the effective date of this
|
| | | SB2149 Engrossed | - 73 - | LRB097 10095 NHT 50275 b |
|
| 1 | | amendatory Act of 1991.
| 2 | | (Source: P.A. 95-331, eff. 8-21-07; 96-104, eff. 1-1-10.)
| 3 | | Section 99. Effective date. This Act takes effect upon | 4 | | becoming law.
|
|