State of Illinois
92nd General Assembly
Legislation

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[ Introduced ][ Enrolled ][ House Amendment 001 ]
[ House Amendment 003 ]


92_HB5734eng

 
HB5734 Engrossed                               LRB9214200LDtm

 1        AN ACT in relation to education.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  3.  The Freedom of Information Act is amended by
 5    changing Section 2 as follows:

 6        (5 ILCS 140/2) (from Ch. 116, par. 202)
 7        Sec. 2.  Definitions.  As used in this Act:
 8        (a)  "Public  body"  means  any  legislative,  executive,
 9    administrative,  or  advisory  bodies  of  the  State,  state
10    universities  and  colleges,  counties,  townships,   cities,
11    villages,  incorporated towns, school districts and all other
12    municipal  corporations,  boards,  bureaus,  committees,   or
13    commissions  of  this State, and any subsidiary bodies of any
14    of the foregoing including but not limited to committees  and
15    subcommittees  which are supported in whole or in part by tax
16    revenue, or which expend tax revenue, and  a  School  Finance
17    Authority  created  under  Article  1E  of  the  School Code.
18    "Public body" does not include a child death review  team  or
19    the  Illinois  Child  Death  Review  Teams  Executive Council
20    established under the Child Death Review Team Act.
21        (b)  "Person"   means   any   individual,    corporation,
22    partnership,   firm,   organization  or  association,  acting
23    individually or as a group.
24        (c)  "Public records" means all records, reports,  forms,
25    writings,    letters,   memoranda,   books,   papers,   maps,
26    photographs, microfilms, cards, tapes, recordings, electronic
27    data processing records, recorded information and  all  other
28    documentary   materials,   regardless  of  physical  form  or
29    characteristics, having been  prepared,  or  having  been  or
30    being  used,  received, possessed or under the control of any
31    public body.  "Public records" includes, but is expressly not
 
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 1    limited to:  (i) administrative  manuals,  procedural  rules,
 2    and instructions to staff, unless exempted by Section 7(p) of
 3    this  Act;  (ii)  final  opinions  and  orders  made  in  the
 4    adjudication  of  cases,  except an educational institution's
 5    adjudication of student or employee grievance or disciplinary
 6    cases;  (iii)  substantive   rules;   (iv)   statements   and
 7    interpretations of policy which have been adopted by a public
 8    body;  (v)  final  planning  policies,  recommendations,  and
 9    decisions;  (vi)  factual  reports,  inspection  reports, and
10    studies whether prepared by or for the public body; (vii) all
11    information in any account, voucher, or contract dealing with
12    the receipt or expenditure of public or other funds of public
13    bodies; (viii) the names,  salaries,  titles,  and  dates  of
14    employment  of  all  employees and officers of public bodies;
15    (ix) materials containing opinions concerning the  rights  of
16    the  state,  the  public,  a  subdivision of state or a local
17    government, or of any private persons; (x) the name of  every
18    official  and  the final records of voting in all proceedings
19    of public bodies; (xi) applications for any contract, permit,
20    grant, or agreement except as  exempted  from  disclosure  by
21    subsection  (g)  of Section 7 of this Act; (xii) each report,
22    document,  study,  or  publication  prepared  by  independent
23    consultants or other independent contractors for  the  public
24    body; (xiii) all other information required by law to be made
25    available for public inspection or copying; (xiv) information
26    relating to any grant or contract made by or between a public
27    body  and  another  public body or private organization; (xv)
28    waiver documents  filed  with  the  State  Superintendent  of
29    Education  or  the  president  of  the University of Illinois
30    under Section 30-12.5 of the School Code, concerning nominees
31    for General Assembly scholarships under Sections 30-9, 30-10,
32    and 30-11 of the School Code; (xvi)  complaints,  results  of
33    complaints,  and  Department  of Children and Family Services
34    staff  findings  of  licensing   violations   at   day   care
 
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 1    facilities,    provided   that   personal   and   identifying
 2    information is not released;  and  (xvii)  records,  reports,
 3    forms, writings, letters, memoranda, books, papers, and other
 4    documentary  information,  regardless  of  physical  form  or
 5    characteristics,  having  been  prepared,  or  having been or
 6    being used, received, possessed, or under the control of  the
 7    Illinois Sports Facilities Authority dealing with the receipt
 8    or  expenditure  of  public  funds  or  other  funds  of  the
 9    Authority  in connection with the reconstruction, renovation,
10    remodeling, extension, or improvement of all or substantially
11    all of an existing "facility" as that term is defined in  the
12    Illinois Sports Facilities Authority Act.
13        (d)  "Copying"  means  the  reproduction  of  any  public
14    record  by  means of any photographic, electronic, mechanical
15    or other process, device or means.
16        (e)  "Head of  the  public  body"  means  the  president,
17    mayor, chairman, presiding officer, director, superintendent,
18    manager,  supervisor  or individual otherwise holding primary
19    executive and administrative authority for the  public  body,
20    or such person's duly authorized designee.
21        (f)  "News  media"  means a newspaper or other periodical
22    issued at regular intervals whether in  print  or  electronic
23    format, a news service whether in print or electronic format,
24    a  radio station, a television station, a television network,
25    a community  antenna  television  service,  or  a  person  or
26    corporation  engaged  in  making  news  reels or other motion
27    picture news for public showing.
28    (Source: P.A. 91-935,  eff.  6-1-01;  92-335,  eff.  8-10-01;
29    92-468, eff. 8-22-01; revised 10-10-01.)

30        Section  5.  The Property Tax Code is amended by changing
31    Section 18-185 and adding Sections  18-190.5  and  18-241  as
32    follows:
 
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 1        (35 ILCS 200/18-185)
 2        Sec.  18-185.  Short title; definitions.  This Division 5
 3    may be cited as the Property Tax  Extension  Limitation  Law.
 4    As used in this Division 5:
 5        "Consumer Price Index" means the Consumer Price Index for
 6    All  Urban  Consumers  for  all items published by the United
 7    States Department of Labor.
 8        "Extension limitation" means (a) the lesser of 5% or  the
 9    percentage  increase  in  the Consumer Price Index during the
10    12-month calendar year preceding the levy  year  or  (b)  the
11    rate of increase approved by voters under Section 18-205.
12        "Affected  county"  means  a  county of 3,000,000 or more
13    inhabitants or a county contiguous to a county  of  3,000,000
14    or more inhabitants.
15        "Taxing  district"  has  the  same  meaning  provided  in
16    Section  1-150, except as otherwise provided in this Section.
17    For the 1991 through 1994 levy years only, "taxing  district"
18    includes  only  each non-home rule taxing district having the
19    majority of its 1990  equalized  assessed  value  within  any
20    county  or  counties contiguous to a county with 3,000,000 or
21    more inhabitants.  Beginning with the 1995 levy year, "taxing
22    district" includes only each non-home  rule  taxing  district
23    subject  to  this  Law  before  the  1995  levy year and each
24    non-home rule taxing district not subject to this Law  before
25    the  1995 levy year having the majority of its 1994 equalized
26    assessed value in an affected county or counties.   Beginning
27    with  the levy year in which this Law becomes applicable to a
28    taxing  district  as  provided  in  Section  18-213,  "taxing
29    district" also includes those taxing districts  made  subject
30    to this Law as provided in Section 18-213.
31        "Aggregate  extension" for taxing districts to which this
32    Law applied before  the  1995  levy  year  means  the  annual
33    corporate extension for the taxing district and those special
34    purpose  extensions  that  are  made  annually for the taxing
 
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 1    district, excluding special purpose extensions: (a) made  for
 2    the  taxing  district to pay interest or principal on general
 3    obligation bonds that were approved by referendum;  (b)  made
 4    for  any  taxing  district  to  pay  interest or principal on
 5    general obligation bonds issued before October 1,  1991;  (c)
 6    made  for any taxing district to pay interest or principal on
 7    bonds issued to refund or  continue  to  refund  those  bonds
 8    issued  before  October  1,  1991;  (d)  made  for any taxing
 9    district to pay interest or  principal  on  bonds  issued  to
10    refund  or  continue  to refund bonds issued after October 1,
11    1991 that were approved  by  referendum;  (e)  made  for  any
12    taxing district to pay interest or principal on revenue bonds
13    issued before October 1, 1991 for payment of which a property
14    tax  levy  or  the full faith and credit of the unit of local
15    government is pledged; however, a  tax  for  the  payment  of
16    interest or principal on those bonds shall be made only after
17    the governing body of the unit of local government finds that
18    all  other sources for payment are insufficient to make those
19    payments; (f) made for payments under a  building  commission
20    lease when the lease payments are for the retirement of bonds
21    issued  by  the commission before October 1, 1991, to pay for
22    the  building  project;  (g)  made  for  payments  due  under
23    installment contracts entered into before  October  1,  1991;
24    (h)  made  for  payments  of  principal and interest on bonds
25    issued under the Metropolitan Water Reclamation District  Act
26    to  finance construction projects initiated before October 1,
27    1991; (i) made for payments  of  principal  and  interest  on
28    limited   bonds,  as  defined  in  Section  3  of  the  Local
29    Government Debt Reform Act, in an amount not  to  exceed  the
30    debt  service  extension  base  less the amount in items (b),
31    (c), (e), and  (h)  of  this  definition  for  non-referendum
32    obligations,  except obligations initially issued pursuant to
33    referendum; (j) made for payments of principal  and  interest
34    on bonds issued under Section 15 of the Local Government Debt
 
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 1    Reform   Act;   and  (k)  made  by  a  school  district  that
 2    participates  in  the  Special  Education  District  of  Lake
 3    County, created by special education  joint  agreement  under
 4    Section  10-22.31  of  the  School  Code,  for payment of the
 5    school  district's  share  of  the  amounts  required  to  be
 6    contributed by the Special Education District of Lake  County
 7    to  the Illinois Municipal Retirement Fund under Article 7 of
 8    the Illinois Pension Code; the amount of any extension  under
 9    this  item  (k)  shall be certified by the school district to
10    the county clerk.
11        "Aggregate extension" for the taxing districts  to  which
12    this  Law  did  not  apply  before the 1995 levy year (except
13    taxing districts subject  to  this  Law  in  accordance  with
14    Section  18-213) means the annual corporate extension for the
15    taxing district and those special purpose extensions that are
16    made annually for  the  taxing  district,  excluding  special
17    purpose  extensions:  (a) made for the taxing district to pay
18    interest or principal on general obligation bonds  that  were
19    approved  by  referendum; (b) made for any taxing district to
20    pay interest or principal on general obligation bonds  issued
21    before March 1, 1995; (c) made for any taxing district to pay
22    interest  or  principal on bonds issued to refund or continue
23    to refund those bonds issued before March 1, 1995;  (d)  made
24    for any taxing district to pay interest or principal on bonds
25    issued  to  refund  or  continue to refund bonds issued after
26    March 1, 1995 that were approved by referendum; (e) made  for
27    any  taxing  district to pay interest or principal on revenue
28    bonds issued before March 1, 1995  for  payment  of  which  a
29    property tax levy or the full faith and credit of the unit of
30    local  government  is pledged; however, a tax for the payment
31    of interest or principal on those bonds shall  be  made  only
32    after  the  governing  body  of  the unit of local government
33    finds that all other sources for payment are insufficient  to
34    make  those  payments; (f) made for payments under a building
 
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 1    commission  lease  when  the  lease  payments  are  for   the
 2    retirement  of bonds issued by the commission before March 1,
 3    1995 to pay for the building project; (g) made  for  payments
 4    due  under installment contracts entered into before March 1,
 5    1995; (h) made for payments  of  principal  and  interest  on
 6    bonds   issued   under  the  Metropolitan  Water  Reclamation
 7    District  Act  to  finance  construction  projects  initiated
 8    before October 1, 1991; (i) made for  payments  of  principal
 9    and interest on limited bonds, as defined in Section 3 of the
10    Local  Government Debt Reform Act, in an amount not to exceed
11    the debt service extension base less the amount in items (b),
12    (c),  and  (e)  of   this   definition   for   non-referendum
13    obligations,  except obligations initially issued pursuant to
14    referendum and bonds described  in  subsection  (h)  of  this
15    definition;  (j)  made for payments of principal and interest
16    on bonds issued under Section 15 of the Local Government Debt
17    Reform Act; (k) made for payments of principal  and  interest
18    on  bonds  authorized  by  Public Act 88-503 and issued under
19    Section 20a of the Chicago Park District Act for aquarium  or
20    museum  projects;  and (l) made for payments of principal and
21    interest on bonds authorized by Public Act 87-1191 and issued
22    under Section 42 of the Cook County Forest Preserve  District
23    Act  for  zoological  park projects; and (m) made pursuant to
24    Section 34-53.5 of the School Code, whether  levied  annually
25    or not.
26        "Aggregate  extension"  for all taxing districts to which
27    this Law applies in accordance with  Section  18-213,  except
28    for  those  taxing  districts  subject  to  paragraph  (2) of
29    subsection (e) of Section 18-213, means the annual  corporate
30    extension  for  the taxing district and those special purpose
31    extensions that are made annually for  the  taxing  district,
32    excluding special purpose extensions: (a) made for the taxing
33    district  to  pay interest or principal on general obligation
34    bonds that were approved by  referendum;  (b)  made  for  any
 
HB5734 Engrossed            -8-                LRB9214200LDtm
 1    taxing  district  to  pay  interest  or  principal on general
 2    obligation  bonds  issued  before  the  date  on  which   the
 3    referendum  making this Law applicable to the taxing district
 4    is held; (c) made for any taxing district to pay interest  or
 5    principal  on  bonds  issued  to refund or continue to refund
 6    those bonds issued before the date on  which  the  referendum
 7    making  this  Law  applicable to the taxing district is held;
 8    (d) made for any taxing district to pay interest or principal
 9    on bonds issued to refund or continue to refund bonds  issued
10    after  the  date  on  which  the  referendum  making this Law
11    applicable to the taxing district is held if the  bonds  were
12    approved by referendum after the date on which the referendum
13    making  this  Law  applicable to the taxing district is held;
14    (e) made for any taxing district to pay interest or principal
15    on  revenue  bonds  issued  before  the  date  on  which  the
16    referendum making this Law applicable to the taxing  district
17    is  held for payment of which a property tax levy or the full
18    faith and credit of the unit of local government is  pledged;
19    however,  a  tax  for the payment of interest or principal on
20    those bonds shall be made only after the  governing  body  of
21    the unit of local government finds that all other sources for
22    payment are insufficient to make those payments; (f) made for
23    payments  under  a  building  commission lease when the lease
24    payments are for  the  retirement  of  bonds  issued  by  the
25    commission  before  the  date  on which the referendum making
26    this Law applicable to the taxing district is held to pay for
27    the  building  project;  (g)  made  for  payments  due  under
28    installment contracts entered into before the date  on  which
29    the  referendum  making  this  Law  applicable  to the taxing
30    district is held; (h) made  for  payments  of  principal  and
31    interest  on  limited  bonds,  as defined in Section 3 of the
32    Local Government Debt Reform Act, in an amount not to  exceed
33    the debt service extension base less the amount in items (b),
34    (c),   and   (e)   of   this  definition  for  non-referendum
 
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 1    obligations, except obligations initially issued pursuant  to
 2    referendum;  (i)  made for payments of principal and interest
 3    on bonds issued under Section 15 of the Local Government Debt
 4    Reform Act; and (j) made for a qualified airport authority to
 5    pay interest or principal on general obligation bonds  issued
 6    for the purpose of paying obligations due under, or financing
 7    airport  facilities  required  to  be  acquired, constructed,
 8    installed or equipped pursuant  to,  contracts  entered  into
 9    before  March  1,  1996  (but not including any amendments to
10    such a contract taking effect on or after that date).
11        "Aggregate extension" for all taxing districts  to  which
12    this   Law  applies  in  accordance  with  paragraph  (2)  of
13    subsection (e) of Section 18-213 means the  annual  corporate
14    extension  for  the taxing district and those special purpose
15    extensions that are made annually for  the  taxing  district,
16    excluding special purpose extensions: (a) made for the taxing
17    district  to  pay interest or principal on general obligation
18    bonds that were approved by  referendum;  (b)  made  for  any
19    taxing  district  to  pay  interest  or  principal on general
20    obligation bonds issued before the  effective  date  of  this
21    amendatory  Act  of 1997; (c) made for any taxing district to
22    pay interest or  principal  on  bonds  issued  to  refund  or
23    continue  to  refund  those bonds issued before the effective
24    date of this amendatory Act of 1997; (d) made for any  taxing
25    district  to  pay  interest  or  principal on bonds issued to
26    refund or continue to refund bonds issued after the effective
27    date of this  amendatory  Act  of  1997  if  the  bonds  were
28    approved  by  referendum  after  the  effective  date of this
29    amendatory Act of 1997; (e) made for any taxing  district  to
30    pay  interest or principal on revenue bonds issued before the
31    effective date of this amendatory Act of 1997 for payment  of
32    which a property tax levy or the full faith and credit of the
33    unit  of  local government is pledged; however, a tax for the
34    payment of interest or principal on those bonds shall be made
 
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 1    only after the governing body of the unit of local government
 2    finds that all other sources for payment are insufficient  to
 3    make  those  payments; (f) made for payments under a building
 4    commission  lease  when  the  lease  payments  are  for   the
 5    retirement  of  bonds  issued  by  the  commission before the
 6    effective date of this amendatory Act of 1997 to pay for  the
 7    building project; (g) made for payments due under installment
 8    contracts  entered  into  before  the  effective date of this
 9    amendatory Act of 1997; (h) made for  payments  of  principal
10    and interest on limited bonds, as defined in Section 3 of the
11    Local  Government Debt Reform Act, in an amount not to exceed
12    the debt service extension base less the amount in items (b),
13    (c),  and  (e)  of   this   definition   for   non-referendum
14    obligations,  except obligations initially issued pursuant to
15    referendum; (i) made for payments of principal  and  interest
16    on bonds issued under Section 15 of the Local Government Debt
17    Reform Act; and (j) made for a qualified airport authority to
18    pay  interest or principal on general obligation bonds issued
19    for the purpose of paying obligations due under, or financing
20    airport facilities  required  to  be  acquired,  constructed,
21    installed  or  equipped  pursuant  to, contracts entered into
22    before March 1, 1996 (but not  including  any  amendments  to
23    such a contract taking effect on or after that date).
24        "Debt  service  extension  base" means an amount equal to
25    that portion of the extension for a taxing district  for  the
26    1994 levy year, or for those taxing districts subject to this
27    Law  in  accordance  with  Section  18-213,  except for those
28    subject to paragraph (2) of subsection (e) of Section 18-213,
29    for the levy year in which the  referendum  making  this  Law
30    applicable  to  the  taxing  district  is  held, or for those
31    taxing districts subject  to  this  Law  in  accordance  with
32    paragraph  (2)  of  subsection  (e) of Section 18-213 for the
33    1996 levy year, constituting  an  extension  for  payment  of
34    principal and interest on bonds issued by the taxing district
 
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 1    without referendum, but not including (i) bonds authorized by
 2    Public Act 88-503 and issued under Section 20a of the Chicago
 3    Park  District  Act  for  aquarium  and museum projects; (ii)
 4    bonds issued under Section 15 of the  Local  Government  Debt
 5    Reform  Act;  or (iii) refunding obligations issued to refund
 6    or  to  continue  to  refund  obligations  initially   issued
 7    pursuant  to  referendum. The debt service extension base may
 8    be established or increased as provided under Section 18-212.
 9        "Special purpose extensions" include, but are not limited
10    to, extensions  for  levies  made  on  an  annual  basis  for
11    unemployment   and   workers'  compensation,  self-insurance,
12    contributions to pension plans, and extensions made  pursuant
13    to  Section  6-601  of  the  Illinois Highway Code for a road
14    district's permanent road fund  whether  levied  annually  or
15    not.   The  extension  for  a  special  service  area  is not
16    included in the aggregate extension.
17        "Aggregate extension base" means  the  taxing  district's
18    last preceding aggregate extension as adjusted under Sections
19    18-215 through 18-230.
20        "Levy  year" has the same meaning as "year" under Section
21    1-155.
22        "New property" means (i) the assessed value, after  final
23    board   of   review  or  board  of  appeals  action,  of  new
24    improvements or additions to  existing  improvements  on  any
25    parcel  of  real property that increase the assessed value of
26    that real property during the levy  year  multiplied  by  the
27    equalization  factor  issued  by the Department under Section
28    17-30 and (ii) the  assessed  value,  after  final  board  of
29    review  or  board  of  appeals  action,  of real property not
30    exempt from real estate taxation,  which  real  property  was
31    exempt  from  real  estate  taxation  for  any portion of the
32    immediately  preceding   levy   year,   multiplied   by   the
33    equalization  factor  issued  by the Department under Section
34    17-30.  In addition, the county clerk in a county  containing
 
HB5734 Engrossed            -12-               LRB9214200LDtm
 1    a  population  of 3,000,000 or more shall include in the 1997
 2    recovered tax increment value for any  school  district,  any
 3    recovered tax increment value that was applicable to the 1995
 4    tax year calculations.
 5        "Qualified  airport authority" means an airport authority
 6    organized under the Airport Authorities Act and located in  a
 7    county  bordering  on  the  State  of  Wisconsin and having a
 8    population in excess of 200,000 and not greater than 500,000.
 9        "Recovered  tax  increment  value"   means,   except   as
10    otherwise  provided  in  this  paragraph,  the  amount of the
11    current year's equalized assessed value, in  the  first  year
12    after a municipality terminates the designation of an area as
13    a redevelopment project area previously established under the
14    Tax  Increment  Allocation  Development  Act  in the Illinois
15    Municipal Code, previously established under  the  Industrial
16    Jobs   Recovery  Law  in  the  Illinois  Municipal  Code,  or
17    previously established under the  Economic  Development  Area
18    Tax  Increment  Allocation  Act,  of each taxable lot, block,
19    tract, or  parcel  of  real  property  in  the  redevelopment
20    project  area  over  and above the initial equalized assessed
21    value of each property in  the  redevelopment  project  area.
22    For  the taxes which are extended for the 1997 levy year, the
23    recovered tax increment value  for  a  non-home  rule  taxing
24    district  that  first became subject to this Law for the 1995
25    levy year because a majority of its 1994  equalized  assessed
26    value  was  in  an  affected  county  or  counties  shall  be
27    increased  if a municipality terminated the designation of an
28    area in 1993  as  a  redevelopment  project  area  previously
29    established  under  the  Tax Increment Allocation Development
30    Act in the Illinois Municipal  Code,  previously  established
31    under  the  Industrial  Jobs  Recovery  Law  in  the Illinois
32    Municipal Code, or previously established under the  Economic
33    Development  Area  Tax Increment Allocation Act, by an amount
34    equal to the 1994 equalized assessed value  of  each  taxable
 
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 1    lot,  block,  tract,  or  parcel  of  real  property  in  the
 2    redevelopment   project  area  over  and  above  the  initial
 3    equalized  assessed   value   of   each   property   in   the
 4    redevelopment  project  area.  In  the  first  year  after  a
 5    municipality  removes  a taxable lot, block, tract, or parcel
 6    of  real  property  from   a   redevelopment   project   area
 7    established  under  the  Tax Increment Allocation Development
 8    Act in the  Illinois  Municipal  Code,  the  Industrial  Jobs
 9    Recovery  Law in the Illinois Municipal Code, or the Economic
10    Development Area Tax Increment Allocation Act, "recovered tax
11    increment value" means  the  amount  of  the  current  year's
12    equalized  assessed  value of each taxable lot, block, tract,
13    or parcel of real property  removed  from  the  redevelopment
14    project  area  over  and above the initial equalized assessed
15    value  of  that  real  property  before  removal   from   the
16    redevelopment project area.
17        Except  as  otherwise provided in this Section, "limiting
18    rate" means a fraction the numerator of  which  is  the  last
19    preceding  aggregate  extension base times an amount equal to
20    one plus the extension limitation defined in this Section and
21    the denominator of which  is  the  current  year's  equalized
22    assessed  value  of  all real property in the territory under
23    the jurisdiction of the taxing district during the prior levy
24    year.   For  those  taxing  districts  that   reduced   their
25    aggregate  extension  for  the  last preceding levy year, the
26    highest aggregate extension in any of the  last  3  preceding
27    levy  years  shall  be  used for the purpose of computing the
28    limiting  rate.   The  denominator  shall  not  include   new
29    property.   The  denominator  shall not include the recovered
30    tax increment value.
31    (Source: P.A. 90-485,  eff.  1-1-98;  90-511,  eff.  8-22-97;
32    90-568,  eff.  1-1-99;  90-616,  eff.  7-10-98;  90-655, eff.
33    7-30-98; 91-357, eff. 7-29-99; 91-478, eff. 11-1-99.)
 
HB5734 Engrossed            -14-               LRB9214200LDtm
 1        (35 ILCS 200/18-190.5 new)
 2        Sec. 18-190.5.  School  districts.  The  requirements  of
 3    Section  18-190  of  this Code for a direct referendum on the
 4    imposition of a new or increased tax rate do not apply to tax
 5    levies that are not included in the aggregate  extension  for
 6    those taxing districts to which this Law did not apply before
 7    the  1995  levy year (except taxing districts subject to this
 8    Law in accordance with Section 18-213 of this Code)  pursuant
 9    to clause (m) of Section 18-185 of this Code.

10        (35 ILCS 200/18-241 new)
11        Sec. 18-241. School Finance Authority.
12        (a)  A School Finance Authority established under Article
13    1E  of  the  School  Code  shall not be a taxing district for
14    purposes of this Law.
15        (b)  This Law shall not apply to the extension  of  taxes
16    for  a  school  district  for the levy year in which a School
17    Finance Authority for the district  is  created  pursuant  to
18    Article 1E of the School Code.

19        Section  7.  The  Local Government Debt Limitation Act is
20    amended by adding Section 1.23 as follows:

21        (50 ILCS 405/1.23 new)
22        Sec.  1.23.  Indebtedness  of  Downstate  School  Finance
23    Authority. The limitation prescribed in Section 1 of this Act
24    does not apply  to  any  indebtedness  of  a  School  Finance
25    Authority created pursuant to Article 1E of the School Code.

26        Section  10. The School Code is amended by adding Article
27    1E and Section 34-53.5 as follows:

28        (105 ILCS 5/Art. 1E heading new)
29           ARTICLE 1E. DOWNSTATE SCHOOL FINANCE AUTHORITY
 
HB5734 Engrossed            -15-               LRB9214200LDtm
 1        (105 ILCS 5/1E-1 new)
 2        Sec. 1E-1. Short title. This Article may be cited as  the
 3    Downstate School Finance Authority Law.

 4        (105 ILCS 5/1E-5 new)
 5        Sec. 1E-5. Findings; purpose; intent.
 6        (a)  The General Assembly finds all of the following:
 7             (1)  A fundamental goal of the people of this State,
 8        as  expressed  in  Section 1 of Article X of the Illinois
 9        Constitution,  is  the  educational  development  of  all
10        persons to the limits of their capacities. When  a  board
11        of  education  faces  financial  difficulties,  continued
12        operation of the public school system is threatened.
13             (2)  A sound financial structure is essential to the
14        continued  operation of any school system. It is vital to
15        commercial,  educational,  and  cultural  interests  that
16        public schools remain in operation. To achieve that goal,
17        public school systems must have effective access  to  the
18        private market to borrow short and long term funds.
19             (3)  To   promote   the   financial   integrity   of
20        districts, as defined in this Article, it is necessary to
21        provide  for  the  creation of school finance authorities
22        with the powers  necessary  to  promote  sound  financial
23        management  and  to ensure the continued operation of the
24        public schools.
25        (b)  It is the purpose  of  this  Article  to  provide  a
26    secure  financial basis for the continued operation of public
27    schools. The intention of the General Assembly,  in  creating
28    this Article, is to establish procedures, provide powers, and
29    impose  restrictions  to ensure the financial and educational
30    integrity of the  public  schools,  while  leaving  principal
31    responsibility for the educational policies of public schools
32    to  the boards of education within the State, consistent with
33    the requirements for satisfying the public policy and purpose
 
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 1    set forth in this Article.

 2        (105 ILCS 5/1E-10 new)
 3        Sec. 1E-10. Definitions. As used in this Article:
 4        "Authority" means  a  School  Finance  Authority  created
 5    under this Article.
 6        "Bonds"  means  bonds  authorized  to  be  issued  by the
 7    Authority under Section 1E-65 of this Code.
 8        "Budget" means the annual budget of the district required
 9    under Section 17-1 of this Code, as in effect  from  time  to
10    time.
11        "Chairperson" means the Chairperson of the Authority.
12        "District"  means any school district having a population
13    of not more than 500,000 that prior to the effective date  of
14    this  amendatory  Act  of the 92nd General Assembly has had a
15    Financial Oversight Panel established for the district  under
16    Section   1B-4   of   this   Code  following  the  district's
17    petitioning of the State Board of Education for the  creation
18    of  the Financial Oversight Panel and for which the Financial
19    Oversight Panel has been in existence for at least one year.
20        "Financial plan" means the financial plan of the district
21    to be developed pursuant to this Article, as in  effect  from
22    time to time.
23        "Fiscal year" means the fiscal year of the district.
24        "State Board" means the State Board of Education.
25        "State  Superintendent" means the State Superintendent of
26    Education.
27        "Obligations" means bonds and notes of the Authority.

28        (105 ILCS 5/1E-15 new)
29        Sec.  1E-15.  Establishment  of  Authority;   duties   of
30    district.
31        (a)  A Financial Oversight Panel created under Article 1B
32    of  this Code for a district may petition the State Board for
 
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 1    the establishment of  a  School  Finance  Authority  for  the
 2    district.  The  petition  shall  cite  the  reasons  why  the
 3    creation  of  a  School Finance Authority for the district is
 4    necessary. The  State  Board  may  grant  the  petition  upon
 5    determining  that the approval of the petition is in the best
 6    educational and financial interests of the district.
 7        (b)  Upon approval of the petition by the State Board all
 8    of the following shall occur:
 9             (1)  There is established a body both corporate  and
10        politic  to  be  known  as the "(Name of School District)
11        School Finance  Authority",  which  in  this  name  shall
12        exercise  all  authority  vested  in an Authority by this
13        Article.
14             (2)  The Financial Oversight Panel is abolished, and
15        all of  its  rights,  property,  assets,  contracts,  and
16        liabilities shall pass to and be vested in the Authority.
17             (3)  The  duties  and  obligations  of  the district
18        under Article 1B of this Code shall  be  transferred  and
19        become duties and obligations owed by the district to the
20        School Finance Authority.
21        (c)  In the event of a conflict between the provisions of
22    this  Article  and the provisions of Article 1B of this Code,
23    the provisions of this Article control.

24        (105 ILCS 5/1E-20 new)
25        Sec. 1E-20. Members of Authority; meetings.
26        (a)  When a petition for a School  Finance  Authority  is
27    allowed  by the State Board under Section 1E-15 of this Code,
28    the State Superintendent  shall  within  10  days  thereafter
29    appoint  5 members to serve on a School Finance Authority for
30    the district. Of the initial members, 2 shall be appointed to
31    serve a term of 2 years and 3 shall be appointed to  serve  a
32    term  of  3  years. Thereafter, each member shall serve for a
33    term of 3 years and until  his  or  her  successor  has  been
 
HB5734 Engrossed            -18-               LRB9214200LDtm
 1    appointed.  The  State  Superintendent shall designate one of
 2    the members of the Authority to serve as its Chairperson.  In
 3    the event of vacancy or resignation, the State Superintendent
 4    shall,  within  10  days  after  receiving  notice, appoint a
 5    successor  to  serve  out  that  member's  term.  The   State
 6    Superintendent   may   remove   a  member  for  incompetence,
 7    malfeasance, neglect of duty, or other just cause.
 8        Members of the Authority shall be selected  primarily  on
 9    the  basis  of  their  experience  and education in financial
10    management, with consideration given to persons knowledgeable
11    in education finance. Two members of the Authority  shall  be
12    residents of the school district that the Authority serves. A
13    member of the Authority may not be a member of the district's
14    school board or an employee of the district  nor may a member
15    have a direct financial interest in the district.
16        Authority  members  shall serve without compensation, but
17    may be reimbursed by the State Board  for  travel  and  other
18    necessary  expenses  incurred  in  the  performance  of their
19    official duties. Unless paid from bonds issued under  Section
20    1E-65  of  this Code, the amount reimbursed members for their
21    expenses shall be charged to the school district as  part  of
22    any emergency financial assistance and incorporated as a part
23    of  the  terms and conditions for repayment of the assistance
24    or shall be deducted from the district's general State aid as
25    provided in Section 1B-8 of this Code.
26        The  Authority  may  elect  such  officers  as  it  deems
27    appropriate.
28        (b)  The first meeting of the Authority shall be held  at
29    the  call  of the Chairperson.  The Authority shall prescribe
30    the times and places for its meetings and the manner in which
31    regular and special meetings may be called and  shall  comply
32    with the Open Meetings Act.
33        Three members of the Authority shall constitute a quorum.
34    When a vote is taken upon any measure before the Authority, a
 
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 1    quorum  being present, a majority of the votes of the members
 2    voting on the measure shall determine the outcome.

 3        (105 ILCS 5/1E-25 new)
 4        Sec. 1E-25. General powers. The purposes of the Authority
 5    shall be to exercise financial control over the district  and
 6    to  furnish  financial  assistance  so  that the district can
 7    provide public education within the  district's  jurisdiction
 8    while  permitting the district to meet its obligations to its
 9    creditors and the holders of its debt.  Except  as  expressly
10    limited  by this Article, the Authority shall have all powers
11    granted to a voluntary  or  involuntary  Financial  Oversight
12    Panel  and  to  a Financial Administrator under Article 1B of
13    this  Code  and  all  other  powers  necessary  to  meet  its
14    responsibilities and  to  carry  out  its  purposes  and  the
15    purposes of this Article, including without limitation all of
16    the  following powers, provided that the Authority shall have
17    no power to violate any statutory provision,  to  impair  any
18    contract  or  obligation of the district, or to terminate any
19    employee without following the statutory procedures for  such
20    terminations set forth in this Code:
21             (1)  To sue and to be sued.
22             (2)  To   make   and   execute   contracts,  leases,
23        subleases  and  all  other  instruments   or   agreements
24        necessary  or  convenient  for the exercise of the powers
25        and functions granted by this Article.
26             (3)  To purchase real or personal property necessary
27        or convenient for its purposes; to  execute  and  deliver
28        deeds  for  real  property  held  in its own name; and to
29        sell, lease, or otherwise dispose of such of its property
30        as, in the  judgment  of  the  Authority,  is  no  longer
31        necessary for its purposes.
32             (4)  To  appoint  officers, agents, and employees of
33        the Authority, including a  chief  executive  officer,  a
 
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 1        chief fiscal officer, and a chief educational officer; to
 2        define  their duties and qualifications; and to fix their
 3        compensation and employee benefits.
 4             (5)  To transfer to the district such sums of  money
 5        as are not required for other purposes.
 6             (6)  To   borrow  money  and  to  issue  obligations
 7        pursuant to this Article; to  fund,  refund,  or  advance
 8        refund the same; to provide for the rights of the holders
 9        of its obligations; and to repay any advances.
10             (7)  Subject  to the provisions of any contract with
11        or for the benefit of the holders of its obligations,  to
12        purchase or redeem its obligations.
13             (8)  To procure all necessary goods and services for
14        the  Authority in compliance with the purchasing laws and
15        requirements applicable to the district.
16             (9)  To  do  any  and  all   things   necessary   or
17        convenient  to  carry  out  its purposes and exercise the
18        powers given to it by this Article.

19        (105 ILCS 5/1E-30 new)
20        Sec. 1E-30.  Chief executive officer. The  Authority  may
21    appoint a chief executive officer who, under the direction of
22    the   Authority,   shall  supervise  the  Authority's  staff,
23    including the chief educational officer and the chief  fiscal
24    officer,   and   shall   have   ultimate  responsibility  for
25    implementing  the  policies,  procedures,   directives,   and
26    decisions of the Authority.

27        (105 ILCS 5/1E-35 new)
28        Sec. 1E-35. Chief educational officer. Upon expiration of
29    the  contract  of the school district's superintendent who is
30    serving  at  the  time  the  Authority  is  established,  the
31    Authority shall, following consultation  with  the  district,
32    employ  a  chief  educational  officer for the district.  The
 
HB5734 Engrossed            -21-               LRB9214200LDtm
 1    chief educational officer shall report to  the  Authority  or
 2    the chief executive officer appointed by the Authority.
 3        The  chief  educational  officer  shall  have  all of the
 4    powers and duties of a school district  superintendent  under
 5    this  Code  and  such  other duties as may be assigned by the
 6    Authority, in accordance with this Code. The  district  shall
 7    not thereafter employ a superintendent during the period that
 8    a  chief  educational officer is serving in the district. The
 9    chief educational officer shall hold  a  certificate  with  a
10    superintendent  endorsement  issued  under Article 21 of this
11    Code.

12        (105 ILCS 5/1E-40 new)
13        Sec. 1E-40.  Chief  fiscal  officer.  The  Authority  may
14    appoint  a  chief  fiscal officer who, under the direction of
15    the Authority, shall have all of the powers and duties of the
16    district's chief  school  business  official  and  any  other
17    duties  regarding  budgeting, accounting, and other financial
18    matters that are assigned by  the  Authority,  in  accordance
19    with  this  Code.  The district may not employ a chief school
20    business official during the period  that  the  chief  fiscal
21    officer  is serving in the district. The chief fiscal officer
22    may but is not required to hold a certificate  with  a  chief
23    school  business official endorsement issued under Article 21
24    of this Code.

25        (105 ILCS 5/1E-45 new)
26        Sec.  1E-45.  Collective   bargaining   agreements.   The
27    Authority  shall  have  the  power  to  negotiate  collective
28    bargaining  agreements  with the district's employees in lieu
29    of and on behalf of the district. Upon concluding bargaining,
30    the district shall execute the agreements negotiated  by  the
31    Authority,  and  the  district  shall  be  bound by and shall
32    administer  the  agreements  in  all  respects  as   if   the
 
HB5734 Engrossed            -22-               LRB9214200LDtm
 1    agreements had been negotiated by the district itself.

 2        (105 ILCS 5/1E-50 new)
 3        Sec. 1E-50. Deposits and investments.
 4        (a)  The  Authority  shall  have  the  power to establish
 5    checking and whatever other  banking  accounts  it  may  deem
 6    appropriate for conducting its affairs.
 7        (b)  Subject  to  the  provisions of any contract with or
 8    for the benefit  of  the  holders  of  its  obligations,  the
 9    Authority may invest any funds not required for immediate use
10    or  disbursement,  as provided in the Public Funds Investment
11    Act.

12        (105 ILCS 5/1E-55 new)
13        Sec. 1E-55. Cash accounts and bank accounts.
14        (a)  The Authority shall  require  the  district  or  any
15    officer  of the district, including the district's treasurer,
16    to establish and maintain separate cash accounts and separate
17    bank accounts in accordance with such rules,  standards,  and
18    procedures as the Authority may prescribe.
19        (b)  The   Authority  shall  have  the  power  to  assume
20    exclusive  administration  of  the  cash  accounts  and  bank
21    accounts of the district, to establish and maintain  whatever
22    new  cash accounts and bank accounts it may deem appropriate,
23    and to withdraw funds from  these  accounts  for  the  lawful
24    expenditures of the district.

25        (105 ILCS 5/1E-60 new)
26        Sec.   1E-60.   Financial,   management,   and  budgetary
27    structure. Upon direction  of  the  Authority,  the  district
28    shall  reorganize  the  financial  accounts,  management, and
29    budgetary systems of the  district  in  whatever  manner  the
30    Authority  deems  appropriate  to  achieve  greater financial
31    responsibility and to reduce financial inefficiency.
 
HB5734 Engrossed            -23-               LRB9214200LDtm
 1        (105 ILCS 5/1E-65 new)
 2        Sec. 1E-65. Power to issue bonds.
 3        (a)  The Authority may incur indebtedness by the issuance
 4    of negotiable full faith and credit general obligation  bonds
 5    of  the  Authority  in an outstanding amount not to exceed at
 6    any time,  including  existing  indebtedness,  13.8%  of  the
 7    district's   most   recent   equalized   assessed  valuation,
 8    excluding Bonds of the Authority that have been refunded, for
 9    (i) the purpose of providing the  district  with  moneys  for
10    ordinary  and  necessary  expenditures  and other operational
11    needs  of  the  district;  (ii)  payment  or   refunding   of
12    outstanding  debt obligations or tax anticipation warrants of
13    the district, the proceeds of  which  were  used  to  provide
14    financing  for  the  district;  (iii)  payment  of  fees  for
15    arrangements  as  provided in subsection (b) of Section 1E-70
16    of  this  Code;  (iv)  payment  of  interest  on  Bonds;  (v)
17    establishment of reserves to secure Bonds; (vi)  the  payment
18    of  costs of issuance of Bonds; (vii) payment of principal of
19    or interest or redemption premium on any Bonds  or  notes  of
20    the  Authority;  and  (viii)  all  other  expenditures of the
21    Authority incidental  to  and  necessary  or  convenient  for
22    carrying out its corporate purposes and powers.
23        (b)  The  Authority may from time to time (i) issue Bonds
24    to refund any outstanding Bonds or notes  of  the  Authority,
25    whether  the  Bonds  or notes to be refunded have or have not
26    matured or become redeemable, and (ii) issue Bonds partly  to
27    refund  Bonds  or  notes  then outstanding and partly for any
28    other purpose set forth in this Section.
29        (c)  Bonds issued in accordance with  subsection  (a)  of
30    this   Section   are  not  subject  to  any  other  statutory
31    limitation as to  debt,  including  without  limitation  that
32    established  by the Local Government Debt Limitation Act, and
33    may be issued without referendum.
 
HB5734 Engrossed            -24-               LRB9214200LDtm
 1        (105 ILCS 5/1E-70 new)
 2        Sec. 1E-70. Terms of bonds.
 3        (a)  Whenever the Authority desires  or  is  required  to
 4    issue  Bonds  as  provided  in this Article, it shall adopt a
 5    resolution designating the amount of the Bonds to be  issued,
 6    the  purposes  for  which the proceeds of the Bonds are to be
 7    used, and the manner in which  the  proceeds  shall  be  held
 8    pending the application thereof. The Bonds shall be issued in
 9    the  corporate name of the Authority and shall bear such date
10    or dates  and  shall  mature  at  such  time  or  times,  not
11    exceeding  20  years  from  their date, as the resolution may
12    provide. The Bonds may be issued as serial bonds  payable  in
13    installments,   as term bonds with sinking fund installments,
14    or as a combination of these as the Authority  may  determine
15    in  the  resolution. The Bonds shall be in such denominations
16    as the Authority may determine.  The Bonds shall be  in  such
17    form, carry such registration privileges, be executed in such
18    manner, be payable at such place or places, and be subject to
19    such terms of redemption at such redemption prices, including
20    premium,  as  the  resolution may provide. The Bonds shall be
21    sold  by  the  Authority  at  public  or  private  sale,   as
22    determined by the Authority.
23        (b)  In  connection  with  the issuance of its Bonds, the
24    Authority may enter into arrangements to  provide  additional
25    security  and  liquidity  for  the  Bonds.  These may include
26    without  limitation  municipal  bond  insurance,  letters  of
27    credit, lines of credit by which  the  Authority  may  borrow
28    funds to pay or redeem its Bonds, and purchase or remarketing
29    arrangements  for  ensuring  the  ability  of  owners  of the
30    Authority's Bonds to sell their Bonds or to have their  Bonds
31    redeemed.  The  Authority  may  enter  into contracts and may
32    agree to pay fees  to  persons  providing  the  arrangements,
33    including from Bond proceeds, but only under circumstances in
34    which  the  total  interest  paid or to be paid on the Bonds,
 
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 1    together with the fees for the arrangements (being treated as
 2    if interest), would not, taken together, cause the  Bonds  to
 3    bear  interest,  calculated  to their absolute maturity, at a
 4    rate in excess of the maximum rate allowed by law.
 5        The resolution of the Authority authorizing the  issuance
 6    of  its  Bonds  may provide that interest rates may vary from
 7    time to time  depending  upon  criteria  established  by  the
 8    Authority,  which  may include without limitation a variation
 9    in interest rates as may be necessary to cause the  Bonds  to
10    be  remarketable  from time to time at a price equal to their
11    principal amount,  and  may  provide  for  appointment  of  a
12    national banking association, bank, trust company, investment
13    banker,   or  other  financial  institution  to  serve  as  a
14    remarketing agent in that connection. The resolution  of  the
15    Authority  authorizing  the issuance of its Bonds may provide
16    that alternative interest rates  or  provisions  shall  apply
17    during such times as the Bonds are held by a person providing
18    a  letter  of  credit or other credit enhancement arrangement
19    for those Bonds.

20        (105 ILCS 5/1E-75 new)
21        Sec. 1E-75. Tax levy.
22        (a)  Before or at the time  of  issuing  any  Bonds,  the
23    Authority  shall  provide  by  resolution  for  the  levy and
24    collection of a  direct  annual  tax  upon  all  the  taxable
25    property located within the district without limit as to rate
26    or  amount  sufficient  to  pay  and  discharge the principal
27    thereof at maturity or on sinking fund installment dates  and
28    to  pay  the  interest  thereon as it falls due. The taxes as
29    levied shall also include additional amounts  to  the  extent
30    that  the collections in the prior years were insufficient to
31    pay and discharge the principal thereof at maturity,  sinking
32    fund  installments,  if  any, and interest thereon as it fell
33    due, and the amount so collected shall be placed in the  debt
 
HB5734 Engrossed            -26-               LRB9214200LDtm
 1    service  reserve  fund.  The  tax shall be in addition to and
 2    exclusive of the maximum of all taxes that the  Authority  or
 3    the  district  is  authorized  by law to levy for any and all
 4    school purposes.  The resolution shall be in force  upon  its
 5    adoption.
 6        (b)  The  levy  shall  be  for  the  sole  benefit of the
 7    holders of the Bonds, and the holders of the Bonds shall have
 8    a security interest in and lien upon all rights, claims,  and
 9    interests  of  the Authority arising pursuant to the levy and
10    all present  and  future  proceeds  of  the  levy  until  the
11    principal  of  and  sinking fund installments and interest on
12    the Bonds are paid in full. All proceeds from the levy  shall
13    be  deposited  by  each county collector directly in the debt
14    service fund established pursuant to Section  1E-80  of  this
15    Code, shall be applied solely for the payment of principal of
16    and  sinking fund installments and interest on the Bonds, and
17    shall not be used for any other purpose.
18        (c)  Upon the filing in the office of the county clerk of
19    each county where the school district is located  of  a  duly
20    certified  copy  of  the  resolution, it shall be the duty of
21    each county clerk to extend  the  tax  provided  for  in  the
22    resolution,  including  an amount determined by the Authority
23    to cover loss  and  cost  of  collection  and  also  deferred
24    collections  and  abatements  in  the  amount of the taxes as
25    extended on the collectors' books. The tax shall be  separate
26    and  apart  from  all  other  taxes  of  the Authority or the
27    district  and  shall  be   separately   identified   by   the
28    collectors.

29        (105 ILCS 5/1E-80 new)
30        Sec.  1E-80.  Debt  service  fund.  The  Authority  shall
31    establish  a debt service fund for the Bonds to be maintained
32    by a paying agent, escrow  agent,  depository,  or  corporate
33    trustee,  which  may  be any trust company or bank having the
 
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 1    power of a trust company  within  this  State,  separate  and
 2    segregated from all other funds and accounts of the Authority
 3    and  the  district. All moneys on deposit in the debt service
 4    fund shall be held in trust in the debt service fund for  the
 5    benefit  of the holders of the Bonds, shall be applied solely
 6    for  the  payment  of  the  principal  of  and  sinking  fund
 7    installment, redemption premium, if any, and interest on  the
 8    Bonds,  and  shall  not  be  used  for any other purpose. The
 9    holders of the Bonds shall have a security  interest  in  and
10    lien upon all such moneys.

11        (105 ILCS 5/1E-85 new)
12        Sec. 1E-85. Debt service reserve fund.
13        (a)  The  Authority  may  create  and  establish  a  debt
14    service  reserve  fund  to  be  maintained by a paying agent,
15    escrow agent, depository, or corporate trustee, which may  be
16    any trust company or bank having the power of a trust company
17    within  the  State,  separate  and  segregated from all other
18    funds and accounts of the Authority. The  Authority  may  pay
19    the following into the debt service reserve fund:
20             (1)  any  proceeds  from  the  sale  of Bonds to the
21        extent  provided  in  the  resolution   authorizing   the
22        issuance of the Bonds; and
23             (2)  any  other  moneys that may be available to the
24        Authority for the purpose of the fund.
25        (b)  The amount to be accumulated  in  the  debt  service
26    reserve  fund  shall be determined by the Authority but shall
27    not exceed the maximum amount  of  interest,  principal,  and
28    sinking  fund  installments  due  in  any succeeding calendar
29    year.
30        (c)  All moneys on deposit in the  debt  service  reserve
31    fund shall be held in trust for the benefit of the holders of
32    the  Bonds,  shall  be  applied  solely  for  the  payment of
33    principal of and sinking fund installments  and  interest  on
 
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 1    the  Bonds to the extent not paid from the debt service fund,
 2    and shall not be used for any other purpose.
 3        (d)  Any moneys in  the  debt  service  reserve  fund  in
 4    excess  of the amount determined by the Authority pursuant to
 5    a  resolution  authorizing  the  issuance  of  Bonds  may  be
 6    withdrawn by the Authority and used for  any  of  its  lawful
 7    purposes.
 8        (e)  In  computing the amount of the debt service reserve
 9    fund, investments shall be valued as the  Authority  provides
10    in the resolution authorizing the issuance of the Bonds.

11        (105 ILCS 5/1E-90 new)
12        Sec. 1E-90. Bond anticipation notes.
13        (a)  After the issuance of Bonds has been authorized, the
14    Authority  shall  have  power  to  issue  from  time to time,
15    pursuant to a resolution or  resolutions  of  the  Authority,
16    negotiable  bond  anticipation  notes  of  the  Authority  in
17    anticipation of the issuance of Bonds.
18        (b)  Bond  anticipation notes shall mature not later than
19    2 years after the date of issuance, may  be  made  redeemable
20    prior  to  their maturity, and may be sold in such manner, in
21    such denominations, and at such price  or  prices  and  shall
22    bear interest at such rate or rates not to exceed the maximum
23    annual  rate  authorized  by law, as a resolution authorizing
24    the issuance of the bond anticipation notes may provide.
25        (c)  The bond anticipation notes may be made  payable  as
26    to  both  principal  and  interest  from  the proceeds of the
27    Bonds. The Authority may provide for payment of  interest  on
28    the bond anticipation notes from direct annual taxes upon all
29    the  taxable  property  located  within the district that are
30    authorized to be levied annually  for  that  purpose  without
31    limit  as to rate or amount sufficient to pay the interest as
32    it falls due, in the manner, subject to the security interest
33    and lien, and with the effect provided in  Section  1E-75  of
 
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 1    this Code.
 2        (d)  The  Authority  is authorized to issue renewal notes
 3    in the event it is unable to issue Bonds to  pay  outstanding
 4    bond   anticipation  notes,  on  terms  the  Authority  deems
 5    reasonable.
 6        (e)  A debt service fund  shall  be  established  in  the
 7    manner  provided  in  Section  1E-80  of  this  Code  by  the
 8    Authority  for  the bond anticipation notes, and the proceeds
 9    of any tax levy  made  pursuant  to  this  Section  shall  be
10    deposited in the fund upon receipt.

11        (105 ILCS 5/1E-95 new)
12        Sec. 1E-95. Vesting powers in trustee or other authorized
13    agent. The resolution authorizing issuance of the Bonds shall
14    vest  in a trustee, paying agent, escrow agent, or depository
15    such rights, powers, and duties in trust as the Authority may
16    determine and may contain such provisions for protecting  and
17    enforcing the rights and remedies of the holders of the Bonds
18    and  limiting  such  rights and remedies as may be reasonable
19    and proper and not in violation of law,  including  covenants
20    setting  forth the duties of the Authority in relation to the
21    exercise  of  its   corporate   powers   and   the   custody,
22    safeguarding,  and  application of all moneys. The resolution
23    shall provide for the manner in which moneys in  the  various
24    funds  and  accounts of the Authority may be invested and the
25    disposition of the earnings on the investments.

26        (105 ILCS 5/1E-100 new)
27        Sec. 1E-100. Discharge of bonds.
28        (a)  If the Authority pays or causes to be  paid  to  the
29    holders   of   all  Bonds  then  outstanding  the  principal,
30    redemption price, if any, and interest to become due  on  the
31    Bonds,  at the times and in the manner stipulated therein and
32    in the resolution authorizing the issuance of the Bonds, then
 
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 1    the covenants,  agreements,  and  other  obligations  of  the
 2    Authority   to   the  Bondholders  shall  be  discharged  and
 3    satisfied.
 4        (b)  Bonds or interest installments for  the  payment  or
 5    redemption  of  which  moneys have been set aside and held in
 6    trust by the trustee or other authorized agent  provided  for
 7    in  Section  1E-95  of  this  Code,  through  deposit  by the
 8    Authority of funds for the payment, redemption, or otherwise,
 9    at the maturity or redemption date, are deemed to  have  been
10    paid  within  the  meaning  and  with the effect expressed in
11    subsection (a) of this Section. All outstanding Bonds of  any
12    series,  prior to the maturity or redemption date, are deemed
13    to have been paid within the  meaning  and  with  the  effect
14    expressed  in subsection (a) of this Section if (1) there has
15    been deposited with the trustee  or  other  authorized  agent
16    either  (A)  moneys  in  an  amount that is sufficient or (B)
17    direct obligations  of  the  United  States  of  America  the
18    principal  of  and  the  interest  on  which,  when due, will
19    provide moneys  that,  together  with  the  moneys,  if  any,
20    deposited  with  the trustee or other authorized agent at the
21    same time, are sufficient to pay, when  due,  the  principal,
22    sinking fund installment, or redemption price, if applicable,
23    of  and  interest  due  and to become due on the Bonds on and
24    prior to the redemption date, sinking fund installment  date,
25    or  maturity  date, as the case may be, and (2) the Authority
26    has given the trustee or  other  authorized  agent,  in  form
27    satisfactory  to  it, irrevocable instructions to give notice
28    to the effect and in accordance with the procedures  provided
29    in  the  resolution  authorizing  the  issuance of the Bonds.
30    Neither direct obligations of the United States  of  America,
31    moneys  deposited with the trustee or other authorized agent,
32    or principal or interest payments on the securities shall  be
33    withdrawn  or  used  for any purpose other than, and shall be
34    held in trust for, the payment of the principal or redemption
 
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 1    price, if applicable, and interest on the Bonds.

 2        (105 ILCS 5/1E-105 new)
 3        Sec. 1E-105. Pledge of the State. The State  of  Illinois
 4    pledges  to  and  agrees  with  the holders of Bonds that the
 5    State will not limit or alter the rights and powers vested in
 6    the Authority by this Article with respect to the issuance of
 7    obligations so as to impair the terms of any contract made by
 8    the Authority with these holders or in  any  way  impair  the
 9    rights  and  remedies  of  these  holders  until  the  Bonds,
10    together  with  interest on the Bonds, interest on any unpaid
11    installments of interest,  and  all  costs  and  expenses  in
12    connection  with any action or proceedings by or on behalf of
13    these holders, are fully met  and  discharged  or  provisions
14    made  for  their  payment.  The  Authority  is  authorized to
15    include this  pledge  and  agreement  of  the  State  in  any
16    resolution or contract with the holders of Bonds.

17        (105 ILCS 5/1E-110 new)
18        Sec.  1E-110.  Statutory  lien.  Any  pledge, assignment,
19    lien, or security interest for the benefit of the holders  of
20    Bonds or bond anticipation notes, if any, created pursuant to
21    this  Article  are  valid and binding from the time the Bonds
22    are issued, without any physical delivery or further act, and
23    are valid and binding as against and prior to any  claims  of
24    all  other  parties  having  claims  of  any  kind  in  tort,
25    contract,  or otherwise against the State, the Authority, the
26    district, or any other person, irrespective  of  whether  the
27    other parties have notice.

28        (105 ILCS 5/1E-115 new)
29        Sec. 1E-115. State or district not liable on obligations.
30    Obligations  shall  not be deemed to constitute (i) a debt or
31    liability of  the  State,  the  district,  or  any  political
 
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 1    subdivision of the State or district other than the Authority
 2    or  (ii)  a pledge of the full faith and credit of the State,
 3    the district, or any political subdivision of  the  State  or
 4    district other than the Authority but shall be payable solely
 5    from the funds and revenues provided for in this Article. The
 6    issuance  of  obligations  shall not directly, indirectly, or
 7    contingently  obligate  the  State,  the  district,  or   any
 8    political subdivision of the State or district other than the
 9    Authority  to  levy  any form of taxation therefor or to make
10    any appropriation for their payment. Nothing in this  Section
11    shall  prevent  or be construed to prevent the Authority from
12    pledging  its  full  faith  and  credit  to  the  payment  of
13    obligations. Nothing in this Article shall  be  construed  to
14    authorize  the Authority to create a debt of the State or the
15    district within the meaning of the Constitution  or  laws  of
16    Illinois,   and  all  obligations  issued  by  the  Authority
17    pursuant to the provisions of this Article  are  payable  and
18    shall  state  that they are payable solely from the funds and
19    revenues pledged for their payment  in  accordance  with  the
20    resolution  authorizing their issuance or any trust indenture
21    executed as security therefor.  The  State  or  the  district
22    shall  not  in  any  event  be  liable for the payment of the
23    principal of or interest on any obligations of the  Authority
24    or   for  the  performance  of  any  pledge,  obligation,  or
25    agreement of any kind whatsoever that may  be  undertaken  by
26    the  Authority.  No breach of any such pledge, obligation, or
27    agreement may impose any liability  upon  the  State  or  the
28    district  or  any charge upon their general credit or against
29    their taxing power.

30        (105 ILCS 5/1E-120 new)
31        Sec.  1E-120.  Obligations  as  legal  investments.   The
32    obligations  issued  under the provisions of this Article are
33    hereby made securities  in  which  all  public  officers  and
 
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 1    bodies  of  this  State,  all  political subdivisions of this
 2    State, all persons carrying on  an  insurance  business,  all
 3    banks,  bankers,  trust  companies, saving banks, and savings
 4    associations  (including  savings  and   loan   associations,
 5    building  and  loan  associations,  investment companies, and
 6    other persons carrying on a banking business), and all credit
 7    unions, pension funds, administrators, and guardians who  are
 8    or  may  be  authorized  to  invest  in  bonds  or  in  other
 9    obligations  of  the  State  may  properly and legally invest
10    funds, including capital, in their control  or  belonging  to
11    them.  The  obligations  are also hereby made securities that
12    may be deposited with and  may  be  received  by  all  public
13    officers  and bodies of the State, all political subdivisions
14    of the State, and public corporations  for  any  purpose  for
15    which  the deposit of bonds or other obligations of the State
16    is authorized.

17        (105 ILCS 5/1E-125 new)
18        Sec. 1E-125. Complete authority.  This  Article,  without
19    reference to any other law, shall be deemed full and complete
20    authority  for  the  issuance  of Bonds and bond anticipation
21    notes as provided in this Article.

22        (105 ILCS 5/1E-130 new)
23        Sec. 1E-130. Reports.
24        (a)  The  Authority,  upon  taking  office  and  annually
25    thereafter, shall prepare and submit to the Governor, General
26    Assembly, and State Superintendent a report that includes the
27    audited financial statement for the preceding fiscal year, an
28    approved financial plan, and a statement of the  major  steps
29    necessary to accomplish the objectives of the financial plan.
30        (b)  Annual reports shall be submitted on or before March
31    1 of each year.
32        (c)  The   requirement   for  reporting  to  the  General
 
HB5734 Engrossed            -34-               LRB9214200LDtm
 1    Assembly shall be satisfied by filing copies of the report as
 2    provided in Section 3.1 of the General Assembly  Organization
 3    Act and by filing additional copies with the State Government
 4    Report  Distribution  Center  for  the  General  Assembly  as
 5    required  under  subdivision  (t)  of  Section 7 of the State
 6    Library Act.

 7        (105 ILCS 5/1E-135 new)
 8        Sec. 1E-135. Audit of Authority. The Authority  shall  be
 9    subject  to  audit  in  the  manner provided for the audit of
10    State funds and accounts. A copy of the audit report shall be
11    submitted to the  State  Superintendent,  the  Governor,  the
12    Speaker  and Minority Leader of the House of Representatives,
13    and the President and Minority Leader of the Senate.

14        (105 ILCS 5/1E-140 new)
15        Sec. 1E-140. Assistance by State agencies, units of local
16    government, and school districts. The district  shall  render
17    such  services  to  and  permit the use of its facilities and
18    resources by the Authority at no charge as may  be  requested
19    by the Authority. Any State agency, unit of local government,
20    or  school district may, within its lawful powers and duties,
21    render such services to the Authority as may be requested  by
22    the  Authority.  Upon  request  of  the  Authority, any State
23    agency, unit of  local  government,  or  school  district  is
24    authorized  and  empowered  to  loan  to  the  Authority such
25    officers and employees as the Authority may deem necessary in
26    carrying out its functions and duties. Officers and employees
27    so transferred shall not lose  or  forfeit  their  employment
28    status or rights.

29        (105 ILCS 5/1E-145 new)
30        Sec.  1E-145. Property of Authority exempt from taxation.
31    The property of the Authority is exempt from taxation.
 
HB5734 Engrossed            -35-               LRB9214200LDtm
 1        (105 ILCS 5/1E-150 new)
 2        Sec. 1E-150. Sanctions.
 3        (a)  No  member,  officer,  employee,  or  agent  of  the
 4    district may commit the district to  any  contract  or  other
 5    obligation  or  incur any liability on behalf of the district
 6    for any purpose if the amount of the contract, obligation, or
 7    liability is in excess of  the  amount  authorized  for  that
 8    purpose  then  available  under the financial plan and budget
 9    then in effect.
10        (b)  No  member,  officer,  employee,  or  agent  of  the
11    district may commit the district to  any  contract  or  other
12    obligation on behalf of the district for the payment of money
13    for  any  purpose  required  to  be approved by the Authority
14    unless the contract or other obligation has been approved  by
15    the Authority.
16        (c)  No  member,  officer,  employee,  or  agent  of  the
17    district  may take any action in violation of any valid order
18    of the Authority, may fail  or  refuse  to  take  any  action
19    required by any such order, may prepare, present, certify, or
20    report   any   information,   including  any  projections  or
21    estimates, for the Authority or any of  its  agents  that  is
22    false   or  misleading,  or,  upon  learning  that  any  such
23    information is false or  misleading,  may  fail  promptly  to
24    advise the Authority or its agents.
25        (d)  In  addition  to  any penalty or liability under any
26    other law, any member, officer, employee,  or  agent  of  the
27    district  who  violates  subsection  (a), (b), or (c) of this
28    Section is subject to appropriate  administrative  discipline
29    as  may be imposed by the Authority, including, if warranted,
30    suspension from duty without pay,  removal  from  office,  or
31    termination of employment.

32        (105 ILCS 5/1E-155 new)
33        Sec.  1E-155. Abolition of Authority. The Authority shall
 
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 1    be abolished 10 years after its creation or  one  year  after
 2    all  its  obligations  issued  under  the  provisions of this
 3    Article have been fully paid and discharged, whichever  comes
 4    later.  However,  the State Board, upon recommendation of the
 5    Authority and if no obligations are outstanding, may  abolish
 6    the  Authority  at  any  time after the Authority has been in
 7    existence for 3 years. Upon the abolition of  the  Authority,
 8    all  of  its  records shall be transferred to the State Board
 9    and any property of the Authority shall pass to and be vested
10    in the State Board.

11        (105 ILCS 5/1E-160 new)
12        Sec. 1E-160.  Limitations  of  actions  after  abolition;
13    indemnification; legal representation.
14        (a)  Abolition  of  the  Authority  pursuant  to  Section
15    1E-155  of  this  Code shall bar any remedy available against
16    the Authority, its members,  employees,  or  agents  for  any
17    right  or  claim  existing or any liability incurred prior to
18    the abolition  unless  the  action  or  other  proceeding  is
19    commenced  prior  to the expiration of 2 years after the date
20    of the abolition.
21        (b)  The Authority may  indemnify  any  member,  officer,
22    employee,  or agent who was or is a party or is threatened to
23    be made a party to  any  threatened,  pending,  or  completed
24    action,   suit,   or  proceeding,  whether  civil,  criminal,
25    administrative, or investigative, by reason of the fact  that
26    he  or  she  was a member, officer, employee, or agent of the
27    Authority,  against  expenses  (including  attorney's   fees,
28    judgments, fines, and amounts paid in settlement actually and
29    reasonably  incurred  by  him  or  her in connection with the
30    action, suit, or proceeding) if he or she acted in good faith
31    and in a manner that he or she reasonably believed to  be  in
32    or  not  opposed  to the best interests of the Authority and,
33    with respect to any criminal action  or  proceeding,  had  no
 
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 1    reasonable  cause to believe his or her conduct was unlawful.
 2    The  termination  of  any  action,  suit,  or  proceeding  by
 3    judgment, order, settlement, or conviction or upon a plea  of
 4    nolo  contendere  or  its  equivalent,  shall not, of itself,
 5    create a presumption that the person  did  not  act  in  good
 6    faith in a manner that he or she reasonably believed to be in
 7    or  not  opposed  to  the best interest of the Authority and,
 8    with respect  to  any  criminal  action  or  proceeding,  had
 9    reasonable  cause  to  believe  that  his  or her conduct was
10    unlawful.
11        To the extent that a member, officer, employee, or  agent
12    of  the  Authority  has  been  successful,  on  the merits or
13    otherwise, in the  defense  of  any  such  action,  suit,  or
14    proceeding  referred  to in this subsection (b) or in defense
15    of any claim, issue, or matter therein, he or  she  shall  be
16    indemnified  against  expenses,  including  attorney's  fees,
17    actually  and reasonably incurred by him or her in connection
18    therewith. Any such indemnification  shall  be  made  by  the
19    Authority  only  as  authorized  in the specific case, upon a
20    determination that indemnification of  the  member,  officer,
21    employee,  or agent is proper in the circumstances because he
22    or she has  met  the  applicable  standard  of  conduct.  The
23    determination  shall  be  made  (i)  by  the  Authority  by a
24    majority vote of a quorum consisting of members who  are  not
25    parties  to the action, suit, or proceeding or (ii) if such a
26    quorum is not obtainable or, even if obtainable, a quorum  of
27    disinterested   members  so  directs,  by  independent  legal
28    counsel in a written opinion.
29        Reasonable expenses  incurred  in  defending  an  action,
30    suit, or proceeding shall be paid by the Authority in advance
31    of  the final disposition of the action, suit, or proceeding,
32    as authorized by the Authority in  the  specific  case,  upon
33    receipt  of  an  undertaking  by  or on behalf of the member,
34    officer, employee, or agent to repay the amount, unless it is
 
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 1    ultimately determined that  he  or  she  is  entitled  to  be
 2    indemnified by the Authority as authorized in this Section.
 3        Any  member, officer, employee, or agent against whom any
 4    action, suit, or proceeding is brought may employ his or  her
 5    own attorney to appear on his or her behalf.
 6        The  right  to  indemnification  accorded by this Section
 7    shall not limit any other right to indemnification  to  which
 8    the  member, officer, employee, or agent may be entitled. Any
 9    rights under this Section shall inure to the benefit  of  the
10    heirs,  executors, and administrators of any member, officer,
11    employee, or agent of the Authority.
12        The Authority may  purchase  and  maintain  insurance  on
13    behalf  of  any  person  who  is  or  was  a member, officer,
14    employee, or agent of the  Authority  against  any  liability
15    asserted against him or her and incurred by him or her in any
16    such  capacity  or  arising out of his or her status as such,
17    whether  or  not  the  Authority  would  have  the  power  to
18    indemnify  him  or  her  against  the  liability  under   the
19    provisions of this Section.
20        The  Authority  shall  be  considered  a State agency for
21    purposes of receiving representation by the Attorney General.
22    Members, officers, employees, and  agents  of  the  Authority
23    shall be entitled to representation and indemnification under
24    the State Employee Indemnification Act.

25        (105 ILCS 5/34-53.5 new)
26        Sec.  34-53.5.  Capital  improvement  tax  levy; purpose;
27    maximum amount.
28        (a)  For the purpose of providing a  reliable  source  of
29    revenue  for  capital improvement purposes, including without
30    limitation (i) the construction and equipping of a new school
31    building or buildings or  an  addition  or  additions  to  an
32    existing  school  building or buildings, (ii) the purchase of
33    school grounds  on  which  any  new  school  building  or  an
 
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 1    addition  to an existing school building is to be constructed
 2    or located, (iii) both items (i) and (ii) of this  subsection
 3    (a), or (iv) the rehabilitation, renovation, and equipping of
 4    an existing school building or buildings, the board may levy,
 5    upon all taxable property of the school district, in calendar
 6    year  2003,  a  capital  improvement  tax  to  produce,  when
 7    extended,  an  amount  not  to exceed the product attained by
 8    multiplying (1) the  percentage  increase,  if  any,  in  the
 9    Consumer  Price  Index  for All Urban Consumers for all items
10    published by the United States Department of Labor for the 12
11    months ending 2 months prior to the month in which  the  levy
12    is   adopted  by  (2)  $142,500,000.   For  example,  if  the
13    percentage increase in the Consumer Price Index is 2.5%, then
14    the computation would be $142,500,000 x 0.025 = $3,562,500.
15        (b)  In each calendar year from 2004  through  2030,  the
16    board  may  levy  a  capital improvement tax to produce, when
17    extended, an amount not to exceed the sum of (1) the  maximum
18    amount  that  could  have  been  levied  by  the board in the
19    preceding calendar year pursuant to this Section and (2)  the
20    product  obtained  by  multiplying  (A)  the  sum  of (i) the
21    maximum amount that could have been levied by  the  board  in
22    the preceding calendar year pursuant to this Section and (ii)
23    $142,500,000  by  (B) the percentage increase, if any, in the
24    Consumer Price Index for All Urban Consumers  for  all  items
25    published by the United States Department of Labor for the 12
26    months  ending  2 months prior to the month in which the levy
27    is adopted.
28        (c)  In calendar year 2031, the board may levy a  capital
29    improvement  tax  to produce, when extended, an amount not to
30    exceed the sum of (1) the maximum amount that could have been
31    levied by the board in calendar year 2030  pursuant  to  this
32    Section,  (2)  $142,500,000,  and (3) the product obtained by
33    multiplying (A) the sum of (i) the maximum amount that  could
34    have  been levied by the board in calendar year 2030 pursuant
 
HB5734 Engrossed            -40-               LRB9214200LDtm
 1    to this Section and (ii) $142,500,000 by (B)  the  percentage
 2    increase,  if  any, in the Consumer Price Index for All Urban
 3    Consumers for  all  items  published  by  the  United  States
 4    Department  of  Labor for the 12 months ending 2 months prior
 5    to the month in which the levy is adopted.
 6        (d)  In  calendar  year  2032  and  each  calendar   year
 7    thereafter,  the  board may levy a capital improvement tax to
 8    produce, when extended, an amount not to exceed  the  sum  of
 9    (1)  the  maximum  amount  that could have been levied by the
10    board in the preceding calendar year pursuant to this Section
11    and (2) the product obtained by multiplying (A)  the  maximum
12    amount  that  could  have  been  levied  by  the board in the
13    preceding calendar year pursuant to this Section by  (B)  the
14    percentage  increase, if any, in the Consumer Price Index for
15    All Urban Consumers for all items  published  by  the  United
16    States  Department of Labor for the 12 months ending 2 months
17    prior to the month in which the levy is adopted.
18        (e)  An initial tax levy made by  the  board  under  this
19    Section  must  have the approval of the Chicago City Council,
20    by resolution, before the levy may be extended.    The  board
21    shall  communicate  its  adoption  of the initial tax levy by
22    delivering a certified copy of the  levy  resolution  to  the
23    Clerk of the City of Chicago.  The Chicago City Council shall
24    have  60  days  after  receipt,  by  the Clerk of the City of
25    Chicago, of the certified resolution to approve or disapprove
26    the levy.  The failure of the Chicago City  Council  to  take
27    action  to  approve or disapprove the initial tax levy within
28    the 60-day period shall be deemed disapproval of the  initial
29    tax  levy.   Upon the adoption of each subsequent levy by the
30    board under this Section, the board must notify  the  Chicago
31    City Council that the board has adopted the levy.
32        (f)  The  board  may  issue bonds, in accordance with the
33    Local Government Debt Reform Act,  including  Section  15  of
34    that  Act,  against  any  revenues  to  be collected from the
 
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 1    capital improvement tax in any year or years and may  pledge,
 2    pursuant  to  Section  13 of the Local Government Debt Reform
 3    Act, those revenues as security for the payment of  any  such
 4    bonds.

 5        Section 15.  The Illinois Educational Labor Relations Act
 6    is amended by changing Section 2 as follows:

 7        (115 ILCS 5/2) (from Ch. 48, par. 1702)
 8        Sec. 2.  Definitions. As used in this Act:
 9        (a)  "Educational   employer"  or  "employer"  means  the
10    governing body of a public school  district,  combination  of
11    public  school  districts,  including  the  governing body of
12    joint agreements of any type  formed  by  2  or  more  school
13    districts, public community college district or State college
14    or  university,  and any State agency whose major function is
15    providing educational  services.  "Educational  employer"  or
16    "employer"  does  not  include  a  Financial  Oversight Panel
17    created pursuant to Section 1A-8 of the School Code due to  a
18    district violating a financial plan but does include a School
19    Finance  Authority  created  under  Article  1E of the School
20    Code.
21        (b)  "Educational  employee"  or  "employee"  means   any
22    individual,  excluding supervisors, managerial, confidential,
23    short  term  employees,  student,  and   part-time   academic
24    employees of community colleges employed full or part time by
25    an  educational  employer,  but  shall  not  include  elected
26    officials  and appointees of the Governor with the advice and
27    consent of the Senate, firefighters as defined by  subsection
28    (g-1)  of  Section  3  of the Illinois Public Labor Relations
29    Act, and peace officers employed by a State university.   For
30    the  purposes  of  this  Act, part-time academic employees of
31    community colleges shall be defined as  those  employees  who
32    provide  less than 6 credit hours of instruction per academic
 
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 1    semester.
 2        (c)  "Employee  organization"  or  "labor   organization"
 3    means  an  organization  of  any  kind  in  which  membership
 4    includes  educational  employees,  and  which  exists for the
 5    purpose, in whole or  in  part,  of  dealing  with  employers
 6    concerning  grievances,  employee-employer  disputes,  wages,
 7    rates of pay, hours of employment, or conditions of work, but
 8    shall   not   include   any   organization   which  practices
 9    discrimination in membership because of race,  color,  creed,
10    age, gender, national origin or political affiliation.
11        (d)  "Exclusive    representative"    means   the   labor
12    organization  which  has  been  designated  by  the  Illinois
13    Educational Labor Relations Board as  the  representative  of
14    the majority of educational employees in an appropriate unit,
15    or  recognized by an educational employer prior to January 1,
16    1984 as the exclusive representative of the employees  in  an
17    appropriate  unit or, after January 1, 1984, recognized by an
18    employer upon evidence that  the  employee  organization  has
19    been designated as the exclusive representative by a majority
20    of the employees in an appropriate unit.
21        (e)  "Board"   means   the   Illinois  Educational  Labor
22    Relations Board.
23        (f)  "Regional   Superintendent"   means   the   regional
24    superintendent of schools provided for in Articles 3  and  3A
25    of The School Code.
26        (g)  "Supervisor"  means  any individual having authority
27    in the interests of the employer to hire, transfer,  suspend,
28    lay  off,  recall,  promote,  discharge, reward or discipline
29    other employees within the appropriate  bargaining  unit  and
30    adjust  their  grievances,  or  to effectively recommend such
31    action if the exercise of such authority is not of  a  merely
32    routine   or   clerical   nature  but  requires  the  use  of
33    independent judgment.  The term  "supervisor"  includes  only
34    those   individuals  who  devote  a  preponderance  of  their
 
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 1    employment time to such exercising authority.
 2        (h)  "Unfair labor practice" or "unfair  practice"  means
 3    any practice prohibited by Section 14 of this Act.
 4        (i)  "Person"   includes   an   individual,   educational
 5    employee,  educational  employer,  legal  representative,  or
 6    employee organization.
 7        (j)  "Wages"   means   salaries   or   other   forms   of
 8    compensation for services rendered.
 9        (k)  "Professional  employee"  means,  in  the  case of a
10    public community college, State college or university,  State
11    agency   whose   major   function  is  providing  educational
12    services, the Illinois School for the Deaf, and the  Illinois
13    School for the Visually Impaired, (1) any employee engaged in
14    work  (i)  predominantly intellectual and varied in character
15    as opposed to routine mental, manual, mechanical, or physical
16    work; (ii) involving the consistent  exercise  of  discretion
17    and judgment in its performance; (iii) of such character that
18    the  output  produced  or  the  result accomplished cannot be
19    standardized in relation to a given period of time; and  (iv)
20    requiring knowledge of an advanced type in a field of science
21    or  learning  customarily  acquired  by a prolonged course of
22    specialized  intellectual  instruction  and   study   in   an
23    institution   of   higher   learning   or   a   hospital,  as
24    distinguished from a general academic education  or  from  an
25    apprenticeship or from training in the performance of routine
26    mental,  manual,  or physical processes; or (2) any employee,
27    who (i) has completed the courses of specialized intellectual
28    instruction and study described in clause (iv)  of  paragraph
29    (1)  of  this subsection, and (ii) is performing related work
30    under the supervision of a  professional  person  to  qualify
31    himself  or  herself  to  become a professional as defined in
32    paragraph (l).
33        (l)  "Professional employee" means, in the  case  of  any
34    public  school  district,  or combination of school districts
 
HB5734 Engrossed            -44-               LRB9214200LDtm
 1    pursuant  to  joint  agreement,  any  employee  who   has   a
 2    certificate  issued  under Article 21 or Section 34-83 of the
 3    School Code, as now or hereafter amended.
 4        (m)  "Unit" or  "bargaining  unit"  means  any  group  of
 5    employees for which an exclusive representative is selected.
 6        (n)  "Confidential  employee"  means an employee, who (i)
 7    in the regular course of his or her duties, assists and  acts
 8    in   a   confidential  capacity  to  persons  who  formulate,
 9    determine and effectuate management policies with  regard  to
10    labor  relations  or who (ii) in the regular course of his or
11    her  duties  has  access  to  information  relating  to   the
12    effectuation   or   review   of   the  employer's  collective
13    bargaining policies.
14        (o)  "Managerial employee" means  an  individual  who  is
15    engaged  predominantly  in executive and management functions
16    and is charged  with  the  responsibility  of  directing  the
17    effectuation of such management policies and practices.
18        (p)  "Craft  employee"  means a skilled journeyman, craft
19    person, and his or her apprentice or helper.
20        (q)  "Short-term employee" is an employee who is employed
21    for less  than  2  consecutive  calendar  quarters  during  a
22    calendar  year  and  who does not have a reasonable assurance
23    that he or she will be rehired by the same employer  for  the
24    same  service in a subsequent calendar year.  Nothing in this
25    subsection shall affect the employee  status  of  individuals
26    who  were covered by a collective bargaining agreement on the
27    effective date of this amendatory Act of 1991.
28    (Source: P.A. 89-409, eff. 11-15-95; 89-572, eff. 7-30-96.)

29        Section 99.  Effective date.  This Act takes effect  upon
30    becoming law.

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