State of Illinois
2019 and 2020


Introduced 1/31/2019, by Sen. John J. Cullerton


105 ILCS 5/1B-22

    Amends the School Code. Makes a technical change in a Section concerning a financial oversight panel's powers.

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1    AN ACT concerning education.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The School Code is amended by changing Section
51B-22 as follows:
6    (105 ILCS 5/1B-22)
7    Sec. 1B-22. Additional Powers of the Panel. For Panels
8established under Section 1B-4 for a district which had its
9financial plan rescinded by the the State Board for violating
10that plan as provided in Section 1A-8, the Panel shall have the
11following additional powers:
12    (a) As necessary to carry out its purposes when district
13resources are not readily available or appropriate for use by
14the Panel, the Panel may make and execute contracts, leases,
15subleases and all other instruments or agreements necessary or
16convenient for the exercise of the powers and functions granted
17by this Article.
18    (b) As necessary to carry out its purposes when district
19resources are not readily available or appropriate for use by
20the Panel, the Panel may purchase personal property necessary
21or convenient for its purposes; mortgage, pledge or otherwise
22grant security interests in such properties; and convey to the
23district such of its property as, in the judgment of the Panel,



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1is no longer necessary for its purposes.
2    (c) As necessary to carry out its purposes when district
3resources are not readily available or appropriate for use by
4the Panel, the Panel may appoint officers, agents, and
5employees of the Panel, define their duties and qualifications,
6and fix their compensation and employee benefits.
7    (d) In order to investigate allegations of or incidents of
8waste, fraud, or financial mismanagement which the Board is
9unable or unwilling to properly investigate as requested by the
10Panel, the Panel may appoint an Inspector General who shall
11have the authority to conduct investigations into such
12allegations or incidents. The Inspector General shall make
13recommendations to the Panel about its investigations. The
14Inspector General shall be independent of the operations of the
15Panel and the Board and perform other duties requested by the
16Panel. The Inspector General shall have access to all
17information and personnel necessary to perform the duties of
18the office. If the Inspector General determines that a possible
19criminal act has been committed or that special expertise is
20required in the investigation, he shall immediately notify the
21State's Attorney in the county in which the district is
22located. All investigations conducted by the Inspector General
23shall be conducted in a manner that ensures the preservation of
24evidence for use in criminal prosecutions. At all times the
25Inspector General shall be granted access to any building or
26facility that is owned, operated, or leased by the Panel or the



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1Board. The Inspector General shall have the power to subpoena
2witnesses and compel the production of books and papers
3pertinent to an investigation authorized by this Code. Any
4person who (1) fails to appear in response to a subpoena; (2)
5fails to answer any question; (3) fails to produce any books or
6papers pertinent to an investigation under this Code; or (4)
7knowingly gives false testimony during an investigation under
8this Code is guilty of a Class A misdemeanor. The Inspector
9General shall provide to the Panel and the State Board of
10Education a summary of reports and investigations made under
11this Section for the previous fiscal year no later than January
121 of each year. The summaries shall detail the final
13disposition of those recommendations. The summaries shall not
14contain any confidential or identifying information concerning
15the subjects of the reports and investigations. The summaries
16shall also include detailed recommended administrative actions
17and matters for consideration by the State Board of Education
18or the General Assembly.
19    (e) No hiring or appointment of any person in any position
20by the Board, the superintendent, or any other officer or
21employee of the Board shall be made or entered into unless it
22is consistent with the Financial Plan and Budget in effect and
23the staffing plan approved by the Panel under this Section. The
24hiring or appointment of any person shall not be binding on the
25Board unless and until it is in compliance with this Section.
26The Board shall submit to the Panel for approval by the Panel a



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1staffing plan for the upcoming school year at the same time as
2the submission of the Budget, except that the staffing plan for
3the fiscal year ending in 1997 shall be submitted to the Panel
4within 90 days after the effective date of this amendatory Act
5of 1996. The staffing plan shall be accompanied by a cost
6analysis and such other information as the Panel may require.
7The Panel may prescribe standards, procedures, and forms for
8submission of the staffing plan. The Panel shall approve the
9staffing plan if the information required to be submitted is
10complete and the staffing plan is consistent with the Budget
11and Financial Plan in effect. Otherwise, the Panel shall reject
12the staffing plan. In the event of rejection, the Panel shall
13prescribe a procedure and standards for revision of the
14staffing plan. The Panel shall act on the staffing plan at the
15same time as the approval of the Budget, except that the
16staffing plan for the fiscal year ending in 1997 shall be acted
17upon within 60 days of the submission of the staffing plan by
18the Board. The Board shall report to the Panel, at such times
19and in such manner as the Panel may direct, concerning the
20Board's compliance with each staffing plan. The Panel may
21review the Board's operations, obtaining budgetary data and
22financial statements, may require the Board to produce reports,
23and shall have access to any other information in the
24possession of the Board that it deems relevant. The Panel may
25issue directives to the Board to assure compliance with the
26staffing plan, including the issuance of reduction in force



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1notices, non-renewal of employment contracts, or any other
2notices or actions required by contract or law. The Board shall
3produce such budgetary data, financial statements, reports,
4and other information and shall comply with such directives.
5After approval of each staffing plan, the Board shall regularly
6reexamine the estimates on which it was based and revise them
7as necessary. The Board shall promptly notify the Panel of any
8material change in the estimates in the staffing plan. The
9Board may submit to the Panel, or the Panel may require the
10Board to submit, modifications to the staffing plan based upon
11revised revenue or expenditure estimates or for any other good
12reason. The Panel shall approve or reject each modified
13staffing plan within 60 days of its submission in a manner
14similar to the provisions of this subsection for the approval
15or rejection of the initial staffing plan.
16    (f) The Panel shall examine the business records and audit
17the accounts of the Board or require that the Board examine its
18business records and audit its accounts at such time and in
19such manner as the Panel may prescribe. The Board shall appoint
20a certified public accountant annually, approved by the Panel,
21to audit its financial statements. The audit conducted pursuant
22to this paragraph shall be in lieu of the audit that the Board
23is required to undertake pursuant to Section 3-7.
24    (g) The Panel shall initiate and direct financial
25management assessments and similar analyses of the operations
26of the Board as may, in the judgment of the Panel, assure sound



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1and efficient financial management of the Board. Upon the
2completion of these assessments, the Panel shall give
3directives to the Board regarding improvements and changes that
4derive from these assessments, which the Board shall implement.
5In conjunction with its budgetary submission to the Panel for
6each fiscal year, the Board shall demonstrate to the
7satisfaction of the Panel that the directives of the Panel have
8been implemented in whole or in part or, in the alternative,
9are not capable of being implemented. In consideration of
10whether to approve or reject the budget for a fiscal year, the
11Panel shall adjudge whether the Board has fully considered and
12responsibly proposed implementation of the Panel's directives.
13    (h) The Panel shall initiate and direct a management audit
14of the Board at least once every 2 years. The audit shall
15review the personnel, organization, contracts, leases, and
16physical properties of the Board to determine whether the Board
17is managing and utilizing its resources in an economical and
18efficient manner. The audit shall determine the causes of any
19inefficiencies or uneconomical practices, including
20inadequacies in internal and administrative procedures,
21organizational structure, uses of resources, utilization of
22real property, allocation of personnel, purchasing policies,
23and equipment.
24    (i) In the event that the Board refuses or fails to follow
25a directive of the Panel to issue notices of non-renewal of
26contracts, to issue notices of reduction in force to employees,



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1to issue requests for bids or proposals, or to obtain financial
2or other information that the Panel finds necessary for the
3implementation of its responsibilities under this Article, the
4Panel may take such action in the name of the district, and
5such action shall be binding the same as if the action had been
6taken by the Board. The powers established by this paragraph do
7not authorize the Panel to enter into contracts in the name of
8the Board.
9    (j) The Panel shall meet with the Board or its designees in
10closed session prior to the Board commencing any collective
11bargaining negotiations to discuss the financial issues
12relevant to the bargaining and for the purpose of the Panel
13approving the budget limitations for the potential collective
14bargaining agreement. The Board shall not make or consider any
15proposal which does not comply with the collective bargaining
16budget approved by the Panel. The Board shall keep the Panel
17apprised as to the status of the bargaining. The Board shall
18present any proposed change in the approved collective
19bargaining budget to the Panel in closed session for approval.
20Prior to the Board taking a final vote on any tentative
21agreement approved by the employee organization, the Board
22shall discuss the tentative agreement with the Panel in closed
23session. Upon final approval of a collective bargaining
24agreement by both the Board and the employee organization, the
25Board shall submit the final collective bargaining agreement to
26the Panel for approval. At the same time that the Board submits



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1the final agreement to the Panel, the Board shall notify the
2employee organization that the final agreement has been
3submitted and the date of the Panel meeting at which the final
4agreement will be considered. The employee organization shall
5be provided an opportunity to discuss the final agreement with
6the Panel prior to the Panel taking action on the agreement. No
7collective bargaining agreement shall be binding upon the
8district unless the Board has followed the requirements of this
9paragraph and the final agreement has been approved by the
11    (k) The budget of the Panel or any revisions to the budget,
12including any costs to the Panel associated with the
13appointment of an Inspector General, shall be approved by the
14State Superintendent upon request of the Panel and after
15opportunity for response by the Board.
16(Source: P.A. 89-572, eff. 7-30-96.)