Full Text of HB0999 096th General Assembly
HB0999enr 96TH GENERAL ASSEMBLY
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HB0999 Enrolled |
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| AN ACT concerning education.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The School Code is amended by changing Section | 5 |
| 17-17 and by adding Sections 17-18 and 17-19 as follows:
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| (105 ILCS 5/17-17)
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| Sec. 17-17.
School board establishment of lines of credit | 8 |
| Issuance of notes, bonds, or other
obligations in lieu of tax | 9 |
| anticipation warrants .
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| (a) In lieu of issuing tax anticipation warrants in
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| accordance with Section 17-16 of this Code, the school board of | 12 |
| a
school district having a population of 500,000 or less | 13 |
| inhabitants may
issue notes, bonds, or other obligations (and | 14 |
| in connection
with that issuance, establish a line of credit | 15 |
| with a bank or other financial institution )
in an amount not to | 16 |
| exceed 85% of the amount of property
taxes most recently levied | 17 |
| for educational , operations and maintenance, transportation, | 18 |
| or other tax levy and building
purposes or any combination | 19 |
| thereof . Moneys thus borrowed shall be applied to the purposes
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| for which the tax or any combination of the taxes may be levied | 21 |
| they were obtained and no other purpose. All moneys so
borrowed | 22 |
| shall be repaid exclusively from property tax
revenues within | 23 |
| 60 days after the property tax revenues have been
received by |
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| the board.
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| (a-5) In lieu of issuing notes or certificates in | 3 |
| accordance with the provisions of the Revenue Anticipation Act | 4 |
| or Section 18-18 of this Code, the school board of a school | 5 |
| district having a population of 500,000 or less inhabitants may | 6 |
| anticipate revenues due in the current fiscal year or expected | 7 |
| to be due in the next subsequent fiscal year and issue notes, | 8 |
| bonds, or other obligations (and in connection with that | 9 |
| issuance, establish a line of credit with a bank or other | 10 |
| financial institution) in an amount not to exceed the | 11 |
| following: | 12 |
| (1) if anticipating revenues due in the current fiscal | 13 |
| year, 85% of the amount or amounts of the revenues due in | 14 |
| the current fiscal year as certified by the State | 15 |
| Superintendent of Education or other official in a position | 16 |
| to provide assurances as to the amounts; and | 17 |
| (2) if anticipating revenues expected to be due in the | 18 |
| next subsequent fiscal year, 50% of the amount or amounts | 19 |
| of the revenues due in the current fiscal year as certified | 20 |
| by the State Superintendent of Education or other official | 21 |
| in a position to provide assurances as to the amounts. | 22 |
| All moneys so borrowed shall be repaid exclusively from the | 23 |
| anticipated revenues within 60 days after the revenues have | 24 |
| been received. | 25 |
| (b) Borrowing authorized under subsections (a) and (a-5) | 26 |
| subsection (a) of this
Section shall bear interest at a rate |
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HB0999 Enrolled |
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| not to exceed the
maximum rate authorized by the Bond | 2 |
| Authorization Act, from
the date of issuance until paid.
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| (c) Prior to the board borrowing or establishing a line
of | 4 |
| credit under this Section, the board shall authorize, by | 5 |
| resolution,
the borrowing or line of credit. The resolution
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| shall set forth facts demonstrating the need for the
borrowing | 7 |
| or line of credit, state the amount to be borrowed,
establish a | 8 |
| maximum interest rate limit not to exceed that
set forth in | 9 |
| subsection (b) of this Section, and provide a
date by which the | 10 |
| borrowed funds shall be repaid. The
resolution shall direct the | 11 |
| relevant officials to make arrangements to
set apart and hold | 12 |
| the taxes or other revenue , as received,
that will be used to | 13 |
| repay the borrowing. In addition, the
resolution may authorize | 14 |
| the relevant officials to make
partial repayments of the | 15 |
| borrowing as the taxes or other revenues become
available and | 16 |
| may contain any other terms, restrictions, or
limitations not | 17 |
| inconsistent with the provisions of this
Section.
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| (Source: P.A. 92-620, eff. 7-11-02.)
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| (105 ILCS 5/17-18 new)
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| Sec. 17-18. Establishment of lines of credit by other | 21 |
| educational entities. | 22 |
| (a) In lieu of borrowing in accordance with the provisions | 23 |
| of Section 18-20 of this Code, an entity, such as a special | 24 |
| education cooperative or other such joint agreement or an | 25 |
| intergovernmental agreement, may anticipate revenues due in |
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| the current fiscal year or expected to be due in the next | 2 |
| subsequent fiscal year and issue notes or other obligations | 3 |
| (and in connection with that issuance, establish a line of | 4 |
| credit with a bank or other financial institution) in an amount | 5 |
| not to exceed the following: | 6 |
| (1) if anticipating revenues due in the current fiscal | 7 |
| year, 85% of the amount or amounts of State categorical or | 8 |
| grant payments due in the current fiscal year as certified | 9 |
| by the State Superintendent of Education or other official | 10 |
| in a position to provide assurances as to the amounts; and | 11 |
| (2) if anticipating revenues expected to be due in the | 12 |
| next subsequent fiscal year, 50% of the amount or amounts | 13 |
| of State categorical or grant payments due in the current | 14 |
| fiscal year as certified by the State Superintendent of | 15 |
| Education or other official in a position to provide | 16 |
| assurances as to the amounts. | 17 |
| All moneys so borrowed shall be repaid exclusively from | 18 |
| such anticipated revenues within 60 days after the revenues | 19 |
| have been received. | 20 |
| (b) Borrowing authorized under subsection (a) of this | 21 |
| Section shall bear interest at a rate not to exceed the maximum | 22 |
| rate authorized by the Bond Authorization Act, from the date of | 23 |
| issuance until paid. | 24 |
| (c) Prior to borrowing or establishing a line of credit | 25 |
| under this Section, the regional superintendent of schools or | 26 |
| governing board, as the case may be, shall authorize, by |
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| executive order or resolution, the borrowing or line of credit. | 2 |
| The executive order or resolution shall set forth facts | 3 |
| demonstrating the need for the borrowing or line of credit, | 4 |
| state the amount to be borrowed, establish a maximum interest | 5 |
| rate limit not to exceed that set forth in subsection (b) of | 6 |
| this Section, and provide a date by which the borrowed funds | 7 |
| shall be repaid. The executive order or resolution shall direct | 8 |
| the relevant officials to make arrangements to set apart and | 9 |
| hold the revenue, as received, that will be used to repay the | 10 |
| borrowing. In addition, the executive order or resolution may | 11 |
| authorize the relevant officials to make partial repayments of | 12 |
| the borrowing as the revenues become available and may contain | 13 |
| any other terms, restrictions, or limitations not inconsistent | 14 |
| with the provisions of this Section. | 15 |
| (105 ILCS 5/17-19 new) | 16 |
| Sec. 17-19. Establishment of lines of credit by regional | 17 |
| superintendents. | 18 |
| (a) In lieu of borrowing in accordance with the provisions | 19 |
| of Section 18-20 of this Code, a regional superintendent of | 20 |
| schools, in his or her official capacity as regional | 21 |
| superintendent of schools, may anticipate revenues due in the | 22 |
| current fiscal year or expected to be due in the next | 23 |
| subsequent fiscal year and issue notes or other obligations | 24 |
| (and in connection with that issuance, establish a line of | 25 |
| credit with a bank or other financial institution) in an amount |
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HB0999 Enrolled |
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| not to exceed the following: | 2 |
| (1) if anticipating revenues due in the current fiscal | 3 |
| year, 85% of the amount or amounts of State categorical or | 4 |
| grant payments due in the current fiscal year as certified | 5 |
| by the State Superintendent of Education or other official | 6 |
| in a position to provide assurances as to the amounts; and | 7 |
| (2) if anticipating revenues expected to be due in the | 8 |
| next subsequent fiscal year, 50% of the amount or amounts | 9 |
| of State categorical or grant payments due in the current | 10 |
| fiscal year as certified by the State Superintendent of | 11 |
| Education or other official in a position to provide | 12 |
| assurances as to the amounts. | 13 |
| All moneys so borrowed shall be repaid exclusively from | 14 |
| such anticipated revenues within 60 days after the revenues | 15 |
| have been received. | 16 |
| (b) Borrowing authorized under subsection (a) of this | 17 |
| Section shall bear interest at a rate not to exceed the maximum | 18 |
| rate authorized by the Bond Authorization Act, from the date of | 19 |
| issuance until paid. | 20 |
| (c) Prior to borrowing or establishing a line of credit | 21 |
| under this Section, the regional superintendent of schools, in | 22 |
| his or her official capacity as regional superintendent of | 23 |
| schools, shall authorize, by executive order or resolution, the | 24 |
| borrowing or line of credit. The executive order or resolution | 25 |
| shall set forth facts demonstrating the need for the borrowing | 26 |
| or line of credit, state the amount to be borrowed, establish a |
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HB0999 Enrolled |
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LRB096 09918 NHT 20081 b |
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| maximum interest rate limit not to exceed that set forth in | 2 |
| subsection (b) of this Section, and provide a date by which the | 3 |
| borrowed funds shall be repaid. The executive order or | 4 |
| resolution shall direct the relevant officials to make | 5 |
| arrangements to set apart and hold the revenue, as received, | 6 |
| that will be used to repay the borrowing. In addition, the | 7 |
| executive order or resolution may authorize the relevant | 8 |
| officials to make partial repayments of the borrowing as the | 9 |
| revenues become available and may contain any other terms, | 10 |
| restrictions, or limitations not inconsistent with the | 11 |
| provisions of this Section.
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| Section 99. Effective date. This Act takes effect upon | 13 |
| becoming law.
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