Illinois General Assembly - Full Text of SB1746
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Full Text of SB1746  101st General Assembly

SB1746sam001 101ST GENERAL ASSEMBLY

Sen. Christopher Belt

Filed: 3/21/2019

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1746

2    AMENDMENT NO. ______. Amend Senate Bill 1746 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The School Code is amended by changing Sections
520-2, 20-4, and 20-5 as follows:
 
6    (105 ILCS 5/20-2)   (from Ch. 122, par. 20-2)
7    Sec. 20-2. Indebtedness and bonds. For the purpose of
8creating, re-creating, or increasing a working cash fund, the
9school board of any such district may incur an indebtedness and
10issue bonds as evidence thereof in an amount or amounts not
11exceeding in the aggregate 85% of the taxes permitted to be
12levied for educational purposes for the then current year to be
13determined by multiplying the maximum educational tax rate or
14rates applicable to such school district by the last assessed
15valuation or assessed valuations as determined at the time of
16the issue of said bonds, plus 85% of the last known entitlement

 

 

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1of such district to taxes as by law now or hereafter enacted or
2amended, imposed by the General Assembly of the State of
3Illinois to replace revenue lost by units of local government
4and school districts as a result of the abolition of ad valorem
5personal property taxes, pursuant to Article IX, Section 5,
6paragraph (c) of the Constitution of the State of Illinois,
7plus 85% of the most recent amount of funding received by the
8school district under Section 18-8.15. The bonds shall bear
9interest at not more than the maximum rate authorized by law
10and shall mature within 20 years from the date thereof. Subject
11to the foregoing limitations as to amount, the bonds may be
12issued in an amount including existing indebtedness which will
13not exceed the constitutional limitation as to debt,
14notwithstanding any statutory debt limitation to the contrary.
15The school board shall before or at the time of issuing the
16bonds provide for the collection of a direct annual tax upon
17all the taxable property within the district sufficient to pay
18the principal thereof at maturity and to pay the interest
19thereon as it falls due, which tax shall be in addition to the
20maximum amount of all other taxes, either educational;
21transportation; operations and maintenance; or fire prevention
22and safety fund taxes, now or hereafter authorized and in
23addition to any limitations upon the levy of taxes as provided
24by Sections 17-2 through 17-9.
25    With respect to instruments for the payment of money issued
26under this Section either before, on, or after the effective

 

 

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1date of this amendatory Act of 1989, it is and always has been
2the intention of the General Assembly (i) that the Omnibus Bond
3Acts are and always have been supplementary grants of power to
4issue instruments in accordance with the Omnibus Bond Acts,
5regardless of any provision of this Act that may appear to be
6or to have been more restrictive than those Acts, (ii) that the
7provisions of this Section are not a limitation on the
8supplementary authority granted by the Omnibus Bond Acts, and
9(iii) that instruments issued under this Section within the
10supplementary authority granted by the Omnibus Bond Acts are
11not invalid because of any provision of this Act that may
12appear to be or to have been more restrictive than those Acts.
13(Source: P.A. 96-1277, eff. 7-26-10.)
 
14    (105 ILCS 5/20-4)  (from Ch. 122, par. 20-4)
15    Sec. 20-4. Use and reimbursement of fund. This Section
16shall not apply in any school district which does not operate a
17working cash fund.
18    Moneys derived from the issuance of bonds as authorized by
19Section 20-2, or from any tax levied pursuant to Section 20-3,
20shall be used only for the purposes and in the manner provided
21in this Article. Moneys in the fund shall not be regarded as
22current assets available for school purposes. The school board
23may appropriate moneys to the working cash fund up to the
24maximum amount allowable in the fund, and the working cash fund
25may receive such appropriations and any other contributions.

 

 

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1Moneys in the fund may be used by the school board for any and
2all school purposes and may be transferred in whole or in part
3to the general funds or both of the school district and
4disbursed therefrom in anticipation of the collection of taxes
5lawfully levied for any or all purposes, or in anticipation of
6such taxes as by law now or hereafter enacted or amended are
7imposed by the General Assembly of the State of Illinois to
8replace revenue lost by units of local government and school
9districts as a result of the abolition of ad valorem personal
10property taxes, pursuant to Article IX, Section 5(c) of the
11Constitution of the State of Illinois, or in anticipation of
12funding received by the school district under Section 18-8.15.
13Moneys so transferred to any other fund shall be deemed to be
14transferred in anticipation of the collection of that part of
15the taxes so levied or to be received which is in excess of the
16amount thereof required to pay any warrants or notes and the
17interest thereon theretofore and thereafter issued in
18anticipation of the collection thereof and such taxes when
19collected shall be applied to the payment of any such warrants
20and the interest thereon, the amount estimated to be required
21to satisfy debt service and pension or retirement obligations,
22as set forth in Section 12 of the State Revenue Sharing Act and
23then to the reimbursement of such working cash fund as
24hereinafter provided.
25    Upon receipt by the school district of any taxes or State
26funding in anticipation of the collection whereof moneys of the

 

 

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1working cash fund have been so transferred for disbursement,
2the fund shall immediately be reimbursed therefrom until the
3full amount so transferred has been retransferred to the fund.
4Unless the taxes so received and applied to the reimbursement
5of the working cash fund prior to the first day of the eighth
6month following the month in which due and unpaid real property
7taxes begin to bear interest are sufficient to effect a
8complete reimbursement of such fund for any moneys transferred
9therefrom in anticipation of the collection of such taxes, the
10working cash fund shall be reimbursed for the amount of the
11deficiency therein from any other revenues accruing to the
12educational fund, and the school board shall make provisions
13for the immediate reimbursement of the amount of any such
14deficiency in its next annual tax levy.
15(Source: P.A. 96-1277, eff. 7-26-10.)
 
16    (105 ILCS 5/20-5)   (from Ch. 122, par. 20-5)
17    Sec. 20-5. Transfer to other fund. This Section shall not
18apply in any school district which does not operate a working
19cash fund.
20    Moneys in the working cash fund shall be transferred from
21the working cash fund to another fund of the district only upon
22the authority of the school board which shall from time to time
23by separate resolution direct the school treasurer to make
24transfers of such sums as may be required for the purposes
25herein authorized.

 

 

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1    The resolution shall set forth (a) the taxes and State
2funding in anticipation of which such transfer is to be made
3and from which the working cash fund is to be reimbursed; (b)
4the entire amount of taxes extended, or which the school board
5estimates will be extended or received, for any year in
6anticipation of the collection of all or part of which such
7transfer is to be made; (c) the aggregate amount of warrants or
8notes theretofore issued in anticipation of the collection of
9such taxes together with the amount of interest accrued and
10which the school board estimates will accrue thereon; (d) the
11aggregate amount of receipts from taxes imposed to replace
12revenue lost by units of local government and school districts
13as a result of the abolition of ad valorem personal property
14taxes, pursuant to Article IX, Section 5(c) of the Constitution
15of the State of Illinois, which the corporate authorities
16estimate will be set aside for the payment of the proportionate
17amount of debt service and pension or retirement obligations,
18as required by Section 12 of the State Revenue Sharing Act; and
19(e) the aggregate amount of money theretofore transferred from
20the working cash fund to the other fund in anticipation of the
21collection of such taxes and State funding; and (f) the
22aggregate amount of funding received by the school district
23under Section 18-8.15. The amount which any such resolution
24shall direct the treasurer so to transfer, in anticipation of
25the collection of taxes levied or to be received for any year,
26together with the aggregate amount of such anticipation tax

 

 

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1warrants or notes theretofore drawn against such taxes and the
2amount of interest accrued and estimated to accrue thereon and
3the aggregate amount of such transfers to be made in
4anticipation of the collection of such taxes and the amount
5estimated to be required to satisfy debt service and pension or
6retirement obligations, as set forth in Section 12 of the State
7Revenue Sharing Act, shall not exceed 85% of the actual or
8estimated amount of such taxes extended or to be extended or to
9be received as set forth in such resolution. At any time moneys
10are available in the working cash fund they shall be
11transferred to such other funds of the district and used for
12any and all school purposes so as to avoid, whenever possible,
13the issuance of anticipation tax warrants or notes.
14    Moneys earned as interest from the investment of the
15working cash fund, or any portion thereof, may be transferred
16from the working cash fund to another fund of the district that
17is most in need of the interest without any requirement of
18repayment to the working cash fund, upon the authority of the
19school board by separate resolution directing the school
20treasurer to make such transfer and stating the purpose in
21accordance with subsection (c) of Section 9 of the Local
22Government Debt Reform Act.
23(Source: P.A. 96-1277, eff. 7-26-10.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.".