Full Text of SB1746 101st General Assembly
SB1746enr 101ST GENERAL ASSEMBLY |
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| 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 School Code is amended by changing Sections | 5 | | 20-2, 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 | 8 | | creating, re-creating, or increasing a working
cash fund, the | 9 | | school board of any such district may incur an indebtedness and
| 10 | | issue bonds as evidence thereof in an amount or amounts not | 11 | | exceeding in the
aggregate 85% of the taxes permitted to be | 12 | | levied for educational purposes for
the then current year to be | 13 | | determined by multiplying the maximum educational
tax rate or | 14 | | rates
applicable to such school district by the last assessed | 15 | | valuation or assessed valuations as
determined at the time of | 16 | | the issue of said bonds , plus 85% of the last known
entitlement | 17 | | of such district to taxes as by law now or hereafter enacted or
| 18 | | amended, imposed by the General Assembly of the State of | 19 | | Illinois to replace
revenue lost by units of local government | 20 | | and school districts as a result of
the abolition of ad valorem | 21 | | personal property taxes, pursuant to Article IX,
Section 5, | 22 | | paragraph (c) of the Constitution of the State of Illinois , | 23 | | plus 85% of the most recent amount of funding received by the |
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| 1 | | school district under Section 18-8.15 . The
bonds shall bear | 2 | | interest at not more than the maximum rate authorized by law | 3 | | and shall mature within 20 years from
the date thereof. Subject | 4 | | to the foregoing limitations as to amount, the bonds
may be | 5 | | issued in an amount including existing indebtedness which will | 6 | | not
exceed the constitutional limitation as to debt, | 7 | | notwithstanding any statutory
debt limitation to the contrary. | 8 | | The school
board shall before or at the time
of issuing the | 9 | | bonds provide for the collection of a direct annual tax upon | 10 | | all
the taxable property within the district sufficient to pay | 11 | | the principal
thereof at maturity and to pay the interest | 12 | | thereon as it falls due, which tax
shall be in addition to the | 13 | | maximum amount of all other taxes, either
educational; | 14 | | transportation; operations and maintenance; or fire prevention | 15 | | and
safety fund taxes, now or hereafter authorized and in | 16 | | addition to any
limitations upon the levy of taxes as provided | 17 | | by Sections 17-2 through 17-9.
| 18 | | With respect to instruments for the payment of money issued | 19 | | under this
Section either before, on, or after the effective | 20 | | date of this amendatory
Act of 1989, it is and always has been | 21 | | the intention of the General
Assembly (i) that the Omnibus Bond | 22 | | Acts are and always have been
supplementary grants of power to | 23 | | issue instruments in accordance with the
Omnibus Bond Acts, | 24 | | regardless of any provision of this Act that may appear
to be | 25 | | or to have been more restrictive than those Acts, (ii) that the
| 26 | | provisions of this Section are not a limitation on the |
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| 1 | | supplementary
authority granted by the Omnibus Bond Acts, and | 2 | | (iii) that instruments
issued under this Section within the | 3 | | supplementary authority granted by the
Omnibus Bond Acts are | 4 | | not invalid because of any provision of this Act that
may | 5 | | appear to be or to have been more restrictive than those Acts.
| 6 | | (Source: P.A. 96-1277, eff. 7-26-10.)
| 7 | | (105 ILCS 5/20-4) (from Ch. 122, par. 20-4)
| 8 | | Sec. 20-4. Use and reimbursement of fund. This Section | 9 | | shall not
apply in any school district which does not operate a | 10 | | working cash fund.
| 11 | | Moneys derived from the issuance of bonds as authorized by | 12 | | Section
20-2, or from any tax levied pursuant to Section 20-3, | 13 | | shall be used
only for the purposes and in the manner provided | 14 | | in this Article. Moneys in
the fund shall not be regarded as | 15 | | current assets available for school
purposes. The school board | 16 | | may appropriate moneys to the working cash
fund up to the | 17 | | maximum amount allowable in the fund, and the working cash
fund | 18 | | may receive such appropriations and any other contributions. | 19 | | Moneys
in the fund may be used by the school board for any and | 20 | | all school purposes and may be
transferred in whole or in part | 21 | | to the general funds or both of the
school district and | 22 | | disbursed therefrom in anticipation of the collection of
taxes | 23 | | lawfully levied for any or all purposes, or in anticipation of | 24 | | such taxes
as by law now or hereafter enacted or amended are | 25 | | imposed by the General
Assembly of the State of Illinois to |
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| 1 | | replace revenue lost by units of local
government and school | 2 | | districts as a result of the abolition of ad valorem
personal | 3 | | property taxes, pursuant to Article IX, Section 5(c) of the
| 4 | | Constitution of the State of Illinois , or in anticipation of | 5 | | funding received by the school district under Section 18-8.15 . | 6 | | Moneys so transferred to any other fund
shall be deemed to be | 7 | | transferred in anticipation of the collection of that
part of | 8 | | the taxes so levied or to be received which is in excess of the | 9 | | amount
thereof required to pay any warrants or notes and the | 10 | | interest thereon
theretofore and thereafter issued in | 11 | | anticipation of the collection thereof and
such taxes when | 12 | | collected shall be applied to the payment of any such warrants
| 13 | | and the interest thereon, the amount estimated to be required | 14 | | to satisfy debt
service and pension or retirement obligations, | 15 | | as set forth in Section 12 of
the State Revenue Sharing Act and | 16 | | then to the reimbursement of such working
cash fund as | 17 | | hereinafter provided.
| 18 | | Upon receipt by the school district of any taxes or State | 19 | | funding in anticipation of
the collection whereof moneys of the | 20 | | working cash fund have been so
transferred for disbursement, | 21 | | the fund shall immediately be reimbursed
therefrom until the | 22 | | full amount so transferred has been retransferred to
the fund. | 23 | | Unless the taxes so received and applied to the reimbursement
| 24 | | of the working cash fund prior to the first day of the eighth | 25 | | month
following the month in which due and unpaid real property | 26 | | taxes begin to
bear interest are sufficient to effect a |
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| 1 | | complete reimbursement of such
fund for any moneys transferred | 2 | | therefrom in anticipation of the
collection of such taxes, the | 3 | | working cash fund shall be reimbursed for
the amount of the | 4 | | deficiency therein from any other revenues accruing to
the | 5 | | educational fund, and the school board shall make provisions | 6 | | for the
immediate reimbursement of the amount of any such | 7 | | deficiency in its next
annual tax levy.
| 8 | | (Source: P.A. 96-1277, eff. 7-26-10.)
| 9 | | (105 ILCS 5/20-5)
(from Ch. 122, par. 20-5)
| 10 | | Sec. 20-5. Transfer to other fund. This Section shall not | 11 | | apply in any
school district which does not operate a working | 12 | | cash fund.
| 13 | | Moneys in the working cash fund shall be transferred from | 14 | | the working cash fund to
another fund of the district only upon | 15 | | the authority of the school board which
shall from time to time | 16 | | by separate resolution direct the school treasurer to
make | 17 | | transfers of such sums as may be required for the purposes | 18 | | herein
authorized.
| 19 | | The resolution shall set forth (a) the taxes and State | 20 | | funding in anticipation of which
such transfer is to be made | 21 | | and from which the working cash fund is to
be reimbursed; (b) | 22 | | the entire amount of taxes extended, or which the school
board | 23 | | estimates will be extended or received, for any year in | 24 | | anticipation of
the collection of all or part of which such | 25 | | transfer is to be made; (c) the
aggregate amount of warrants or |
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| 1 | | notes theretofore issued in anticipation of the
collection of | 2 | | such taxes together with the amount of interest accrued and | 3 | | which
the school board estimates will accrue thereon; (d) the | 4 | | aggregate amount of
receipts from taxes imposed to replace | 5 | | revenue lost by units of local
government and school districts | 6 | | as a result of the abolition of ad valorem
personal property | 7 | | taxes, pursuant to Article IX, Section 5(c) of the
Constitution | 8 | | of the State of Illinois, which the corporate authorities | 9 | | estimate
will be set aside for the payment of the proportionate | 10 | | amount of debt service
and pension or retirement obligations, | 11 | | as required by Section 12 of the State
Revenue Sharing Act; and | 12 | | (e) the aggregate amount of money theretofore
transferred from | 13 | | the working cash fund to the other fund in anticipation of the
| 14 | | collection of such taxes and State funding; and (f) the | 15 | | aggregate amount of funding received by the school district | 16 | | under Section 18-8.15 . The amount which any such resolution | 17 | | shall direct the
treasurer so to transfer, in anticipation of | 18 | | the collection of taxes levied or
to be received for any year, | 19 | | together with the aggregate amount of such
anticipation tax | 20 | | warrants or notes theretofore drawn against such taxes and the
| 21 | | amount of interest accrued and estimated to accrue thereon and | 22 | | the aggregate
amount of such transfers to be made in | 23 | | anticipation of the collection of such
taxes and the amount | 24 | | estimated to be required to satisfy debt service and
pension or | 25 | | retirement obligations, as set forth in Section 12 of the State
| 26 | | Revenue Sharing Act, shall not exceed 85% of the actual or |
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| 1 | | estimated amount of
such taxes extended or to be extended or to | 2 | | be received as set forth in such
resolution. At any time moneys | 3 | | are
available in the working cash fund they
shall be | 4 | | transferred to such other funds of the district and used for | 5 | | any and all school purposes so as to avoid, whenever possible, | 6 | | the
issuance of anticipation tax warrants or notes.
| 7 | | Moneys earned as interest from the investment of the | 8 | | working cash fund, or
any portion thereof, may be transferred | 9 | | from the working cash fund to another
fund of the district that | 10 | | is most in need of the interest without any requirement of | 11 | | repayment to the working cash
fund, upon the authority of the | 12 | | school board by separate resolution directing
the school | 13 | | treasurer to make such transfer and stating the purpose in | 14 | | accordance with subsection (c) of Section 9 of the Local | 15 | | Government Debt Reform Act.
| 16 | | (Source: P.A. 96-1277, eff. 7-26-10.)
| 17 | | Section 99. Effective date. This Act takes effect upon | 18 | | becoming law.
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