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92_SB0022 LRB9201505NTsb 1 AN ACT concerning education. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Property Tax Code is amended by changing 5 Section 18-185 and by adding 18-201 as follows: 6 (35 ILCS 200/18-185) 7 Sec. 18-185. Short title; definitions. This Division 5 8 may be cited as the Property Tax Extension Limitation Law. 9 As used in this Division 5: 10 "Consumer Price Index" means the Consumer Price Index for 11 All Urban Consumers for all items published by the United 12 States Department of Labor. 13 "Extension limitation" means (a) the lesser of 5% or the 14 percentage increase in the Consumer Price Index during the 15 12-month calendar year preceding the levy year or (b) the 16 rate of increase approved by voters under Section 18-205. 17 "Affected county" means a county of 3,000,000 or more 18 inhabitants or a county contiguous to a county of 3,000,000 19 or more inhabitants. 20 "Taxing district" has the same meaning provided in 21 Section 1-150, except as otherwise provided in this Section. 22 For the 1991 through 1994 levy years only, "taxing district" 23 includes only each non-home rule taxing district having the 24 majority of its 1990 equalized assessed value within any 25 county or counties contiguous to a county with 3,000,000 or 26 more inhabitants. Beginning with the 1995 levy year, "taxing 27 district" includes only each non-home rule taxing district 28 subject to this Law before the 1995 levy year and each 29 non-home rule taxing district not subject to this Law before 30 the 1995 levy year having the majority of its 1994 equalized 31 assessed value in an affected county or counties. Beginning -2- LRB9201505NTsb 1 with the levy year in which this Law becomes applicable to a 2 taxing district as provided in Section 18-213, "taxing 3 district" also includes those taxing districts made subject 4 to this Law as provided in Section 18-213. 5 "Aggregate extension" for taxing districts to which this 6 Law applied before the 1995 levy year means the annual 7 corporate extension for the taxing district and those special 8 purpose extensions that are made annually for the taxing 9 district, excluding special purpose extensions: (a) made for 10 the taxing district to pay interest or principal on general 11 obligation bonds that were approved by referendum; (b) made 12 for any taxing district to pay interest or principal on 13 general obligation bonds issued before October 1, 1991; (c) 14 made for any taxing district to pay interest or principal on 15 bonds issued to refund or continue to refund those bonds 16 issued before October 1, 1991; (d) made for any taxing 17 district to pay interest or principal on bonds issued to 18 refund or continue to refund bonds issued after October 1, 19 1991 that were approved by referendum; (e) made for any 20 taxing district to pay interest or principal on revenue bonds 21 issued before October 1, 1991 for payment of which a property 22 tax levy or the full faith and credit of the unit of local 23 government is pledged; however, a tax for the payment of 24 interest or principal on those bonds shall be made only after 25 the governing body of the unit of local government finds that 26 all other sources for payment are insufficient to make those 27 payments; (f) made for payments under a building commission 28 lease when the lease payments are for the retirement of bonds 29 issued by the commission before October 1, 1991, to pay for 30 the building project; (g) made for payments due under 31 installment contracts entered into before October 1, 1991; 32 (h) made for payments of principal and interest on bonds 33 issued under the Metropolitan Water Reclamation District Act 34 to finance construction projects initiated before October 1, -3- LRB9201505NTsb 1 1991; (i) made for payments of principal and interest on 2 limited bonds, as defined in Section 3 of the Local 3 Government Debt Reform Act, in an amount not to exceed the 4 debt service extension base less the amount in items (b), 5 (c), (e), and (h) of this definition for non-referendum 6 obligations, except obligations initially issued pursuant to 7 referendum; (j) made for payments of principal and interest 8 on bonds issued under Section 15 of the Local Government Debt 9 Reform Act; and (k) made by a school district that 10 participates in the Special Education District of Lake 11 County, created by special education joint agreement under 12 Section 10-22.31 of the School Code, for payment of the 13 school district's share of the amounts required to be 14 contributed by the Special Education District of Lake County 15 to the Illinois Municipal Retirement Fund under Article 7 of 16 the Illinois Pension Code; the amount of any extension under 17 this item (k) shall be certified by the school district to 18 the county clerk. 19 "Aggregate extension" for the taxing districts to which 20 this Law did not apply before the 1995 levy year (except 21 taxing districts subject to this Law in accordance with 22 Section 18-213) means the annual corporate extension for the 23 taxing district and those special purpose extensions that are 24 made annually for the taxing district, excluding special 25 purpose extensions: (a) made for the taxing district to pay 26 interest or principal on general obligation bonds that were 27 approved by referendum; (b) made for any taxing district to 28 pay interest or principal on general obligation bonds issued 29 before March 1, 1995; (c) made for any taxing district to pay 30 interest or principal on bonds issued to refund or continue 31 to refund those bonds issued before March 1, 1995; (d) made 32 for any taxing district to pay interest or principal on bonds 33 issued to refund or continue to refund bonds issued after 34 March 1, 1995 that were approved by referendum; (e) made for -4- LRB9201505NTsb 1 any taxing district to pay interest or principal on revenue 2 bonds issued before March 1, 1995 for payment of which a 3 property tax levy or the full faith and credit of the unit of 4 local government is pledged; however, a tax for the payment 5 of interest or principal on those bonds shall be made only 6 after the governing body of the unit of local government 7 finds that all other sources for payment are insufficient to 8 make those payments; (f) made for payments under a building 9 commission lease when the lease payments are for the 10 retirement of bonds issued by the commission before March 1, 11 1995 to pay for the building project; (g) made for payments 12 due under installment contracts entered into before March 1, 13 1995; (h) made for payments of principal and interest on 14 bonds issued under the Metropolitan Water Reclamation 15 District Act to finance construction projects initiated 16 before October 1, 1991; (i) made for payments of principal 17 and interest on limited bonds, as defined in Section 3 of the 18 Local Government Debt Reform Act, in an amount not to exceed 19 the debt service extension base less the amount in items (b), 20 (c), and (e) of this definition for non-referendum 21 obligations, except obligations initially issued pursuant to 22 referendum and bonds described in subsection (h) of this 23 definition; (j) made for payments of principal and interest 24 on bonds issued under Section 15 of the Local Government Debt 25 Reform Act; (k) made for payments of principal and interest 26 on bonds authorized by Public Act 88-503 and issued under 27 Section 20a of the Chicago Park District Act for aquarium or 28 museum projects; and (l) made for payments of principal and 29 interest on bonds authorized by Public Act 87-1191 and issued 30 under Section 42 of the Cook County Forest Preserve District 31 Act for zoological park projects. 32 "Aggregate extension" for all taxing districts to which 33 this Law applies in accordance with Section 18-213, except 34 for those taxing districts subject to paragraph (2) of -5- LRB9201505NTsb 1 subsection (e) of Section 18-213, means the annual corporate 2 extension for the taxing district and those special purpose 3 extensions that are made annually for the taxing district, 4 excluding special purpose extensions: (a) made for the taxing 5 district to pay interest or principal on general obligation 6 bonds that were approved by referendum; (b) made for any 7 taxing district to pay interest or principal on general 8 obligation bonds issued before the date on which the 9 referendum making this Law applicable to the taxing district 10 is held; (c) made for any taxing district to pay interest or 11 principal on bonds issued to refund or continue to refund 12 those bonds issued before the date on which the referendum 13 making this Law applicable to the taxing district is held; 14 (d) made for any taxing district to pay interest or principal 15 on bonds issued to refund or continue to refund bonds issued 16 after the date on which the referendum making this Law 17 applicable to the taxing district is held if the bonds were 18 approved by referendum after the date on which the referendum 19 making this Law applicable to the taxing district is held; 20 (e) made for any taxing district to pay interest or principal 21 on revenue bonds issued before the date on which the 22 referendum making this Law applicable to the taxing district 23 is held for payment of which a property tax levy or the full 24 faith and credit of the unit of local government is pledged; 25 however, a tax for the payment of interest or principal on 26 those bonds shall be made only after the governing body of 27 the unit of local government finds that all other sources for 28 payment are insufficient to make those payments; (f) made for 29 payments under a building commission lease when the lease 30 payments are for the retirement of bonds issued by the 31 commission before the date on which the referendum making 32 this Law applicable to the taxing district is held to pay for 33 the building project; (g) made for payments due under 34 installment contracts entered into before the date on which -6- LRB9201505NTsb 1 the referendum making this Law applicable to the taxing 2 district is held; (h) made for payments of principal and 3 interest on limited bonds, as defined in Section 3 of the 4 Local Government Debt Reform Act, in an amount not to exceed 5 the debt service extension base less the amount in items (b), 6 (c), and (e) of this definition for non-referendum 7 obligations, except obligations initially issued pursuant to 8 referendum; (i) made for payments of principal and interest 9 on bonds issued under Section 15 of the Local Government Debt 10 Reform Act; and (j) made for a qualified airport authority to 11 pay interest or principal on general obligation bonds issued 12 for the purpose of paying obligations due under, or financing 13 airport facilities required to be acquired, constructed, 14 installed or equipped pursuant to, contracts entered into 15 before March 1, 1996 (but not including any amendments to 16 such a contract taking effect on or after that date). 17 "Aggregate extension" for all taxing districts to which 18 this Law applies in accordance with paragraph (2) of 19 subsection (e) of Section 18-213 means the annual corporate 20 extension for the taxing district and those special purpose 21 extensions that are made annually for the taxing district, 22 excluding special purpose extensions: (a) made for the taxing 23 district to pay interest or principal on general obligation 24 bonds that were approved by referendum; (b) made for any 25 taxing district to pay interest or principal on general 26 obligation bonds issued before the effective date of this 27 amendatory Act of 1997; (c) made for any taxing district to 28 pay interest or principal on bonds issued to refund or 29 continue to refund those bonds issued before the effective 30 date of this amendatory Act of 1997; (d) made for any taxing 31 district to pay interest or principal on bonds issued to 32 refund or continue to refund bonds issued after the effective 33 date of this amendatory Act of 1997 if the bonds were 34 approved by referendum after the effective date of this -7- LRB9201505NTsb 1 amendatory Act of 1997; (e) made for any taxing district to 2 pay interest or principal on revenue bonds issued before the 3 effective date of this amendatory Act of 1997 for payment of 4 which a property tax levy or the full faith and credit of the 5 unit of local government is pledged; however, a tax for the 6 payment of interest or principal on those bonds shall be made 7 only after the governing body of the unit of local government 8 finds that all other sources for payment are insufficient to 9 make those payments; (f) made for payments under a building 10 commission lease when the lease payments are for the 11 retirement of bonds issued by the commission before the 12 effective date of this amendatory Act of 1997 to pay for the 13 building project; (g) made for payments due under installment 14 contracts entered into before the effective date of this 15 amendatory Act of 1997; (h) made for payments of principal 16 and interest on limited bonds, as defined in Section 3 of the 17 Local Government Debt Reform Act, in an amount not to exceed 18 the debt service extension base less the amount in items (b), 19 (c), and (e) of this definition for non-referendum 20 obligations, except obligations initially issued pursuant to 21 referendum; (i) made for payments of principal and interest 22 on bonds issued under Section 15 of the Local Government Debt 23 Reform Act; and (j) made for a qualified airport authority to 24 pay interest or principal on general obligation bonds issued 25 for the purpose of paying obligations due under, or financing 26 airport facilities required to be acquired, constructed, 27 installed or equipped pursuant to, contracts entered into 28 before March 1, 1996 (but not including any amendments to 29 such a contract taking effect on or after that date). 30 "Debt service extension base" means an amount equal to 31 that portion of the extension for a taxing district for the 32 1994 levy year, or for those taxing districts subject to this 33 Law in accordance with Section 18-213, except for those 34 subject to paragraph (2) of subsection (e) of Section 18-213, -8- LRB9201505NTsb 1 for the levy year in which the referendum making this Law 2 applicable to the taxing district is held, or for those 3 taxing districts subject to this Law in accordance with 4 paragraph (2) of subsection (e) of Section 18-213 for the 5 1996 levy year, constituting an extension for payment of 6 principal and interest on bonds issued by the taxing district 7 without referendum, but not including (i) bonds authorized by 8 Public Act 88-503 and issued under Section 20a of the Chicago 9 Park District Act for aquarium and museum projects; (ii) 10 bonds issued under Section 15 of the Local Government Debt 11 Reform Act;or(iii) refunding obligations issued to refund 12 or to continue to refund obligations initially issued 13 pursuant to referendum; or (iv) bonds issued for fire 14 prevention and safety purposes under Section 17-2.11 of the 15 School Code after the effective date of this amendatory Act 16 of the 92nd General Assembly and bonds issued to refund the 17 fire prevention and safety bonds issued after the effective 18 date of this amendatory Act of the 92nd General Assembly. The 19 debt service extension base may be established or increased 20 as provided under Section 18-212. 21 "Special purpose extensions" include, but are not limited 22 to, extensions for levies made on an annual basis for 23 unemployment and workers' compensation, self-insurance, 24 contributions to pension plans, and extensions made pursuant 25 to Section 6-601 of the Illinois Highway Code for a road 26 district's permanent road fund whether levied annually or 27 not. The extension for a special service area is not 28 included in the aggregate extension. 29 "Aggregate extension base" means the taxing district's 30 last preceding aggregate extension as adjusted under Sections 31 18-215 through 18-230. 32 "Levy year" has the same meaning as "year" under Section 33 1-155. 34 "New property" means (i) the assessed value, after final -9- LRB9201505NTsb 1 board of review or board of appeals action, of new 2 improvements or additions to existing improvements on any 3 parcel of real property that increase the assessed value of 4 that real property during the levy year multiplied by the 5 equalization factor issued by the Department under Section 6 17-30 and (ii) the assessed value, after final board of 7 review or board of appeals action, of real property not 8 exempt from real estate taxation, which real property was 9 exempt from real estate taxation for any portion of the 10 immediately preceding levy year, multiplied by the 11 equalization factor issued by the Department under Section 12 17-30. In addition, the county clerk in a county containing 13 a population of 3,000,000 or more shall include in the 1997 14 recovered tax increment value for any school district, any 15 recovered tax increment value that was applicable to the 1995 16 tax year calculations. 17 "Qualified airport authority" means an airport authority 18 organized under the Airport Authorities Act and located in a 19 county bordering on the State of Wisconsin and having a 20 population in excess of 200,000 and not greater than 500,000. 21 "Recovered tax increment value" means, except as 22 otherwise provided in this paragraph, the amount of the 23 current year's equalized assessed value, in the first year 24 after a municipality terminates the designation of an area as 25 a redevelopment project area previously established under the 26 Tax Increment Allocation Development Act in the Illinois 27 Municipal Code, previously established under the Industrial 28 Jobs Recovery Law in the Illinois Municipal Code, or 29 previously established under the Economic Development Area 30 Tax Increment Allocation Act, of each taxable lot, block, 31 tract, or parcel of real property in the redevelopment 32 project area over and above the initial equalized assessed 33 value of each property in the redevelopment project area. 34 For the taxes which are extended for the 1997 levy year, the -10- LRB9201505NTsb 1 recovered tax increment value for a non-home rule taxing 2 district that first became subject to this Law for the 1995 3 levy year because a majority of its 1994 equalized assessed 4 value was in an affected county or counties shall be 5 increased if a municipality terminated the designation of an 6 area in 1993 as a redevelopment project area previously 7 established under the Tax Increment Allocation Development 8 Act in the Illinois Municipal Code, previously established 9 under the Industrial Jobs Recovery Law in the Illinois 10 Municipal Code, or previously established under the Economic 11 Development Area Tax Increment Allocation Act, by an amount 12 equal to the 1994 equalized assessed value of each taxable 13 lot, block, tract, or parcel of real property in the 14 redevelopment project area over and above the initial 15 equalized assessed value of each property in the 16 redevelopment project area. In the first year after a 17 municipality removes a taxable lot, block, tract, or parcel 18 of real property from a redevelopment project area 19 established under the Tax Increment Allocation Development 20 Act in the Illinois Municipal Code, the Industrial Jobs 21 Recovery Law in the Illinois Municipal Code, or the Economic 22 Development Area Tax Increment Allocation Act, "recovered tax 23 increment value" means the amount of the current year's 24 equalized assessed value of each taxable lot, block, tract, 25 or parcel of real property removed from the redevelopment 26 project area over and above the initial equalized assessed 27 value of that real property before removal from the 28 redevelopment project area. 29 Except as otherwise provided in this Section, "limiting 30 rate" means a fraction the numerator of which is the last 31 preceding aggregate extension base times an amount equal to 32 one plus the extension limitation defined in this Section and 33 the denominator of which is the current year's equalized 34 assessed value of all real property in the territory under -11- LRB9201505NTsb 1 the jurisdiction of the taxing district during the prior levy 2 year. For those taxing districts that reduced their 3 aggregate extension for the last preceding levy year, the 4 highest aggregate extension in any of the last 3 preceding 5 levy years shall be used for the purpose of computing the 6 limiting rate. The denominator shall not include new 7 property. The denominator shall not include the recovered 8 tax increment value. 9 (Source: P.A. 90-485, eff. 1-1-98; 90-511, eff. 8-22-97; 10 90-568, eff. 1-1-99; 90-616, eff. 7-10-98; 90-655, eff. 11 7-30-98; 91-357, eff. 7-29-99; 91-478, eff. 11-1-99.) 12 (35 ILCS 200/18-201 new) 13 Sec. 18-201. School districts. 14 (a) The aggregate extension for a school district shall 15 not include any extension (i) made for fire prevention and 16 safety purposes under Section 17-2.11 of the School Code 17 produced by that portion of the rate for that purpose in 18 excess of the district's maximum permissible rate for that 19 purpose immediately prior to the effective date of this 20 amendatory Act of the 92nd General Assembly, (ii) made for 21 payments of principal and interest on fire prevention and 22 safety bonds issued under Section 17-2.11 of the School Code 23 after the effective date of this amendatory Act of the 92nd 24 General Assembly or on bonds issued to refund the fire 25 prevention and safety bonds issued after the effective date 26 of this amendatory Act of the 92nd General Assembly, (iii) 27 made for operations and maintenance purposes under Section 28 17-2 of the School Code produced by that portion of the rate 29 for that purpose in excess of the district's maximum 30 permissible rate for that purpose immediately prior to the 31 effective date of this amendatory Act of the 92nd General 32 Assembly, or (iv) made for capital improvement purposes under 33 Section 17-2.3 of the School Code produced by that portion of -12- LRB9201505NTsb 1 the rate for that purpose in excess of the district's maximum 2 permissible rate for that purpose immediately prior to the 3 effective date of this amendatory Act of the 92nd General 4 Assembly. 5 (b) The requirements of Section 18-190 of this Code for 6 a direct referendum on the imposition of a new or increased 7 tax rate shall not apply to the tax levies that are not 8 included in the aggregate extension pursuant to this Section. 9 (35 ILCS 200/18-200 rep.) 10 Section 10. The Property Tax Code is amended by 11 repealing Section 18-200. 12 Section 15. The School Code is amended by changing 13 Sections 2-3.12, 10-22.14, 17-2, 17-2.2, 17-2.3, 17-2.11, and 14 19-1 as follows: 15 (105 ILCS 5/2-3.12) (from Ch. 122, par. 2-3.12) 16 Sec. 2-3.12. School building code. To prepare for school 17 boards with the advice of the Department of Public Health, 18 the Capital Development Board, and the State Fire Marshal a 19 school building code that will conserve the health and safety 20 and general welfare of the pupils and school personnel and 21 others who use public school facilities. 22 The document known as "Efficient and Adequate Standards 23 for the Construction of Schools" applies only to temporary 24 school facilities, new school buildings, and additions to 25 existing schools whose construction contracts are awarded 26 after July 1, 1965. On or before July 1, 1967, each school 27 board shall have its school district buildings that were 28 constructed prior to January 1, 1955, surveyed by an 29 architect or engineer licensed in the State of Illinois as to 30 minimum standards necessary to conserve the health and safety 31 of the pupils enrolled in the school buildings of the -13- LRB9201505NTsb 1 district. Buildings constructed between January 1, 1955 and 2 July 1, 1965, not owned by the State of Illinois, shall be 3 surveyed by an architect or engineer licensed in the State of 4 Illinois beginning 10 years after acceptance of the completed 5 building by the school board. Buildings constructed between 6 January 1, 1955 and July 1, 1955 and previously exempt under 7 the provisions of Section 35-27 shall be surveyed prior to 8 July 1, 1977 by an architect or engineer licensed in the 9 State of Illinois. The architect or engineer, using the 10 document known as "Building Specifications for Health and 11 Safety in Public Schools" as a guide, shall make a report of 12 the findings of the survey to the school board, giving 13 priority in that report to fire safety problems and 14 recommendations thereon if any such problems exist. The 15 school board of each district so surveyed and receiving a 16 report of needed recommendations to be made to improve 17 standards of safety and health of the pupils enrolled has 18 until July 1, 1970, or in case of buildings not owned by the 19 State of Illinois and completed between January 1, 1955 and 20 July 1, 1965 or in the case of buildings previously exempt 21 under the provisions of Section 35-27 has a period of 3 years 22 after the survey is commenced, to effectuate those 23 recommendations, giving first attention to the 24 recommendations in the survey report having priority status, 25 and is authorized to levy the tax provided for in Section 26 17-2.11, according to the provisions of that Section, to make 27 such improvements. School boards unable to effectuate those 28 recommendations prior to July 1, 1970, on July 1, 1980 in the 29 case of buildings previously exempt under the provisions of 30 Section 35-27, may petition the State Superintendent of 31 Education upon the recommendation of the Regional 32 Superintendent for an extension of time. The extension of 33 time may be granted by the State Superintendent of Education 34 for a period of one year, but may be extended from year to -14- LRB9201505NTsb 1 year provided substantial progress, in the opinion of the 2 State Superintendent of Education, is being made toward 3 compliance. 4 Within 2 years after the effective date of this 5 amendatory Act of 1983, and every 10 years thereafter, or at 6 such other times as the State Board of Education deems 7 necessary or the regional superintendent so orders, each 8 school board subject to the provisions of this Section shall 9 again survey its school buildings and effectuate any 10 recommendations in accordance with the procedures set forth 11 herein. An architect or engineer licensed in the State of 12 Illinois is required to conduct the surveys under the 13 provisions of this Section and shall make a report of the 14 findings of the survey titled "safety survey report" to the 15 school board. The school board shall approve the safety 16 survey report, including any recommendations to effectuate 17 compliance with the code, and submit it to the Regional 18 Superintendent. The Regional Superintendent shall render a 19 decision regarding approval or denial and submit the safety 20 survey report to the State Superintendent of Education. The 21 State Superintendent of Education shall approve or deny the 22 report including recommendations to effectuate compliance 23 with the code and, if approved, issue a certificate of 24 approval. Upon receipt of the certificate of approval, the 25 Regional Superintendent shall issue an order to effect any 26 approved recommendations included in the report. Items in 27 the report shall be prioritized. Urgent items shall be 28 considered as those items related to life safety problems 29 that present an immediate hazard to the safety of students. 30 Required items shall be considered as those items that are 31 necessary for a safe environment but present less of an 32 immediate hazard to the safety of students. Urgent and 33 required items shall be defined in rules adopted by the State 34 Board of Education. Urgent and required items shall reference -15- LRB9201505NTsb 1 a specific rule in the code authorized by this Section that 2 is currently being violated or will be violated within the 3 next 12 months if the violation is not remedied. The school 4 board of each district so surveyed and receiving a report of 5 needed recommendations to be made to maintain standards of 6 safety and health of the pupils enrolled shall effectuate the 7 correction of urgent items as soon as achievable to ensure 8 the safety of the students, but in no case more than one year 9 after the date of the State Superintendent of Education's 10 approval of the recommendation. Required items shall be 11 corrected in a timely manner, but in no case more than 3512 years from the date of the State Superintendent of 13 Education's approval of the recommendation. Once each year 14 the school board shall submit a report of progress on 15 completion of any recommendations to effectuate compliance 16 with the code. For each year that the school board does not 17 effectuate any or all approved recommendations, it shall 18 petition the Regional Superintendent and the State 19 Superintendent of Education detailing what work was completed 20 in the previous year and a work plan for completion of the 21 remaining work. If in the judgement of the Regional 22 Superintendent and the State Superintendent of Education 23 substantial progress has been made and just cause has been 24 shown by the school board, the petition for a one year 25 extension of time may be approved. 26 As soon as practicable, but not later than 2 years after 27 the effective date of this amendatory Act of 1992, the State 28 Board of Education shall combine the document known as 29 "Efficient and Adequate Standards for the Construction of 30 Schools" with the document known as "Building Specifications 31 for Health and Safety in Public Schools" together with any 32 modifications or additions that may be deemed necessary. The 33 combined document shall be known as the "Health/Life Safety 34 Code for Public Schools" and shall be the governing code for -16- LRB9201505NTsb 1 all facilities that house public school students or are 2 otherwise used for public school purposes, whether such 3 facilities are permanent or temporary and whether they are 4 owned, leased, rented, or otherwise used by the district. 5 Facilities owned by a school district but that are not used 6 to house public school students or are not used for public 7 school purposes shall be governed by separate provisions 8 within the code authorized by this Section. 9 The 10 year survey cycle specified in this Section shall 10 continue to apply based upon the standards contained in the 11 "Health/Life Safety Code for Public Schools", which shall 12 specify building standards for buildings that are constructed 13 prior to the effective date of this amendatory Act of 1992 14 and for buildings that are constructed after that date. 15 The "Health/Life Safety Code for Public Schools" shall be 16 the governing code for public schools; however, the 17 provisions of this Section shall not preclude inspection of 18 school premises and buildings pursuant to Section 9 of the 19 Fire Investigation Act, provided that the provisions of the 20 "Health/Life Safety Code for Public Schools", or such 21 predecessor document authorized by this Section as may be 22 applicable are used, and provided that those inspections are 23 coordinated with the Regional Superintendent having 24 jurisdiction over the public school facility. Any agency 25 having jurisdiction beyond the scope of the applicable 26 document authorized by this Section may issue a lawful order 27 to a school board to effectuate recommendations, and the 28 school board receiving the order shall certify to the 29 Regional Superintendent and the State Superintendent of 30 Education when it has complied with the order. 31 The State Board of Education is authorized to adopt any 32 rules that are necessary relating to the administration and 33 enforcement of the provisions of this Section. The code 34 authorized by this Section shall apply only to those school -17- LRB9201505NTsb 1 districts having a population of less than 500,000 2 inhabitants. 3 (Source: P.A. 89-397, eff. 8-20-95; 90-811, eff. 1-26-99.) 4 (105 ILCS 5/10-22.14) (from Ch. 122, par. 10-22.14) 5 Sec. 10-22.14. Borrowing money and issuing bonds. To 6 borrow money, and issue bonds for the purposes and in the 7 manner provided by this Act. 8 When bond proceeds from the sale of bonds include a 9 premium, or when the proceeds of bonds issued for thefire10prevention, safety, energy conservation, and school security11 purposesasspecified in Section 17-2.11 are invested as 12 authorized by law, the board shall determine by resolution 13 whether the interest earned on the investment of bond 14 proceeds authorized under Section 17-2.11 or the premium 15 realized in the sale of bonds, as the case may be, is to be 16 used for the purposes for which the bonds were issued or, 17 instead, for payment of the principal indebtedness and 18 interest on those bonds. 19 When bonds, other than bonds issued for thefire20prevention, safety, energy conservation, and school security21 purposesasspecified in Section 17-2.11 are issued by any 22 school district, and the purposes for which the bonds have 23 been issued are accomplished and paid for in full, and there 24 remain funds on hand from the proceeds of the bonds so 25 issued, the board by resolution may transfer those excess 26 funds to the operations and maintenance fund. 27 When bonds are issued by any school district for thefire28prevention, safety, energy conservation, and school security29 purposesasspecified in Section 17-2.11, and the purposes 30 for which the bonds have been issued are accomplished and 31 paid in full, and there remain funds on hand from the 32 proceeds of the bonds issued, the board by resolution shall 33 use those excess funds (1) for other authorizedfire-18- LRB9201505NTsb 1prevention, safety, energy conservation, and school security2 purposesasspecified in Section 17-2.11 or (2) for transfer 3 to the Bond and Interest Fund for payment of principal and 4 interest on those bonds. If any transfer is made to the Bond 5 and Interest Fund, the secretary of the school board shall 6 within 30 days notify the county clerk of the amount of that 7 transfer and direct the clerk to abate the taxes to be 8 extended for the purposes of principal and interest payments 9 on the respective bonds issued under Section 17-2.11 by an 10 amount equal to such transfer. 11 (Source: P.A. 86-970; 87-984.) 12 (105 ILCS 5/17-2) (from Ch. 122, par. 17-2) 13 Sec. 17-2. Tax levies; purposes; rates. Except as 14 otherwise provided in Articles 12 and 13 of this Act, the 15 following maximum rates shall apply to all taxes levied after 16 August 10, 1965, in districts having a population of less 17 than 500,000 inhabitants, including those districts organized 18 under Article 11 of the School Code. The school board of any 19 district having a population of less than 500,000 inhabitants 20 may levy a tax annually, at not to exceed the maximum rates 21 and for the specified purposes, upon all the taxable property 22 of the district at the value, as equalized or assessed by the 23 Department of Revenue as follows: 24 (1) districts maintaining only grades 1 through 8, 25 .92% for educational purposes and .35%.25%for 26 operations and maintenance purposes; 27 (2) districts maintaining only grades 9 through 12, 28 .92% for educational purposes and .35%.25%for 29 operations and maintenance purposes; 30 (3) districts maintaining grades 1 through 12, 311.63% for the 1985-86 school year, 1.68% for the 1986-8732school year, 1.75% for the 1987-88 school year and1.84% 33for the 1988-89 school year and thereafterfor -19- LRB9201505NTsb 1 educational purposes and .70%.405% for the 1989-902school year, .435% for the 1990-91 school year, .465% for3the 1991-92 school year, and .50% for the 1992-93 school4year and thereafterfor operations and maintenance 5 purposes; 6 (4) (blank)all districts, 0.75% for capital7improvement purposes (which is in addition to the levy8for operations and maintenance purposes), which tax is to9be levied, accumulated for not more than 6 years, and10spent for capital improvement purposes (including but not11limited to the construction of a new school building or12buildings or the purchase of school grounds on which any13new school building is to be constructed or located, or14both) only in accordance with Section 17-2.3 of this Act; 15 (5) districts maintaining only grades 1 through 8, 16 .12% for transportation purposes, provided that districts 17 maintaining only grades kindergarten through 8 which have 18 an enrollment of at least 2600 students may levy, subject 19 to Section 17-2.2, at not to exceed a maximum rate of 20 .20% for transportation purposes for any school year in 21 which the number of students requiring transportation in 22 the district exceeds by at least 2% the number of 23 students requiring transportation in the district during 24 the preceding school year, as verified in the district's 25 claim for pupil transportation and reimbursement and as 26 certified by the State Board of Education to the county 27 clerk of the county in which such district is located not 28 later than November 15 following the submission of such 29 claim; districts maintaining only grades 9 through 12, 30 .12% for transportation purposes; and districts 31 maintaining grades 1 through 12,.14% for the 1985-8632school year, .16% for the 1986-87 school year, .18% for33the 1987-88 school year and.20%for the 1988-89 school34year and thereafter,for transportation purposes; -20- LRB9201505NTsb 1 (6) districts providing summer classes, .15% for 2 educational purposes, subject to Section 17-2.1 of this 3 Act. 4 Whenever any special charter school district operating 5 grades 1 through 12, has organized or shall organize under 6 the general school law, the district so organized may 7 continue to levy taxes at not to exceed the rate at which 8 taxes were last actually extended by the special charter 9 district, except that if such rate at which taxes were last 10 actually extended by such special charter district was less 11 than the maximum rate for districts maintaining grades 1 12 through 12 authorized under this Section, such special 13 charter district nevertheless may levy taxes at a rate not to 14 exceed the maximum rate for districts maintaining grades 1 15 through 12 authorized under this Section, and except that if 16 any such district maintains only grades 1 through 8, the 17 board may levy, for educational purposes, at a rate not to 18 exceed the maximum rate for elementary districts authorized 19 under this Section. 20 Maximum rates before or after established in excess of 21 those prescribed shall not be affected by the amendatory Act 22 of 1965. 23 (Source: P.A. 87-984; 87-1023; 88-45.) 24 (105 ILCS 5/17-2.2) (from Ch. 122, par. 17-2.2) 25 Sec. 17-2.2. BackdoorBack doorreferendum. Whenever any 26 school district first levies a tax for educational purposes 27 at a rate within the limit prescribed by paragraph (3) of 28 Section 17-2 but in excess of the maximum permissible on July 29 9, 1957, or within the limit prescribed by paragraph (1) or 30 (2) of Section 17-2 but in excess of the maximum permissible 31 on June 30, 1965,orwheneverafter August 3, 1989any school 32 district maintaining only grades kindergarten through 8 first 33 levies a tax for transportation purposes for any school year -21- LRB9201505NTsb 1 which is within the limit prescribed for that school year by 2 paragraph (5) of Section 17-2 but in excess of the maximum 3 authorized to be levied for such purposes for the 1988-89 4 school year,orwheneverafter August 3, 1989any school 5 district first levies a tax for operations and maintenance 6 purposes for any school year which is within the limit 7 prescribed for that school year byparagraph (3) ofSection 8 17-2 but in excess of the maximum authorized to be levied for 9 such purposes for the immediately preceding school year, or 10 whenever a backdoor referendum is required under Section 11 17-2.3 or 17-2.11, the district shall cause to be published a 12 notice of the proposed tax levysuch resolutionin at least 13 one newspaper of general circulationor more newspapers14publishedin the district, within 10 days after such levy is 15 made. The noticepublication of the resolutionshall include 16a notice of(1) the specific number of voters required to 17 sign a petition requesting that the question of the adoption 18 of the tax levy be submitted to the voters of the district; 19 (2) the time in which the petition must be filed; and (3) the 20 date of the prospective referendum. The district Secretary 21 shall provide a petition form to any individual requesting 22 one. Any registered votertaxpayerin such district may, 23 within 30 days after such levy is made, file with the 24 Secretary of the board of education a petition signed by the 25 voters of the district equal to 10% or more of the registered 26 voters of the district requesting the submission to a 27 referendum of the following proposition: 28 "Shall school district No..... be authorized to levy a 29 tax for (state purposes) (in excess of.... but not to 30 exceed....) or (at a rate not to exceed...%) as authorized in 31 Section....17-2of the School Code?" The secretary of the 32 board of education shall certify the proposition to the 33 proper election authorities for submission to the electorate 34 at a regular scheduled election in accordance with the -22- LRB9201505NTsb 1 general election law. 2 If a majority of the voters voting on the proposition 3 vote in favor thereof, such increased tax shall thereafter be 4 authorized; if a majority of the vote is against such 5 proposition, the previous maximum rate authorized, if any, 6 shall remain in effect until changed by law. 7 (Source: P.A. 86-128; 86-134; 86-1028; 86-1334; 87-767.) 8 (105 ILCS 5/17-2.3) (from Ch. 122, par. 17-2.3) 9 Sec. 17-2.3. Capital improvement taxpurposes;10referendum. The school board of any district maydesiring to11 levy and accumulate for not more than 6 years athecapital 12 improvementspurposestax as provided in this Section at a 13 rate not to exceed 0.75% upon the equalized assessed value of 14 the taxable property in the district. The boardprovided for15in paragraph (4) of Section 17-2 of this Actshall pass a 16 resolution for the levy of said tax, and in such resolution 17 shall describe the capital improvements for which the tax is 18 to be levied and the funds derived therefrom are to be spent. 19 As used in this Sectionand in paragraph (4) of Section 17-2, 20 capital improvements include but are not limited to the 21 construction of a new school building or buildings or the 22 purchase of school grounds on which any new school building 23 is to be constructed or located, or both, as well as 24 improvements necessary for energy conservation, accessibility 25 for the disabled, or security purposes. An elementary or 26 high school district may levy the tax for capital improvement 27 purposes at a rate not to exceed 0.05% and a unit district 28 may levy the tax for capital improvement purposes at a rate 29 not to exceed 0.10% without submitting the levy to a 30 referendum, provided that a district that is subject to the 31 Property Tax Extension Limitation Law shall submit the 32 authorization to a backdoor referendum using the procedures 33 provided in Section 17-2.2 of this Code. The authority to -23- LRB9201505NTsb 1 make any levy that is in excess of the rates specified in the 2 preceding sentence shall be submitted to referendum, and the 3 resolution levying the tax in excess of these rates. The4resolutionshall cause the proposition for the levy of the 5 taxprovided for in paragraph (4) of Section 17-2 of this Act6 to be certified to the proper election authorities for 7 submission to the electors of the district at a regular 8 scheduled election in accordance with the general election 9 law. The proposition shall generally describe the capital 10 improvements for which the tax is to be levied and the funds 11 derived therefrom are to be spent. If the proposition is 12 approved by a majority of the electors voting thereon, the 13 school district may thereafter levy the capital improvement 14 tax and accumulate funds for not more than 6 years for the 15 capital improvements described in the resolution and on the 16 ballot. 17 Any school district levying the capital improvement tax 18 shall invest the proceeds of the tax in accordance with the 19 Public Funds Investment Act. The proceeds shall be 20 separately accounted for within the Site and 21 Construction/Capital Improvement Fund. 22If the proposition is approved by a majority of the23electors voting thereon, the school district may thereafter24levy such capital improvement purposes tax and accumulate25funds for not more than 6 years for the capital improvements26described in the resolution and on the ballot. Such school27district shall also invest such accumulated funds until spent28for the capital improvements described in the resolution and29on the ballot in accordance with the provisions of the Public30Funds Investment Act.31Any proceeds derived from a capital improvements tax or32the accumulation of monies for capital improvements described33in the resolution and on the ballot shall be accounted for34separately within the Site and Construction/Capital-24- LRB9201505NTsb 1Improvement Fund.2 (Source: P.A. 87-984; 87-1023; 88-45.) 3 (105 ILCS 5/17-2.11) (from Ch. 122, par. 17-2.11) 4 Sec. 17-2.11. School board power to levy a tax or to 5 borrow money and issue bonds for fire prevention and,6 safety, energy conservation, disabled accessibility, school7security, and specified repairpurposes. Whenever, as a 8 result of any lawful order of any agency, other than a school 9 board, having authority to enforce any school building code 10 applicable to any facility that houses students, or any law 11 or regulation for the protection and safety of the 12 environment, pursuant to the Environmental Protection Act, 13 any school district having a population of less than 500,000 14 inhabitants is required to alter, repair, or reconstruct any 15 school building or permanent, fixed equipment; or whenever16any such district determines that it is necessary for energy17conservation purposes that any school building or permanent,18fixed equipment should be altered or reconstructed and that19such alterations or reconstruction will be made with funds20not necessary for the completion of approved and recommended21projects contained in any safety survey report or amendments22thereto authorized by Section 2-3.12 of this Act; or whenever23any such district determines that it is necessary for24disabled accessibility purposes and to comply with the school25building code that any school building or equipment should be26altered or reconstructed and that such alterations or27reconstruction will be made with funds not necessary for the28completion of approved and recommended projects contained in29any safety survey report or amendments thereto authorized30under Section 2-3.12 of this Act; or whenever any such31district determines that it is necessary for school security32purposes and the related protection and safety of pupils and33school personnel that any school building or property should-25- LRB9201505NTsb 1be altered or reconstructed or that security systems and2equipment (including but not limited to intercom, early3detection and warning, access control and television4monitoring systems) should be purchased and installed, and5that such alterations, reconstruction or purchase and6installation of equipment will be made with funds not7necessary for the completion of approved and recommended8projects contained in any safety survey report or amendment9thereto authorized by Section 2-3.12 of this Act and will10deter and prevent unauthorized entry or activities upon11school property by unknown or dangerous persons, assure early12detection and advance warning of any such actual or attempted13unauthorized entry or activities and help assure the14continued safety of pupils and school staff if any such15unauthorized entry or activity is attempted or occurs; or if16a school district does not need funds for other fire17prevention and safety projects, including the completion of18approved and recommended projects contained in any safety19survey report or amendments thereto authorized by Section202-3.12 of this Act, and it is determined after a public21hearing (which is preceded by at least one published notice22(i) occurring at least 7 days prior to the hearing in a23newspaper of general circulation within the school district24and (ii) setting forth the time, date, place, and general25subject matter of the hearing) that there is a substantial,26immediate, and otherwise unavoidable threat to the health,27safety, or welfare of pupils due to disrepair of school28sidewalks, playgrounds, parking lots, or school bus29turnarounds and repairs must be made: then in any such30event, such district may, by proper resolution, levy a tax 31 for the purpose of making such alteration, repair, or 32 reconstruction, based on a survey report by an architect or 33 engineer licensed in the State of Illinois, upon all the 34 taxable property of the district at the value as assessed by -26- LRB9201505NTsb 1 the Department of Revenue at a rate not to exceed 0.15% for 2 elementary and high school districts and 0.30% for unit 3 districts.05%per year for a period sufficient to finance 4 such alterations, repairs, or reconstruction, upon the 5 following conditions: 6 (a) When there are not sufficient funds available 7 in either the operations and maintenance fund of the 8 district or the fire prevention and safety fund of the 9 district as determined by the district on the basis of 10 regulations adopted by the State Board of Education to 11 make such alterations, repairs, or reconstruction, or to12purchase and install such permanent fixed equipmentso 13 ordered or determined as necessary. Appropriate school 14 district records shall be made available to the State 15 Superintendent of Education upon request to confirm such 16 insufficiency. 17 (b) When a certified estimate of an architect or 18 engineer licensed in the State of Illinois stating the 19 estimated amount necessary to make the alterations,or20 repairs, or reconstructionto purchase and install such21equipmentso ordered has been secured by the district, 22 and the estimate has been approved by the regional 23 superintendent of schools, having jurisdiction of the 24 district, and the State Superintendent of Education. 25 Approval shall not be granted for any work that has 26 already started without the prior express authorization 27 of the State Superintendent of Education. If such 28 estimate is not approved or denied approval by the 29 regional superintendent of schools within 3 months after 30 the date on which it is submitted to him or her, the 31 school board of the district may submit such estimate 32 directly to the State Superintendent of Education for 33 approval or denial. 34 (c) Whenever a school district subject to the -27- LRB9201505NTsb 1 Property Tax Extension Limitation Law first levies the 2 tax at a rate permitted by this amendatory Act of the 3 92nd General Assembly but in excess of its maximum 4 permissible rate for that purpose immediately prior to 5 the effective date of this amendatory Act of the 92nd 6 General Assembly, the rate increase shall be subject to a 7 backdoor referendum using the procedures provided in 8 Section 17-2.2 of this Code. 9 For purposes of this Section a school district may 10 replace a school building or build additions to replace 11 portions of a building when it is determined that the 12 effectuation of the recommendations for the existing building 13 will cost more than the replacement costs. Such 14 determination shall be based on a comparison of estimated 15 costs made by an architect or engineer licensed in the State 16 of Illinois. The new building or addition shall be 17 equivalent in area (square feet) and comparable in purpose 18 and grades served and may be on the same site or another 19 site. Such replacement may only be done upon order of the 20 regional superintendent of schools and the approval of the 21 State Superintendent of Education. 22 The filing of a certified copy of the resolution levying 23 the tax when accompanied by the certificates of the regional 24 superintendent of schools and State Superintendent of 25 Education shall be the authority of the county clerk to 26 extend such tax. 27 The county clerk of the county in which any school 28 district levying a tax under the authority of this Section is 29 located, in reducing raised levies, shall not consider any 30 such tax as a part of the general levy for school purposes 31 and shall not include the same in the limitation of any other 32 tax rate which may be extended. 33 Such tax shall be levied and collected in like manner as 34 all other taxes of school districts, subject to the -28- LRB9201505NTsb 1 provisions contained in this Section. 2The tax rate limit specified in this Section may be3increased to .10% upon the approval of a proposition to4effect such increase by a majority of the electors voting on5that proposition at a regular scheduled election. Such6proposition may be initiated by resolution of the school7board and shall be certified by the secretary to the proper8election authorities for submission in accordance with the9general election law.10 When taxes are levied by any school district for thefire11prevention, safety, energy conservation, and school security12 purposesasspecified in this Section, and the purposes for 13 which the taxes have been levied are accomplished and paid in 14 full, and there remain funds on hand in the Fire Prevention 15 and Safety Fund from the proceeds of the taxes levied, 16 including interest earnings thereon, the school board by 17 resolution shall use such excess and other board restricted 18 funds excluding bond proceeds and earnings from such proceeds 19 (1) for other authorized fire prevention and,safety, energy20conservation, and school securitypurposes or (2) for 21 transfer to the Operations and Maintenance Fund for the 22 purpose of abating an equal amount of operations and 23 maintenance purposes taxes. If any transfer is made to the 24 Operation and Maintenance Fund, the secretary of the school 25 board shall within 30 days notify the county clerk of the 26 amount of that transfer and direct the clerk to abate the 27 taxes to be extended for the purposes of operations and 28 maintenance authorized under Section 17-2 of this Act by an 29 amount equal to such transfer. 30 If the proceeds from the tax levy authorized by this 31 Section are insufficient to complete the work approved under 32 this Section, the school board is authorized to sell bonds 33 without referendum under the provisions of this Section in an 34 amount that, when added to the proceeds of the tax levy -29- LRB9201505NTsb 1 authorized by this Section, will allow completion of the 2 approved work, provided that a district that is subject to 3 the Property Tax Extension Limitation Law shall submit the 4 authorization to a backdoor referendum as provided in this 5 Section. No school district that is subject to the Property 6 Tax Extension Limitation Law may issue bonds under this 7 Section unless it adopts a resolution declaring its intention 8 to issue bonds and directs that notice of this intention be 9 published at least once in a newspaper of general circulation 10 in the district. The notice shall set forth (i) the 11 intention of the district to issue bonds in accordance with 12 this Section, (ii) the time within which a petition may be 13 filed requesting the submission to the voters of the 14 proposition to issue the bonds, (iii) the specific number of 15 voters required to sign the petition, and (iv) the date of 16 the prospective referendum. At the time of publication of 17 the notice and for 30 days thereafter, the secretary of the 18 district shall provide a petition form to any individual 19 requesting one. If within 30 days after the publication a 20 petition is filed with the secretary of the district, signed 21 by the voters of the district equal to 20% or more of the 22 registered voters of the district requesting that the 23 proposition to issue bonds as authorized by this Section be 24 submitted to the voters thereof, then the district shall not 25 be authorized to issue the bonds until the proposition has 26 been certified to the proper election authorities and has 27 been submitted to and approved by a majority of the voters 28 voting on the proposition at a regular scheduled election in 29 accordance with the general election law. If no such 30 petition is filed, or if any and all petitions filed are 31 invalid, the district may issue the bonds. 32 Such bonds shall bear interest at a rate not to exceed 33 the maximum rate authorized by law at the time of the making 34 of the contract, shall mature within 20 years from date, and -30- LRB9201505NTsb 1 shall be signed by the president of the school board and the 2 treasurer of the school district. Such bonds issued after the 3 effective date of this amendatory Act of the 92nd General 4 Assembly and any bonds issued to refund such bonds issued 5 after the effective date of this amendatory Act of the 92nd 6 General Assembly shall not be considered debt for purposes of 7 any statutory debt limitation. 8 In order to authorize and issue such bonds, the school 9 board shall adopt a resolution fixing the amount of bonds, 10 the date thereof, the maturities thereof, rates of interest 11 thereof, place of payment and denomination,which shall be in12denominations of not less than $100 and not more than $5,000,13 and provide for the levy and collection of a direct annual 14 tax upon all the taxable property in the school district 15 sufficient to pay the principal and interest on such bonds to 16 maturity. Upon the filing in the office of the county clerk 17 of the county in which the school district is located of a 18 certified copy of the resolution, it is the duty of the 19 county clerk to extend the tax therefor in addition to and in 20 excess of all other taxes heretofore or hereafter authorized 21 to be levied by such school district. 22 After the time such bonds are issued as provided for by 23 this Section, if additional alterations, repairs, or 24 reconstructions are required to be made because of surveys 25 conducted by an architect or engineer licensed in the State 26 of Illinois, the district may levy a tax at a rate not to 27 exceed the rate permitted by this Section.05% per yearupon 28 all the taxable property of the district or issue additional 29 bonds, whichever action shall be the most feasible. 30 This Section is cumulative and constitutes complete 31 authority for the issuance of bonds as provided in this 32 Section notwithstanding any other statute or law to the 33 contrary. 34 With respect to instruments for the payment of money -31- LRB9201505NTsb 1 issued under this Section either before, on, or after the 2 effective date of Public Act 86-004 (June 6, 1989), it is, 3 and always has been, the intention of the General Assembly 4 (i) that the Omnibus Bond Acts are, and always have been, 5 supplementary grants of power to issue instruments in 6 accordance with the Omnibus Bond Acts, regardless of any 7 provision of this Act that may appear to be or to have been 8 more restrictive than those Acts, (ii) that the provisions of 9 this Section are not a limitation on the supplementary 10 authority granted by the Omnibus Bond Acts, and (iii) that 11 instruments issued under this Section within the 12 supplementary authority granted by the Omnibus Bond Acts are 13 not invalid because of any provision of this Act that may 14 appear to be or to have been more restrictive than those 15 Acts. 16 When the purposes for which the bonds are issued have 17 been accomplished and paid for in full and there remain funds 18 on hand from the proceeds of the bond sale and interest 19 earnings therefrom, the board shall, by resolution, use such 20 excess funds in accordance with the provisions of Section 21 10-22.14 of this Act. 22 Whenever any tax is levied or bonds issued under this 23 Section, thefor fire prevention, safety, energy24conservation, and school security purposes, suchproceeds 25 shall be deposited and accounted for separately within the 26 Fire Prevention and Safety Fund. 27 (Source: P.A. 88-251; 88-508; 88-628, eff. 9-9-94; 88-670, 28 eff. 12-2-94; 89-235, eff. 8-4-95; 89-397, eff. 8-20-95.) 29 (105 ILCS 5/19-1) (from Ch. 122, par. 19-1) 30 Sec. 19-1. Debt limitations of school districts. 31 (a) School districts shall not be subject to the 32 provisions limiting their indebtedness prescribed in the 33 Local Government Debt Limitation Act"An Act to limit the-32- LRB9201505NTsb 1indebtedness of counties having a population of less than2500,000 and townships, school districts and other municipal3corporations having a population of less than 300,000",4approved February 15, 1928, as amended. 5 No school districts maintaining grades K through 8 or 9 6 through 12 shall become indebted in any manner or for any 7 purpose to an amount, including existing indebtedness, in the 8 aggregate exceeding 9.0% of6.9% onthe equalized assessed 9 value of the taxable property therein to be ascertained by 10 the last assessment for State and county taxes or, until 11 January 1, 1983, if greater, the sum that is produced by 12 multiplying the school district's 1978 equalized assessed 13 valuation by the debt limitation percentage in effect on 14 January 1, 1979, previous to the incurring of such 15 indebtedness. 16 No school districts maintaining grades K through 12 shall 17 become indebted in any manner or for any purpose to an 18 amount, including existing indebtedness, in the aggregate 19 exceeding 18.0% of13.8% onthe equalized assessed value of 20 the taxable property therein to be ascertained by the last 21 assessment for State and county taxes or, until January 1, 22 1983, if greater, the sum that is produced by multiplying the 23 school district's 1978 equalized assessed valuation by the 24 debt limitation percentage in effect on January 1, 1979, 25 previous to the incurring of such indebtedness. 26 Notwithstanding the provisions of any other law to the 27 contrary, in any case in which the voters of a school 28 district have approved a proposition for the issuance of 29 bonds of such school district at an election held prior to 30 January 1, 1979, and all of the bonds approved at such 31 election have not been issued, the debt limitation applicable 32 to such school district during the calendar year 1979 shall 33 be computed by multiplying the value of taxable property 34 therein, including personal property, as ascertained by the -33- LRB9201505NTsb 1 last assessment for State and county taxes, previous to the 2 incurring of such indebtedness, by the percentage limitation 3 applicable to such school district under the provisions of 4 this subsection (a). 5 (b) Notwithstanding the debt limitation prescribed in 6 subsection (a) of this Section, additional indebtedness may 7 be incurred in an amount not to exceed the estimated cost of 8 acquiring or improving school sites or constructing and 9 equipping additional building facilities under the following 10 conditions: 11 (1) Whenever the enrollment of students for the 12 next school year is estimated by the board of education 13 to increase over the actual present enrollment by not 14 less than 35% or by not less than 200 students or the 15 actual present enrollment of students has increased over 16 the previous school year by not less than 35% or by not 17 less than 200 students and the board of education 18 determines that additional school sites or building 19 facilities are required as a result of such increase in 20 enrollment; and 21 (2) When the Regional Superintendent of Schools 22 having jurisdiction over the school district and the 23 State Superintendent of Education concur in such 24 enrollment projection or increase and approve the need 25 for such additional school sites or building facilities 26 and the estimated cost thereof; and 27 (3) When the voters in the school district approve 28 a proposition for the issuance of bonds for the purpose 29 of acquiring or improving such needed school sites or 30 constructing and equipping such needed additional 31 building facilities at an election called and held for 32 that purpose. Notice of such an election shall state that 33 the amount of indebtedness proposed to be incurred would 34 exceed the debt limitation otherwise applicable to the -34- LRB9201505NTsb 1 school district. The ballot for such proposition shall 2 state what percentage of the equalized assessed valuation 3 will be outstanding in bonds if the proposed issuance of 4 bonds is approved by the voters; or 5 (4) Notwithstanding the provisions of paragraphs 6 (1) through (3) of this subsection (b), if the school 7 board determines that additional facilities are needed to 8 provide a quality educational program and not less than 9 2/3 of those voting in an election called by the school 10 board on the question approve the issuance of bonds for 11 the construction of such facilities, the school district 12 may issue bonds for this purpose; or 13 (5) Notwithstanding the provisions of paragraphs 14 (1) through (3) of this subsection (b), if (i) the school 15 district has previously availed itself of the provisions 16 of paragraph (4) of this subsection (b) to enable it to 17 issue bonds, (ii) the voters of the school district have 18 not defeated a proposition for the issuance of bonds 19 since the referendum described in paragraph (4) of this 20 subsection (b) was held, (iii) the school board 21 determines that additional facilities are needed to 22 provide a quality educational program, and (iv) a 23 majority of those voting in an election called by the 24 school board on the question approve the issuance of 25 bonds for the construction of such facilities, the school 26 district may issue bonds for this purpose. 27 In no event shall the indebtedness incurred pursuant to 28 this subsection (b) and the existing indebtedness of the 29 school district exceed 20%15%of the equalized assessed 30 value of the taxable property therein to be ascertained by 31 the last assessment for State and county taxes, previous to 32 the incurring of such indebtedness or, until January 1, 1983, 33 if greater, the sum that is produced by multiplying the 34 school district's 1978 equalized assessed valuation by the -35- LRB9201505NTsb 1 debt limitation percentage in effect on January 1, 1979. 2 The indebtedness provided for by this subsection (b) 3 shall be in addition to and in excess of any other debt 4 limitation. 5 (c) Notwithstanding the debt limitation prescribed in 6 subsection (a) of this Section, in any case in which a public 7 question for the issuance of bonds of a proposed school 8 district maintaining grades kindergarten through 12 received 9 at least 60% of the valid ballots cast on the question at an 10 election held on or prior to November 8, 1994, and in which 11 the bonds approved at such election have not been issued, the 12 school district pursuant to the requirements of Section 13 11A-10 may issue the total amount of bonds approved at such 14 election for the purpose stated in the question. 15 (d) Notwithstanding the debt limitation prescribed in 16 subsection (a) of this Section, a school district that meets 17 all the criteria set forth in paragraphs (1) and (2) of this 18 subsection (d) may incur an additional indebtedness in an 19 amount not to exceed $4,500,000, even though the amount of 20 the additional indebtedness authorized by this subsection 21 (d), when incurred and added to the aggregate amount of 22 indebtedness of the district existing immediately prior to 23 the district incurring the additional indebtedness authorized 24 by this subsection (d), causes the aggregate indebtedness of 25 the district to exceed the debt limitation otherwise 26 applicable to that district under subsection (a): 27 (1) The additional indebtedness authorized by this 28 subsection (d) is incurred by the school district through 29 the issuance of bonds under and in accordance with 30 Section 17-2.11a for the purpose of replacing a school 31 building which, because of mine subsidence damage, has 32 been closed as provided in paragraph (2) of this 33 subsection (d) or through the issuance of bonds under and 34 in accordance with Section 19-3 for the purpose of -36- LRB9201505NTsb 1 increasing the size of, or providing for additional 2 functions in, such replacement school buildings, or both 3 such purposes. 4 (2) The bonds issued by the school district as 5 provided in paragraph (1) above are issued for the 6 purposes of construction by the school district of a new 7 school building pursuant to Section 17-2.11, to replace 8 an existing school building that, because of mine 9 subsidence damage, is closed as of the end of the 1992-93 10 school year pursuant to action of the regional 11 superintendent of schools of the educational service 12 region in which the district is located under Section 13 3-14.22 or are issued for the purpose of increasing the 14 size of, or providing for additional functions in, the 15 new school building being constructed to replace a school 16 building closed as the result of mine subsidence damage, 17 or both such purposes. 18 (e) Notwithstanding the debt limitation prescribed in 19 subsection (a) of this Section, a school district that meets 20 all the criteria set forth in paragraphs (1) through (5) of 21 this subsection (e) may, without referendum, incur an 22 additional indebtedness in an amount not to exceed the lesser 23 of $5,000,000 or 1.5% of the equalized assessed value of the 24 taxable property within the district even though the amount 25 of the additional indebtedness authorized by this subsection 26 (e), when incurred and added to the aggregate amount of 27 indebtedness of the district existing immediately prior to 28 the district incurring that additional indebtedness, causes 29 the aggregate indebtedness of the district to exceed or 30 increases the amount by which the aggregate indebtedness of 31 the district already exceeds the debt limitation otherwise 32 applicable to that district under subsection (a): 33 (1) The State Board of Education certifies the 34 school district under Section 19-1.5 as a financially -37- LRB9201505NTsb 1 distressed district. 2 (2) The additional indebtedness authorized by this 3 subsection (e) is incurred by the financially distressed 4 district during the school year or school years in which 5 the certification of the district as a financially 6 distressed district continues in effect through the 7 issuance of bonds for the lawful school purposes of the 8 district, pursuant to resolution of the school board and 9 without referendum, as provided in paragraph (5) of this 10 subsection. 11 (3) The aggregate amount of bonds issued by the 12 financially distressed district during a fiscal year in 13 which it is authorized to issue bonds under this 14 subsection does not exceed the amount by which the 15 aggregate expenditures of the district for operational 16 purposes during the immediately preceding fiscal year 17 exceeds the amount appropriated for the operational 18 purposes of the district in the annual school budget 19 adopted by the school board of the district for the 20 fiscal year in which the bonds are issued. 21 (4) Throughout each fiscal year in which 22 certification of the district as a financially distressed 23 district continues in effect, the district maintains in 24 effect a gross salary expense and gross wage expense 25 freeze policy under which the district expenditures for 26 total employee salaries and wages do not exceed such 27 expenditures for the immediately preceding fiscal year. 28 Nothing in this paragraph, however, shall be deemed to 29 impair or to require impairment of the contractual 30 obligations, including collective bargaining agreements, 31 of the district or to impair or require the impairment of 32 the vested rights of any employee of the district under 33 the terms of any contract or agreement in effect on the 34 effective date of this amendatory Act of 1994. -38- LRB9201505NTsb 1 (5) Bonds issued by the financially distressed 2 district under this subsection shall bear interest at a 3 rate not to exceed the maximum rate authorized by law at 4 the time of the making of the contract, shall mature 5 within 40 years from their date of issue, and shall be 6 signed by the president of the school board and treasurer 7 of the school district. In order to issue bonds under 8 this subsection, the school board shall adopt a 9 resolution fixing the amount of the bonds, the date of 10 the bonds, the maturities of the bonds, the rates of 11 interest of the bonds, and their place of payment and 12 denomination, and shall provide for the levy and 13 collection of a direct annual tax upon all the taxable 14 property in the district sufficient to pay the principal 15 and interest on the bonds to maturity. Upon the filing 16 in the office of the county clerk of the county in which 17 the financially distressed district is located of a 18 certified copy of the resolution, it is the duty of the 19 county clerk to extend the tax therefor in addition to 20 and in excess of all other taxes at any time authorized 21 to be levied by the district. If bond proceeds from the 22 sale of bonds include a premium or if the proceeds of the 23 bonds are invested as authorized by law, the school board 24 shall determine by resolution whether the interest earned 25 on the investment of bond proceeds or the premium 26 realized on the sale of the bonds is to be used for any 27 of the lawful school purposes for which the bonds were 28 issued or for the payment of the principal indebtedness 29 and interest on the bonds. The proceeds of the bond sale 30 shall be deposited in the educational purposes fund of 31 the district and shall be used to pay operational 32 expenses of the district. This subsection is cumulative 33 and constitutes complete authority for the issuance of 34 bonds as provided in this subsection, notwithstanding any -39- LRB9201505NTsb 1 other law to the contrary. 2 (f) Notwithstanding the provisions of subsection (a) of 3 this Section or of any other law, bonds in not to exceed the 4 aggregate amount of $5,500,000 and issued by a school 5 district meeting the following criteria shall not be 6 considered indebtedness for purposes of any statutory 7 limitation and may be issued in an amount or amounts, 8 including existing indebtedness, in excess of any heretofore 9 or hereafter imposed statutory limitation as to indebtedness: 10 (1) At the time of the sale of such bonds, the 11 board of education of the district shall have determined 12 by resolution that the enrollment of students in the 13 district is projected to increase by not less than 7% 14 during each of the next succeeding 2 school years. 15 (2) The board of education shall also determine by 16 resolution that the improvements to be financed with the 17 proceeds of the bonds are needed because of the projected 18 enrollment increases. 19 (3) The board of education shall also determine by 20 resolution that the projected increases in enrollment are 21 the result of improvements made or expected to be made to 22 passenger rail facilities located in the school district. 23 (g) Notwithstanding the provisions of subsection (a) of 24 this Section or any other law, bonds in not to exceed an 25 aggregate amount of 25% of the equalized assessed value of 26 the taxable property of a school district and issued by a 27 school district meeting the criteria in paragraphs (i) 28 through (iv) of this subsection shall not be considered 29 indebtedness for purposes of any statutory limitation and may 30 be issued pursuant to resolution of the school board in an 31 amount or amounts, including existing indebtedness, in excess 32 of any statutory limitation of indebtedness heretofore or 33 hereafter imposed: 34 (i) The bonds are issued for the purpose of -40- LRB9201505NTsb 1 constructing a new high school building to replace two 2 adjacent existing buildings which together house a single 3 high school, each of which is more than 65 years old, and 4 which together are located on more than 10 acres and less 5 than 11 acres of property. 6 (ii) At the time the resolution authorizing the 7 issuance of the bonds is adopted, the cost of 8 constructing a new school building to replace the 9 existing school building is less than 60% of the cost of 10 repairing the existing school building. 11 (iii) The sale of the bonds occurs before July 1, 12 1997. 13 (iv) The school district issuing the bonds is a 14 unit school district located in a county of less than 15 70,000 and more than 50,000 inhabitants, which has an 16 average daily attendance of less than 1,500 and an 17 equalized assessed valuation of less than $29,000,000. 18 (h) Notwithstanding any other provisions of this Section 19 or the provisions of any other law, until January 1, 1998, a 20 community unit school district maintaining grades K through 21 12 may issue bonds up to an amount, including existing 22 indebtedness, not exceeding 27.6% of the equalized assessed 23 value of the taxable property in the district, if all of the 24 following conditions are met: 25 (i) The school district has an equalized assessed 26 valuation for calendar year 1995 of less than 27 $24,000,000; 28 (ii) The bonds are issued for the capital 29 improvement, renovation, rehabilitation, or replacement 30 of existing school buildings of the district, all of 31 which buildings were originally constructed not less than 32 40 years ago; 33 (iii) The voters of the district approve a 34 proposition for the issuance of the bonds at a referendum -41- LRB9201505NTsb 1 held after March 19, 1996; and 2 (iv) The bonds are issued pursuant to Sections 19-2 3 through 19-7 of this Code. 4 (i) Notwithstanding any other provisions of this Section 5 or the provisions of any other law, until January 1, 1998, a 6 community unit school district maintaining grades K through 7 12 may issue bonds up to an amount, including existing 8 indebtedness, not exceeding 27% of the equalized assessed 9 value of the taxable property in the district, if all of the 10 following conditions are met: 11 (i) The school district has an equalized assessed 12 valuation for calendar year 1995 of less than 13 $44,600,000; 14 (ii) The bonds are issued for the capital 15 improvement, renovation, rehabilitation, or replacement 16 of existing school buildings of the district, all of 17 which existing buildings were originally constructed not 18 less than 80 years ago; 19 (iii) The voters of the district approve a 20 proposition for the issuance of the bonds at a referendum 21 held after December 31, 1996; and 22 (iv) The bonds are issued pursuant to Sections 19-2 23 through 19-7 of this Code. 24 (j) Notwithstanding any other provisions of this Section 25 or the provisions of any other law, until January 1, 1999, a 26 community unit school district maintaining grades K through 27 12 may issue bonds up to an amount, including existing 28 indebtedness, not exceeding 27% of the equalized assessed 29 value of the taxable property in the district if all of the 30 following conditions are met: 31 (i) The school district has an equalized assessed 32 valuation for calendar year 1995 of less than 33 $140,000,000 and a best 3 months average daily attendance 34 for the 1995-96 school year of at least 2,800; -42- LRB9201505NTsb 1 (ii) The bonds are issued to purchase a site and 2 build and equip a new high school, and the school 3 district's existing high school was originally 4 constructed not less than 35 years prior to the sale of 5 the bonds; 6 (iii) At the time of the sale of the bonds, the 7 board of education determines by resolution that a new 8 high school is needed because of projected enrollment 9 increases; 10 (iv) At least 60% of those voting in an election 11 held after December 31, 1996 approve a proposition for 12 the issuance of the bonds; and 13 (v) The bonds are issued pursuant to Sections 19-2 14 through 19-7 of this Code. 15 (k) Notwithstanding the debt limitation prescribed in 16 subsection (a) of this Section, a school district that meets 17 all the criteria set forth in paragraphs (1) through (4) of 18 this subsection (k) may issue bonds to incur an additional 19 indebtedness in an amount not to exceed $4,000,000 even 20 though the amount of the additional indebtedness authorized 21 by this subsection (k), when incurred and added to the 22 aggregate amount of indebtedness of the school district 23 existing immediately prior to the school district incurring 24 such additional indebtedness, causes the aggregate 25 indebtedness of the school district to exceed or increases 26 the amount by which the aggregate indebtedness of the 27 district already exceeds the debt limitation otherwise 28 applicable to that school district under subsection (a): 29 (1) the school district is located in 2 counties, 30 and a referendum to authorize the additional indebtedness 31 was approved by a majority of the voters of the school 32 district voting on the proposition to authorize that 33 indebtedness; 34 (2) the additional indebtedness is for the purpose -43- LRB9201505NTsb 1 of financing a multi-purpose room addition to the 2 existing high school; 3 (3) the additional indebtedness, together with the 4 existing indebtedness of the school district, shall not 5 exceed 17.4% of the value of the taxable property in the 6 school district, to be ascertained by the last assessment 7 for State and county taxes; and 8 (4) the bonds evidencing the additional 9 indebtedness are issued, if at all, within 120 days of 10 the effective date of this amendatory Act of 1998. 11 (l) Notwithstanding any other provisions of this Section 12 or the provisions of any other law, until January 1, 2000, a 13 school district maintaining grades kindergarten through 8 may 14 issue bonds up to an amount, including existing indebtedness, 15 not exceeding 15% of the equalized assessed value of the 16 taxable property in the district if all of the following 17 conditions are met: 18 (i) the district has an equalized assessed 19 valuation for calendar year 1996 of less than 20 $10,000,000; 21 (ii) the bonds are issued for capital improvement, 22 renovation, rehabilitation, or replacement of one or more 23 school buildings of the district, which buildings were 24 originally constructed not less than 70 years ago; 25 (iii) the voters of the district approve a 26 proposition for the issuance of the bonds at a referendum 27 held on or after March 17, 1998; and 28 (iv) the bonds are issued pursuant to Sections 19-2 29 through 19-7 of this Code. 30 (m) Notwithstanding any other provisions of this Section 31 or the provisions of any other law, until January 1, 1999, an 32 elementary school district maintaining grades K through 8 may 33 issue bonds up to an amount, excluding existing indebtedness, 34 not exceeding 18% of the equalized assessed value of the -44- LRB9201505NTsb 1 taxable property in the district, if all of the following 2 conditions are met: 3 (i) The school district has an equalized assessed 4 valuation for calendar year 1995 or less than $7,700,000; 5 (ii) The school district operates 2 elementary 6 attendance centers that until 1976 were operated as the 7 attendance centers of 2 separate and distinct school 8 districts; 9 (iii) The bonds are issued for the construction of 10 a new elementary school building to replace an existing 11 multi-level elementary school building of the school 12 district that is not handicapped accessible at all levels 13 and parts of which were constructed more than 75 years 14 ago; 15 (iv) The voters of the school district approve a 16 proposition for the issuance of the bonds at a referendum 17 held after July 1, 1998; and 18 (v) The bonds are issued pursuant to Sections 19-2 19 through 19-7 of this Code. 20 (n) Notwithstanding the debt limitation prescribed in 21 subsection (a) of this Section or any other provisions of 22 this Section or of any other law, a school district that 23 meets all of the criteria set forth in paragraphs (i) through 24 (vi) of this subsection (n) may incur additional indebtedness 25 by the issuance of bonds in an amount not exceeding the 26 amount certified by the Capital Development Board to the 27 school district as provided in paragraph (iii) of this 28 subsection (n), even though the amount of the additional 29 indebtedness so authorized, when incurred and added to the 30 aggregate amount of indebtedness of the district existing 31 immediately prior to the district incurring the additional 32 indebtedness authorized by this subsection (n), causes the 33 aggregate indebtedness of the district to exceed the debt 34 limitation otherwise applicable by law to that district: -45- LRB9201505NTsb 1 (i) The school district applies to the State Board 2 of Education for a school construction project grant and 3 submits a district facilities plan in support of its 4 application pursuant to Section 5-20 of the School 5 Construction Law. 6 (ii) The school district's application and 7 facilities plan are approved by, and the district 8 receives a grant entitlement for a school construction 9 project issued by, the State Board of Education under the 10 School Construction Law. 11 (iii) The school district has exhausted its bonding 12 capacity or the unused bonding capacity of the district 13 is less than the amount certified by the Capital 14 Development Board to the district under Section 5-15 of 15 the School Construction Law as the dollar amount of the 16 school construction project's cost that the district will 17 be required to finance with non-grant funds in order to 18 receive a school construction project grant under the 19 School Construction Law. 20 (iv) The bonds are issued for a "school 21 construction project", as that term is defined in Section 22 5-5 of the School Construction Law, in an amount that 23 does not exceed the dollar amount certified, as provided 24 in paragraph (iii) of this subsection (n), by the Capital 25 Development Board to the school district under Section 26 5-15 of the School Construction Law. 27 (v) The voters of the district approve a 28 proposition for the issuance of the bonds at a referendum 29 held after the criteria specified in paragraphs (i) and 30 (iii) of this subsection (n) are met. 31 (vi) The bonds are issued pursuant to Sections 19-2 32 through 19-7 of the School Code. 33 (Source: P.A. 90-570, eff. 1-28-98; 90-757, eff. 8-14-98; 34 91-55, eff. 6-30-99.) -46- LRB9201505NTsb 1 Section 99. Effective date. This Act takes effect upon 2 becoming law. -47- LRB9201505NTsb 1 INDEX 2 Statutes amended in order of appearance 3 35 ILCS 200/18-185 4 35 ILCS 200/18-201 new 5 35 ILCS 200/18-200 rep. 6 105 ILCS 5/2-3.12 from Ch. 122, par. 2-3.12 7 105 ILCS 5/10-22.14 from Ch. 122, par. 10-22.14 8 105 ILCS 5/17-2 from Ch. 122, par. 17-2 9 105 ILCS 5/17-2.2 from Ch. 122, par. 17-2.2 10 105 ILCS 5/17-2.3 from Ch. 122, par. 17-2.3 11 105 ILCS 5/17-2.11 from Ch. 122, par. 17-2.11 12 105 ILCS 5/19-1 from Ch. 122, par. 19-1