Illinois General Assembly - Full Text of HB0459
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Full Text of HB0459  100th General Assembly


Rep. Jeanne M Ives

Filed: 3/16/2017





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2    AMENDMENT NO. ______. Amend House Bill 459 by replacing
3everything after the enacting clause with the following:
4    "Section 1. Short title. This Act may be cited as the
5School District Debt Control and Taxpayer Protection Act.
6    Section 5. Definitions. As used in this Act:
7    "Capital appreciation bond" means debt issued without
8annual or semiannual payments of principal, interest, or both.
9    "Entire debt service" means principal, interest, and
10issuance costs of all debt and bonds.
11    "Equalized assessed value" means the assessed value as
12equalized by the Illinois Department of Revenue.
13    "Tax anticipation warrants" means tax anticipation
14warrants drawn and issued under the School Code.
15    Section 10. Refinancing debt. Notwithstanding any other



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1law to the contrary, a school district may not refinance debt
2past the repayment period of the debt when issued.
3    Section 15. Debt serviced more than 20 years.
4Notwithstanding any law to the contrary, a school district may
5not issue debt to be serviced over a period greater than 20
7    Section 20. Equalized assessed value. Notwithstanding any
8other law to the contrary, for the purpose of calculating the
9debt limit of a school district in relation to its equalized
10assessed value, debt shall include alternate revenue bonds,
11privately placed debt, and all interest on all debt.
12    Section 25. Debt limitation. Notwithstanding any other law
13to the contrary, no school district may become indebted in any
14manner or for any purpose in an amount, including the entire
15debt service, in the aggregate exceeding 13.8% of the value of
16the taxable property therein to be ascertained by the last
17assessment for State and county taxes or, if greater, the sum
18that is produced by multiplying the school district's 2016
19equalized assessed value by the debt limitation percentage in
20effect on January 1, 2017, previous to the incurring of such
22    Section 30. New debt prohibited.



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1    (a) Notwithstanding any other law to the contrary and on
2and after the effective date of this Act, a school district
3that exceeds the debt limitation of Section 25 of this Act may
4not incur any new debt, including, but not limited to, tax
5anticipation warrants, until the school district's aggregate
6debt limitation is below the debt limitation of Section 25.
7    (b) Notwithstanding subsection (a), a school district may
8issue new debt on or after the effective date of this Act if a
9referendum allowing new debt to be issued was passed before the
10effective date of this Act.
11    Section 35. Capital appreciation bonds. Notwithstanding
12any other law to the contrary and on and after the effective
13date of this Act, no school district may issue capital
14appreciation bonds.
15    Section 40. Additional debt. Nothing in this Act shall
16authorize any school district to issue additional debt above
17and beyond what is otherwise authorized by law.
18    Section 45. Authority to exceed debt limitation.
19Notwithstanding any other provision of this Act, a school
20district may only exceed its debt limitation upon the Governor
21declaring a disaster within the school district, in part or in
22whole, under Section 7 of the Illinois Emergency Management
23Agency Act or upon the Governor's prior approval for any other



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2    Section 50. Bond referendum information. Notwithstanding
3any other law to the contrary, the referendum question allowing
4a school district to issue bonds must include the total cost of
5the bond, including interest, principal, and issuance costs, as
6well as the proposed term of the bond.
7    Section 55. Bond issuance information. Any material or
8literature from a school district that is used to present
9information to the public about the issuance of bonds shall
10provide a projected cost per median-priced home in the
11district. This information must also include the school
12district's current long-term debt amount.
13    Section 90. The School Code is amended by adding Section
1419-32 as follows:
15    (105 ILCS 5/19-32 new)
16    Sec. 19-32. School District Debt Control and Taxpayer
17Protection Act. In any instance in which this Code conflicts
18with the School District Debt Control and Taxpayer Protection
19Act, that Act shall control.
20    Section 99. Effective date. This Act takes effect upon
21becoming law.".