State of Illinois
92nd General Assembly
Legislation

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92_SB0022ham005











                                           LRB9201505NTsbam11

 1                     AMENDMENT TO SENATE BILL 22

 2        AMENDMENT NO.     .  Amend Senate Bill  22  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section 5.  The Property Tax Code is amended by changing
 5    Section  18-185 and by adding Sections 18-190.5 and 18-201 as
 6    follows:

 7        (35 ILCS 200/18-185)
 8        Sec. 18-185.  Short title; definitions.  This Division  5
 9    may  be  cited  as the Property Tax Extension Limitation Law.
10    As used in this Division 5:
11        "Consumer Price Index" means the Consumer Price Index for
12    All Urban Consumers for all items  published  by  the  United
13    States Department of Labor.
14        "Extension  limitation" means (a) the lesser of 5% or the
15    percentage increase in the Consumer Price  Index  during  the
16    12-month  calendar  year  preceding  the levy year or (b) the
17    rate of increase approved by voters under Section 18-205.
18        "Affected county" means a county  of  3,000,000  or  more
19    inhabitants  or  a county contiguous to a county of 3,000,000
20    or more inhabitants.
21        "Taxing  district"  has  the  same  meaning  provided  in
22    Section 1-150, except as otherwise provided in this  Section.
 
                            -2-            LRB9201505NTsbam11
 1    For  the 1991 through 1994 levy years only, "taxing district"
 2    includes only each non-home rule taxing district  having  the
 3    majority  of  its  1990  equalized  assessed value within any
 4    county or counties contiguous to a county with  3,000,000  or
 5    more inhabitants.  Beginning with the 1995 levy year, "taxing
 6    district"  includes  only  each non-home rule taxing district
 7    subject to this Law  before  the  1995  levy  year  and  each
 8    non-home  rule taxing district not subject to this Law before
 9    the 1995 levy year having the majority of its 1994  equalized
10    assessed  value in an affected county or counties.  Beginning
11    with the levy year in which this Law becomes applicable to  a
12    taxing  district  as  provided  in  Section  18-213,  "taxing
13    district"  also  includes those taxing districts made subject
14    to this Law as provided in Section 18-213.
15        "Aggregate extension" for taxing districts to which  this
16    Law  applied  before  the  1995  levy  year  means the annual
17    corporate extension for the taxing district and those special
18    purpose extensions that are  made  annually  for  the  taxing
19    district,  excluding special purpose extensions: (a) made for
20    the taxing district to pay interest or principal  on  general
21    obligation  bonds  that were approved by referendum; (b) made
22    for any taxing district  to  pay  interest  or  principal  on
23    general  obligation  bonds issued before October 1, 1991; (c)
24    made for any taxing district to pay interest or principal  on
25    bonds  issued  to  refund  or  continue to refund those bonds
26    issued before October  1,  1991;  (d)  made  for  any  taxing
27    district  to  pay  interest  or  principal on bonds issued to
28    refund or continue to refund bonds issued  after  October  1,
29    1991  that  were  approved  by  referendum;  (e) made for any
30    taxing district to pay interest or principal on revenue bonds
31    issued before October 1, 1991 for payment of which a property
32    tax levy or the full faith and credit of the  unit  of  local
33    government  is  pledged;  however,  a  tax for the payment of
34    interest or principal on those bonds shall be made only after
 
                            -3-            LRB9201505NTsbam11
 1    the governing body of the unit of local government finds that
 2    all other sources for payment are insufficient to make  those
 3    payments;  (f)  made for payments under a building commission
 4    lease when the lease payments are for the retirement of bonds
 5    issued by the commission before October 1, 1991, to  pay  for
 6    the  building  project;  (g)  made  for  payments  due  under
 7    installment  contracts  entered  into before October 1, 1991;
 8    (h) made for payments of  principal  and  interest  on  bonds
 9    issued  under the Metropolitan Water Reclamation District Act
10    to finance construction projects initiated before October  1,
11    1991;  (i)  made  for  payments  of principal and interest on
12    limited  bonds,  as  defined  in  Section  3  of  the   Local
13    Government  Debt  Reform  Act, in an amount not to exceed the
14    debt service extension base less the  amount  in  items  (b),
15    (c),  (e),  and  (h)  of  this  definition for non-referendum
16    obligations, except obligations initially issued pursuant  to
17    referendum;  (j)  made for payments of principal and interest
18    on bonds issued under Section 15 of the Local Government Debt
19    Reform  Act;  and  (k)  made  by  a  school   district   that
20    participates  in  the  Special  Education  District  of  Lake
21    County,  created  by  special education joint agreement under
22    Section 10-22.31 of the  School  Code,  for  payment  of  the
23    school  district's  share  of  the  amounts  required  to  be
24    contributed  by the Special Education District of Lake County
25    to the Illinois Municipal Retirement Fund under Article 7  of
26    the  Illinois Pension Code; the amount of any extension under
27    this item (k) shall be certified by the  school  district  to
28    the county clerk.
29        "Aggregate  extension"  for the taxing districts to which
30    this Law did not apply before  the  1995  levy  year  (except
31    taxing  districts  subject  to  this  Law  in accordance with
32    Section 18-213) means the annual corporate extension for  the
33    taxing district and those special purpose extensions that are
34    made  annually  for  the  taxing  district, excluding special
 
                            -4-            LRB9201505NTsbam11
 1    purpose extensions: (a) made for the taxing district  to  pay
 2    interest  or  principal on general obligation bonds that were
 3    approved by referendum; (b) made for any taxing  district  to
 4    pay  interest or principal on general obligation bonds issued
 5    before March 1, 1995; (c) made for any taxing district to pay
 6    interest or principal on bonds issued to refund  or  continue
 7    to  refund  those bonds issued before March 1, 1995; (d) made
 8    for any taxing district to pay interest or principal on bonds
 9    issued to refund or continue to  refund  bonds  issued  after
10    March  1, 1995 that were approved by referendum; (e) made for
11    any taxing district to pay interest or principal  on  revenue
12    bonds  issued  before  March  1,  1995 for payment of which a
13    property tax levy or the full faith and credit of the unit of
14    local government is pledged; however, a tax for  the  payment
15    of  interest  or  principal on those bonds shall be made only
16    after the governing body of  the  unit  of  local  government
17    finds  that all other sources for payment are insufficient to
18    make those payments; (f) made for payments under  a  building
19    commission   lease  when  the  lease  payments  are  for  the
20    retirement of bonds issued by the commission before March  1,
21    1995  to  pay for the building project; (g) made for payments
22    due under installment contracts entered into before March  1,
23    1995;  (h)  made  for  payments  of principal and interest on
24    bonds  issued  under  the  Metropolitan   Water   Reclamation
25    District  Act  to  finance  construction  projects  initiated
26    before  October  1,  1991; (i) made for payments of principal
27    and interest on limited bonds, as defined in Section 3 of the
28    Local Government Debt Reform Act, in an amount not to  exceed
29    the debt service extension base less the amount in items (b),
30    (c),   and   (e)   of   this  definition  for  non-referendum
31    obligations, except obligations initially issued pursuant  to
32    referendum  and  bonds  described  in  subsection (h) of this
33    definition; (j) made for payments of principal  and  interest
34    on bonds issued under Section 15 of the Local Government Debt
 
                            -5-            LRB9201505NTsbam11
 1    Reform  Act;  (k) made for payments of principal and interest
 2    on bonds authorized by Public Act  88-503  and  issued  under
 3    Section  20a of the Chicago Park District Act for aquarium or
 4    museum projects; and (l) made for payments of  principal  and
 5    interest on bonds authorized by Public Act 87-1191 and issued
 6    under  Section 42 of the Cook County Forest Preserve District
 7    Act for zoological park projects; and (m)  made  pursuant  to
 8    Section  34-53.5  of the School Code, whether levied annually
 9    or not.
10        "Aggregate extension" for all taxing districts  to  which
11    this  Law  applies  in accordance with Section 18-213, except
12    for those  taxing  districts  subject  to  paragraph  (2)  of
13    subsection  (e) of Section 18-213, means the annual corporate
14    extension for the taxing district and those  special  purpose
15    extensions  that  are  made annually for the taxing district,
16    excluding special purpose extensions: (a) made for the taxing
17    district to pay interest or principal on  general  obligation
18    bonds  that  were  approved  by  referendum; (b) made for any
19    taxing district to  pay  interest  or  principal  on  general
20    obligation   bonds  issued  before  the  date  on  which  the
21    referendum making this Law applicable to the taxing  district
22    is  held; (c) made for any taxing district to pay interest or
23    principal on bonds issued to refund  or  continue  to  refund
24    those  bonds  issued  before the date on which the referendum
25    making this Law applicable to the taxing  district  is  held;
26    (d) made for any taxing district to pay interest or principal
27    on  bonds issued to refund or continue to refund bonds issued
28    after the date  on  which  the  referendum  making  this  Law
29    applicable  to  the taxing district is held if the bonds were
30    approved by referendum after the date on which the referendum
31    making this Law applicable to the taxing  district  is  held;
32    (e) made for any taxing district to pay interest or principal
33    on  revenue  bonds  issued  before  the  date  on  which  the
34    referendum  making this Law applicable to the taxing district
 
                            -6-            LRB9201505NTsbam11
 1    is held for payment of which a property tax levy or the  full
 2    faith  and credit of the unit of local government is pledged;
 3    however, a tax for the payment of interest  or  principal  on
 4    those  bonds  shall  be made only after the governing body of
 5    the unit of local government finds that all other sources for
 6    payment are insufficient to make those payments; (f) made for
 7    payments under a building commission  lease  when  the  lease
 8    payments  are  for  the  retirement  of  bonds  issued by the
 9    commission before the date on  which  the  referendum  making
10    this Law applicable to the taxing district is held to pay for
11    the  building  project;  (g)  made  for  payments  due  under
12    installment  contracts  entered into before the date on which
13    the referendum making  this  Law  applicable  to  the  taxing
14    district  is  held;  (h)  made  for payments of principal and
15    interest on limited bonds, as defined in  Section  3  of  the
16    Local  Government Debt Reform Act, in an amount not to exceed
17    the debt service extension base less the amount in items (b),
18    (c),  and  (e)  of   this   definition   for   non-referendum
19    obligations,  except obligations initially issued pursuant to
20    referendum; (i) made for payments of principal  and  interest
21    on bonds issued under Section 15 of the Local Government Debt
22    Reform Act; and (j) made for a qualified airport authority to
23    pay  interest or principal on general obligation bonds issued
24    for the purpose of paying obligations due under, or financing
25    airport facilities  required  to  be  acquired,  constructed,
26    installed  or  equipped  pursuant  to, contracts entered into
27    before March 1, 1996 (but not  including  any  amendments  to
28    such a contract taking effect on or after that date).
29        "Aggregate  extension"  for all taxing districts to which
30    this  Law  applies  in  accordance  with  paragraph  (2)   of
31    subsection  (e)  of Section 18-213 means the annual corporate
32    extension for the taxing district and those  special  purpose
33    extensions  that  are  made annually for the taxing district,
34    excluding special purpose extensions: (a) made for the taxing
 
                            -7-            LRB9201505NTsbam11
 1    district to pay interest or principal on  general  obligation
 2    bonds  that  were  approved  by  referendum; (b) made for any
 3    taxing district to  pay  interest  or  principal  on  general
 4    obligation  bonds  issued  before  the effective date of this
 5    amendatory Act of 1997; (c) made for any taxing  district  to
 6    pay  interest  or  principal  on  bonds  issued  to refund or
 7    continue to refund those bonds issued  before  the  effective
 8    date  of this amendatory Act of 1997; (d) made for any taxing
 9    district to pay interest or  principal  on  bonds  issued  to
10    refund or continue to refund bonds issued after the effective
11    date  of  this  amendatory  Act  of  1997  if  the bonds were
12    approved by referendum  after  the  effective  date  of  this
13    amendatory  Act  of 1997; (e) made for any taxing district to
14    pay interest or principal on revenue bonds issued before  the
15    effective  date of this amendatory Act of 1997 for payment of
16    which a property tax levy or the full faith and credit of the
17    unit of local government is pledged; however, a tax  for  the
18    payment of interest or principal on those bonds shall be made
19    only after the governing body of the unit of local government
20    finds  that all other sources for payment are insufficient to
21    make those payments; (f) made for payments under  a  building
22    commission   lease  when  the  lease  payments  are  for  the
23    retirement of bonds  issued  by  the  commission  before  the
24    effective  date of this amendatory Act of 1997 to pay for the
25    building project; (g) made for payments due under installment
26    contracts entered into before  the  effective  date  of  this
27    amendatory  Act  of  1997; (h) made for payments of principal
28    and interest on limited bonds, as defined in Section 3 of the
29    Local Government Debt Reform Act, in an amount not to  exceed
30    the debt service extension base less the amount in items (b),
31    (c),   and   (e)   of   this  definition  for  non-referendum
32    obligations, except obligations initially issued pursuant  to
33    referendum;  (i)  made for payments of principal and interest
34    on bonds issued under Section 15 of the Local Government Debt
 
                            -8-            LRB9201505NTsbam11
 1    Reform Act; and (j) made for a qualified airport authority to
 2    pay interest or principal on general obligation bonds  issued
 3    for the purpose of paying obligations due under, or financing
 4    airport  facilities  required  to  be  acquired, constructed,
 5    installed or equipped pursuant  to,  contracts  entered  into
 6    before  March  1,  1996  (but not including any amendments to
 7    such a contract taking effect on or after that date).
 8        "Debt service extension base" means an  amount  equal  to
 9    that  portion  of the extension for a taxing district for the
10    1994 levy year, or for those taxing districts subject to this
11    Law in accordance  with  Section  18-213,  except  for  those
12    subject to paragraph (2) of subsection (e) of Section 18-213,
13    for  the  levy  year  in which the referendum making this Law
14    applicable to the taxing  district  is  held,  or  for  those
15    taxing  districts  subject  to  this  Law  in accordance with
16    paragraph (2) of subsection (e) of  Section  18-213  for  the
17    1996  levy  year,  constituting  an  extension for payment of
18    principal and interest on bonds issued by the taxing district
19    without referendum, but not including (i) bonds authorized by
20    Public Act 88-503 and issued under Section 20a of the Chicago
21    Park District Act for  aquarium  and  museum  projects;  (ii)
22    bonds  issued  under  Section 15 of the Local Government Debt
23    Reform Act; or (iii) refunding obligations issued  to  refund
24    or   to  continue  to  refund  obligations  initially  issued
25    pursuant  to  referendum;  or  (iv)  bonds  issued  for  fire
26    prevention and safety purposes under Section 17-2.11  of  the
27    School  Code  after the effective date of this amendatory Act
28    of the 92nd General Assembly and bonds issued to  refund  the
29    fire  prevention  and safety bonds issued after the effective
30    date of this amendatory Act of the 92nd General Assembly. The
31    debt service extension base may be established  or  increased
32    as provided under Section 18-212.
33        "Special purpose extensions" include, but are not limited
34    to,  extensions  for  levies  made  on  an  annual  basis for
 
                            -9-            LRB9201505NTsbam11
 1    unemployment  and  workers'   compensation,   self-insurance,
 2    contributions  to pension plans, and extensions made pursuant
 3    to Section 6-601 of the Illinois  Highway  Code  for  a  road
 4    district's  permanent  road  fund  whether levied annually or
 5    not.  The  extension  for  a  special  service  area  is  not
 6    included in the aggregate extension.
 7        "Aggregate  extension  base"  means the taxing district's
 8    last preceding aggregate extension as adjusted under Sections
 9    18-215 through 18-230.
10        "Levy year" has the same meaning as "year" under  Section
11    1-155.
12        "New  property" means (i) the assessed value, after final
13    board  of  review  or  board  of  appeals  action,   of   new
14    improvements  or  additions  to  existing improvements on any
15    parcel of real property that increase the assessed  value  of
16    that  real  property  during  the levy year multiplied by the
17    equalization factor issued by the  Department  under  Section
18    17-30  and  (ii)  the  assessed  value,  after final board of
19    review or board of  appeals  action,  of  real  property  not
20    exempt  from  real  estate  taxation, which real property was
21    exempt from real estate  taxation  for  any  portion  of  the
22    immediately   preceding   levy   year,   multiplied   by  the
23    equalization factor issued by the  Department  under  Section
24    17-30.   In addition, the county clerk in a county containing
25    a population of 3,000,000 or more shall include in  the  1997
26    recovered  tax  increment  value for any school district, any
27    recovered tax increment value that was applicable to the 1995
28    tax year calculations.
29        "Qualified airport authority" means an airport  authority
30    organized  under the Airport Authorities Act and located in a
31    county bordering on the  State  of  Wisconsin  and  having  a
32    population in excess of 200,000 and not greater than 500,000.
33        "Recovered   tax   increment   value"  means,  except  as
34    otherwise provided in  this  paragraph,  the  amount  of  the
 
                            -10-           LRB9201505NTsbam11
 1    current  year's  equalized  assessed value, in the first year
 2    after a municipality terminates the designation of an area as
 3    a redevelopment project area previously established under the
 4    Tax Increment Allocation  Development  Act  in  the  Illinois
 5    Municipal  Code,  previously established under the Industrial
 6    Jobs  Recovery  Law  in  the  Illinois  Municipal  Code,   or
 7    previously  established  under  the Economic Development Area
 8    Tax Increment Allocation Act, of  each  taxable  lot,  block,
 9    tract,  or  parcel  of  real  property  in  the redevelopment
10    project area over and above the  initial  equalized  assessed
11    value  of  each  property  in the redevelopment project area.
12    For the taxes which are extended for the 1997 levy year,  the
13    recovered  tax  increment  value  for  a non-home rule taxing
14    district that first became subject to this Law for  the  1995
15    levy  year  because a majority of its 1994 equalized assessed
16    value  was  in  an  affected  county  or  counties  shall  be
17    increased if a municipality terminated the designation of  an
18    area  in  1993  as  a  redevelopment  project area previously
19    established under the Tax  Increment  Allocation  Development
20    Act  in  the  Illinois Municipal Code, previously established
21    under the  Industrial  Jobs  Recovery  Law  in  the  Illinois
22    Municipal  Code, or previously established under the Economic
23    Development Area Tax Increment Allocation Act, by  an  amount
24    equal  to  the  1994 equalized assessed value of each taxable
25    lot,  block,  tract,  or  parcel  of  real  property  in  the
26    redevelopment  project  area  over  and  above  the   initial
27    equalized   assessed   value   of   each   property   in  the
28    redevelopment  project  area.  In  the  first  year  after  a
29    municipality removes a taxable lot, block, tract,  or  parcel
30    of   real   property   from   a  redevelopment  project  area
31    established under the Tax  Increment  Allocation  Development
32    Act  in  the  Illinois  Municipal  Code,  the Industrial Jobs
33    Recovery Law in the Illinois Municipal Code, or the  Economic
34    Development Area Tax Increment Allocation Act, "recovered tax
 
                            -11-           LRB9201505NTsbam11
 1    increment  value"  means  the  amount  of  the current year's
 2    equalized assessed value of each taxable lot,  block,  tract,
 3    or  parcel  of  real  property removed from the redevelopment
 4    project area over and above the  initial  equalized  assessed
 5    value   of   that  real  property  before  removal  from  the
 6    redevelopment project area.
 7        Except as otherwise provided in this  Section,  "limiting
 8    rate"  means  a  fraction  the numerator of which is the last
 9    preceding aggregate extension base times an amount  equal  to
10    one plus the extension limitation defined in this Section and
11    the  denominator  of  which  is  the current year's equalized
12    assessed value of all real property in  the  territory  under
13    the jurisdiction of the taxing district during the prior levy
14    year.    For   those  taxing  districts  that  reduced  their
15    aggregate extension for the last  preceding  levy  year,  the
16    highest  aggregate  extension  in any of the last 3 preceding
17    levy years shall be used for the  purpose  of  computing  the
18    limiting   rate.   The  denominator  shall  not  include  new
19    property.  The denominator shall not  include  the  recovered
20    tax increment value.
21    (Source:  P.A.  90-485,  eff.  1-1-98;  90-511, eff. 8-22-97;
22    90-568, eff.  1-1-99;  90-616,  eff.  7-10-98;  90-655,  eff.
23    7-30-98; 91-357, eff. 7-29-99; 91-478, eff. 11-1-99.)

24        (35 ILCS 200/18-190.5 new)
25        Sec.  18-190.5.  School  districts.   The requirements of
26    Section 18-190 of this Code for a direct  referendum  on  the
27    imposition of a new or increased tax rate do not apply to tax
28    levies  that  are  not  included  in  the aggregate extension
29    pursuant to clause (m) of Section 18-185 of this Code.

30        (35 ILCS 200/18-201 new)
31        Sec. 18-201.  School districts.
32        (a)  The aggregate extension for a school district  shall
 
                            -12-           LRB9201505NTsbam11
 1    not  include  any  extension (i) made for fire prevention and
 2    safety purposes under Section  17-2.11  of  the  School  Code
 3    produced  by  that  portion  of  the rate for that purpose in
 4    excess of the district's maximum permissible  rate  for  that
 5    purpose  immediately  prior  to  the  effective  date of this
 6    amendatory Act of the 92nd General Assembly or (ii) made  for
 7    payments  of  principal  and  interest on fire prevention and
 8    safety bonds issued under Section 17-2.11 of the School  Code
 9    after  the  effective date of this amendatory Act of the 92nd
10    General Assembly or  on  bonds  issued  to  refund  the  fire
11    prevention  and  safety bonds issued after the effective date
12    of this amendatory Act of the 92nd General Assembly.
13        (b)  The requirements of Section 18-190 of this Code  for
14    a  direct  referendum on the imposition of a new or increased
15    tax rate shall not apply to  the  tax  levies  that  are  not
16    included in the aggregate extension pursuant to this Section.

17        (35 ILCS 200/18-200 rep.)
18        Section   10.   The  Property  Tax  Code  is  amended  by
19    repealing Section 18-200.

20        Section 15.  The  School  Code  is  amended  by  changing
21    Sections 1B-4, 1B-5, 1B-8, 2-3.12, 10-22.14, 17-2.2, 17-2.11,
22    and 19-1 and adding Section 34-53.5 as follows:

23        (105 ILCS 5/1B-4) (from Ch. 122, par. 1B-4)
24        Sec.   1B-4.    Establishment   of   Emergency  Financial
25    Assistance and Financial Oversight Panel.  When  approved  by
26    the  State  Board  under  this Article there is established a
27    body both corporate and politic to be known as the "(Name  of
28    School  District)  Financial  Oversight Panel" which, in such
29    name, shall exercise all authority vested in such  Panels  by
30    this Article.
31        Upon  the affirmative vote of not less than a majority of
 
                            -13-           LRB9201505NTsbam11
 1    its full membership, a local board of education of  a  school
 2    district   that   has  been  certified  to  be  in  financial
 3    difficulty under Section 1A-8 may petition the State Board of
 4    Education  for  emergency  financial   assistance   and   the
 5    establishment of a Financial Oversight Panel for the district
 6    as  provided  under  this  Article.   In  addition, the State
 7    Superintendent of Education may petition the State  Board  of
 8    Education  for  the  establishment  of  a Financial Oversight
 9    Panel, with or without emergency  financial  assistance,  for
10    any  district  that  has  failed to comply with its financial
11    plan and has had the plan rescinded by  the  State  Board  as
12    provided   in   Section  1A-8.   No  petition  for  emergency
13    financial assistance shall be approved  by  the  State  Board
14    unless there is also established a Financial Oversight Panel.
15        In  determining  whether  to allow the petition the State
16    Board shall consider the following factors among others  that
17    it deems relevant:
18        (a)  whether  the  petition  is  in  the best educational
19    interests of the pupils of the district;
20        (b)  whether the petition is in the near  and  long  term
21    best financial interests of the district;
22        (c)  whether the district has sufficient pupil enrollment
23    and  assessed  valuation  to  provide and maintain recognized
24    schools;
25        (d)  whether the petition is in the best interests of the
26    other schools of the area and the educational welfare of  all
27    of the pupils therein; and
28        (e)  whether the board of education has complied with the
29    requirements of Section 1A-8.
30        The  State  Board  may  vote  to either grant or deny the
31    petition  based  upon  the  recommendation   of   the   State
32    Superintendent  of  Education  and  any  other  testimony  or
33    documentary  evidence  the  State  Board deems relevant.  The
34    decision of the State Board whether  to  grant  or  deny  the
 
                            -14-           LRB9201505NTsbam11
 1    petition  shall  be  final.  If an approved petition requests
 2    emergency financial assistance, the school district shall  be
 3    eligible for emergency State financial assistance, subject to
 4    the other provisions of this Article.
 5        A   Financial  Oversight  Panel  created  pursuant  to  a
 6    petition filed by a school district may  petition  the  State
 7    Board  of Education to be reconstituted as a Panel having the
 8    powers, duties, legal  status,  and  privileges  of  a  Panel
 9    established  by  the  State Board for a district that has had
10    its financial plan rescinded by the State Board for violating
11    that plan as provided in Section 1A-8.  The State  Board  may
12    grant  such  petition  upon  determining that approval of the
13    petition is in the best financial interests of the  district.
14    Upon  approval of the petition, the Panel shall have the same
15    powers, duties, legal  status,  and  privileges  of  a  Panel
16    established  for  a  district that has had its financial plan
17    rescinded by the State  Board  for  violating  that  plan  as
18    provided  in  Section 1A-8.  The changes made to this Section
19    by this amendatory Act of the 92nd General Assembly apply  to
20    all  Financial  Oversight Panels, whether created before, on,
21    or after the effective date of this amendatory Act.
22    (Source: P.A. 88-618, eff. 9-9-94.)

23        (105 ILCS 5/1B-5) (from Ch. 122, par. 1B-5)
24        Sec. 1B-5.   Appointment  of  Panel;  meetings;  reports;
25    dissolution   of   Panel.  When  a  petition  establishing  a
26    Financial Oversight Panel for emergency financial  assistance
27    for  a  school  district  is allowed by the State Board under
28    Section 1B-4, the State Superintendent shall within  10  days
29    thereafter  appoint  5  3  members  to  serve  at  the  State
30    Superintendent's  pleasure on a Financial Oversight Panel for
31    the district, or for a Panel in which  3  members  have  been
32    appointed before the effective date of this amendatory Act of
33    the  92nd  General  Assembly,  the State Superintendent shall
 
                            -15-           LRB9201505NTsbam11
 1    appoint 2 additional members. The State Superintendent  shall
 2    designate  one  of  the  members of the Panel to serve as its
 3    Chairman.  In the event of vacancy or resignation  the  State
 4    Superintendent  shall  appoint  a successor within 10 days of
 5    receiving notice thereof.
 6        Members of the Panel shall be selected primarily  on  the
 7    basis   of   their  experience  and  education  in  financial
 8    management, with consideration given to persons knowledgeable
 9    in education finance.  A member of the Panel  may  not  be  a
10    board  member or employee of the district for which the Panel
11    is constituted, nor may a  member  have  a  direct  financial
12    interest in that district.
13        Panel  members  shall serve without compensation, but may
14    be  reimbursed  for  travel  and  other  necessary   expenses
15    incurred  in  the performance of their official duties by the
16    State Board.  The amount reimbursed Panel members  for  their
17    expenses  shall  be charged to the school district as part of
18    any emergency financial assistance and incorporated as a part
19    of the terms and conditions for repayment of such  assistance
20    or shall be deducted from the district's general State aid as
21    provided in Section 1B-8.
22        The  first meeting of the Panel shall be held at the call
23    of the Chairman.  The Panel may elect such other officers  as
24    it  deems  appropriate.   The Panel shall prescribe the times
25    and places for its meetings and the manner in  which  regular
26    and special meetings may be called, and shall comply with the
27    Open Meetings Act.
28        Three Two members of the Panel shall constitute a quorum,
29    and  the  affirmative  vote of 3 2 members shall be necessary
30    for any decision or action to be taken by the Panel.
31        The Panel and the State  Superintendent  shall  cooperate
32    with  each  other in the exercise of their respective powers.
33    The Panel shall report not later than September 1 annually to
34    the State Board and the State Superintendent with respect  to
 
                            -16-           LRB9201505NTsbam11
 1    its  activities  and the condition of the school district for
 2    the previous fiscal year.
 3        Any Financial  Oversight  Panel  established  under  this
 4    Article  shall  remain in existence for not less than 3 years
 5    nor more than 10 years from the date the State  Board  grants
 6    the petition under Section 1B-4.  If after 3 years the school
 7    district  has  repaid  all  of its obligations resulting from
 8    emergency State  financial  assistance  provided  under  this
 9    Article  and  has improved its financial situation, the board
10    of education may, not more frequently than  once  in  any  12
11    month  period,  petition  the  State  Board  to  dissolve the
12    Financial   Oversight   Panel,   terminate   the    oversight
13    responsibility, and remove the district's certification under
14    Section  1A-8  as  a  district  in  financial difficulty.  In
15    acting  on  such  a  petition  the  State  Board  shall  give
16    additional  weight  to  the  recommendations  of  the   State
17    Superintendent and the Financial Oversight Panel.
18        The  changes  made to this Section by this amendatory Act
19    of the 92nd General Assembly apply to all Financial Oversight
20    Panels, whether created before, on, or  after  the  effective
21    date of this amendatory Act.
22    (Source: P.A. 88-618, eff. 9-9-94.)

23        (105 ILCS 5/1B-8) (from Ch. 122, par. 1B-8)
24        Sec. 1B-8. School District Emergency Financial Assistance
25    Fund;  loans  and  grants.   There  is  created  in the State
26    Treasury a special fund to be known as  the  School  District
27    Emergency Financial Assistance Fund (the "Fund").  The School
28    District Emergency Financial Assistance Fund shall consist of
29    appropriations,   grants  from  the  federal  government  and
30    donations from any public or private source.  Moneys  in  the
31    Fund  may  be  appropriated  only  to the State Board for the
32    purposes of this Article.  The appropriation may be allocated
33    and expended by the State Board as grants or loans to  school
 
                            -17-           LRB9201505NTsbam11
 1    districts  which  are the subject of an approved petition for
 2    emergency financial assistance under Section 1B-4.  From  the
 3    amount allocated to each such school district the State Board
 4    shall  identify  a sum sufficient to cover all approved costs
 5    of  the  Financial  Oversight  Panel  established   for   the
 6    respective  school  district.   If  the State Board and State
 7    Superintendent  of  Education  have  not  approved  emergency
 8    financial assistance in conjunction with the appointment of a
 9    Financial Oversight Panel, the Panel's approved  costs  shall
10    be  paid  from  deductions  from the district's general State
11    aid.
12        The Financial Oversight Panel may prepare and  file  with
13    the  State  Superintendent a proposal for emergency financial
14    assistance for the school district  and  for  the  operations
15    budget  of the Panel.  No expenditures shall be authorized by
16    the State Superintendent until he has approved  the  proposal
17    of  the  Panel,  either as submitted or in such lesser amount
18    determined by the State Superintendent.
19        The maximum amount of an emergency  financial  assistance
20    loan which may be allocated to any school district under this
21    Article, including moneys necessary for the operations of the
22    Panel,  shall  not  exceed  $1000  times the number of pupils
23    enrolled in the school district during the school year ending
24    June 30 prior to the date of approval by the State  Board  of
25    the petition for emergency financial assistance, as certified
26    to the local board and the Panel by the State Superintendent.
27    An emergency financial assistance grant shall not exceed $250
28    times the number of such pupils.  A district may receive both
29    a  loan and a grant.  Any moneys provided to a local board of
30    education as a loan shall not be subject to any limitation on
31    debt established under Article 19 of this Code.
32        The payment of an emergency  State  financial  assistance
33    grant  or  loan  shall  be  subject  to  appropriation by the
34    General  Assembly.  Emergency  State   financial   assistance
 
                            -18-           LRB9201505NTsbam11
 1    allocated  and  paid  to a school district under this Article
 2    may be applied to any fund or  funds  from  which  the  local
 3    board  of  education  of  that district is authorized to make
 4    expenditures by law.
 5        Any  emergency  financial  assistance  proposed  by   the
 6    Financial   Oversight   Panel   and  approved  by  the  State
 7    Superintendent may be paid in its entirety during the initial
 8    year of the Panel's existence or spread in equal or declining
 9    amounts over a period of years not to exceed  the  period  of
10    the  Panel's  existence.   All  loan  payments  made from the
11    School District Emergency Financial  Assistance  Fund  for  a
12    school  district  shall be required to be repaid, with simple
13    interest over the term of the loan at a rate equal to 50%  of
14    the discount rate on one-year United States Treasury Bills as
15    determined  by  the last auction of those one-year bills that
16    precedes the date on which the district's loan is approved by
17    the State Board of Education, not later  than  the  date  the
18    Financial  Oversight  Panel ceases to exist.  The Panel shall
19    establish and the  State  Superintendent  shall  approve  the
20    terms  and conditions, including the schedule, of repayments.
21    The schedule shall provide for repayments commencing  July  1
22    of each year. Repayment shall be incorporated into the annual
23    budget  of  the school district and may be made from any fund
24    or funds of the district in which there are moneys available.
25    When moneys are repaid as provided herein they shall  not  be
26    made  available  to  the  local  board  for  further  use  as
27    emergency financial assistance under this Article at any time
28    thereafter.   All  repayments required to be made by a school
29    district shall be received by the State Board  and  deposited
30    in the School District Emergency Financial Assistance Fund.
31        The  board  of  any  school district that receives a loan
32    authorized under this Section shall provide  for  a  separate
33    tax  for  emergency  financial assistance repayment purposes.
34    The separate tax levy shall be in  an  amount  sufficient  to
 
                            -19-           LRB9201505NTsbam11
 1    repay  the emergency financial assistance under the terms and
 2    conditions set  by  the  Panel  and  approved  by  the  State
 3    Superintendent.  Notwithstanding any law to the contrary, the
 4    separate   tax   levy   for  emergency  financial  assistance
 5    repayment shall not be subject to referendum approval.
 6        The changes made to this Section by this  amendatory  Act
 7    of the 92nd General Assembly apply to all Financial Oversight
 8    Panels,  whether  created  before, on, or after the effective
 9    date of this amendatory Act.
10        In  establishing  the  terms  and  conditions   for   the
11    repayment  obligation  of the school district the Panel shall
12    annually determine whether a separate local property tax levy
13    is required.  The board of any school  district  with  a  tax
14    rate for educational purposes for the prior year of less than
15    120%  of the maximum rate for educational purposes authorized
16    by Section 17-2 shall provide for a  separate  tax  levy  for
17    emergency  financial assistance repayment purposes.  Such tax
18    levy shall not be subject to referendum approval.  The amount
19    of the levy shall be equal to the amount  necessary  to  meet
20    the   annual   repayment   obligations  of  the  district  as
21    established by the Panel, or 20% of  the  amount  levied  for
22    educational  purposes  for the prior year, whichever is less.
23    However, no district shall be required to levy the tax if the
24    district's operating tax rate  as  determined  under  Section
25    18-8  or  18-8.05 exceeds 200% of the district's tax rate for
26    educational purposes for the prior year.
27    (Source: P.A. 90-548, eff. 1-1-98; 90-802, eff. 12-15-98.)

28        (105 ILCS 5/2-3.12) (from Ch. 122, par. 2-3.12)
29        Sec. 2-3.12.  School building code. To prepare for school
30    boards with the advice of the Department  of  Public  Health,
31    the  Capital  Development Board, and the State Fire Marshal a
32    school building code that will conserve the health and safety
33    and general welfare of the pupils and  school  personnel  and
 
                            -20-           LRB9201505NTsbam11
 1    others who use public school facilities.
 2        The  document  known as "Efficient and Adequate Standards
 3    for the Construction of Schools" applies  only  to  temporary
 4    school  facilities,  new  school  buildings, and additions to
 5    existing schools whose  construction  contracts  are  awarded
 6    after  July  1, 1965.  On or before July 1, 1967, each school
 7    board shall have its  school  district  buildings  that  were
 8    constructed   prior  to  January  1,  1955,  surveyed  by  an
 9    architect or engineer licensed in the State of Illinois as to
10    minimum standards necessary to conserve the health and safety
11    of the  pupils  enrolled  in  the  school  buildings  of  the
12    district.   Buildings constructed between January 1, 1955 and
13    July 1, 1965, not owned by the State of  Illinois,  shall  be
14    surveyed by an architect or engineer licensed in the State of
15    Illinois beginning 10 years after acceptance of the completed
16    building  by the school board.  Buildings constructed between
17    January 1, 1955 and July 1, 1955 and previously exempt  under
18    the  provisions  of  Section 35-27 shall be surveyed prior to
19    July 1, 1977 by an architect  or  engineer  licensed  in  the
20    State  of  Illinois.    The  architect or engineer, using the
21    document known as "Building  Specifications  for  Health  and
22    Safety  in Public Schools" as a guide, shall make a report of
23    the findings of  the  survey  to  the  school  board,  giving
24    priority   in   that  report  to  fire  safety  problems  and
25    recommendations thereon if any  such  problems  exist.    The
26    school  board  of  each  district so surveyed and receiving a
27    report of  needed  recommendations  to  be  made  to  improve
28    standards  of  safety  and  health of the pupils enrolled has
29    until July 1, 1970, or in case of buildings not owned by  the
30    State  of  Illinois and completed between January 1, 1955 and
31    July 1, 1965 or in the case of  buildings  previously  exempt
32    under the provisions of Section 35-27 has a period of 3 years
33    after   the   survey   is   commenced,  to  effectuate  those
34    recommendations,    giving    first    attention    to    the
 
                            -21-           LRB9201505NTsbam11
 1    recommendations in the survey report having priority  status,
 2    and  is  authorized  to  levy the tax provided for in Section
 3    17-2.11, according to the provisions of that Section, to make
 4    such improvements.  School boards unable to effectuate  those
 5    recommendations prior to July 1, 1970, on July 1, 1980 in the
 6    case  of  buildings previously exempt under the provisions of
 7    Section 35-27,  may  petition  the  State  Superintendent  of
 8    Education   upon   the   recommendation   of   the   Regional
 9    Superintendent  for  an  extension of time.  The extension of
10    time may be granted by the State Superintendent of  Education
11    for  a  period  of one year, but may be extended from year to
12    year provided substantial progress, in  the  opinion  of  the
13    State  Superintendent  of  Education,  is  being  made toward
14    compliance.
15        Within  2  years  after  the  effective  date   of   this
16    amendatory  Act of 1983, and every 10 years thereafter, or at
17    such other times  as  the  State  Board  of  Education  deems
18    necessary  or  the  regional  superintendent  so orders, each
19    school board subject to the provisions of this Section  shall
20    again   survey   its  school  buildings  and  effectuate  any
21    recommendations in accordance with the procedures  set  forth
22    herein.  An  architect  or  engineer licensed in the State of
23    Illinois  is  required  to  conduct  the  surveys  under  the
24    provisions of this Section and shall make  a  report  of  the
25    findings  of  the survey titled "safety survey report" to the
26    school board.  The school  board  shall  approve  the  safety
27    survey  report,  including  any recommendations to effectuate
28    compliance with the code,  and  submit  it  to  the  Regional
29    Superintendent.   The  Regional Superintendent shall render a
30    decision regarding approval or denial and submit  the  safety
31    survey  report to the State Superintendent of Education.  The
32    State Superintendent of Education shall approve or  deny  the
33    report  including  recommendations  to  effectuate compliance
34    with the code  and,  if  approved,  issue  a  certificate  of
 
                            -22-           LRB9201505NTsbam11
 1    approval.  Upon  receipt  of the certificate of approval, the
 2    Regional Superintendent shall issue an order  to  effect  any
 3    approved  recommendations  included  in the report.  Items in
 4    the report shall  be  prioritized.   Urgent  items  shall  be
 5    considered  as  those  items  related to life safety problems
 6    that present an immediate hazard to the safety  of  students.
 7    Required  items  shall  be considered as those items that are
 8    necessary for a safe  environment  but  present  less  of  an
 9    immediate  hazard  to  the  safety  of  students.  Urgent and
10    required items shall be defined in rules adopted by the State
11    Board of Education. Urgent and required items shall reference
12    a specific rule in the code authorized by this  Section  that
13    is  currently  being  violated or will be violated within the
14    next 12 months if the violation is not remedied.  The  school
15    board  of each district so surveyed and receiving a report of
16    needed recommendations to be made to  maintain  standards  of
17    safety and health of the pupils enrolled shall effectuate the
18    correction  of  urgent  items as soon as achievable to ensure
19    the safety of the students, but in no case more than one year
20    after the date of the  State  Superintendent  of  Education's
21    approval  of  the  recommendation.    Required items shall be
22    corrected in a timely manner, but in no case more  than  3  5
23    years   from   the   date  of  the  State  Superintendent  of
24    Education's approval of the recommendation.  Once  each  year
25    the  school  board  shall  submit  a  report  of  progress on
26    completion of any recommendations  to  effectuate  compliance
27    with  the code.  For each year that the school board does not
28    effectuate any or  all  approved  recommendations,  it  shall
29    petition   the   Regional   Superintendent   and   the  State
30    Superintendent of Education detailing what work was completed
31    in the previous year and a work plan for  completion  of  the
32    remaining   work.   If  in  the  judgement  of  the  Regional
33    Superintendent and  the  State  Superintendent  of  Education
34    substantial  progress  has  been made and just cause has been
 
                            -23-           LRB9201505NTsbam11
 1    shown by the school  board,  the  petition  for  a  one  year
 2    extension of time may be approved.
 3        As  soon as practicable, but not later than 2 years after
 4    the effective date of this amendatory Act of 1992, the  State
 5    Board  of  Education  shall  combine  the  document  known as
 6    "Efficient and Adequate Standards  for  the  Construction  of
 7    Schools"  with the document known as "Building Specifications
 8    for Health and Safety in Public Schools"  together  with  any
 9    modifications or additions that may be deemed necessary.  The
10    combined  document  shall be known as the "Health/Life Safety
11    Code for Public Schools" and shall be the governing code  for
12    all  facilities  that  house  public  school  students or are
13    otherwise used  for  public  school  purposes,  whether  such
14    facilities  are  permanent  or temporary and whether they are
15    owned, leased, rented, or otherwise  used  by  the  district.
16    Facilities  owned  by a school district but that are not used
17    to house public school students or are not  used  for  public
18    school  purposes  shall  be  governed  by separate provisions
19    within the code authorized by this Section.
20        The 10 year survey cycle specified in this Section  shall
21    continue  to  apply based upon the standards contained in the
22    "Health/Life Safety Code for  Public  Schools",  which  shall
23    specify building standards for buildings that are constructed
24    prior  to  the  effective date of this amendatory Act of 1992
25    and for buildings that are constructed after that date.
26        The "Health/Life Safety Code for Public Schools" shall be
27    the  governing  code  for  public   schools;   however,   the
28    provisions  of  this Section shall not preclude inspection of
29    school premises and buildings pursuant to Section  9  of  the
30    Fire  Investigation  Act, provided that the provisions of the
31    "Health/Life  Safety  Code  for  Public  Schools",  or   such
32    predecessor  document  authorized  by  this Section as may be
33    applicable are used, and provided that those inspections  are
34    coordinated   with   the   Regional   Superintendent   having
 
                            -24-           LRB9201505NTsbam11
 1    jurisdiction  over  the  public  school facility.  Any agency
 2    having  jurisdiction  beyond  the  scope  of  the  applicable
 3    document authorized by this Section may issue a lawful  order
 4    to  a  school  board  to  effectuate recommendations, and the
 5    school  board  receiving  the  order  shall  certify  to  the
 6    Regional  Superintendent  and  the  State  Superintendent  of
 7    Education when it has complied with the order.
 8        The State Board of Education is authorized to  adopt  any
 9    rules  that  are necessary relating to the administration and
10    enforcement of the provisions  of  this  Section.   The  code
11    authorized  by  this Section shall apply only to those school
12    districts  having  a  population   of   less   than   500,000
13    inhabitants.
14    (Source: P.A. 89-397, eff. 8-20-95; 90-811, eff. 1-26-99.)

15        (105 ILCS 5/10-22.14) (from Ch. 122, par. 10-22.14)
16        Sec.  10-22.14.  Borrowing  money  and  issuing bonds. To
17    borrow money, and issue bonds for the  purposes  and  in  the
18    manner provided by this Act.
19        When  bond  proceeds  from  the  sale  of bonds include a
20    premium, or when the proceeds of bonds issued  for  the  fire
21    prevention,  safety, energy conservation, and school security
22    purposes as specified in  Section  17-2.11  are  invested  as
23    authorized  by  law,  the board shall determine by resolution
24    whether  the  interest  earned  on  the  investment  of  bond
25    proceeds authorized under  Section  17-2.11  or  the  premium
26    realized  in  the sale of bonds, as the case may be, is to be
27    used for the purposes for which the  bonds  were  issued  or,
28    instead,  for  payment  of  the  principal  indebtedness  and
29    interest on those bonds.
30        When   bonds,  other  than  bonds  issued  for  the  fire
31    prevention, safety, energy conservation, and school  security
32    purposes  as  specified  in Section 17-2.11 are issued by any
33    school district, and the purposes for which  the  bonds  have
 
                            -25-           LRB9201505NTsbam11
 1    been  issued are accomplished and paid for in full, and there
 2    remain funds on hand  from  the  proceeds  of  the  bonds  so
 3    issued,  the  board  by  resolution may transfer those excess
 4    funds to the operations and maintenance fund.
 5        When bonds are issued by any school district for the fire
 6    prevention, safety, energy conservation, and school  security
 7    purposes  as  specified  in Section 17-2.11, and the purposes
 8    for which the bonds have been  issued  are  accomplished  and
 9    paid  in  full,  and  there  remain  funds  on  hand from the
10    proceeds of the bonds issued, the board by  resolution  shall
11    use   those  excess  funds  (1)  for  other  authorized  fire
12    prevention, safety, energy conservation, and school  security
13    purposes  as specified in Section 17-2.11 or (2) for transfer
14    to the Bond and Interest Fund for payment  of  principal  and
15    interest on those bonds.  If any transfer is made to the Bond
16    and  Interest  Fund,  the secretary of the school board shall
17    within 30 days notify the county clerk of the amount of  that
18    transfer  and  direct  the  clerk  to  abate  the taxes to be
19    extended for the purposes of principal and interest  payments
20    on  the  respective  bonds issued under Section 17-2.11 by an
21    amount equal to such transfer.
22    (Source: P.A. 86-970; 87-984.)

23        (105 ILCS 5/17-2.2) (from Ch. 122, par. 17-2.2)
24        Sec. 17-2.2.  Backdoor Back door referendum. Whenever any
25    school district first levies a tax at a rate within the limit
26    prescribed by paragraph (3) of Section 17-2 but in excess  of
27    the  maximum permissible on July 9, 1957, or within the limit
28    prescribed by paragraph (1) or (2) of  Section  17-2  but  in
29    excess  of  the  maximum  permissible  on  June  30, 1965, or
30    whenever after August 3, 1989 any school district maintaining
31    only grades kindergarten through 8 first  levies  a  tax  for
32    transportation  purposes  for any school year which is within
33    the limit prescribed for that school year by paragraph (5) of
 
                            -26-           LRB9201505NTsbam11
 1    Section 17-2 but in excess of the maximum  authorized  to  be
 2    levied  for  such  purposes  for  the 1988-89 school year, or
 3    whenever after August  3,  1989  any  school  district  first
 4    levies  a tax for operations and maintenance purposes for any
 5    school year which is within the  limit  prescribed  for  that
 6    school year by paragraph (3) of Section 17-2 but in excess of
 7    the maximum authorized to be levied for such purposes for the
 8    immediately  preceding  school  year,  or whenever a backdoor
 9    referendum is required under Section  17-2.11,  the  district
10    shall cause to be published a notice of the proposed tax levy
11    such   resolution  in  at  least  one  newspaper  of  general
12    circulation or more newspapers  published  in  the  district,
13    within   10  days  after  such  levy  is  made.   The  notice
14    publication of the resolution shall include a notice  of  (1)
15    the  specific  number  of  voters required to sign a petition
16    requesting that the question of the adoption of the tax  levy
17    be  submitted  to the voters of the district; (2) the time in
18    which the petition must be filed; and (3)  the  date  of  the
19    prospective referendum.  The district Secretary shall provide
20    a petition form to any individual requesting one.  Any person
21    taxpayer in such district may, within 30 days after such levy
22    is  made, file with the Secretary of the board of education a
23    petition signed by the voters of the district equal to 10% or
24    more of the registered voters of the district requesting  the
25    submission to a referendum of the following proposition:
26        "Shall  school  district  No..... be authorized to levy a
27    tax for  (state  purposes)  (in  excess  of....  but  not  to
28    exceed....) or (at a rate not to exceed...%) as authorized in
29    Section....  17-2  of  the School Code?" The secretary of the
30    board of education  shall  certify  the  proposition  to  the
31    proper  election authorities for submission to the electorate
32    at a  regular  scheduled  election  in  accordance  with  the
33    general election law.
34        If  a  majority  of  the voters voting on the proposition
 
                            -27-           LRB9201505NTsbam11
 1    vote in favor thereof, such increased tax shall thereafter be
 2    authorized; if  a  majority  of  the  vote  is  against  such
 3    proposition,  the  previous  maximum rate authorized, if any,
 4    shall remain in effect until changed by law.
 5    (Source: P.A. 86-128; 86-134; 86-1028; 86-1334; 87-767.)

 6        (105 ILCS 5/17-2.11) (from Ch. 122, par. 17-2.11)
 7        Sec. 17-2.11. School board power to  levy  a  tax  or  to
 8    borrow  money  and  issue  bonds for fire prevention, safety,
 9    energy conservation, disabled accessibility, school security,
10    and specified repair purposes. Whenever, as a result  of  any
11    lawful order of any agency, other than a school board, having
12    authority  to  enforce any school building code applicable to
13    any facility that houses students, or any law  or  regulation
14    for the protection and safety of the environment, pursuant to
15    the  Environmental Protection Act, any school district having
16    a population of less than 500,000 inhabitants is required  to
17    alter,   repair,   or  reconstruct  any  school  building  or
18    permanent, fixed equipment; or  whenever  any  such  district
19    determines  that  it  is  necessary  for  energy conservation
20    purposes  that  any  school  building  or  permanent,   fixed
21    equipment  should  be  altered or reconstructed and that such
22    alterations or reconstruction will be  made  with  funds  not
23    necessary  for  the  completion  of  approved and recommended
24    projects contained in any safety survey report or  amendments
25    thereto authorized by Section 2-3.12 of this Act; or whenever
26    any  such  district  determines  that  it  is  necessary  for
27    disabled accessibility purposes and to comply with the school
28    building code that any school building or equipment should be
29    altered   or  reconstructed  and  that  such  alterations  or
30    reconstruction will be made with funds not necessary for  the
31    completion  of approved and recommended projects contained in
32    any safety survey report  or  amendments  thereto  authorized
33    under  Section  2-3.12  of  this  Act;  or  whenever any such
 
                            -28-           LRB9201505NTsbam11
 1    district determines that it is necessary for school  security
 2    purposes  and the related protection and safety of pupils and
 3    school personnel that any school building or property  should
 4    be  altered  or  reconstructed  or  that security systems and
 5    equipment (including  but  not  limited  to  intercom,  early
 6    detection   and   warning,   access  control  and  television
 7    monitoring systems) should be purchased  and  installed,  and
 8    that   such   alterations,  reconstruction  or  purchase  and
 9    installation  of  equipment  will  be  made  with  funds  not
10    necessary for the  completion  of  approved  and  recommended
11    projects  contained  in any safety survey report or amendment
12    thereto authorized by Section 2-3.12 of  this  Act  and  will
13    deter  and  prevent  unauthorized  entry  or  activities upon
14    school property by unknown or dangerous persons, assure early
15    detection and advance warning of any such actual or attempted
16    unauthorized  entry  or  activities  and  help   assure   the
17    continued  safety  of  pupils  and  school  staff if any such
18    unauthorized entry or activity is attempted or occurs; or  if
19    a  school  district  does  not  need  funds  for  other  fire
20    prevention  and  safety projects, including the completion of
21    approved and recommended projects  contained  in  any  safety
22    survey  report  or  amendments  thereto authorized by Section
23    2-3.12 of this Act, and  it  is  determined  after  a  public
24    hearing  (which  is preceded by at least one published notice
25    (i) occurring at least 7 days  prior  to  the  hearing  in  a
26    newspaper  of  general circulation within the school district
27    and (ii) setting forth the time,  date,  place,  and  general
28    subject  matter  of the hearing) that there is a substantial,
29    immediate, and otherwise unavoidable threat  to  the  health,
30    safety,  or  welfare  of  pupils  due  to disrepair of school
31    sidewalks,  playgrounds,  parking   lots,   or   school   bus
32    turnarounds  and  repairs  must  be  made:   then in any such
33    event, such district may, by proper resolution,  levy  a  tax
34    for  the  purpose  of  making  such  alteration,  repair,  or
 
                            -29-           LRB9201505NTsbam11
 1    reconstruction,  based  on a survey report by an architect or
 2    engineer licensed in the State  of  Illinois,  upon  all  the
 3    taxable  property of the district at the value as assessed by
 4    the Department of Revenue at a rate not to exceed  0.15%  for
 5    elementary  and  high  school  districts  and  0.30% for unit
 6    districts .05% per year for a period  sufficient  to  finance
 7    such   alterations,  repairs,  or  reconstruction,  upon  the
 8    following conditions:
 9             (a)  When there are not sufficient  funds  available
10        in  either  the  operations  and  maintenance fund of the
11        district or the fire prevention and safety  fund  of  the
12        district  as  determined  by the district on the basis of
13        regulations adopted by the State Board  of  Education  to
14        make  such alterations, repairs, or reconstruction, or to
15        purchase and install such permanent  fixed  equipment  so
16        ordered  or  determined  as necessary. Appropriate school
17        district records shall be made  available  to  the  State
18        Superintendent  of Education upon request to confirm such
19        insufficiency.
20             (b)  When a certified estimate of  an  architect  or
21        engineer  licensed  in  the State of Illinois stating the
22        estimated amount necessary to make  the  alterations,  or
23        repairs,  reconstruction  or to purchase and install such
24        equipment so ordered has been secured  by  the  district,
25        and  the  estimate  has  been  approved  by  the regional
26        superintendent of schools,  having  jurisdiction  of  the
27        district,  and  the  State  Superintendent  of Education.
28        Approval shall not be  granted  for  any  work  that  has
29        already  started  without the prior express authorization
30        of  the  State  Superintendent  of  Education.   If  such
31        estimate is  not  approved  or  denied  approval  by  the
32        regional  superintendent of schools within 3 months after
33        the date on which it is submitted  to  him  or  her,  the
34        school  board  of  the  district may submit such estimate
 
                            -30-           LRB9201505NTsbam11
 1        directly to the State  Superintendent  of  Education  for
 2        approval or denial.
 3             (c)  Whenever  a  school  district  subject  to  the
 4        Property  Tax  Extension  Limitation Law first levies the
 5        tax at a rate permitted by this  amendatory  Act  of  the
 6        92nd  General  Assembly  but  in  excess  of  its maximum
 7        permissible rate for that purpose  immediately  prior  to
 8        the  effective  date  of  this amendatory Act of the 92nd
 9        General Assembly, the rate increase shall be subject to a
10        backdoor referendum  using  the  procedures  provided  in
11        Section  17-2.2  of  this  Code, except that the backdoor
12        referendum shall be required  if  the  petition  for  the
13        backdoor  referendum  is  signed  by  5%  or  more of the
14        registered voters of the district.
15        For purposes  of  this  Section  a  school  district  may
16    replace  a  school  building  or  build  additions to replace
17    portions of  a  building  when  it  is  determined  that  the
18    effectuation of the recommendations for the existing building
19    will   cost   more   than   the   replacement   costs.   Such
20    determination shall be based on  a  comparison  of  estimated
21    costs  made by an architect or engineer licensed in the State
22    of  Illinois.   The  new  building  or  addition   shall   be
23    equivalent  in  area  (square feet) and comparable in purpose
24    and grades served and may be on  the  same  site  or  another
25    site.   Such  replacement  may only be done upon order of the
26    regional superintendent of schools and the  approval  of  the
27    State Superintendent of Education.
28        The  filing of a certified copy of the resolution levying
29    the tax when accompanied by the certificates of the  regional
30    superintendent   of   schools  and  State  Superintendent  of
31    Education shall be the  authority  of  the  county  clerk  to
32    extend such tax.
33        The  county  clerk  of  the  county  in  which any school
34    district levying a tax under the authority of this Section is
 
                            -31-           LRB9201505NTsbam11
 1    located, in reducing raised levies, shall  not  consider  any
 2    such  tax  as  a part of the general levy for school purposes
 3    and shall not include the same in the limitation of any other
 4    tax rate which may be extended.
 5        Such tax shall be levied and collected in like manner  as
 6    all   other   taxes  of  school  districts,  subject  to  the
 7    provisions contained in this Section.
 8        The tax rate limit  specified  in  this  Section  may  be
 9    increased  to  .10%  upon  the  approval  of a proposition to
10    effect such increase by a majority of the electors voting  on
11    that  proposition  at  a  regular  scheduled  election.  Such
12    proposition  may  be  initiated  by  resolution of the school
13    board and shall be certified by the secretary to  the  proper
14    election  authorities  for  submission in accordance with the
15    general election law.
16        When taxes are levied by any school district for the fire
17    prevention, safety, energy conservation, and school  security
18    purposes  as  specified in this Section, and the purposes for
19    which the taxes have been levied are accomplished and paid in
20    full, and there remain funds on hand in the  Fire  Prevention
21    and  Safety  Fund  from  the  proceeds  of  the taxes levied,
22    including interest earnings  thereon,  the  school  board  by
23    resolution  shall  use such excess and other board restricted
24    funds excluding bond proceeds and earnings from such proceeds
25    (1) for other  authorized  fire  prevention,  safety,  energy
26    conservation,   and  school  security  purposes  or  (2)  for
27    transfer to the  Operations  and  Maintenance  Fund  for  the
28    purpose   of  abating  an  equal  amount  of  operations  and
29    maintenance purposes taxes.  If any transfer is made  to  the
30    Operation  and  Maintenance Fund, the secretary of the school
31    board shall within 30 days notify the  county  clerk  of  the
32    amount  of  that  transfer  and direct the clerk to abate the
33    taxes to be extended  for  the  purposes  of  operations  and
34    maintenance  authorized  under Section 17-2 of this Act by an
 
                            -32-           LRB9201505NTsbam11
 1    amount equal to such transfer.
 2        If the proceeds from the  tax  levy  authorized  by  this
 3    Section  are insufficient to complete the work approved under
 4    this Section, the school board is authorized  to  sell  bonds
 5    without referendum under the provisions of this Section in an
 6    amount  that,  when  added  to  the  proceeds of the tax levy
 7    authorized by this Section,  will  allow  completion  of  the
 8    approved  work,  provided  that a district that is subject to
 9    the Property Tax Extension Limitation Law  shall  submit  the
10    authorization  to  a  backdoor referendum as provided in this
11    Section.  No school district that is subject to the  Property
12    Tax  Extension  Limitation  Law  may  issue  bonds under this
13    Section unless it adopts a resolution declaring its intention
14    to issue bonds and directs that notice of this  intention  be
15    published at least once in a newspaper of general circulation
16    in  the  district.   The  notice  shall  set  forth  (i)  the
17    intention  of  the district to issue bonds in accordance with
18    this Section, (ii) the time within which a  petition  may  be
19    filed   requesting  the  submission  to  the  voters  of  the
20    proposition to issue the bonds, (iii) the specific number  of
21    voters  required  to  sign the petition, and (iv) the date of
22    the prospective referendum.  At the time  of  publication  of
23    the  notice  and for 30 days thereafter, the secretary of the
24    district shall provide a  petition  form  to  any  individual
25    requesting  one.   If  within 30 days after the publication a
26    petition is filed with the secretary of the district,  signed
27    by  the  voters  of  the  district equal to 5% or more of the
28    registered  voters  of  the  district  requesting  that   the
29    proposition  to  issue bonds as authorized by this Section be
30    submitted to the voters thereof, then the district shall  not
31    be  authorized  to  issue the bonds until the proposition has
32    been certified to the proper  election  authorities  and  has
33    been  submitted  to  and approved by a majority of the voters
34    voting on the proposition at a regular scheduled election  in
 
                            -33-           LRB9201505NTsbam11
 1    accordance  with  the  general  election  law.   If  no  such
 2    petition  is  filed,  or  if  any and all petitions filed are
 3    invalid, the district may issue the bonds.
 4        Such bonds shall bear interest at a rate  not  to  exceed
 5    the  maximum rate authorized by law at the time of the making
 6    of the contract, shall mature within 20 years from date,  and
 7    shall  be signed by the president of the school board and the
 8    treasurer of the school district. Such bonds issued after the
 9    effective date of this amendatory Act  of  the  92nd  General
10    Assembly  and  any  bonds  issued to refund such bonds issued
11    after the effective date of this amendatory Act of  the  92nd
12    General Assembly shall not be considered debt for purposes of
13    any statutory debt limitation.
14        In  order  to  authorize and issue such bonds, the school
15    board shall adopt a resolution fixing the  amount  of  bonds,
16    the  date  thereof, the maturities thereof, rates of interest
17    thereof, place of payment and denomination, which shall be in
18    denominations of not less than $100 and not more than $5,000,
19    and provide for the levy and collection of  a  direct  annual
20    tax  upon  all  the  taxable  property in the school district
21    sufficient to pay the principal and interest on such bonds to
22    maturity.  Upon the filing in the office of the county  clerk
23    of  the  county  in which the school district is located of a
24    certified copy of the resolution,  it  is  the  duty  of  the
25    county clerk to extend the tax therefor in addition to and in
26    excess  of all other taxes heretofore or hereafter authorized
27    to be levied by such school district.
28        After the time such bonds are issued as provided  for  by
29    this   Section,   if   additional  alterations,  repairs,  or
30    reconstructions are required to be made  because  of  surveys
31    conducted  by  an architect or engineer licensed in the State
32    of Illinois, the district may levy a tax at  a  rate  not  to
33    exceed  the rate permitted by this Section .05% per year upon
34    all the taxable property of the district or issue  additional
 
                            -34-           LRB9201505NTsbam11
 1    bonds, whichever action shall be the most feasible.
 2        This  Section  is  cumulative  and  constitutes  complete
 3    authority  for  the  issuance  of  bonds  as provided in this
 4    Section notwithstanding any  other  statute  or  law  to  the
 5    contrary.
 6        With  respect  to  instruments  for  the payment of money
 7    issued under this Section either before,  on,  or  after  the
 8    effective  date  of  Public Act 86-004 (June 6, 1989), it is,
 9    and always has been, the intention of  the  General  Assembly
10    (i)  that  the  Omnibus  Bond Acts are, and always have been,
11    supplementary  grants  of  power  to  issue  instruments   in
12    accordance  with  the  Omnibus  Bond  Acts, regardless of any
13    provision of this Act that may appear to be or to  have  been
14    more restrictive than those Acts, (ii) that the provisions of
15    this  Section  are  not  a  limitation  on  the supplementary
16    authority granted by the Omnibus Bond Acts,  and  (iii)  that
17    instruments    issued   under   this   Section   within   the
18    supplementary authority granted by the Omnibus Bond Acts  are
19    not  invalid  because  of  any provision of this Act that may
20    appear to be or to have  been  more  restrictive  than  those
21    Acts.
22        When  the  purposes  for  which the bonds are issued have
23    been accomplished and paid for in full and there remain funds
24    on hand from the proceeds  of  the  bond  sale  and  interest
25    earnings  therefrom, the board shall, by resolution, use such
26    excess funds in accordance with  the  provisions  of  Section
27    10-22.14 of this Act.
28        Whenever  any  tax  is  levied or bonds issued under this
29    Section,   the   for   fire   prevention,   safety,    energy
30    conservation,  and  school  security  purposes, such proceeds
31    shall be deposited and accounted for  separately  within  the
32    Fire Prevention and Safety Fund.
33    (Source: P.A.  88-251;  88-508;  88-628, eff. 9-9-94; 88-670,
34    eff. 12-2-94; 89-235, eff. 8-4-95; 89-397, eff. 8-20-95.)
 
                            -35-           LRB9201505NTsbam11
 1        (105 ILCS 5/19-1) (from Ch. 122, par. 19-1)
 2        Sec. 19-1.  Debt limitations of school districts.
 3        (a)  School  districts  shall  not  be  subject  to   the
 4    provisions  limiting  their  indebtedness  prescribed  in the
 5    Local Government Debt Limitation Act "An  Act  to  limit  the
 6    indebtedness  of  counties  having  a population of less than
 7    500,000 and townships, school districts and  other  municipal
 8    corporations  having  a  population  of  less  than 300,000",
 9    approved February 15, 1928, as amended.
10        No school districts maintaining grades K through 8  or  9
11    through  12  shall  become  indebted in any manner or for any
12    purpose to an amount, including existing indebtedness, in the
13    aggregate exceeding 9.0% of 6.9% on  the  equalized  assessed
14    value  of  the  taxable property therein to be ascertained by
15    the last assessment for State  and  county  taxes  or,  until
16    January  1,  1983,  if  greater,  the sum that is produced by
17    multiplying the school  district's  1978  equalized  assessed
18    valuation  by  the  debt  limitation  percentage in effect on
19    January  1,  1979,  previous  to  the   incurring   of   such
20    indebtedness.
21        No school districts maintaining grades K through 12 shall
22    become  indebted  in  any  manner  or  for  any purpose to an
23    amount, including existing  indebtedness,  in  the  aggregate
24    exceeding  18.0%  of 13.8% on the equalized assessed value of
25    the taxable property therein to be ascertained  by  the  last
26    assessment  for  State  and county taxes or, until January 1,
27    1983, if greater, the sum that is produced by multiplying the
28    school district's 1978 equalized assessed  valuation  by  the
29    debt  limitation  percentage  in  effect  on January 1, 1979,
30    previous to the incurring of such indebtedness.
31        Notwithstanding the provisions of any other  law  to  the
32    contrary,  in  any  case  in  which  the  voters  of a school
33    district have approved a  proposition  for  the  issuance  of
34    bonds  of  such  school district at an election held prior to
 
                            -36-           LRB9201505NTsbam11
 1    January 1, 1979, and  all  of  the  bonds  approved  at  such
 2    election have not been issued, the debt limitation applicable
 3    to  such  school district during the calendar year 1979 shall
 4    be computed by multiplying  the  value  of  taxable  property
 5    therein,  including  personal property, as ascertained by the
 6    last assessment for State and county taxes, previous  to  the
 7    incurring  of such indebtedness, by the percentage limitation
 8    applicable to such school district under  the  provisions  of
 9    this subsection (a).
10        (b)  Notwithstanding  the  debt  limitation prescribed in
11    subsection (a) of this Section, additional  indebtedness  may
12    be  incurred in an amount not to exceed the estimated cost of
13    acquiring or  improving  school  sites  or  constructing  and
14    equipping  additional building facilities under the following
15    conditions:
16             (1)  Whenever the enrollment  of  students  for  the
17        next  school  year is estimated by the board of education
18        to increase over the actual  present  enrollment  by  not
19        less  than  35%  or  by not less than 200 students or the
20        actual present enrollment of students has increased  over
21        the  previous  school year by not less than 35% or by not
22        less  than  200  students  and  the  board  of  education
23        determines  that  additional  school  sites  or  building
24        facilities are required as a result of such  increase  in
25        enrollment; and
26             (2)  When  the  Regional  Superintendent  of Schools
27        having jurisdiction over  the  school  district  and  the
28        State   Superintendent   of   Education  concur  in  such
29        enrollment projection or increase and  approve  the  need
30        for  such  additional school sites or building facilities
31        and the estimated cost thereof; and
32             (3)  When the voters in the school district  approve
33        a  proposition  for the issuance of bonds for the purpose
34        of acquiring or improving such  needed  school  sites  or
 
                            -37-           LRB9201505NTsbam11
 1        constructing   and   equipping   such  needed  additional
 2        building facilities at an election called  and  held  for
 3        that purpose. Notice of such an election shall state that
 4        the  amount of indebtedness proposed to be incurred would
 5        exceed the debt limitation otherwise  applicable  to  the
 6        school  district.   The ballot for such proposition shall
 7        state what percentage of the equalized assessed valuation
 8        will be outstanding in bonds if the proposed issuance  of
 9        bonds is approved by the voters; or
10             (4)  Notwithstanding  the  provisions  of paragraphs
11        (1) through (3) of this subsection  (b),  if  the  school
12        board determines that additional facilities are needed to
13        provide  a  quality educational program and not less than
14        2/3 of those voting in an election called by  the  school
15        board  on  the question approve the issuance of bonds for
16        the construction of such facilities, the school  district
17        may issue bonds for this purpose; or
18             (5)  Notwithstanding  the  provisions  of paragraphs
19        (1) through (3) of this subsection (b), if (i) the school
20        district has previously availed itself of the  provisions
21        of  paragraph  (4) of this subsection (b) to enable it to
22        issue bonds, (ii) the voters of the school district  have
23        not  defeated  a  proposition  for  the issuance of bonds
24        since the referendum described in paragraph (4)  of  this
25        subsection   (b)   was   held,  (iii)  the  school  board
26        determines  that  additional  facilities  are  needed  to
27        provide  a  quality  educational  program,  and  (iv)   a
28        majority  of  those  voting  in an election called by the
29        school board on the  question  approve  the  issuance  of
30        bonds for the construction of such facilities, the school
31        district may issue bonds for this purpose.
32        In  no  event shall the indebtedness incurred pursuant to
33    this subsection (b) and  the  existing  indebtedness  of  the
34    school  district  exceed  20%  15%  of the equalized assessed
 
                            -38-           LRB9201505NTsbam11
 1    value of the taxable property therein to  be  ascertained  by
 2    the  last  assessment for State and county taxes, previous to
 3    the incurring of such indebtedness or, until January 1, 1983,
 4    if greater, the sum  that  is  produced  by  multiplying  the
 5    school  district's  1978  equalized assessed valuation by the
 6    debt limitation percentage in effect on January 1, 1979.
 7        The indebtedness provided  for  by  this  subsection  (b)
 8    shall  be  in  addition  to  and  in excess of any other debt
 9    limitation.
10        (c)  Notwithstanding the debt  limitation  prescribed  in
11    subsection (a) of this Section, in any case in which a public
12    question  for  the  issuance  of  bonds  of a proposed school
13    district maintaining grades kindergarten through 12  received
14    at  least 60% of the valid ballots cast on the question at an
15    election held on or prior to November 8, 1994, and  in  which
16    the bonds approved at such election have not been issued, the
17    school  district  pursuant  to  the  requirements  of Section
18    11A-10 may issue the total amount of bonds approved  at  such
19    election for the purpose stated in the question.
20        (d)  Notwithstanding  the  debt  limitation prescribed in
21    subsection (a) of this Section, a school district that  meets
22    all  the criteria set forth in paragraphs (1) and (2) of this
23    subsection (d) may incur an  additional  indebtedness  in  an
24    amount  not  to  exceed $4,500,000, even though the amount of
25    the additional indebtedness  authorized  by  this  subsection
26    (d),  when  incurred  and  added  to  the aggregate amount of
27    indebtedness of the district existing  immediately  prior  to
28    the district incurring the additional indebtedness authorized
29    by  this subsection (d), causes the aggregate indebtedness of
30    the  district  to  exceed  the  debt   limitation   otherwise
31    applicable to that district under subsection (a):
32             (1)  The  additional indebtedness authorized by this
33        subsection (d) is incurred by the school district through
34        the issuance  of  bonds  under  and  in  accordance  with
 
                            -39-           LRB9201505NTsbam11
 1        Section  17-2.11a  for  the purpose of replacing a school
 2        building which, because of mine  subsidence  damage,  has
 3        been   closed  as  provided  in  paragraph  (2)  of  this
 4        subsection (d) or through the issuance of bonds under and
 5        in accordance  with  Section  19-3  for  the  purpose  of
 6        increasing  the  size  of,  or  providing  for additional
 7        functions in, such replacement school buildings, or  both
 8        such purposes.
 9             (2)  The  bonds  issued  by  the  school district as
10        provided in  paragraph  (1)  above  are  issued  for  the
11        purposes  of construction by the school district of a new
12        school building pursuant to Section 17-2.11,  to  replace
13        an   existing  school  building  that,  because  of  mine
14        subsidence damage, is closed as of the end of the 1992-93
15        school  year  pursuant  to   action   of   the   regional
16        superintendent  of  schools  of  the  educational service
17        region in which the district  is  located  under  Section
18        3-14.22  or  are issued for the purpose of increasing the
19        size of, or providing for additional  functions  in,  the
20        new school building being constructed to replace a school
21        building  closed as the result of mine subsidence damage,
22        or both such purposes.
23        (e)  Notwithstanding the debt  limitation  prescribed  in
24    subsection  (a) of this Section, a school district that meets
25    all the criteria set forth in paragraphs (1) through  (5)  of
26    this   subsection  (e)  may,  without  referendum,  incur  an
27    additional indebtedness in an amount not to exceed the lesser
28    of $5,000,000 or 1.5% of the equalized assessed value of  the
29    taxable  property  within the district even though the amount
30    of the additional indebtedness authorized by this  subsection
31    (e),  when  incurred  and  added  to  the aggregate amount of
32    indebtedness of the district existing  immediately  prior  to
33    the  district  incurring that additional indebtedness, causes
34    the aggregate indebtedness  of  the  district  to  exceed  or
 
                            -40-           LRB9201505NTsbam11
 1    increases  the  amount by which the aggregate indebtedness of
 2    the district already exceeds the  debt  limitation  otherwise
 3    applicable to that district under subsection (a):
 4             (1)  The  State  Board  of  Education  certifies the
 5        school district under Section  19-1.5  as  a  financially
 6        distressed district.
 7             (2)  The  additional indebtedness authorized by this
 8        subsection (e) is incurred by the financially  distressed
 9        district  during the school year or school years in which
10        the  certification  of  the  district  as  a  financially
11        distressed  district  continues  in  effect  through  the
12        issuance of bonds for the lawful school purposes  of  the
13        district,  pursuant to resolution of the school board and
14        without referendum, as provided in paragraph (5) of  this
15        subsection.
16             (3)  The  aggregate  amount  of  bonds issued by the
17        financially distressed district during a fiscal  year  in
18        which   it  is  authorized  to  issue  bonds  under  this
19        subsection does  not  exceed  the  amount  by  which  the
20        aggregate  expenditures  of  the district for operational
21        purposes during the  immediately  preceding  fiscal  year
22        exceeds  the  amount  appropriated  for  the  operational
23        purposes  of  the  district  in  the annual school budget
24        adopted by the school  board  of  the  district  for  the
25        fiscal year in which the bonds are issued.
26             (4)  Throughout    each   fiscal   year   in   which
27        certification of the district as a financially distressed
28        district continues in effect, the district  maintains  in
29        effect  a  gross  salary  expense  and gross wage expense
30        freeze policy under which the district  expenditures  for
31        total  employee  salaries  and  wages  do not exceed such
32        expenditures for the immediately preceding  fiscal  year.
33        Nothing  in  this  paragraph, however, shall be deemed to
34        impair  or  to  require  impairment  of  the  contractual
 
                            -41-           LRB9201505NTsbam11
 1        obligations, including collective bargaining  agreements,
 2        of the district or to impair or require the impairment of
 3        the  vested  rights of any employee of the district under
 4        the terms of any contract or agreement in effect  on  the
 5        effective date of this amendatory Act of 1994.
 6             (5)  Bonds  issued  by  the  financially  distressed
 7        district  under  this subsection shall bear interest at a
 8        rate not to exceed the maximum rate authorized by law  at
 9        the  time  of  the  making  of the contract, shall mature
10        within 40 years from their date of issue,  and  shall  be
11        signed by the president of the school board and treasurer
12        of  the  school  district.  In order to issue bonds under
13        this  subsection,  the  school  board   shall   adopt   a
14        resolution  fixing  the  amount of the bonds, the date of
15        the bonds, the maturities of  the  bonds,  the  rates  of
16        interest  of  the  bonds,  and their place of payment and
17        denomination,  and  shall  provide  for  the   levy   and
18        collection  of  a  direct annual tax upon all the taxable
19        property in the district sufficient to pay the  principal
20        and  interest  on the bonds to maturity.  Upon the filing
21        in the office of the county clerk of the county in  which
22        the  financially  distressed  district  is  located  of a
23        certified copy of the resolution, it is the duty  of  the
24        county  clerk  to  extend the tax therefor in addition to
25        and in excess of all other taxes at any  time  authorized
26        to  be levied by the district.  If bond proceeds from the
27        sale of bonds include a premium or if the proceeds of the
28        bonds are invested as authorized by law, the school board
29        shall determine by resolution whether the interest earned
30        on  the  investment  of  bond  proceeds  or  the  premium
31        realized on the sale of the bonds is to be used  for  any
32        of  the  lawful  school purposes for which the bonds were
33        issued or for the payment of the  principal  indebtedness
34        and interest on the bonds.  The proceeds of the bond sale
 
                            -42-           LRB9201505NTsbam11
 1        shall  be  deposited  in the educational purposes fund of
 2        the  district  and  shall  be  used  to  pay  operational
 3        expenses of the district.  This subsection is  cumulative
 4        and  constitutes  complete  authority for the issuance of
 5        bonds as provided in this subsection, notwithstanding any
 6        other law to the contrary.
 7        (f)  Notwithstanding the provisions of subsection (a)  of
 8    this  Section or of any other law, bonds in not to exceed the
 9    aggregate  amount  of  $5,500,000  and  issued  by  a  school
10    district  meeting  the  following  criteria  shall   not   be
11    considered   indebtedness   for  purposes  of  any  statutory
12    limitation and  may  be  issued  in  an  amount  or  amounts,
13    including  existing indebtedness, in excess of any heretofore
14    or hereafter imposed statutory limitation as to indebtedness:
15             (1)  At the time of the  sale  of  such  bonds,  the
16        board  of education of the district shall have determined
17        by resolution that the  enrollment  of  students  in  the
18        district  is  projected  to  increase by not less than 7%
19        during each of the next succeeding 2 school years.
20             (2)  The board of education shall also determine  by
21        resolution  that the improvements to be financed with the
22        proceeds of the bonds are needed because of the projected
23        enrollment increases.
24             (3)  The board of education shall also determine  by
25        resolution that the projected increases in enrollment are
26        the result of improvements made or expected to be made to
27        passenger rail facilities located in the school district.
28        (g)  Notwithstanding  the provisions of subsection (a) of
29    this Section or any other law, bonds  in  not  to  exceed  an
30    aggregate  amount  of  25% of the equalized assessed value of
31    the taxable property of a school district  and  issued  by  a
32    school  district  meeting  the  criteria  in  paragraphs  (i)
33    through  (iv)  of  this  subsection  shall  not be considered
34    indebtedness for purposes of any statutory limitation and may
 
                            -43-           LRB9201505NTsbam11
 1    be issued pursuant to resolution of the school  board  in  an
 2    amount or amounts, including existing indebtedness, in excess
 3    of  any  statutory  limitation  of indebtedness heretofore or
 4    hereafter imposed:
 5             (i)  The  bonds  are  issued  for  the  purpose   of
 6        constructing  a  new  high school building to replace two
 7        adjacent existing buildings which together house a single
 8        high school, each of which is more than 65 years old, and
 9        which together are located on more than 10 acres and less
10        than 11 acres of property.
11             (ii)  At the time  the  resolution  authorizing  the
12        issuance   of   the   bonds   is  adopted,  the  cost  of
13        constructing  a  new  school  building  to  replace   the
14        existing  school building is less than 60% of the cost of
15        repairing the existing school building.
16             (iii)  The sale of the bonds occurs before  July  1,
17        1997.
18             (iv)  The  school  district  issuing  the bonds is a
19        unit school district located in a  county  of  less  than
20        70,000  and  more  than  50,000 inhabitants, which has an
21        average daily  attendance  of  less  than  1,500  and  an
22        equalized assessed valuation of less than $29,000,000.
23        (h)  Notwithstanding any other provisions of this Section
24    or  the provisions of any other law, until January 1, 1998, a
25    community unit school district maintaining grades  K  through
26    12  may  issue  bonds  up  to  an  amount, including existing
27    indebtedness, not exceeding 27.6% of the  equalized  assessed
28    value  of the taxable property in the district, if all of the
29    following conditions are met:
30             (i)  The school district has an  equalized  assessed
31        valuation   for   calendar   year   1995   of  less  than
32        $24,000,000;
33             (ii)  The  bonds  are   issued   for   the   capital
34        improvement,  renovation,  rehabilitation, or replacement
 
                            -44-           LRB9201505NTsbam11
 1        of existing school buildings  of  the  district,  all  of
 2        which buildings were originally constructed not less than
 3        40 years ago;
 4             (iii)  The   voters   of   the  district  approve  a
 5        proposition for the issuance of the bonds at a referendum
 6        held after March 19, 1996; and
 7             (iv)  The bonds are issued pursuant to Sections 19-2
 8        through 19-7 of this Code.
 9        (i)  Notwithstanding any other provisions of this Section
10    or the provisions of any other law, until January 1, 1998,  a
11    community  unit  school district maintaining grades K through
12    12 may issue  bonds  up  to  an  amount,  including  existing
13    indebtedness,  not  exceeding  27%  of the equalized assessed
14    value of the taxable property in the district, if all of  the
15    following conditions are met:
16             (i)  The  school  district has an equalized assessed
17        valuation  for  calendar   year   1995   of   less   than
18        $44,600,000;
19             (ii)  The   bonds   are   issued   for  the  capital
20        improvement, renovation, rehabilitation,  or  replacement
21        of  existing  school  buildings  of  the district, all of
22        which existing buildings were originally constructed  not
23        less than 80 years ago;
24             (iii)  The   voters   of   the  district  approve  a
25        proposition for the issuance of the bonds at a referendum
26        held after December 31, 1996; and
27             (iv)  The bonds are issued pursuant to Sections 19-2
28        through 19-7 of this Code.
29        (j)  Notwithstanding any other provisions of this Section
30    or the provisions of any other law, until January 1, 1999,  a
31    community  unit  school district maintaining grades K through
32    12 may issue  bonds  up  to  an  amount,  including  existing
33    indebtedness,  not  exceeding  27%  of the equalized assessed
34    value of the taxable property in the district if all  of  the
 
                            -45-           LRB9201505NTsbam11
 1    following conditions are met:
 2             (i)  The  school  district has an equalized assessed
 3        valuation  for  calendar   year   1995   of   less   than
 4        $140,000,000 and a best 3 months average daily attendance
 5        for the 1995-96 school year of at least 2,800;
 6             (ii)  The  bonds  are  issued to purchase a site and
 7        build and  equip  a  new  high  school,  and  the  school
 8        district's    existing   high   school   was   originally
 9        constructed not less than 35 years prior to the  sale  of
10        the bonds;
11             (iii)  At  the  time  of  the sale of the bonds, the
12        board of education determines by resolution  that  a  new
13        high  school  is  needed  because of projected enrollment
14        increases;
15             (iv)  At least 60% of those voting  in  an  election
16        held  after  December  31, 1996 approve a proposition for
17        the issuance of the bonds; and
18             (v)  The bonds are issued pursuant to Sections  19-2
19        through 19-7 of this Code.
20        (k)  Notwithstanding  the  debt  limitation prescribed in
21    subsection (a) of this Section, a school district that  meets
22    all  the  criteria set forth in paragraphs (1) through (4) of
23    this subsection (k) may issue bonds to  incur  an  additional
24    indebtedness  in  an  amount  not  to  exceed $4,000,000 even
25    though the amount of the additional  indebtedness  authorized
26    by  this  subsection  (k),  when  incurred  and  added to the
27    aggregate amount  of  indebtedness  of  the  school  district
28    existing  immediately  prior to the school district incurring
29    such   additional   indebtedness,   causes   the    aggregate
30    indebtedness  of  the  school district to exceed or increases
31    the  amount  by  which  the  aggregate  indebtedness  of  the
32    district  already  exceeds  the  debt  limitation   otherwise
33    applicable to that school district under subsection (a):
34             (1)  the  school  district is located in 2 counties,
 
                            -46-           LRB9201505NTsbam11
 1        and a referendum to authorize the additional indebtedness
 2        was approved by a majority of the voters  of  the  school
 3        district  voting  on  the  proposition  to authorize that
 4        indebtedness;
 5             (2)  the additional indebtedness is for the  purpose
 6        of   financing  a  multi-purpose  room  addition  to  the
 7        existing high school;
 8             (3)  the additional indebtedness, together with  the
 9        existing  indebtedness  of the school district, shall not
10        exceed 17.4% of the value of the taxable property in  the
11        school district, to be ascertained by the last assessment
12        for State and county taxes; and
13             (4)  the    bonds    evidencing    the    additional
14        indebtedness  are  issued,  if at all, within 120 days of
15        the effective date of this amendatory Act of 1998.
16        (l)  Notwithstanding any other provisions of this Section
17    or the provisions of any other law, until January 1, 2000,  a
18    school district maintaining grades kindergarten through 8 may
19    issue bonds up to an amount, including existing indebtedness,
20    not  exceeding  15%  of  the  equalized assessed value of the
21    taxable property in the district  if  all  of  the  following
22    conditions are met:
23             (i)  the   district   has   an   equalized  assessed
24        valuation  for  calendar   year   1996   of   less   than
25        $10,000,000;
26             (ii)  the  bonds are issued for capital improvement,
27        renovation, rehabilitation, or replacement of one or more
28        school buildings of the district,  which  buildings  were
29        originally constructed not less than 70 years ago;
30             (iii)  the   voters   of   the  district  approve  a
31        proposition for the issuance of the bonds at a referendum
32        held on or after March 17, 1998; and
33             (iv)  the bonds are issued pursuant to Sections 19-2
34        through 19-7 of this Code.
 
                            -47-           LRB9201505NTsbam11
 1        (m)  Notwithstanding any other provisions of this Section
 2    or the provisions of any other law, until January 1, 1999, an
 3    elementary school district maintaining grades K through 8 may
 4    issue bonds up to an amount, excluding existing indebtedness,
 5    not exceeding 18% of the  equalized  assessed  value  of  the
 6    taxable  property  in  the  district, if all of the following
 7    conditions are met:
 8             (i)  The school district has an  equalized  assessed
 9        valuation for calendar year 1995 or less than $7,700,000;
10             (ii)  The  school  district  operates  2  elementary
11        attendance  centers  that until 1976 were operated as the
12        attendance centers of  2  separate  and  distinct  school
13        districts;
14             (iii)  The  bonds are issued for the construction of
15        a new elementary school building to replace  an  existing
16        multi-level  elementary  school  building  of  the school
17        district that is not handicapped accessible at all levels
18        and parts of which were constructed more  than  75  years
19        ago;
20             (iv)  The  voters  of  the school district approve a
21        proposition for the issuance of the bonds at a referendum
22        held after July 1, 1998; and
23             (v)  The bonds are issued pursuant to Sections  19-2
24        through 19-7 of this Code.
25        (n)  Notwithstanding  the  debt  limitation prescribed in
26    subsection (a) of this Section or  any  other  provisions  of
27    this  Section  or  of  any  other law, a school district that
28    meets all of the criteria set forth in paragraphs (i) through
29    (vi) of this subsection (n) may incur additional indebtedness
30    by the issuance of bonds  in  an  amount  not  exceeding  the
31    amount  certified  by  the  Capital  Development Board to the
32    school district  as  provided  in  paragraph  (iii)  of  this
33    subsection  (n),  even  though  the  amount of the additional
34    indebtedness so authorized, when incurred and  added  to  the
 
                            -48-           LRB9201505NTsbam11
 1    aggregate  amount  of  indebtedness  of the district existing
 2    immediately prior to the district  incurring  the  additional
 3    indebtedness  authorized  by  this subsection (n), causes the
 4    aggregate indebtedness of the district  to  exceed  the  debt
 5    limitation otherwise applicable by law to that district:
 6             (i)  The  school district applies to the State Board
 7        of Education for a school construction project grant  and
 8        submits  a  district  facilities  plan  in support of its
 9        application  pursuant  to  Section  5-20  of  the  School
10        Construction Law.
11             (ii)  The   school   district's   application    and
12        facilities   plan  are  approved  by,  and  the  district
13        receives a grant entitlement for  a  school  construction
14        project issued by, the State Board of Education under the
15        School Construction Law.
16             (iii)  The school district has exhausted its bonding
17        capacity  or  the unused bonding capacity of the district
18        is  less  than  the  amount  certified  by  the   Capital
19        Development  Board  to the district under Section 5-15 of
20        the School Construction Law as the dollar amount  of  the
21        school construction project's cost that the district will
22        be  required  to finance with non-grant funds in order to
23        receive a school construction  project  grant  under  the
24        School Construction Law.
25             (iv)  The   bonds   are   issued   for   a   "school
26        construction project", as that term is defined in Section
27        5-5  of  the  School  Construction Law, in an amount that
28        does not exceed the dollar amount certified, as  provided
29        in paragraph (iii) of this subsection (n), by the Capital
30        Development  Board  to  the school district under Section
31        5-15 of the School Construction Law.
32             (v)  The  voters   of   the   district   approve   a
33        proposition for the issuance of the bonds at a referendum
34        held  after  the criteria specified in paragraphs (i) and
 
                            -49-           LRB9201505NTsbam11
 1        (iii) of this subsection (n) are met.
 2             (vi)  The bonds are issued pursuant to Sections 19-2
 3        through 19-7 of the School Code.
 4    (Source: P.A. 90-570, eff.  1-28-98;  90-757,  eff.  8-14-98;
 5    91-55, eff. 6-30-99.)

 6        (105 ILCS 5/34-53.5 new)
 7        Sec.  34-53.5.  Capital  improvement  tax  levy; purpose;
 8    maximum amount.
 9        (a)  For the purpose of providing a  reliable  source  of
10    revenue  for  capital improvement purposes, including without
11    limitation (i) the construction and equipping of a new school
12    building or buildings or  an  addition  or  additions  to  an
13    existing  school  building or buildings, (ii) the purchase of
14    school grounds  on  which  any  new  school  building  or  an
15    addition  to an existing school building is to be constructed
16    or located, (iii) both items (i) and (ii) of this  subsection
17    (a), or (iv) the rehabilitation, renovation, and equipping of
18    an existing school building or buildings, the board may levy,
19    upon all taxable property of the school district, in calendar
20    year  2001,  a  capital  improvement  tax  to  produce,  when
21    extended,  an  amount  not  to exceed the product attained by
22    multiplying (1) the  percentage  increase,  if  any,  in  the
23    Consumer  Price  Index  for All Urban Consumers for all items
24    published by the United States Department of Labor for the 12
25    months ending 2 months prior to the month in which  the  levy
26    is   adopted  by  (2)  $142,500,000.   For  example,  if  the
27    percentage increase in the Consumer Price Index is 2.5%, then
28    the computation would be $142,500,000 x 0.025 = $3,562,500.
29        (b)  In each calendar year from 2002  through  2030,  the
30    board  may  levy  a  capital improvement tax to produce, when
31    extended, an amount not to exceed the sum of (1) the  maximum
32    amount  that  could  have  been  levied  by  the board in the
33    preceding calendar year pursuant to this Section and (2)  the
 
                            -50-           LRB9201505NTsbam11
 1    product  obtained  by  multiplying  (A)  the  sum  of (i) the
 2    maximum amount that could have been levied by  the  board  in
 3    the preceding calendar year pursuant to this Section and (ii)
 4    $142,500,000  by  (B) the percentage increase, if any, in the
 5    Consumer Price Index for All Urban Consumers  for  all  items
 6    published by the United States Department of Labor for the 12
 7    months  ending  2 months prior to the month in which the levy
 8    is adopted.
 9        (c)  In calendar year 2031, the board may levy a  capital
10    improvement  tax  to produce, when extended, an amount not to
11    exceed the sum of (1) the maximum amount that could have been
12    levied by the board in calendar year 2030  pursuant  to  this
13    Section,  (2)  $142,500,000,  and (3) the product obtained by
14    multiplying (A) the sum of (i) the maximum amount that  could
15    have  been levied by the board in calendar year 2030 pursuant
16    to this Section and (ii) $142,500,000 by (B)  the  percentage
17    increase,  if  any, in the Consumer Price Index for All Urban
18    Consumers for  all  items  published  by  the  United  States
19    Department  of  Labor for the 12 months ending 2 months prior
20    to the month in which the levy is adopted.
21        (d)  In  calendar  year  2032  and  each  calendar   year
22    thereafter,  the  board may levy a capital improvement tax to
23    produce, when extended, an amount not to exceed  the  sum  of
24    (1)  the  maximum  amount  that could have been levied by the
25    board in the preceding calendar year pursuant to this Section
26    and (2) the product obtained by multiplying (A)  the  maximum
27    amount  that  could  have  been  levied  by  the board in the
28    preceding calendar year pursuant to this Section by  (B)  the
29    percentage  increase, if any, in the Consumer Price Index for
30    All Urban Consumers for all items  published  by  the  United
31    States  Department of Labor for the 12 months ending 2 months
32    prior to the month in which the levy is adopted.
33        (e)  An initial tax levy made by  the  board  under  this
34    Section  must  have the approval of the Chicago City Council,
 
                            -51-           LRB9201505NTsbam11
 1    by resolution, before the levy may be extended.    The  board
 2    shall  communicate  its  adoption  of the initial tax levy by
 3    delivering a certified copy of the  levy  resolution  to  the
 4    Clerk of the City of Chicago.  The Chicago City Council shall
 5    have  60  days  after  receipt,  by  the Clerk of the City of
 6    Chicago, of the certified resolution to approve or disapprove
 7    the levy.  The failure of the Chicago City  Council  to  take
 8    action  to  approve or disapprove the initial tax levy within
 9    the 60-day period shall be deemed disapproval of the  initial
10    tax  levy.   Upon the adoption of each subsequent levy by the
11    board under this Section, the board must notify  the  Chicago
12    City Council that the board has adopted the levy.
13        (f)  The  board  may  issue bonds, in accordance with the
14    Local Government Debt Reform Act,  including  Section  15  of
15    that  Act,  against  any  revenues  to  be collected from the
16    capital improvement tax in any year or years and may  pledge,
17    pursuant  to  Section  13 of the Local Government Debt Reform
18    Act, those revenues as security for the payment of  any  such
19    bonds.

20        Section  99.  Effective date.  This Act takes effect upon
21    becoming law.".

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