State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Engrossed ][ House Amendment 001 ]
[ Conference Committee Report 001 ]

90_SB0569enr

      105 ILCS 5/2-3.130 new
          Amends the School Code.   Requires  the  State  Board  of
      Education  to provide, or arrange to have provided, educators
      liability coverage in specified amounts for each certificated
      employee of any school district or other public elementary or
      secondary  educational   entity   in   Illinois.    Effective
      immediately.
                                                     SRS90S0007KSsa
SB569 Enrolled                                 SRS90S0007KSsa
 1        AN ACT to amend the School Code by changing Section 19-1.
 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
 5    Section 19-1 as follows:
 6        (105 ILCS 5/19-1) (from Ch. 122, par. 19-1)
 7        Sec. 19-1.  Debt limitations of school districts.
 8        (a)  School   districts  shall  not  be  subject  to  the
 9    provisions limiting their indebtedness prescribed in "An  Act
10    to  limit the indebtedness of counties having a population of
11    less than 500,000 and townships, school districts  and  other
12    municipal  corporations  having  a  population  of  less than
13    300,000", approved February 15, 1928, as amended.
14        No school districts maintaining grades K through 8  or  9
15    through  12  shall  become  indebted in any manner or for any
16    purpose to an amount, including existing indebtedness, in the
17    aggregate exceeding 6.9% on the value of the taxable property
18    therein to be ascertained by the last  assessment  for  State
19    and  county  taxes or, until January 1, 1983, if greater, the
20    sum that is produced by  multiplying  the  school  district's
21    1978  equalized  assessed  valuation  by  the debt limitation
22    percentage in effect on January  1,  1979,  previous  to  the
23    incurring of such indebtedness.
24        No school districts maintaining grades K through 12 shall
25    become  indebted  in  any  manner  or  for  any purpose to an
26    amount, including existing  indebtedness,  in  the  aggregate
27    exceeding  13.8% on the value of the taxable property therein
28    to be ascertained by the last assessment for State and county
29    taxes or, until January 1, 1983, if greater, the sum that  is
30    produced  by multiplying the school district's 1978 equalized
31    assessed valuation  by  the  debt  limitation  percentage  in
SB569 Enrolled             -2-                 SRS90S0007KSsa
 1    effect  on January 1, 1979, previous to the incurring of such
 2    indebtedness.
 3        Notwithstanding the provisions of any other  law  to  the
 4    contrary,  in  any  case  in  which  the  voters  of a school
 5    district have approved a  proposition  for  the  issuance  of
 6    bonds  of  such  school district at an election held prior to
 7    January 1, 1979, and  all  of  the  bonds  approved  at  such
 8    election have not been issued, the debt limitation applicable
 9    to  such  school district during the calendar year 1979 shall
10    be computed by multiplying  the  value  of  taxable  property
11    therein,  including  personal property, as ascertained by the
12    last assessment for State and county taxes, previous  to  the
13    incurring  of such indebtedness, by the percentage limitation
14    applicable to such school district under  the  provisions  of
15    this subsection (a).
16        (b)  Notwithstanding  the  debt  limitation prescribed in
17    subsection (a) of this Section, additional  indebtedness  may
18    be  incurred in an amount not to exceed the estimated cost of
19    acquiring or  improving  school  sites  or  constructing  and
20    equipping  additional building facilities under the following
21    conditions:
22             (1)  Whenever the enrollment  of  students  for  the
23        next  school  year is estimated by the board of education
24        to increase over the actual  present  enrollment  by  not
25        less  than  35%  or  by not less than 200 students or the
26        actual present enrollment of students has increased  over
27        the  previous  school year by not less than 35% or by not
28        less  than  200  students  and  the  board  of  education
29        determines  that  additional  school  sites  or  building
30        facilities are required as a result of such  increase  in
31        enrollment; and
32             (2)  When  the  Regional  Superintendent  of Schools
33        having jurisdiction over  the  school  district  and  the
34        State   Superintendent   of   Education  concur  in  such
SB569 Enrolled             -3-                 SRS90S0007KSsa
 1        enrollment projection or increase and  approve  the  need
 2        for  such  additional school sites or building facilities
 3        and the estimated cost thereof; and
 4             (3)  When the voters in the school district  approve
 5        a  proposition  for the issuance of bonds for the purpose
 6        of acquiring or improving such  needed  school  sites  or
 7        constructing   and   equipping   such  needed  additional
 8        building facilities at an election called  and  held  for
 9        that purpose. Notice of such an election shall state that
10        the  amount of indebtedness proposed to be incurred would
11        exceed the debt limitation otherwise  applicable  to  the
12        school  district.   The ballot for such proposition shall
13        state what percentage of the equalized assessed valuation
14        will be outstanding in bonds if the proposed issuance  of
15        bonds is approved by the voters; or
16             (4)  Notwithstanding  the  provisions  of paragraphs
17        (1) through (3) of this subsection  (b),  if  the  school
18        board determines that additional facilities are needed to
19        provide  a  quality educational program and not less than
20        2/3 of those voting in an election called by  the  school
21        board  on  the question approve the issuance of bonds for
22        the construction of such facilities, the school  district
23        may issue bonds for this purpose.
24        In  no  event shall the indebtedness incurred pursuant to
25    this subsection (b) and  the  existing  indebtedness  of  the
26    school  district  exceed  15%  of  the  value  of the taxable
27    property therein to be ascertained by the last assessment for
28    State and county taxes, previous to  the  incurring  of  such
29    indebtedness  or,  until January 1, 1983, if greater, the sum
30    that is produced by multiplying the  school  district's  1978
31    equalized   assessed   valuation   by   the  debt  limitation
32    percentage in effect on January 1, 1979.
33        The indebtedness provided  for  by  this  subsection  (b)
34    shall  be  in  addition  to  and  in excess of any other debt
SB569 Enrolled             -4-                 SRS90S0007KSsa
 1    limitation.
 2        (c)  Notwithstanding the debt  limitation  prescribed  in
 3    subsection (a) of this Section, in any case in which a public
 4    question  for  the  issuance  of  bonds  of a proposed school
 5    district maintaining grades kindergarten through 12  received
 6    at  least 60% of the valid ballots cast on the question at an
 7    election held on or prior to November 8, 1994, and  in  which
 8    the bonds approved at such election have not been issued, the
 9    school  district  pursuant  to  the  requirements  of Section
10    11A-10 may issue the total amount of bonds approved  at  such
11    election for the purpose stated in the question.
12        (d)  Notwithstanding  the  debt  limitation prescribed in
13    subsection (a) of this Section, a school district that  meets
14    all  the criteria set forth in paragraphs (1) and (2) of this
15    subsection (d) may incur an  additional  indebtedness  in  an
16    amount  not  to  exceed $4,500,000, even though the amount of
17    the additional indebtedness  authorized  by  this  subsection
18    (d),  when  incurred  and  added  to  the aggregate amount of
19    indebtedness of the district existing  immediately  prior  to
20    the district incurring the additional indebtedness authorized
21    by  this subsection (d), causes the aggregate indebtedness of
22    the  district  to  exceed  the  debt   limitation   otherwise
23    applicable to that district under subsection (a):
24             (1)  The  additional indebtedness authorized by this
25        subsection (d) is incurred by the school district through
26        the issuance  of  bonds  under  and  in  accordance  with
27        Section  17-2.11a  for  the purpose of replacing a school
28        building which, because of mine  subsidence  damage,  has
29        been   closed  as  provided  in  paragraph  (2)  of  this
30        subsection (d) or through the issuance of bonds under and
31        in accordance  with  Section  19-3  for  the  purpose  of
32        increasing  the  size  of,  or  providing  for additional
33        functions in, such replacement school buildings, or  both
34        such purposes.
SB569 Enrolled             -5-                 SRS90S0007KSsa
 1             (2)  The  bonds  issued  by  the  school district as
 2        provided in  paragraph  (1)  above  are  issued  for  the
 3        purposes  of construction by the school district of a new
 4        school building pursuant to Section 17-2.11,  to  replace
 5        an   existing  school  building  that,  because  of  mine
 6        subsidence damage, is closed as of the end of the 1992-93
 7        school  year  pursuant  to   action   of   the   regional
 8        superintendent  of  schools  of  the  educational service
 9        region in which the district  is  located  under  Section
10        3-14.22  or  are issued for the purpose of increasing the
11        size of, or providing for additional  functions  in,  the
12        new school building being constructed to replace a school
13        building  closed as the result of mine subsidence damage,
14        or both such purposes.
15        (e)  Notwithstanding the debt  limitation  prescribed  in
16    subsection  (a) of this Section, a school district that meets
17    all the criteria set forth in paragraphs (1) through  (5)  of
18    this   subsection  (e)  may,  without  referendum,  incur  an
19    additional indebtedness in an amount not to exceed the lesser
20    of $5,000,000 or 1.5% of the value of  the  taxable  property
21    within  the district even though the amount of the additional
22    indebtedness authorized by this subsection (e), when incurred
23    and added to the aggregate  amount  of  indebtedness  of  the
24    district existing immediately prior to the district incurring
25    that    additional   indebtedness,   causes   the   aggregate
26    indebtedness of the  district  to  exceed  or  increases  the
27    amount  by  which  the aggregate indebtedness of the district
28    already exceeds the debt limitation otherwise  applicable  to
29    that district under subsection (a):
30             (1)  The  State  Board  of  Education  certifies the
31        school district under Section  19-1.5  as  a  financially
32        distressed district.
33             (2)  The  additional indebtedness authorized by this
34        subsection (e) is incurred by the financially  distressed
SB569 Enrolled             -6-                 SRS90S0007KSsa
 1        district  during the school year or school years in which
 2        the  certification  of  the  district  as  a  financially
 3        distressed  district  continues  in  effect  through  the
 4        issuance of bonds for the lawful school purposes  of  the
 5        district,  pursuant to resolution of the school board and
 6        without referendum, as provided in paragraph (5) of  this
 7        subsection.
 8             (3)  The  aggregate  amount  of  bonds issued by the
 9        financially distressed district during a fiscal  year  in
10        which   it  is  authorized  to  issue  bonds  under  this
11        subsection does  not  exceed  the  amount  by  which  the
12        aggregate  expenditures  of  the district for operational
13        purposes during the  immediately  preceding  fiscal  year
14        exceeds  the  amount  appropriated  for  the  operational
15        purposes  of  the  district  in  the annual school budget
16        adopted by the school  board  of  the  district  for  the
17        fiscal year in which the bonds are issued.
18             (4)  Throughout    each   fiscal   year   in   which
19        certification of the district as a financially distressed
20        district continues in effect, the district  maintains  in
21        effect  a  gross  salary  expense  and gross wage expense
22        freeze policy under which the district  expenditures  for
23        total  employee  salaries  and  wages  do not exceed such
24        expenditures for the immediately preceding  fiscal  year.
25        Nothing  in  this  paragraph, however, shall be deemed to
26        impair  or  to  require  impairment  of  the  contractual
27        obligations, including collective bargaining  agreements,
28        of the district or to impair or require the impairment of
29        the  vested  rights of any employee of the district under
30        the terms of any contract or agreement in effect  on  the
31        effective date of this amendatory Act of 1994.
32             (5)  Bonds  issued  by  the  financially  distressed
33        district  under  this subsection shall bear interest at a
34        rate not to exceed the maximum rate authorized by law  at
SB569 Enrolled             -7-                 SRS90S0007KSsa
 1        the  time  of  the  making  of the contract, shall mature
 2        within 40 years from their date of issue,  and  shall  be
 3        signed by the president of the school board and treasurer
 4        of  the  school  district.  In order to issue bonds under
 5        this  subsection,  the  school  board   shall   adopt   a
 6        resolution  fixing  the  amount of the bonds, the date of
 7        the bonds, the maturities of  the  bonds,  the  rates  of
 8        interest  of  the  bonds,  and their place of payment and
 9        denomination,  and  shall  provide  for  the   levy   and
10        collection  of  a  direct annual tax upon all the taxable
11        property in the district sufficient to pay the  principal
12        and  interest  on the bonds to maturity.  Upon the filing
13        in the office of the county clerk of the county in  which
14        the  financially  distressed  district  is  located  of a
15        certified copy of the resolution, it is the duty  of  the
16        county  clerk  to  extend the tax therefor in addition to
17        and in excess of all other taxes at any  time  authorized
18        to  be levied by the district.  If bond proceeds from the
19        sale of bonds include a premium or if the proceeds of the
20        bonds are invested as authorized by law, the school board
21        shall determine by resolution whether the interest earned
22        on  the  investment  of  bond  proceeds  or  the  premium
23        realized on the sale of the bonds is to be used  for  any
24        of  the  lawful  school purposes for which the bonds were
25        issued or for the payment of the  principal  indebtedness
26        and interest on the bonds.  The proceeds of the bond sale
27        shall  be  deposited  in the educational purposes fund of
28        the  district  and  shall  be  used  to  pay  operational
29        expenses of the district.  This subsection is  cumulative
30        and  constitutes  complete  authority for the issuance of
31        bonds as provided in this subsection, notwithstanding any
32        other law to the contrary.
33        (f)  Notwithstanding the provisions of subsection (a)  of
34    this  Section or of any other law, bonds in not to exceed the
SB569 Enrolled             -8-                 SRS90S0007KSsa
 1    aggregate  amount  of  $5,500,000  and  issued  by  a  school
 2    district  meeting  the  following  criteria  shall   not   be
 3    considered   indebtedness   for  purposes  of  any  statutory
 4    limitation and  may  be  issued  in  an  amount  or  amounts,
 5    including  existing indebtedness, in excess of any heretofore
 6    or hereafter imposed statutory limitation as to indebtedness:
 7             (1)  At the time of the  sale  of  such  bonds,  the
 8        board  of education of the district shall have determined
 9        by resolution that the  enrollment  of  students  in  the
10        district  is  projected  to  increase by not less than 7%
11        during each of the next succeeding 2 school years.
12             (2)  The board of education shall also determine  by
13        resolution  that the improvements to be financed with the
14        proceeds of the bonds are needed because of the projected
15        enrollment increases.
16             (3)  The board of education shall also determine  by
17        resolution that the projected increases in enrollment are
18        the result of improvements made or expected to be made to
19        passenger rail facilities located in the school district.
20        (g)  Notwithstanding  the provisions of subsection (a) of
21    this Section or any other law, bonds  in  not  to  exceed  an
22    aggregate  amount  of  25% of the equalized assessed value of
23    the taxable property of a school district  and  issued  by  a
24    school  district  meeting  the  criteria  in  paragraphs  (i)
25    through  (iv)  of  this  subsection  shall  not be considered
26    indebtedness for purposes of any statutory limitation and may
27    be issued pursuant to resolution of the school  board  in  an
28    amount or amounts, including existing indebtedness, in excess
29    of  any  statutory  limitation  of indebtedness heretofore or
30    hereafter imposed:
31             (i)  The  bonds  are  issued  for  the  purpose   of
32        constructing  a  new  high school building to replace two
33        adjacent existing buildings which together house a single
34        high school, each of which is more than 65 years old, and
SB569 Enrolled             -9-                 SRS90S0007KSsa
 1        which together are located on more than 10 acres and less
 2        than 11 acres of property.
 3             (ii)  At the time  the  resolution  authorizing  the
 4        issuance   of   the   bonds   is  adopted,  the  cost  of
 5        constructing  a  new  school  building  to  replace   the
 6        existing  school building is less than 60% of the cost of
 7        repairing the existing school building.
 8             (iii)  The sale of the bonds occurs before  July  1,
 9        1997.
10             (iv)  The  school  district  issuing  the bonds is a
11        unit school district located in a  county  of  less  than
12        70,000  and  more  than  50,000 inhabitants, which has an
13        average daily  attendance  of  less  than  1,500  and  an
14        equalized assessed valuation of less than $29,000,000.
15        (h)  Notwithstanding any other provisions of this Section
16    or  the provisions of any other law, until January 1, 1998, a
17    community unit school district maintaining grades  K  through
18    12  may  issue  bonds  up  to  an  amount, including existing
19    indebtedness, not exceeding 27.6% of the  equalized  assessed
20    value  of the taxable property in the district, if all of the
21    following conditions are met:
22             (i)  The school district has an  equalized  assessed
23        valuation   for   calendar   year   1995   of  less  than
24        $24,000,000;
25             (ii)  The  bonds  are   issued   for   the   capital
26        improvement,  renovation,  rehabilitation, or replacement
27        of existing school buildings  of  the  district,  all  of
28        which buildings were originally constructed not less than
29        40 years ago;
30             (iii)  The   voters   of   the  district  approve  a
31        proposition for the issuance of the bonds at a referendum
32        held after March 19, 1996; and
33             (iv)  The bonds are issued pursuant to Sections 19-2
34        through 19-7 of this Code.
SB569 Enrolled             -10-                SRS90S0007KSsa
 1        (i)  Notwithstanding any other provisions of this Section
 2    or the provisions of any other law, until January 1, 1998,  a
 3    community  unit  school district maintaining grades K through
 4    12 may issue  bonds  up  to  an  amount,  including  existing
 5    indebtedness,  not  exceeding  27%  of the equalized assessed
 6    value of the taxable property in the district, if all of  the
 7    following conditions are met:
 8             (i)  The  school  district has an equalized assessed
 9        valuation  for  calendar   year   1995   of   less   than
10        $44,600,000;
11             (ii)  The   bonds   are   issued   for  the  capital
12        improvement, renovation, rehabilitation,  or  replacement
13        of  existing  school  buildings  of  the district, all of
14        which existing buildings were originally constructed  not
15        less than 80 years ago;
16             (iii)  The   voters   of   the  district  approve  a
17        proposition for the issuance of the bonds at a referendum
18        held after December 31, 1996; and
19             (iv)  The bonds are issued pursuant to Sections 19-2
20        through 19-7 of this Code.
21        (j)  Notwithstanding any other provisions of this Section
22    or the provisions of any other law, until January 1, 1999,  a
23    community  unit  school district maintaining grades K through
24    12 located in a county of more than  240,000  but  less  than
25    260,000   inhabitants  may  issue  bonds  up  to  an  amount,
26    including existing indebtedness, not  exceeding  27%  of  the
27    equalized  assessed  value  of  the  taxable  property in the
28    district if all of the following conditions are met:
29             (i)  The school district has an  equalized  assessed
30        valuation   for   calendar   year   1995   of  less  than
31        $140,000,000 $137,400,000 and a  best  3  months  average
32        daily  attendance  for the 1995-96 1994-95 school year of
33        at least 2,800, but less than 3,000;
34             (ii)  The bonds are issued to purchase  a  site  and
SB569 Enrolled             -11-                SRS90S0007KSsa
 1        build  and  equip  a  new  high  school,  and  the school
 2        district's  for  the  capital  improvement,   renovation,
 3        rehabilitation,   or   replacement   of  existing  school
 4        buildings of the district, all  of  which  existing  high
 5        school was buildings were originally constructed not less
 6        than  35  80 years prior to the sale of the bonds ago, or
 7        for the construction of new school facilities;
 8             (iii)  At the time of the sale  of  the  bonds,  the
 9        board  of  education  determines by resolution that a new
10        high school is needed  because  of  projected  enrollment
11        increases;
12             (iv  iii)  At  least  60%  of  those  voting  in  an
13        election  held  after December 31, 1996 The voters of the
14        district approve a proposition for the  issuance  of  the
15        bonds at a referendum held after December 31, 1996; and
16             (v  iv)  The  bonds  are issued pursuant to Sections
17        19-2 through 19-7 of this Code.
18    (Source: P.A.  88-376;  88-641,  eff.  9-9-94;  88-686,  eff.
19    1-24-95; 89-47, eff. 7-1-95;  89-661,  eff.  1-1-97;  89-698,
20    eff. 1-14-97.)
21        Section  99.  Effective date.  This Act takes effect upon
22    becoming law.

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