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92_SB0022eng SB22 Engrossed 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 SB22 Engrossed -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, SB22 Engrossed -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 SB22 Engrossed -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 SB22 Engrossed -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 SB22 Engrossed -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 SB22 Engrossed -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, SB22 Engrossed -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 SB22 Engrossed -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 SB22 Engrossed -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 SB22 Engrossed -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 or (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. 27 (b) The requirements of Section 18-190 of this Code for 28 a direct referendum on the imposition of a new or increased 29 tax rate shall not apply to the tax levies that are not 30 included in the aggregate extension pursuant to this Section. 31 (35 ILCS 200/18-200 rep.) 32 Section 10. The Property Tax Code is amended by SB22 Engrossed -12- LRB9201505NTsb 1 repealing Section 18-200. 2 Section 15. The School Code is amended by changing 3 Sections 2-3.12, 10-22.14, 17-2.2, 17-2.11, and 19-1 as 4 follows: 5 (105 ILCS 5/2-3.12) (from Ch. 122, par. 2-3.12) 6 Sec. 2-3.12. School building code. To prepare for school 7 boards with the advice of the Department of Public Health, 8 the Capital Development Board, and the State Fire Marshal a 9 school building code that will conserve the health and safety 10 and general welfare of the pupils and school personnel and 11 others who use public school facilities. 12 The document known as "Efficient and Adequate Standards 13 for the Construction of Schools" applies only to temporary 14 school facilities, new school buildings, and additions to 15 existing schools whose construction contracts are awarded 16 after July 1, 1965. On or before July 1, 1967, each school 17 board shall have its school district buildings that were 18 constructed prior to January 1, 1955, surveyed by an 19 architect or engineer licensed in the State of Illinois as to 20 minimum standards necessary to conserve the health and safety 21 of the pupils enrolled in the school buildings of the 22 district. Buildings constructed between January 1, 1955 and 23 July 1, 1965, not owned by the State of Illinois, shall be 24 surveyed by an architect or engineer licensed in the State of 25 Illinois beginning 10 years after acceptance of the completed 26 building by the school board. Buildings constructed between 27 January 1, 1955 and July 1, 1955 and previously exempt under 28 the provisions of Section 35-27 shall be surveyed prior to 29 July 1, 1977 by an architect or engineer licensed in the 30 State of Illinois. The architect or engineer, using the 31 document known as "Building Specifications for Health and 32 Safety in Public Schools" as a guide, shall make a report of SB22 Engrossed -13- LRB9201505NTsb 1 the findings of the survey to the school board, giving 2 priority in that report to fire safety problems and 3 recommendations thereon if any such problems exist. The 4 school board of each district so surveyed and receiving a 5 report of needed recommendations to be made to improve 6 standards of safety and health of the pupils enrolled has 7 until July 1, 1970, or in case of buildings not owned by the 8 State of Illinois and completed between January 1, 1955 and 9 July 1, 1965 or in the case of buildings previously exempt 10 under the provisions of Section 35-27 has a period of 3 years 11 after the survey is commenced, to effectuate those 12 recommendations, giving first attention to the 13 recommendations in the survey report having priority status, 14 and is authorized to levy the tax provided for in Section 15 17-2.11, according to the provisions of that Section, to make 16 such improvements. School boards unable to effectuate those 17 recommendations prior to July 1, 1970, on July 1, 1980 in the 18 case of buildings previously exempt under the provisions of 19 Section 35-27, may petition the State Superintendent of 20 Education upon the recommendation of the Regional 21 Superintendent for an extension of time. The extension of 22 time may be granted by the State Superintendent of Education 23 for a period of one year, but may be extended from year to 24 year provided substantial progress, in the opinion of the 25 State Superintendent of Education, is being made toward 26 compliance. 27 Within 2 years after the effective date of this 28 amendatory Act of 1983, and every 10 years thereafter, or at 29 such other times as the State Board of Education deems 30 necessary or the regional superintendent so orders, each 31 school board subject to the provisions of this Section shall 32 again survey its school buildings and effectuate any 33 recommendations in accordance with the procedures set forth 34 herein. An architect or engineer licensed in the State of SB22 Engrossed -14- LRB9201505NTsb 1 Illinois is required to conduct the surveys under the 2 provisions of this Section and shall make a report of the 3 findings of the survey titled "safety survey report" to the 4 school board. The school board shall approve the safety 5 survey report, including any recommendations to effectuate 6 compliance with the code, and submit it to the Regional 7 Superintendent. The Regional Superintendent shall render a 8 decision regarding approval or denial and submit the safety 9 survey report to the State Superintendent of Education. The 10 State Superintendent of Education shall approve or deny the 11 report including recommendations to effectuate compliance 12 with the code and, if approved, issue a certificate of 13 approval. Upon receipt of the certificate of approval, the 14 Regional Superintendent shall issue an order to effect any 15 approved recommendations included in the report. Items in 16 the report shall be prioritized. Urgent items shall be 17 considered as those items related to life safety problems 18 that present an immediate hazard to the safety of students. 19 Required items shall be considered as those items that are 20 necessary for a safe environment but present less of an 21 immediate hazard to the safety of students. Urgent and 22 required items shall be defined in rules adopted by the State 23 Board of Education. Urgent and required items shall reference 24 a specific rule in the code authorized by this Section that 25 is currently being violated or will be violated within the 26 next 12 months if the violation is not remedied. The school 27 board of each district so surveyed and receiving a report of 28 needed recommendations to be made to maintain standards of 29 safety and health of the pupils enrolled shall effectuate the 30 correction of urgent items as soon as achievable to ensure 31 the safety of the students, but in no case more than one year 32 after the date of the State Superintendent of Education's 33 approval of the recommendation. Required items shall be 34 corrected in a timely manner, but in no case more than 35SB22 Engrossed -15- LRB9201505NTsb 1 years from the date of the State Superintendent of 2 Education's approval of the recommendation. Once each year 3 the school board shall submit a report of progress on 4 completion of any recommendations to effectuate compliance 5 with the code. For each year that the school board does not 6 effectuate any or all approved recommendations, it shall 7 petition the Regional Superintendent and the State 8 Superintendent of Education detailing what work was completed 9 in the previous year and a work plan for completion of the 10 remaining work. If in the judgement of the Regional 11 Superintendent and the State Superintendent of Education 12 substantial progress has been made and just cause has been 13 shown by the school board, the petition for a one year 14 extension of time may be approved. 15 As soon as practicable, but not later than 2 years after 16 the effective date of this amendatory Act of 1992, the State 17 Board of Education shall combine the document known as 18 "Efficient and Adequate Standards for the Construction of 19 Schools" with the document known as "Building Specifications 20 for Health and Safety in Public Schools" together with any 21 modifications or additions that may be deemed necessary. The 22 combined document shall be known as the "Health/Life Safety 23 Code for Public Schools" and shall be the governing code for 24 all facilities that house public school students or are 25 otherwise used for public school purposes, whether such 26 facilities are permanent or temporary and whether they are 27 owned, leased, rented, or otherwise used by the district. 28 Facilities owned by a school district but that are not used 29 to house public school students or are not used for public 30 school purposes shall be governed by separate provisions 31 within the code authorized by this Section. 32 The 10 year survey cycle specified in this Section shall 33 continue to apply based upon the standards contained in the 34 "Health/Life Safety Code for Public Schools", which shall SB22 Engrossed -16- LRB9201505NTsb 1 specify building standards for buildings that are constructed 2 prior to the effective date of this amendatory Act of 1992 3 and for buildings that are constructed after that date. 4 The "Health/Life Safety Code for Public Schools" shall be 5 the governing code for public schools; however, the 6 provisions of this Section shall not preclude inspection of 7 school premises and buildings pursuant to Section 9 of the 8 Fire Investigation Act, provided that the provisions of the 9 "Health/Life Safety Code for Public Schools", or such 10 predecessor document authorized by this Section as may be 11 applicable are used, and provided that those inspections are 12 coordinated with the Regional Superintendent having 13 jurisdiction over the public school facility. Any agency 14 having jurisdiction beyond the scope of the applicable 15 document authorized by this Section may issue a lawful order 16 to a school board to effectuate recommendations, and the 17 school board receiving the order shall certify to the 18 Regional Superintendent and the State Superintendent of 19 Education when it has complied with the order. 20 The State Board of Education is authorized to adopt any 21 rules that are necessary relating to the administration and 22 enforcement of the provisions of this Section. The code 23 authorized by this Section shall apply only to those school 24 districts having a population of less than 500,000 25 inhabitants. 26 (Source: P.A. 89-397, eff. 8-20-95; 90-811, eff. 1-26-99.) 27 (105 ILCS 5/10-22.14) (from Ch. 122, par. 10-22.14) 28 Sec. 10-22.14. Borrowing money and issuing bonds. To 29 borrow money, and issue bonds for the purposes and in the 30 manner provided by this Act. 31 When bond proceeds from the sale of bonds include a 32 premium, or when the proceeds of bonds issued for thefire33prevention, safety, energy conservation, and school securitySB22 Engrossed -17- LRB9201505NTsb 1 purposesasspecified in Section 17-2.11 are invested as 2 authorized by law, the board shall determine by resolution 3 whether the interest earned on the investment of bond 4 proceeds authorized under Section 17-2.11 or the premium 5 realized in the sale of bonds, as the case may be, is to be 6 used for the purposes for which the bonds were issued or, 7 instead, for payment of the principal indebtedness and 8 interest on those bonds. 9 When bonds, other than bonds issued for thefire10prevention, safety, energy conservation, and school security11 purposesasspecified in Section 17-2.11 are issued by any 12 school district, and the purposes for which the bonds have 13 been issued are accomplished and paid for in full, and there 14 remain funds on hand from the proceeds of the bonds so 15 issued, the board by resolution may transfer those excess 16 funds to the operations and maintenance fund. 17 When bonds are issued by any school district for thefire18prevention, safety, energy conservation, and school security19 purposesasspecified in Section 17-2.11, and the purposes 20 for which the bonds have been issued are accomplished and 21 paid in full, and there remain funds on hand from the 22 proceeds of the bonds issued, the board by resolution shall 23 use those excess funds (1) for other authorizedfire24prevention, safety, energy conservation, and school security25 purposesasspecified in Section 17-2.11 or (2) for transfer 26 to the Bond and Interest Fund for payment of principal and 27 interest on those bonds. If any transfer is made to the Bond 28 and Interest Fund, the secretary of the school board shall 29 within 30 days notify the county clerk of the amount of that 30 transfer and direct the clerk to abate the taxes to be 31 extended for the purposes of principal and interest payments 32 on the respective bonds issued under Section 17-2.11 by an 33 amount equal to such transfer. 34 (Source: P.A. 86-970; 87-984.) SB22 Engrossed -18- LRB9201505NTsb 1 (105 ILCS 5/17-2.2) (from Ch. 122, par. 17-2.2) 2 Sec. 17-2.2. BackdoorBack doorreferendum. Whenever any 3 school district first levies a tax at a rate within the limit 4 prescribed by paragraph (3) of Section 17-2 but in excess of 5 the maximum permissible on July 9, 1957, or within the limit 6 prescribed by paragraph (1) or (2) of Section 17-2 but in 7 excess of the maximum permissible on June 30, 1965,or8 whenever after August 3, 1989 any school district maintaining 9 only grades kindergarten through 8 first levies a tax for 10 transportation purposes for any school year which is within 11 the limit prescribed for that school year by paragraph (5) of 12 Section 17-2 but in excess of the maximum authorized to be 13 levied for such purposes for the 1988-89 school year,or14 whenever after August 3, 1989 any school district first 15 levies a tax for operations and maintenance purposes for any 16 school year which is within the limit prescribed for that 17 school year by paragraph (3) of Section 17-2 but in excess of 18 the maximum authorized to be levied for such purposes for the 19 immediately preceding school year, or whenever a backdoor 20 referendum is required under Section 17-2.11, the district 21 shall cause to be published a notice of the proposed tax levy 22such resolutionin at least one newspaper of general 23 circulationor more newspapers publishedin the district, 24 within 10 days after such levy is made. The notice 25publication of the resolutionshall includea notice of(1) 26 the specific number of voters required to sign a petition 27 requesting that the question of the adoption of the tax levy 28 be submitted to the voters of the district; (2) the time in 29 which the petition must be filed; and (3) the date of the 30 prospective referendum. The district Secretary shall provide 31 a petition form to any individual requesting one. Any 32 registered votertaxpayerin such district may, within 30 33 days after such levy is made, file with the Secretary of the 34 board of education a petition signed by the voters of the SB22 Engrossed -19- LRB9201505NTsb 1 district equal to 10% or more of the registered voters of the 2 district requesting the submission to a referendum of the 3 following proposition: 4 "Shall school district No..... be authorized to levy a 5 tax for (state purposes) (in excess of.... but not to 6 exceed....) or (at a rate not to exceed...%) as authorized in 7 Section....17-2of the School Code?" The secretary of the 8 board of education shall certify the proposition to the 9 proper election authorities for submission to the electorate 10 at a regular scheduled election in accordance with the 11 general election law. 12 If a majority of the voters voting on the proposition 13 vote in favor thereof, such increased tax shall thereafter be 14 authorized; if a majority of the vote is against such 15 proposition, the previous maximum rate authorized, if any, 16 shall remain in effect until changed by law. 17 (Source: P.A. 86-128; 86-134; 86-1028; 86-1334; 87-767.) 18 (105 ILCS 5/17-2.11) (from Ch. 122, par. 17-2.11) 19 Sec. 17-2.11. School board power to levy a tax or to 20 borrow money and issue bonds for fire prevention, safety, 21 energy conservation, disabled accessibility, school security, 22 and specified repair purposes. Whenever, as a result of any 23 lawful order of any agency, other than a school board, having 24 authority to enforce any school building code applicable to 25 any facility that houses students, or any law or regulation 26 for the protection and safety of the environment, pursuant to 27 the Environmental Protection Act, any school district having 28 a population of less than 500,000 inhabitants is required to 29 alter, repair, or reconstruct any school building or 30 permanent, fixed equipment; or whenever any such district 31 determines that it is necessary for energy conservation 32 purposes that any school building or permanent, fixed 33 equipment should be altered or reconstructed and that such SB22 Engrossed -20- LRB9201505NTsb 1 alterations or reconstruction will be made with funds not 2 necessary for the completion of approved and recommended 3 projects contained in any safety survey report or amendments 4 thereto authorized by Section 2-3.12 of this Act; or whenever 5 any such district determines that it is necessary for 6 disabled accessibility purposes and to comply with the school 7 building code that any school building or equipment should be 8 altered or reconstructed and that such alterations or 9 reconstruction will be made with funds not necessary for the 10 completion of approved and recommended projects contained in 11 any safety survey report or amendments thereto authorized 12 under Section 2-3.12 of this Act; or whenever any such 13 district determines that it is necessary for school security 14 purposes and the related protection and safety of pupils and 15 school personnel that any school building or property should 16 be altered or reconstructed or that security systems and 17 equipment (including but not limited to intercom, early 18 detection and warning, access control and television 19 monitoring systems) should be purchased and installed, and 20 that such alterations, reconstruction or purchase and 21 installation of equipment will be made with funds not 22 necessary for the completion of approved and recommended 23 projects contained in any safety survey report or amendment 24 thereto authorized by Section 2-3.12 of this Act and will 25 deter and prevent unauthorized entry or activities upon 26 school property by unknown or dangerous persons, assure early 27 detection and advance warning of any such actual or attempted 28 unauthorized entry or activities and help assure the 29 continued safety of pupils and school staff if any such 30 unauthorized entry or activity is attempted or occurs; or if 31 a school district does not need funds for other fire 32 prevention and safety projects, including the completion of 33 approved and recommended projects contained in any safety 34 survey report or amendments thereto authorized by Section SB22 Engrossed -21- LRB9201505NTsb 1 2-3.12 of this Act, and it is determined after a public 2 hearing (which is preceded by at least one published notice 3 (i) occurring at least 7 days prior to the hearing in a 4 newspaper of general circulation within the school district 5 and (ii) setting forth the time, date, place, and general 6 subject matter of the hearing) that there is a substantial, 7 immediate, and otherwise unavoidable threat to the health, 8 safety, or welfare of pupils due to disrepair of school 9 sidewalks, playgrounds, parking lots, or school bus 10 turnarounds and repairs must be made: then in any such 11 event, such district may, by proper resolution, levy a tax 12 for the purpose of making such alteration, repair, or 13 reconstruction, based on a survey report by an architect or 14 engineer licensed in the State of Illinois, upon all the 15 taxable property of the district at the value as assessed by 16 the Department of Revenue at a rate not to exceed 0.15% for 17 elementary and high school districts and 0.30% for unit 18 districts.05%per year for a period sufficient to finance 19 such alterations, repairs, or reconstruction, upon the 20 following conditions: 21 (a) When there are not sufficient funds available 22 in either the operations and maintenance fund of the 23 district or the fire prevention and safety fund of the 24 district as determined by the district on the basis of 25 regulations adopted by the State Board of Education to 26 make such alterations, repairs, or reconstruction, or to 27 purchase and install such permanent fixed equipment so 28 ordered or determined as necessary. Appropriate school 29 district records shall be made available to the State 30 Superintendent of Education upon request to confirm such 31 insufficiency. 32 (b) When a certified estimate of an architect or 33 engineer licensed in the State of Illinois stating the 34 estimated amount necessary to make the alterations,orSB22 Engrossed -22- LRB9201505NTsb 1 repairs, reconstruction or to purchase and install such 2 equipment so ordered has been secured by the district, 3 and the estimate has been approved by the regional 4 superintendent of schools, having jurisdiction of the 5 district, and the State Superintendent of Education. 6 Approval shall not be granted for any work that has 7 already started without the prior express authorization 8 of the State Superintendent of Education. If such 9 estimate is not approved or denied approval by the 10 regional superintendent of schools within 3 months after 11 the date on which it is submitted to him or her, the 12 school board of the district may submit such estimate 13 directly to the State Superintendent of Education for 14 approval or denial. 15 (c) Whenever a school district subject to the 16 Property Tax Extension Limitation Law first levies the 17 tax at a rate permitted by this amendatory Act of the 18 92nd General Assembly but in excess of its maximum 19 permissible rate for that purpose immediately prior to 20 the effective date of this amendatory Act of the 92nd 21 General Assembly, the rate increase shall be subject to a 22 backdoor referendum using the procedures provided in 23 Section 17-2.2 of this Code. 24 For purposes of this Section a school district may 25 replace a school building or build additions to replace 26 portions of a building when it is determined that the 27 effectuation of the recommendations for the existing building 28 will cost more than the replacement costs. Such 29 determination shall be based on a comparison of estimated 30 costs made by an architect or engineer licensed in the State 31 of Illinois. The new building or addition shall be 32 equivalent in area (square feet) and comparable in purpose 33 and grades served and may be on the same site or another 34 site. Such replacement may only be done upon order of the SB22 Engrossed -23- LRB9201505NTsb 1 regional superintendent of schools and the approval of the 2 State Superintendent of Education. 3 The filing of a certified copy of the resolution levying 4 the tax when accompanied by the certificates of the regional 5 superintendent of schools and State Superintendent of 6 Education shall be the authority of the county clerk to 7 extend such tax. 8 The county clerk of the county in which any school 9 district levying a tax under the authority of this Section is 10 located, in reducing raised levies, shall not consider any 11 such tax as a part of the general levy for school purposes 12 and shall not include the same in the limitation of any other 13 tax rate which may be extended. 14 Such tax shall be levied and collected in like manner as 15 all other taxes of school districts, subject to the 16 provisions contained in this Section. 17The tax rate limit specified in this Section may be18increased to .10% upon the approval of a proposition to19effect such increase by a majority of the electors voting on20that proposition at a regular scheduled election. Such21proposition may be initiated by resolution of the school22board and shall be certified by the secretary to the proper23election authorities for submission in accordance with the24general election law.25 When taxes are levied by any school district for thefire26prevention, safety, energy conservation, and school security27 purposesasspecified in this Section, and the purposes for 28 which the taxes have been levied are accomplished and paid in 29 full, and there remain funds on hand in the Fire Prevention 30 and Safety Fund from the proceeds of the taxes levied, 31 including interest earnings thereon, the school board by 32 resolution shall use such excess and other board restricted 33 funds excluding bond proceeds and earnings from such proceeds 34 (1) for other authorized fire prevention, safety, energy SB22 Engrossed -24- LRB9201505NTsb 1 conservation, and school security purposes or (2) for 2 transfer to the Operations and Maintenance Fund for the 3 purpose of abating an equal amount of operations and 4 maintenance purposes taxes. If any transfer is made to the 5 Operation and Maintenance Fund, the secretary of the school 6 board shall within 30 days notify the county clerk of the 7 amount of that transfer and direct the clerk to abate the 8 taxes to be extended for the purposes of operations and 9 maintenance authorized under Section 17-2 of this Act by an 10 amount equal to such transfer. 11 If the proceeds from the tax levy authorized by this 12 Section are insufficient to complete the work approved under 13 this Section, the school board is authorized to sell bonds 14 without referendum under the provisions of this Section in an 15 amount that, when added to the proceeds of the tax levy 16 authorized by this Section, will allow completion of the 17 approved work, provided that a district that is subject to 18 the Property Tax Extension Limitation Law shall submit the 19 authorization to a backdoor referendum as provided in this 20 Section. No school district that is subject to the Property 21 Tax Extension Limitation Law may issue bonds under this 22 Section unless it adopts a resolution declaring its intention 23 to issue bonds and directs that notice of this intention be 24 published at least once in a newspaper of general circulation 25 in the district. The notice shall set forth (i) the 26 intention of the district to issue bonds in accordance with 27 this Section, (ii) the time within which a petition may be 28 filed requesting the submission to the voters of the 29 proposition to issue the bonds, (iii) the specific number of 30 voters required to sign the petition, and (iv) the date of 31 the prospective referendum. At the time of publication of 32 the notice and for 30 days thereafter, the secretary of the 33 district shall provide a petition form to any individual 34 requesting one. If within 30 days after the publication a SB22 Engrossed -25- LRB9201505NTsb 1 petition is filed with the secretary of the district, signed 2 by the voters of the district equal to 20% or more of the 3 registered voters of the district requesting that the 4 proposition to issue bonds as authorized by this Section be 5 submitted to the voters thereof, then the district shall not 6 be authorized to issue the bonds until the proposition has 7 been certified to the proper election authorities and has 8 been submitted to and approved by a majority of the voters 9 voting on the proposition at a regular scheduled election in 10 accordance with the general election law. If no such 11 petition is filed, or if any and all petitions filed are 12 invalid, the district may issue the bonds. 13 Such bonds shall bear interest at a rate not to exceed 14 the maximum rate authorized by law at the time of the making 15 of the contract, shall mature within 20 years from date, and 16 shall be signed by the president of the school board and the 17 treasurer of the school district. Such bonds issued after the 18 effective date of this amendatory Act of the 92nd General 19 Assembly and any bonds issued to refund such bonds issued 20 after the effective date of this amendatory Act of the 92nd 21 General Assembly shall not be considered debt for purposes of 22 any statutory debt limitation. 23 In order to authorize and issue such bonds, the school 24 board shall adopt a resolution fixing the amount of bonds, 25 the date thereof, the maturities thereof, rates of interest 26 thereof, place of payment and denomination,which shall be in27denominations of not less than $100 and not more than $5,000,28 and provide for the levy and collection of a direct annual 29 tax upon all the taxable property in the school district 30 sufficient to pay the principal and interest on such bonds to 31 maturity. Upon the filing in the office of the county clerk 32 of the county in which the school district is located of a 33 certified copy of the resolution, it is the duty of the 34 county clerk to extend the tax therefor in addition to and in SB22 Engrossed -26- LRB9201505NTsb 1 excess of all other taxes heretofore or hereafter authorized 2 to be levied by such school district. 3 After the time such bonds are issued as provided for by 4 this Section, if additional alterations, repairs, or 5 reconstructions are required to be made because of surveys 6 conducted by an architect or engineer licensed in the State 7 of Illinois, the district may levy a tax at a rate not to 8 exceed the rate permitted by this Section.05% per yearupon 9 all the taxable property of the district or issue additional 10 bonds, whichever action shall be the most feasible. 11 This Section is cumulative and constitutes complete 12 authority for the issuance of bonds as provided in this 13 Section notwithstanding any other statute or law to the 14 contrary. 15 With respect to instruments for the payment of money 16 issued under this Section either before, on, or after the 17 effective date of Public Act 86-004 (June 6, 1989), it is, 18 and always has been, the intention of the General Assembly 19 (i) that the Omnibus Bond Acts are, and always have been, 20 supplementary grants of power to issue instruments in 21 accordance with the Omnibus Bond Acts, regardless of any 22 provision of this Act that may appear to be or to have been 23 more restrictive than those Acts, (ii) that the provisions of 24 this Section are not a limitation on the supplementary 25 authority granted by the Omnibus Bond Acts, and (iii) that 26 instruments issued under this Section within the 27 supplementary authority granted by the Omnibus Bond Acts are 28 not invalid because of any provision of this Act that may 29 appear to be or to have been more restrictive than those 30 Acts. 31 When the purposes for which the bonds are issued have 32 been accomplished and paid for in full and there remain funds 33 on hand from the proceeds of the bond sale and interest 34 earnings therefrom, the board shall, by resolution, use such SB22 Engrossed -27- LRB9201505NTsb 1 excess funds in accordance with the provisions of Section 2 10-22.14 of this Act. 3 Whenever any tax is levied or bonds issued under this 4 Section, thefor fire prevention, safety, energy5conservation, and school security purposes, suchproceeds 6 shall be deposited and accounted for separately within the 7 Fire Prevention and Safety Fund. 8 (Source: P.A. 88-251; 88-508; 88-628, eff. 9-9-94; 88-670, 9 eff. 12-2-94; 89-235, eff. 8-4-95; 89-397, eff. 8-20-95.) 10 (105 ILCS 5/19-1) (from Ch. 122, par. 19-1) 11 Sec. 19-1. Debt limitations of school districts. 12 (a) School districts shall not be subject to the 13 provisions limiting their indebtedness prescribed in the 14 Local Government Debt Limitation Act"An Act to limit the15indebtedness of counties having a population of less than16500,000 and townships, school districts and other municipal17corporations having a population of less than 300,000",18approved February 15, 1928, as amended. 19 No school districts maintaining grades K through 8 or 9 20 through 12 shall become indebted in any manner or for any 21 purpose to an amount, including existing indebtedness, in the 22 aggregate exceeding 9.0% of6.9% onthe equalized assessed 23 value of the taxable property therein to be ascertained by 24 the last assessment for State and county taxes or, until 25 January 1, 1983, if greater, the sum that is produced by 26 multiplying the school district's 1978 equalized assessed 27 valuation by the debt limitation percentage in effect on 28 January 1, 1979, previous to the incurring of such 29 indebtedness. 30 No school districts maintaining grades K through 12 shall 31 become indebted in any manner or for any purpose to an 32 amount, including existing indebtedness, in the aggregate 33 exceeding 18.0% of13.8% onthe equalized assessed value of SB22 Engrossed -28- LRB9201505NTsb 1 the taxable property therein to be ascertained by the last 2 assessment for State and county taxes or, until January 1, 3 1983, if greater, the sum that is produced by multiplying the 4 school district's 1978 equalized assessed valuation by the 5 debt limitation percentage in effect on January 1, 1979, 6 previous to the incurring of such indebtedness. 7 Notwithstanding the provisions of any other law to the 8 contrary, in any case in which the voters of a school 9 district have approved a proposition for the issuance of 10 bonds of such school district at an election held prior to 11 January 1, 1979, and all of the bonds approved at such 12 election have not been issued, the debt limitation applicable 13 to such school district during the calendar year 1979 shall 14 be computed by multiplying the value of taxable property 15 therein, including personal property, as ascertained by the 16 last assessment for State and county taxes, previous to the 17 incurring of such indebtedness, by the percentage limitation 18 applicable to such school district under the provisions of 19 this subsection (a). 20 (b) Notwithstanding the debt limitation prescribed in 21 subsection (a) of this Section, additional indebtedness may 22 be incurred in an amount not to exceed the estimated cost of 23 acquiring or improving school sites or constructing and 24 equipping additional building facilities under the following 25 conditions: 26 (1) Whenever the enrollment of students for the 27 next school year is estimated by the board of education 28 to increase over the actual present enrollment by not 29 less than 35% or by not less than 200 students or the 30 actual present enrollment of students has increased over 31 the previous school year by not less than 35% or by not 32 less than 200 students and the board of education 33 determines that additional school sites or building 34 facilities are required as a result of such increase in SB22 Engrossed -29- LRB9201505NTsb 1 enrollment; and 2 (2) When the Regional Superintendent of Schools 3 having jurisdiction over the school district and the 4 State Superintendent of Education concur in such 5 enrollment projection or increase and approve the need 6 for such additional school sites or building facilities 7 and the estimated cost thereof; and 8 (3) When the voters in the school district approve 9 a proposition for the issuance of bonds for the purpose 10 of acquiring or improving such needed school sites or 11 constructing and equipping such needed additional 12 building facilities at an election called and held for 13 that purpose. Notice of such an election shall state that 14 the amount of indebtedness proposed to be incurred would 15 exceed the debt limitation otherwise applicable to the 16 school district. The ballot for such proposition shall 17 state what percentage of the equalized assessed valuation 18 will be outstanding in bonds if the proposed issuance of 19 bonds is approved by the voters; or 20 (4) Notwithstanding the provisions of paragraphs 21 (1) through (3) of this subsection (b), if the school 22 board determines that additional facilities are needed to 23 provide a quality educational program and not less than 24 2/3 of those voting in an election called by the school 25 board on the question approve the issuance of bonds for 26 the construction of such facilities, the school district 27 may issue bonds for this purpose; or 28 (5) Notwithstanding the provisions of paragraphs 29 (1) through (3) of this subsection (b), if (i) the school 30 district has previously availed itself of the provisions 31 of paragraph (4) of this subsection (b) to enable it to 32 issue bonds, (ii) the voters of the school district have 33 not defeated a proposition for the issuance of bonds 34 since the referendum described in paragraph (4) of this SB22 Engrossed -30- LRB9201505NTsb 1 subsection (b) was held, (iii) the school board 2 determines that additional facilities are needed to 3 provide a quality educational program, and (iv) a 4 majority of those voting in an election called by the 5 school board on the question approve the issuance of 6 bonds for the construction of such facilities, the school 7 district may issue bonds for this purpose. 8 In no event shall the indebtedness incurred pursuant to 9 this subsection (b) and the existing indebtedness of the 10 school district exceed 20%15%of the equalized assessed 11 value of the taxable property therein to be ascertained by 12 the last assessment for State and county taxes, previous to 13 the incurring of such indebtedness or, until January 1, 1983, 14 if greater, the sum that is produced by multiplying the 15 school district's 1978 equalized assessed valuation by the 16 debt limitation percentage in effect on January 1, 1979. 17 The indebtedness provided for by this subsection (b) 18 shall be in addition to and in excess of any other debt 19 limitation. 20 (c) Notwithstanding the debt limitation prescribed in 21 subsection (a) of this Section, in any case in which a public 22 question for the issuance of bonds of a proposed school 23 district maintaining grades kindergarten through 12 received 24 at least 60% of the valid ballots cast on the question at an 25 election held on or prior to November 8, 1994, and in which 26 the bonds approved at such election have not been issued, the 27 school district pursuant to the requirements of Section 28 11A-10 may issue the total amount of bonds approved at such 29 election for the purpose stated in the question. 30 (d) Notwithstanding the debt limitation prescribed in 31 subsection (a) of this Section, a school district that meets 32 all the criteria set forth in paragraphs (1) and (2) of this 33 subsection (d) may incur an additional indebtedness in an 34 amount not to exceed $4,500,000, even though the amount of SB22 Engrossed -31- LRB9201505NTsb 1 the additional indebtedness authorized by this subsection 2 (d), when incurred and added to the aggregate amount of 3 indebtedness of the district existing immediately prior to 4 the district incurring the additional indebtedness authorized 5 by this subsection (d), causes the aggregate indebtedness of 6 the district to exceed the debt limitation otherwise 7 applicable to that district under subsection (a): 8 (1) The additional indebtedness authorized by this 9 subsection (d) is incurred by the school district through 10 the issuance of bonds under and in accordance with 11 Section 17-2.11a for the purpose of replacing a school 12 building which, because of mine subsidence damage, has 13 been closed as provided in paragraph (2) of this 14 subsection (d) or through the issuance of bonds under and 15 in accordance with Section 19-3 for the purpose of 16 increasing the size of, or providing for additional 17 functions in, such replacement school buildings, or both 18 such purposes. 19 (2) The bonds issued by the school district as 20 provided in paragraph (1) above are issued for the 21 purposes of construction by the school district of a new 22 school building pursuant to Section 17-2.11, to replace 23 an existing school building that, because of mine 24 subsidence damage, is closed as of the end of the 1992-93 25 school year pursuant to action of the regional 26 superintendent of schools of the educational service 27 region in which the district is located under Section 28 3-14.22 or are issued for the purpose of increasing the 29 size of, or providing for additional functions in, the 30 new school building being constructed to replace a school 31 building closed as the result of mine subsidence damage, 32 or both such purposes. 33 (e) Notwithstanding the debt limitation prescribed in 34 subsection (a) of this Section, a school district that meets SB22 Engrossed -32- LRB9201505NTsb 1 all the criteria set forth in paragraphs (1) through (5) of 2 this subsection (e) may, without referendum, incur an 3 additional indebtedness in an amount not to exceed the lesser 4 of $5,000,000 or 1.5% of the equalized assessed value of the 5 taxable property within the district even though the amount 6 of the additional indebtedness authorized by this subsection 7 (e), when incurred and added to the aggregate amount of 8 indebtedness of the district existing immediately prior to 9 the district incurring that additional indebtedness, causes 10 the aggregate indebtedness of the district to exceed or 11 increases the amount by which the aggregate indebtedness of 12 the district already exceeds the debt limitation otherwise 13 applicable to that district under subsection (a): 14 (1) The State Board of Education certifies the 15 school district under Section 19-1.5 as a financially 16 distressed district. 17 (2) The additional indebtedness authorized by this 18 subsection (e) is incurred by the financially distressed 19 district during the school year or school years in which 20 the certification of the district as a financially 21 distressed district continues in effect through the 22 issuance of bonds for the lawful school purposes of the 23 district, pursuant to resolution of the school board and 24 without referendum, as provided in paragraph (5) of this 25 subsection. 26 (3) The aggregate amount of bonds issued by the 27 financially distressed district during a fiscal year in 28 which it is authorized to issue bonds under this 29 subsection does not exceed the amount by which the 30 aggregate expenditures of the district for operational 31 purposes during the immediately preceding fiscal year 32 exceeds the amount appropriated for the operational 33 purposes of the district in the annual school budget 34 adopted by the school board of the district for the SB22 Engrossed -33- LRB9201505NTsb 1 fiscal year in which the bonds are issued. 2 (4) Throughout each fiscal year in which 3 certification of the district as a financially distressed 4 district continues in effect, the district maintains in 5 effect a gross salary expense and gross wage expense 6 freeze policy under which the district expenditures for 7 total employee salaries and wages do not exceed such 8 expenditures for the immediately preceding fiscal year. 9 Nothing in this paragraph, however, shall be deemed to 10 impair or to require impairment of the contractual 11 obligations, including collective bargaining agreements, 12 of the district or to impair or require the impairment of 13 the vested rights of any employee of the district under 14 the terms of any contract or agreement in effect on the 15 effective date of this amendatory Act of 1994. 16 (5) Bonds issued by the financially distressed 17 district under this subsection shall bear interest at a 18 rate not to exceed the maximum rate authorized by law at 19 the time of the making of the contract, shall mature 20 within 40 years from their date of issue, and shall be 21 signed by the president of the school board and treasurer 22 of the school district. In order to issue bonds under 23 this subsection, the school board shall adopt a 24 resolution fixing the amount of the bonds, the date of 25 the bonds, the maturities of the bonds, the rates of 26 interest of the bonds, and their place of payment and 27 denomination, and shall provide for the levy and 28 collection of a direct annual tax upon all the taxable 29 property in the district sufficient to pay the principal 30 and interest on the bonds to maturity. Upon the filing 31 in the office of the county clerk of the county in which 32 the financially distressed district is located of a 33 certified copy of the resolution, it is the duty of the 34 county clerk to extend the tax therefor in addition to SB22 Engrossed -34- LRB9201505NTsb 1 and in excess of all other taxes at any time authorized 2 to be levied by the district. If bond proceeds from the 3 sale of bonds include a premium or if the proceeds of the 4 bonds are invested as authorized by law, the school board 5 shall determine by resolution whether the interest earned 6 on the investment of bond proceeds or the premium 7 realized on the sale of the bonds is to be used for any 8 of the lawful school purposes for which the bonds were 9 issued or for the payment of the principal indebtedness 10 and interest on the bonds. The proceeds of the bond sale 11 shall be deposited in the educational purposes fund of 12 the district and shall be used to pay operational 13 expenses of the district. This subsection is cumulative 14 and constitutes complete authority for the issuance of 15 bonds as provided in this subsection, notwithstanding any 16 other law to the contrary. 17 (f) Notwithstanding the provisions of subsection (a) of 18 this Section or of any other law, bonds in not to exceed the 19 aggregate amount of $5,500,000 and issued by a school 20 district meeting the following criteria shall not be 21 considered indebtedness for purposes of any statutory 22 limitation and may be issued in an amount or amounts, 23 including existing indebtedness, in excess of any heretofore 24 or hereafter imposed statutory limitation as to indebtedness: 25 (1) At the time of the sale of such bonds, the 26 board of education of the district shall have determined 27 by resolution that the enrollment of students in the 28 district is projected to increase by not less than 7% 29 during each of the next succeeding 2 school years. 30 (2) The board of education shall also determine by 31 resolution that the improvements to be financed with the 32 proceeds of the bonds are needed because of the projected 33 enrollment increases. 34 (3) The board of education shall also determine by SB22 Engrossed -35- LRB9201505NTsb 1 resolution that the projected increases in enrollment are 2 the result of improvements made or expected to be made to 3 passenger rail facilities located in the school district. 4 (g) Notwithstanding the provisions of subsection (a) of 5 this Section or any other law, bonds in not to exceed an 6 aggregate amount of 25% of the equalized assessed value of 7 the taxable property of a school district and issued by a 8 school district meeting the criteria in paragraphs (i) 9 through (iv) of this subsection shall not be considered 10 indebtedness for purposes of any statutory limitation and may 11 be issued pursuant to resolution of the school board in an 12 amount or amounts, including existing indebtedness, in excess 13 of any statutory limitation of indebtedness heretofore or 14 hereafter imposed: 15 (i) The bonds are issued for the purpose of 16 constructing a new high school building to replace two 17 adjacent existing buildings which together house a single 18 high school, each of which is more than 65 years old, and 19 which together are located on more than 10 acres and less 20 than 11 acres of property. 21 (ii) At the time the resolution authorizing the 22 issuance of the bonds is adopted, the cost of 23 constructing a new school building to replace the 24 existing school building is less than 60% of the cost of 25 repairing the existing school building. 26 (iii) The sale of the bonds occurs before July 1, 27 1997. 28 (iv) The school district issuing the bonds is a 29 unit school district located in a county of less than 30 70,000 and more than 50,000 inhabitants, which has an 31 average daily attendance of less than 1,500 and an 32 equalized assessed valuation of less than $29,000,000. 33 (h) Notwithstanding any other provisions of this Section 34 or the provisions of any other law, until January 1, 1998, a SB22 Engrossed -36- LRB9201505NTsb 1 community unit school district maintaining grades K through 2 12 may issue bonds up to an amount, including existing 3 indebtedness, not exceeding 27.6% of the equalized assessed 4 value of the taxable property in the district, if all of the 5 following conditions are met: 6 (i) The school district has an equalized assessed 7 valuation for calendar year 1995 of less than 8 $24,000,000; 9 (ii) The bonds are issued for the capital 10 improvement, renovation, rehabilitation, or replacement 11 of existing school buildings of the district, all of 12 which buildings were originally constructed not less than 13 40 years ago; 14 (iii) The voters of the district approve a 15 proposition for the issuance of the bonds at a referendum 16 held after March 19, 1996; and 17 (iv) The bonds are issued pursuant to Sections 19-2 18 through 19-7 of this Code. 19 (i) Notwithstanding any other provisions of this Section 20 or the provisions of any other law, until January 1, 1998, a 21 community unit school district maintaining grades K through 22 12 may issue bonds up to an amount, including existing 23 indebtedness, not exceeding 27% of the equalized assessed 24 value of the taxable property in the district, if all of the 25 following conditions are met: 26 (i) The school district has an equalized assessed 27 valuation for calendar year 1995 of less than 28 $44,600,000; 29 (ii) The bonds are issued for the capital 30 improvement, renovation, rehabilitation, or replacement 31 of existing school buildings of the district, all of 32 which existing buildings were originally constructed not 33 less than 80 years ago; 34 (iii) The voters of the district approve a SB22 Engrossed -37- LRB9201505NTsb 1 proposition for the issuance of the bonds at a referendum 2 held after December 31, 1996; and 3 (iv) The bonds are issued pursuant to Sections 19-2 4 through 19-7 of this Code. 5 (j) Notwithstanding any other provisions of this Section 6 or the provisions of any other law, until January 1, 1999, a 7 community unit school district maintaining grades K through 8 12 may issue bonds up to an amount, including existing 9 indebtedness, not exceeding 27% of the equalized assessed 10 value of the taxable property in the district if all of the 11 following conditions are met: 12 (i) The school district has an equalized assessed 13 valuation for calendar year 1995 of less than 14 $140,000,000 and a best 3 months average daily attendance 15 for the 1995-96 school year of at least 2,800; 16 (ii) The bonds are issued to purchase a site and 17 build and equip a new high school, and the school 18 district's existing high school was originally 19 constructed not less than 35 years prior to the sale of 20 the bonds; 21 (iii) At the time of the sale of the bonds, the 22 board of education determines by resolution that a new 23 high school is needed because of projected enrollment 24 increases; 25 (iv) At least 60% of those voting in an election 26 held after December 31, 1996 approve a proposition for 27 the issuance of the bonds; and 28 (v) The bonds are issued pursuant to Sections 19-2 29 through 19-7 of this Code. 30 (k) Notwithstanding the debt limitation prescribed in 31 subsection (a) of this Section, a school district that meets 32 all the criteria set forth in paragraphs (1) through (4) of 33 this subsection (k) may issue bonds to incur an additional 34 indebtedness in an amount not to exceed $4,000,000 even SB22 Engrossed -38- LRB9201505NTsb 1 though the amount of the additional indebtedness authorized 2 by this subsection (k), when incurred and added to the 3 aggregate amount of indebtedness of the school district 4 existing immediately prior to the school district incurring 5 such additional indebtedness, causes the aggregate 6 indebtedness of the school district to exceed or increases 7 the amount by which the aggregate indebtedness of the 8 district already exceeds the debt limitation otherwise 9 applicable to that school district under subsection (a): 10 (1) the school district is located in 2 counties, 11 and a referendum to authorize the additional indebtedness 12 was approved by a majority of the voters of the school 13 district voting on the proposition to authorize that 14 indebtedness; 15 (2) the additional indebtedness is for the purpose 16 of financing a multi-purpose room addition to the 17 existing high school; 18 (3) the additional indebtedness, together with the 19 existing indebtedness of the school district, shall not 20 exceed 17.4% of the value of the taxable property in the 21 school district, to be ascertained by the last assessment 22 for State and county taxes; and 23 (4) the bonds evidencing the additional 24 indebtedness are issued, if at all, within 120 days of 25 the effective date of this amendatory Act of 1998. 26 (l) Notwithstanding any other provisions of this Section 27 or the provisions of any other law, until January 1, 2000, a 28 school district maintaining grades kindergarten through 8 may 29 issue bonds up to an amount, including existing indebtedness, 30 not exceeding 15% of the equalized assessed value of the 31 taxable property in the district if all of the following 32 conditions are met: 33 (i) the district has an equalized assessed 34 valuation for calendar year 1996 of less than SB22 Engrossed -39- LRB9201505NTsb 1 $10,000,000; 2 (ii) the bonds are issued for capital improvement, 3 renovation, rehabilitation, or replacement of one or more 4 school buildings of the district, which buildings were 5 originally constructed not less than 70 years ago; 6 (iii) the voters of the district approve a 7 proposition for the issuance of the bonds at a referendum 8 held on or after March 17, 1998; and 9 (iv) the bonds are issued pursuant to Sections 19-2 10 through 19-7 of this Code. 11 (m) Notwithstanding any other provisions of this Section 12 or the provisions of any other law, until January 1, 1999, an 13 elementary school district maintaining grades K through 8 may 14 issue bonds up to an amount, excluding existing indebtedness, 15 not exceeding 18% 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 school district has an equalized assessed 19 valuation for calendar year 1995 or less than $7,700,000; 20 (ii) The school district operates 2 elementary 21 attendance centers that until 1976 were operated as the 22 attendance centers of 2 separate and distinct school 23 districts; 24 (iii) The bonds are issued for the construction of 25 a new elementary school building to replace an existing 26 multi-level elementary school building of the school 27 district that is not handicapped accessible at all levels 28 and parts of which were constructed more than 75 years 29 ago; 30 (iv) The voters of the school district approve a 31 proposition for the issuance of the bonds at a referendum 32 held after July 1, 1998; and 33 (v) The bonds are issued pursuant to Sections 19-2 34 through 19-7 of this Code. SB22 Engrossed -40- LRB9201505NTsb 1 (n) Notwithstanding the debt limitation prescribed in 2 subsection (a) of this Section or any other provisions of 3 this Section or of any other law, a school district that 4 meets all of the criteria set forth in paragraphs (i) through 5 (vi) of this subsection (n) may incur additional indebtedness 6 by the issuance of bonds in an amount not exceeding the 7 amount certified by the Capital Development Board to the 8 school district as provided in paragraph (iii) of this 9 subsection (n), even though the amount of the additional 10 indebtedness so authorized, when incurred and added to the 11 aggregate amount of indebtedness of the district existing 12 immediately prior to the district incurring the additional 13 indebtedness authorized by this subsection (n), causes the 14 aggregate indebtedness of the district to exceed the debt 15 limitation otherwise applicable by law to that district: 16 (i) The school district applies to the State Board 17 of Education for a school construction project grant and 18 submits a district facilities plan in support of its 19 application pursuant to Section 5-20 of the School 20 Construction Law. 21 (ii) The school district's application and 22 facilities plan are approved by, and the district 23 receives a grant entitlement for a school construction 24 project issued by, the State Board of Education under the 25 School Construction Law. 26 (iii) The school district has exhausted its bonding 27 capacity or the unused bonding capacity of the district 28 is less than the amount certified by the Capital 29 Development Board to the district under Section 5-15 of 30 the School Construction Law as the dollar amount of the 31 school construction project's cost that the district will 32 be required to finance with non-grant funds in order to 33 receive a school construction project grant under the 34 School Construction Law. SB22 Engrossed -41- LRB9201505NTsb 1 (iv) The bonds are issued for a "school 2 construction project", as that term is defined in Section 3 5-5 of the School Construction Law, in an amount that 4 does not exceed the dollar amount certified, as provided 5 in paragraph (iii) of this subsection (n), by the Capital 6 Development Board to the school district under Section 7 5-15 of the School Construction Law. 8 (v) The voters of the district approve a 9 proposition for the issuance of the bonds at a referendum 10 held after the criteria specified in paragraphs (i) and 11 (iii) of this subsection (n) are met. 12 (vi) The bonds are issued pursuant to Sections 19-2 13 through 19-7 of the School Code. 14 (Source: P.A. 90-570, eff. 1-28-98; 90-757, eff. 8-14-98; 15 91-55, eff. 6-30-99.) 16 Section 99. Effective date. This Act takes effect upon 17 becoming law. SB22 Engrossed -42- 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 5/17-2.2 from Ch. 122, par. 17-2.2 9 105 ILCS 5/17-2.11 from Ch. 122, par. 17-2.11 10 105 ILCS 5/19-1 from Ch. 122, par. 19-1