Illinois General Assembly - Full Text of HB3637
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Full Text of HB3637  102nd General Assembly

HB3637enr 102ND GENERAL ASSEMBLY

  
  
  

 


 
HB3637 EnrolledLRB102 16919 CMG 22331 b

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 State Finance Act is amended by changing
5Section 6z-45 as follows:
 
6    (30 ILCS 105/6z-45)
7    Sec. 6z-45. The School Infrastructure Fund.
8    (a) The School Infrastructure Fund is created as a special
9fund in the State Treasury.
10    In addition to any other deposits authorized by law,
11beginning January 1, 2000, on the first day of each month, or
12as soon thereafter as may be practical, the State Treasurer
13and State Comptroller shall transfer the sum of $5,000,000
14from the General Revenue Fund to the School Infrastructure
15Fund, except that, notwithstanding any other provision of law,
16and in addition to any other transfers that may be provided for
17by law, before June 30, 2012, the Comptroller and the
18Treasurer shall transfer $45,000,000 from the General Revenue
19Fund into the School Infrastructure Fund, and, for fiscal year
202013 only, the Treasurer and the Comptroller shall transfer
21$1,250,000 from the General Revenue Fund to the School
22Infrastructure Fund on the first day of each month; provided,
23however, that no such transfers shall be made from July 1, 2001

 

 

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1through June 30, 2003.
2    (a-5) Money in the School Infrastructure Fund may be used
3to pay the expenses of the State Board of Education, the
4Governor's Office of Management and Budget, and the Capital
5Development Board in administering programs under the School
6Construction Law, the total expenses not to exceed $1,315,000
7in any fiscal year.
8    (b) Subject to the transfer provisions set forth below,
9money in the School Infrastructure Fund shall, if and when the
10State of Illinois incurs any bonded indebtedness for the
11construction of school improvements under subsection (e) of
12Section 5 of the General Obligation Bond Act, be set aside and
13used for the purpose of paying and discharging annually the
14principal and interest on that bonded indebtedness then due
15and payable, and for no other purpose.
16    In addition to other transfers to the General Obligation
17Bond Retirement and Interest Fund made pursuant to Section 15
18of the General Obligation Bond Act, upon each delivery of
19bonds issued for construction of school improvements under the
20School Construction Law, the State Comptroller shall compute
21and certify to the State Treasurer the total amount of
22principal of, interest on, and premium, if any, on such bonds
23during the then current and each succeeding fiscal year. With
24respect to the interest payable on variable rate bonds, such
25certifications shall be calculated at the maximum rate of
26interest that may be payable during the fiscal year, after

 

 

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1taking into account any credits permitted in the related
2indenture or other instrument against the amount of such
3interest required to be appropriated for that period.
4    On or before the last day of each month, the State
5Treasurer and State Comptroller shall transfer from the School
6Infrastructure Fund to the General Obligation Bond Retirement
7and Interest Fund an amount sufficient to pay the aggregate of
8the principal of, interest on, and premium, if any, on the
9bonds payable on their next payment date, divided by the
10number of monthly transfers occurring between the last
11previous payment date (or the delivery date if no payment date
12has yet occurred) and the next succeeding payment date.
13Interest payable on variable rate bonds shall be calculated at
14the maximum rate of interest that may be payable for the
15relevant period, after taking into account any credits
16permitted in the related indenture or other instrument against
17the amount of such interest required to be appropriated for
18that period. Interest for which moneys have already been
19deposited into the capitalized interest account within the
20General Obligation Bond Retirement and Interest Fund shall not
21be included in the calculation of the amounts to be
22transferred under this subsection.
23    (b-5) The money deposited into the School Infrastructure
24Fund from transfers pursuant to subsections (c-30) and (c-35)
25of Section 13 of the Illinois Gambling Act shall be applied,
26without further direction, as provided in subsection (b-3) of

 

 

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1Section 5-35 of the School Construction Law.
2    (b-7) In fiscal year 2021 only, of the surplus, if any, in
3the School Infrastructure Fund after payments made pursuant to
4subsections (a-5), (b), and (b-5) of this Section, $20,000,000
5shall be transferred to the General Revenue Fund.
6    (c) The surplus, if any, in the School Infrastructure Fund
7after payments made pursuant to subsections (a-5), (b), (b-5),
8and (b-7) of this Section shall, subject to appropriation, be
9used as follows:
10    First - to make 3 payments to the School Technology
11Revolving Loan Fund as follows:
12        Transfer of $30,000,000 in fiscal year 1999;
13        Transfer of $20,000,000 in fiscal year 2000; and
14        Transfer of $10,000,000 in fiscal year 2001.
15    Second - to pay any amounts due for grants for school
16construction projects and debt service under the School
17Construction Law.
18    Third - to pay any amounts due for grants for school
19maintenance projects under the School Construction Law.
20(Source: P.A. 100-23, eff. 7-6-17; 101-31, eff. 6-28-19;
21101-636, eff. 6-10-20.)
 
22    Section 10. The Local Government Debt Reform Act is
23amended by changing Section 16.5 as follows:
 
24    (30 ILCS 350/16.5)

 

 

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1    Sec. 16.5. Proposition for bonds. For all elections held
2after July 1, 2000, the form of a proposition to authorize the
3issuance of bonds pursuant to either a referendum or backdoor
4referendum may be as set forth in this Section as an
5alternative to the form of proposition as otherwise set forth
6by applicable law. The proposition authorized by this Section
7shall be in substantially the following form:
8        Shall (name of governmental unit) (state purpose for
9    the bond issue) and issue its bonds to the amount of $
10    (state amount) for the purpose of paying the costs
11    thereof?
12    If a school district receives a conditional grant award
13from the Capital Development Board expects to receive a school
14construction grant from the State of Illinois pursuant to
15Section 5-15 of the School Construction Law for the a school
16construction project to be financed in part with proceeds of
17the bonds a bond authorized by referendum, then the form of
18proposition may at the option of the school district
19additionally contain substantially the following language:
20        (Name of school district) expects to receive a school
21    construction grant from the State of Illinois in the
22    amount of $ (state amount) pursuant to the School
23    Construction Law to cover a portion of the total project
24    costs for the school construction project to be financed
25    in part with the proceeds of the bonds, based on the
26    conditional grant award received from the Capital

 

 

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1    Development Board pursuant to the School Construction Law
2    (i) a grant entitlement from the State Board of Education
3    and (ii) current recognized project costs determined by
4    the Capital Development Board.
5(Source: P.A. 91-868, eff. 6-22-00; 92-879, eff. 1-13-03.)
 
6    Section 15. The School Construction Law is amended by
7changing Sections 5-5, 5-10, 5-15, 5-20, 5-25, 5-30, 5-35, and
85-50 as follows:
 
9    (105 ILCS 230/5-5)
10    Sec. 5-5. Definitions. As used in this Article:
11    "Conditional grant award" means the formal notification by
12the Capital Development Board to a school district of its
13conditional intent to award a grant to a school district to pay
14a portion of the recognized project cost for a school
15construction project. The grant award is conditioned upon
16receiving proof from the school district that it has funds
17available to cover the cost of the required local match.
18    "Grant award amount" means an amount equal to the
19recognized project cost determined by the Capital Development
20Board for a school construction project multiplied by the
21grant award percentage and then adjusted as may be required
22pursuant to subsection (d) of Section 5-15.
23    "Grant award percentage" means a percentage equal to one
24minus the required local match percentage.

 

 

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1    "Approved school construction bonds" mean bonds that were
2approved by referendum after January 1, 1996 but prior to
3January 1, 1998 as provided in Sections 19-2 through 19-7 of
4the School Code to provide funds for the acquisition,
5development, construction, reconstruction, rehabilitation,
6improvement, architectural planning, and installation of
7capital facilities consisting of buildings, structures,
8durable-equipment, and land for educational purposes.
9    "Grant index" means a figure for each school district
10equal to one minus the ratio of the district's equalized
11assessed valuation per pupil in average daily attendance to
12the equalized assessed valuation per pupil in average daily
13attendance of the district located at the 90th percentile for
14all districts of the same category. This definition applies
15only to completed or partially completed, as determined by the
16Capital Development Board, school construction projects for
17which a grant application was filed for the 2004, 2005, or 2006
18application cycle by a school district included on the State
19Board of Education's 2004, 2005, or 2006 School Construction
20Project Application Cycle listing and only for the purpose of
21determining the amount of any adjustment pursuant to
22subsection (d) of Section 5-15 to a grant award amount for a
23project funded during the first application cycle opened after
24June 30, 2022. For the purpose of calculating the grant index,
25school districts are grouped into 2 categories, Category I and
26Category II. Category I consists of elementary and unit school

 

 

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1districts. The equalized assessed valuation per pupil in
2average daily attendance of each school district in Category I
3shall be computed using its grades kindergarten through 8
4average daily attendance figure. A unit school district's
5Category I grant index shall be used for projects or portions
6of projects constructed for elementary school pupils. Category
7II consists of high school and unit school districts. The
8equalized assessed valuation per pupil in average daily
9attendance of each school district in Category II shall be
10computed using its grades 9 through 12 average daily
11attendance figure. A unit school district's Category II grant
12index shall be used for projects or portions of projects
13constructed for high school pupils. The changes made by this
14amendatory Act of the 92nd General Assembly apply to all
15grants made on or after the effective date of this amendatory
16Act, provided that for grants not yet made on the effective
17date of this amendatory Act but made in fiscal year 2001 and
18for grants made in fiscal year 2002, the grant index for a
19school district shall be the greater of (i) the grant index as
20calculated under this Law on or after the effective date of
21this amendatory Act or (ii) the grant index as calculated
22under this Law before the effective date of this amendatory
23Act. The grant index shall be no less than 0.35 and no greater
24than 0.75 for each district; provided that the grant index for
25districts whose equalized assessed valuation per pupil in
26average daily attendance is at the 99th percentile and above

 

 

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1for all districts of the same type shall be 0.00.
2    The grant index shall be calculated for each of those
3school districts forming a reorganized school district or
4cooperative high school if one or more of the following happen
5within the current or prior 2 fiscal years:
6        (1) a new school district is created in accordance
7    with Article 11E of the School Code;
8        (2) an existing school district annexes all of the
9    territory of one or more entire other school districts in
10    accordance with Article 7 of the School Code; or
11        (3) a cooperative high school is formed in accordance
12    with Section 10-22.22c of the School Code.
13The average grant index of those school districts shall be
14used as the grant index for the newly reorganized district or
15cooperative high school.
16    "Recognized project cost" means the total project cost for
17a school construction project determined by the Capital
18Development Board to be taken into account in calculating the
19grant award amount and the required local match for a school
20construction project.
21    "Required local match" means an amount equal to the
22product of the recognized project cost determined by the
23Capital Development Board multiplied by a school district's
24required local match percentage, and then adjusted as may be
25required pursuant to Section 5-15.
26    "Required local match percentage" means a percentage equal

 

 

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1to a school district's Local Capacity Percentage, as defined
2in Section 18-8.15 of the School Code, and as calculated by the
3State Superintendent of Education in the fiscal year in which
4the school district applies for a grant to be awarded pursuant
5to this Article, provided that the required local match
6percentage shall be no less than 10% and no greater than 90%
7for any district. With respect to a Type 40 area vocational
8center cooperative, a special education cooperative, or a
9cooperative high school, the required local match percentage
10is calculated by first multiplying each cooperative member
11district's average student enrollment utilized to calculate
12its latest Evidence-Based Funding, as defined in Section
1318-8.15 of the School Code, by the respective district's
14latest Local Capacity Percentage, as defined in Section
1518-8.15 of the School Code, to obtain a weighted average
16student enrollment. Then, the required local match percentage
17is calculated by taking the sum of all the member districts'
18weighted average student enrollment and dividing that sum by
19the sum of all the member districts' average student
20enrollment utilized to calculate the latest Evidence-Based
21Funding.
22    "School construction project" means the acquisition,
23development, construction, reconstruction, rehabilitation,
24improvement, architectural planning, and installation of
25capital facilities consisting of buildings, structures,
26durable equipment, and land for educational purposes.

 

 

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1    "School district" means a school district or a Type 40
2area vocational center or special education cooperative that
3is jointly owned, if the joint agreement includes language
4that specifies how the debt obligation is to be paid,
5including in the event that an entity withdraws from the joint
6agreement.
7    "School district" includes a cooperative high school, if
8the cooperative agreement includes language that specifies how
9the debt obligation is to be paid, including if an entity
10withdraws from the cooperative agreement or the cooperative
11agreement is terminated which shall be considered a high
12school district for the purpose of calculating its grant
13index.
14    "School maintenance project" means a project, other than a
15school construction project, intended to provide for the
16maintenance or upkeep of buildings or structures for
17educational purposes, but does not include ongoing operational
18costs.
19(Source: P.A. 96-731, eff. 8-25-09; 96-1381, eff. 1-1-11.)
 
20    (105 ILCS 230/5-10)
21    Sec. 5-10. Grant awards. The Capital Development Board is
22authorized to make grants to school districts for school
23construction projects with funds appropriated by the General
24Assembly from the School Infrastructure Fund and the School
25Construction Fund pursuant to the provisions of this Article.

 

 

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1The State Board of Education is authorized to make grants to
2school districts for debt service with funds appropriated by
3the General Assembly from the School Infrastructure Fund
4pursuant to the provisions of this Article.
5(Source: P.A. 90-548, eff. 1-1-98.)
 
6    (105 ILCS 230/5-15)
7    Sec. 5-15. Grant award amounts and required local match
8entitlements.
9    (a) After June 30, 2022, any time there is an
10appropriation of funds by the General Assembly from the School
11Infrastructure Fund or School Construction Fund and a release
12of the appropriated funds to the Capital Development Board for
13expenditure on grant awards pursuant to the provisions of this
14Article, the The State Board of Education is authorized to
15open an application cycle to receive grant applications from
16school districts issue grant entitlements for school
17construction projects. No grant application filed before the
18start of the first application cycle after June 30, 2022 may be
19considered. After the close of each application cycle, the
20State Board of Education and debt service and shall determine
21the approval of applications, the required local match
22percentage for each approved application, and the priority
23order for school construction project grants to be made by the
24Capital Development Board and shall then notify all applicants
25regarding their eligibility for a grant. Such notification

 

 

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1shall include an estimate of the required local match. The
2State Board of Education shall publish a list of applicants
3eligible for grants and forward it to the Capital Development
4Board. When issuing a grant entitlement for a school
5construction project, the Capital Development Board, as a part
6of that entitlement, shall certify to the district receiving
7the entitlement the dollar amount of the school construction
8project's cost that the district will be required to finance
9with non-grant funds in order to qualify to receive a school
10construction project grant under this Article from the Capital
11Development Board.
12    (b) The Capital Development Board, to the extent that
13appropriated funds have been released and proceeding through
14the list of eligible applicants in the order of priority
15determined by the State Board of Education, shall issue
16conditional grant awards to eligible school districts. An
17applicant that does not receive a conditional grant award
18notification must submit a new application during another
19application cycle in order to receive future consideration for
20a grant award.
21    (c) The conditional grant award certifies to a school
22district the recognized project costs for its school
23construction project determined by the Capital Development
24Board, the applicable required local match percentage and
25grant award percentage, the required local match and grant
26award amount calculated by multiplying the required local

 

 

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1match percentage and the grant award percentage by the
2recognized project cost, and the required local match and
3grant award amount as those amounts may be adjusted as
4required in subsection (d).
5    (d) The required local match and grant award amount are
6calculated by multiplying the required local match percentage
7and the grant award percentage by the recognized project cost,
8provided that, only during the first application cycle after
9June 30, 2022, these amounts may be adjusted if the applicant
10had previously expended funds on a school construction project
11on the 2004, 2005, or 2006 School Construction Grant List. In
12that case, the required local match shall be reduced (but not
13below zero) and the grant award amount shall be increased (to
14an amount no greater than the recognized project cost) by an
15amount determined by the Capital Development Board to be equal
16to the amount of the grant the applicant would have received
17pursuant to Section 5-35 had it been awarded a grant in 2004,
182005, or 2006 based on the 2004, 2005, or 2006 School
19Construction Grant List and the year in which the school
20district applied for the grant.
21    (e) A school district shall have 2 years from the date the
22school district was issued a conditional grant award from the
23Capital Development Board to obtain the school district's
24required local match and receive a final grant award from the
25Capital Development Board. If the required local match is not
26obtained within the 2-year time frame, the school district

 

 

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1shall be required to reapply in another application cycle,
2after the 2-year time frame, to be considered for a grant
3award. The State share of the grant amount in a conditional
4grant award that is not claimed by a school district within the
52-year time frame shall be reallocated to future application
6cycles after the 2-year time frame expires.
7(Source: P.A. 90-548, eff. 1-1-98; 91-55, eff. 6-30-99.)
 
8    (105 ILCS 230/5-20)
9    Sec. 5-20. Grant application; district facilities plan.
10School districts shall apply to the State Board of Education
11for school construction project grants and debt service
12grants. Districts filing grant applications shall submit to
13the State Board a district facilities plan that shall include,
14but not be limited to, an assessment of present and future
15district facility needs as required by present and anticipated
16educational programming, the availability of local financial
17resources including current revenues, fund balances, and
18unused bonding capacity, a fiscal plan for meeting present and
19anticipated debt service obligations, and a maintenance plan
20and schedule that contain necessary assurances that new,
21renovated, and existing facilities are being or will be
22properly maintained. If a district that applies for a school
23construction project grant has no unused bonding capacity or
24if its unused bonding capacity may be less than the portion of
25the cost of the proposed school construction project that the

 

 

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1district would be required to finance with non-grant funds,
2the amount certified by the Capital Development Board under
3Section 5-15 application and facilities plan submitted by the
4district shall set forth the estimated amount of the project's
5cost that the district proposes to finance by the issuance of
6bonds under subsection (n) of Section 19-1 of the School Code.
7The State Board of Education shall review and approve district
8facilities plans prior to prioritizing the applications
9issuing grant entitlements. Each district that receives a
10grant entitlement shall annually update its district
11facilities plan and submit the revised plan to the State Board
12for approval.
13(Source: P.A. 90-548, eff. 1-1-98; 91-55, eff. 6-30-99.)
 
14    (105 ILCS 230/5-25)
15    Sec. 5-25. Eligibility and project standards.
16    (a) The State Board of Education shall establish
17eligibility standards for school construction project grants
18and debt service grants. These standards shall include minimum
19enrollment requirements for eligibility for school
20construction project grants of 200 students for elementary
21districts, 200 students for high school districts, and 400
22students for unit districts. The total enrollment of member
23districts forming a cooperative high school in accordance with
24subsection (c) of Section 10-22.22 of the School Code shall
25meet the minimum enrollment requirements specified in this

 

 

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1subsection (a). The State Board of Education shall approve a
2district's eligibility for a school construction project grant
3or a debt service grant pursuant to the established standards.
4    For purposes only of determining a Type 40 area vocational
5center's eligibility for an entity included in a school
6construction project grant or a school maintenance project
7grant, an area vocational center shall be deemed eligible if
8one or more of its member school districts satisfy the grant
9index criteria set forth in this Law. A Type 40 area vocational
10center that makes application for school construction funds
11after August 25, 2009 (the effective date of Public Act
1296-731) shall be placed on the respective application cycle
13list. Type 40 area vocational centers must be placed last on
14the priority listing of eligible entities for the applicable
15fiscal year.
16    (b) The Capital Development Board shall establish project
17standards for all school construction project grants provided
18pursuant to this Article. These standards shall include space
19and capacity standards as well as the determination of
20recognized project costs that shall be eligible for State
21financial assistance and enrichment costs that shall not be
22eligible for State financial assistance.
23    (c) The State Board of Education and the Capital
24Development Board shall not establish standards that
25disapprove or otherwise establish limitations that restrict
26the eligibility of (i) a school district with a population

 

 

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1exceeding 500,000 for a school construction project grant
2based on the fact that any or all of the school construction
3project grant will be used to pay debt service or to make lease
4payments, as authorized by subsection (b) of Section 5-35 of
5this Law, (ii) a school district located in whole or in part in
6a county that imposes a tax for school facility or resources
7purposes pursuant to Section 5-1006.7 of the Counties Code, or
8(iii) a school district that (1) was organized prior to 1860
9and (2) is located in part in a city originally incorporated
10prior to 1840, based on the fact that all or a part of the
11school construction project is owned by a public building
12commission and leased to the school district or the fact that
13any or all of the school construction project grant will be
14used to pay debt service or to make lease payments.
15    (d) (Blank). A reorganized school district or cooperative
16high school may use a school construction application that was
17submitted by a school district that formed the reorganized
18school district or cooperative high school if that application
19has not been entitled for a project by the State Board of
20Education and any one or more of the following happen within
21the current or prior 4 fiscal years:
22        (1) a new school district is created in accordance
23    with Article 11E of the School Code;
24        (2) an existing school district annexes all of the
25    territory of one or more other school districts in
26    accordance with Article 7 of the School Code; or

 

 

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1        (3) a cooperative high school is formed in accordance
2    with subsection (c) of Section 10-22.22 of the School
3    Code.
4A new elementary district formed from a school district
5conversion, as defined in Section 11E-15 of the School Code,
6may use only the application of the dissolved district whose
7territory is now included in the new elementary district and
8must obtain the written approval of the local school board of
9any other school district that includes territory from that
10dissolved district. A new high school district formed from a
11school district conversion, as defined in Section 11E-15 of
12the School Code, may use only the application of any dissolved
13district whose territory is now included in the new high
14school district, but only after obtaining the written approval
15of the local school board of any other school district that
16includes territory from that dissolved district. A cooperative
17high school using this Section must obtain the written
18approval of the local school board of the member school
19district whose application it is using. All other eligibility
20and project standards apply to this Section.
21(Source: P.A. 101-455, eff. 8-23-19.)
 
22    (105 ILCS 230/5-30)
23    Sec. 5-30. Priority of school construction projects. The
24State Board of Education shall develop standards for the
25determination of priority needs concerning school construction

 

 

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1projects based upon approved district facilities plans. Such
2standards shall call for prioritization based on the degree of
3need and project type in the following order:
4        (1) Replacement or reconstruction of school buildings
5    destroyed or damaged by flood, tornado, fire, earthquake,
6    mine subsidence, or other disasters, either man-made or
7    produced by nature;
8        (2) Projects designed to alleviate a shortage of
9    classrooms due to population growth or to replace or
10    rehabilitate aging school buildings;
11        (3) Projects resulting from interdistrict
12    reorganization of school districts contingent on local
13    referenda;
14        (4) Replacement, rehabilitation, or reconstruction of
15    school facilities determined to be severe and continuing
16    health or life safety hazards;
17        (5) Alterations necessary to provide accessibility for
18    qualified individuals with disabilities; and
19        (6) Other unique solutions to facility needs.
20Except for those changes absolutely necessary to comply with
21the changes made to subsection (c) of Section 5-25 of this Law
22by Public Act 96-37, the State Board of Education may not make
23any material changes to the standards in effect on May 18,
242004, unless the State Board of Education is specifically
25authorized by law.
26(Source: P.A. 96-37, eff. 7-13-09; 96-102, eff. 7-29-09;

 

 

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196-1000, eff. 7-2-10; 97-880, eff. 8-2-12.)
 
2    (105 ILCS 230/5-35)
3    Sec. 5-35. School construction project grant award
4amounts; permitted use; prohibited use.
5    (a) The grant award percentage is equal to one minus the
6required local match percentage. The grant award amount is
7equal to the grant award percentage multiplied by The product
8of the district's grant index and the recognized project cost,
9as determined by the Capital Development Board, for an
10approved school construction project, which amount may be
11adjusted as required in Section 5-15. The grant award amount
12shall equal the amount of the grant the Capital Development
13Board shall provide to the eligible district. The grant index
14shall not be used in cases where the General Assembly and the
15Governor approve appropriations designated for specifically
16identified school district construction projects.
17    The average of the grant indexes of the member districts
18in a joint agreement shall be used to calculate the amount of a
19school construction project grant awarded to an eligible Type
2040 area vocational center.
21    (b) In each fiscal year in which school construction
22project grants are awarded, 20% of the total amount awarded
23statewide shall be awarded to a school district with a
24population exceeding 500,000, provided such district complies
25with the provisions of this Article.

 

 

HB3637 Enrolled- 22 -LRB102 16919 CMG 22331 b

1    In addition to the uses otherwise authorized by this Law,
2any school district with a population exceeding 500,000 is
3authorized to use any or all of the school construction
4project grants (i) to pay debt service, as defined in the Local
5Government Debt Reform Act, on bonds, as defined in the Local
6Government Debt Reform Act, issued to finance one or more
7school construction projects and (ii) to the extent that any
8such bond is a lease or other installment or financing
9contract between the school district and a public building
10commission that has issued bonds to finance one or more
11qualifying school construction projects, to make lease
12payments under the lease.
13    (b-3) The Capital Development Board shall make payment in
14an amount equal to 20% of each amount deposited into the School
15Infrastructure Fund pursuant to subsection (b-5) of Section
166z-45 of the State Finance Act to the Board of Education of the
17City of Chicago within 10 days after such deposit. The Board of
18Education of the City of Chicago shall use such moneys
19received (i) for application to the costs of a school
20construction project, (ii) to pay debt service on bonds, as
21those terms are defined in the Local Government Debt Reform
22Act, that are issued to finance one or more school
23construction projects, and (iii) to the extent that any such
24bond is a lease or other installment or financing contract
25between the school district and a public building commission
26that has issued bonds to finance one or more qualifying school

 

 

HB3637 Enrolled- 23 -LRB102 16919 CMG 22331 b

1construction projects, to make lease payments under the lease.
2The Board of Education of the City of Chicago shall submit
3quarterly to the Capital Development Board documentation
4sufficient to establish that this money is being used as
5authorized by this Section. The Capital Development Board may
6withhold payments if the documentation is not provided. The
7remaining 80% of each such deposit shall be applied in
8accordance with the provisions of subsection (a) of this
9Section; however, no portion of this remaining 80% shall be
10awarded to a school district with a population of more than
11500,000.
12    (b-5) In addition to the uses otherwise authorized by this
13Law, any school district that (1) was organized prior to 1860
14and (2) is located in part in a city originally incorporated
15prior to 1840 is authorized to use any or all of the school
16construction project grants (i) to pay debt service on bonds,
17as those terms are defined in the Local Government Debt Reform
18Act, that are issued to finance one or more school
19construction projects and (ii) to the extent that any such
20bond is a lease or other installment or financing contract
21between the school district and a public building commission
22that has issued bonds to finance one or more qualifying school
23construction projects, to make lease payments under the lease.
24    (c) No portion of a school construction project grant
25awarded by the Capital Development Board shall be used by a
26school district for any on-going operational costs.

 

 

HB3637 Enrolled- 24 -LRB102 16919 CMG 22331 b

1(Source: P.A. 98-18, eff. 6-7-13.)
 
2    (105 ILCS 230/5-50)
3    Sec. 5-50. Referendum requirements. A school district may
4submit a school construction project or the financing of a
5school construction project to referendum at any time.
6However, the proposition may include a reference to the school
7district's expectation of receiving a school construction
8grant from the State of Illinois only if the school district
9has received a conditional grant award for the project from
10the Capital Development Board. After the State Board of
11Education has approved all or part of a district's application
12and issued a grant entitlement for a school construction
13project grant, the district shall submit the project or the
14financing of the project to a referendum when such referendum
15is required by law, except for a project financed by bonds
16issued pursuant to subsection (p-70) of Section 19-1 of the
17School Code.
18(Source: P.A. 96-1438, eff. 8-20-10; 97-333, eff. 8-12-11.)
 
19    (105 ILCS 230/5-37 rep.)
20    (105 ILCS 230/5-38 rep.)
21    (105 ILCS 230/5-45 rep.)
22    (105 ILCS 230/5-57 rep.)
23    Section 20. The School Construction Law is amended by
24repealing Sections 5-37, 5-38, 5-45, and 5-57.
 

 

 

HB3637 Enrolled- 25 -LRB102 16919 CMG 22331 b

1    Section 99. Effective date. This Act takes effect upon
2becoming law.