92nd General Assembly
Summary of SB0022
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Senate Sponsors:
RAUSCHENBERGER-WOOLARD.

House Sponsors:
O'BRIEN-MENDOZA

Short description: 
SCHOOLS-BONDS-TAXES-BUILDINGS                                              

Synopsis of Bill as introduced:
        Amends the Property Tax Code and the School Code.  Makes  changes      
   to  the  Property  Tax  Extension  Limitation Law concerning excluding      
   bonds issued by school boards for fire prevention and safety  purposes      
   from the definition of "debt service extension base" and the exclusion      
   of  certain  extensions  from  the  aggregate  extension  for a school      
   district.  Repeals a provision in the Law concerning  not  reducing  a      
   school district's State aid. Makes changes to provisions of the School      
   Code  concerning urgent and required items in a school building safety      
   survey report, bonds and taxes for  fire  prevention,  safety,  energy      
   conservation,  disabled  accessibility, school security, and specified      
   repair purposes, increasing the maximum tax rates that may  be  levied      
   by  certain school districts for certain purposes, referendums for tax      
   levies,  the  capital  improvement  tax,  and  increasing   the   debt      
   limitations of school districts.  Effective immediately.                    
        SENATE AMENDMENT NO. 1.                                                
          Deletes reference to:                                                
          105 ILCS 5/17-2                                                      
          105 ILCS 5/17-2.3                                                    
        Removes amendatory provisions and restores current law concerning      
   tax levies for operations and maintenance purposes and capital im-          
   provement purposes.                                                         
        HOUSE AMENDMENT NO. 1.  (Tabled May 25, 2001)                          
          Adds reference to:                                                   
          35 ILCS 200/18-190.5 new                                             
          105 ILCS 5/34-53.5 new                                               
        Further amends the Property Tax Code and the School Code.  Allows      
   the Chicago Board of Education to levy a capital  improvement  tax  to      
   produce,  when extended, a maximum specified amount.  Allows the Board      
   to issue bonds against any revenues to be collected from the  tax  and      
   to  pledge  those  revenues  as  security  for the payment of any such      
   bonds.  Excludes extensions made pursuant to these provisions from the      
   definition of aggregate extension under  the  Property  Tax  Extension      
   Limitation  Law.   Provides  that the requirements under the Law for a      
   direct referendum on the imposition of a new  or  increased  tax  rate      
   shall  not  apply to tax levies that are not included in the aggregate      
   extension pursuant to the amendatory Act.  In the backdoor  referendum      
   provisions,   makes   changes  concerning  who  may  file  a  petition      
   requesting that the  question  of  the  adoption  of  a  tax  levy  be      
   submitted to the voters of the district, when a backdoor referendum is      
   required  for  a  rate  increase  for  fire prevention, safety, energy      
   conservation, disabled accessibility, school security,  and  specified      
   repair  purposes,  and  how  many  registered voters of a district are      
   required to sign a petition requesting that  a  proposition  to  issue      
   bonds for those purposes be submitted to the voters.                        
          STATE DEBT NOTE, H-AM 1 (Economic and Fiscal Commission)             
          SB 22 (H-am 1) would not affect the bonding authorization of         
          the State and, therefore, has no direct impact on the level          
          of State indebtedness.                                               
          FISCAL NOTE, H-AM 1 (Department of Revenue)                          
          SB 22 (H-am 1) has no fiscal impact on the State. All property       
          tax proceeds are local government funds.                             
          STATE MANDATES NOTE, H-AM 1 (State Board of Education)               
          SB 22 (H-am 1) creates no State mandate. All decisions are made      
          at the local level and will depend on actions of local school        
          districts in levying health life/safety taxes or in issuing          
          bonds.                                                               
        HOUSE AMENDMENT NO. 8.                                                 
          Adds reference to:                                                   
          105 ILCS 5/1B-4                 from Ch. 122, par. 1B-4              
          105 ILCS 5/1B-5                 from Ch. 122, par. 1B-5              
          105 ILCS 5/1B-8                 from Ch. 122, par. 1B-8              
        Deletes everything after  the  enacting  clause.   Reinserts  the      
   contents  of  the  bill  as  amended by House amendment No. 1 with the      
   following changes.  In the provisions allowing the  Chicago  Board  of      
   Education to levy a capital improvement tax, provides that the failure      
   of  the  Chicago  City Council to take action to approve or disapprove      
   the initial  tax  levy  within  the  60-day  period  shall  be  deemed      
   disapproval (instead of approval) of the initial tax levy.  Amends the      
   School  District  Financial  Oversight  Panel  and Emergency Financial      
   Assistance Law of the School Code.  Allows a financial oversight panel      
   created pursuant to a petition filed by a school district to  petition      
   the State Board of Education to be reconstituted as a panel having the      
   powers, duties, legal status, and privileges of a panel established by      
   the  State  Board  for  a  district  that  has  had its financial plan      
   rescinded by the State Board for violating that plan.   Provides  that      
   any  moneys  provided  to  a board of education as a loan shall not be      
   subject to any limitation on debt established under the Article of the      
   School Code concerning debt limitation.  Changes provisions concerning      
   a separate tax  levy  for  emergency  financial  assistance  repayment      
   purposes.  Makes other changes.  Effective immediately.                     
          HOME RULE NOTE, H-AM 8                                               
          (Department of Commerce and Community Affairs)                       
          SB 22 (H-am 8) concerns finances of school districts. The            
          legislation does not pre-empt the home rule powers of a local        
          government.                                                          
          FISCAL NOTE, H-AM 8 (State Board of Education)                       
          SB 22 (H-am 8) will have no fiscal impact at the State level.        
          The fiscal impact of the underlying health, life, safety pro-        
          visions at the local level will depend on actions of local           
          school districts in levying health life/safety taxes or in           
          issuing bonds. The provisions relating to Round Lake help pro-       
          vide the climate for the State to agree to the $5.6 million          
          loan. The maximum amounts of the new capital projects tax levy       
          for the next several years would be as follows (assuming infla-      
          tion of 2.5%) per Chicago Public School District (CPS) #299:         
          levy year 2001/extension year 2002                                   
           maximum tax levy                                 $ 3.6 million      
           tax rate with no EAV growth                             1 cent      
           impact on home with $100,000 market value                $1.73      
          levy year 2002/extension year 2003                                   
           maximum tax levy                                 $ 7.2 million      
           tax rate with no EAV growth                            2 cents      
           impact on home with $100,000 market value                $3.46      
          levy year 2003/extension year 2004                                   
           maximum tax levy                                 $11.0 million      
           tax rate with no EAV growth                            3 cents      
           impact on home with $100,000 market value                $5.27      
          levy year 2004/extension year 2005                                   
           maximum tax levy                                 $14.8 million      
           tax rate with no EAV growth                            4 cents      
           impact on home with $100,000 market value                $7.08      
          levy year 2005/extension year 2006                                   
           maximum tax levy                                 $18.7 million      
           tax rate with no EAV growth                            5 cents      
           impact on home with $100,000 market value                $8.96      
          Starting in 2031, after all the existing CPS #299 debt service       
          tax levies have expired in 2030, the extent of the levy would        
          be equal to the inflationary growth described above plus $142.5      
          million. This would allow CPS #299 to use, without increasing        
          taxes, all of the tax headroom that will be available when the       
          existing CPS #299 debt service levies expire. The initial tax        
          levy made by the board must have approval by the Chicago City        
          Council. Approval must be affirmative rather than by inaction.       
          STATE MANDATES NOTE, H-AM 8 (State Board of Education)               
          SB 22 (H-am 8) creates no State mandate. All decisions are made      
          at the local level and will depend on actions of local school        
          districts in levying health life/safety taxes or in issuing          
          bonds. The provisions relating to Round Lake and CPS are also        
          local decisions or permit State funding of local districts.          
          HOUSING AFFORDABILITY NOTE, H-AM 8                                   
          (Illinois Housing Development Authority)                             
          SB 22 (H-am 8) would likely have the impact of increasing local      
          property taxes, thereby increasing the cost of owning a resi-        
          dential property in the identified geographic areas (i.e. con-       
          tiguous counties to Cook County). The specific financial impact      
          cannot be determined, however, as none of the individual pro-        
          ject budgets/bond issues are known, which will result in dif-        
          fering homeowner impacts based on local tax bases/levies and         
          EAV factors.                                                         
        HOUSE AMENDMENT NO. 10.                                                
          Deletes reference to:                                                
          35 ILCS 200/18-185                                                   
          35 ILCS 200/18-190.5 new                                             
          35 ILCS 200/18-201 new                                               
          35 ILCS 200/18-200 rep.                                              
          105 ILCS 5/1B-4                                                      
          105 ILCS 5/1B-5                                                      
          105 ILCS 5/1B-8                                                      
          105 ILCS 5/2-3.12                                                    
          105 ILCS 5/10-22.14                                                  
          105 ILCS 5/17-2.2                                                    
          105 ILCS5/17-2.11                                                    
          105 ILCS 5/19-1                                                      
          105 ILCS 5/34-53.5 new                                               
          Adds reference to:                                                   
          35 ILCS 200/18-181 new                                               
        Deletes everything.  Amends the Property Tax Code.  Provides that      
   any taxing district that has an equalized assessed valuation  for  the      
   year  2000  that  is at least 15% less than its assessed valuation for      
   the year 1999 may contract, within certain limitations,  with  certain      
   electric  generating  stations  newly constructed  within  the  taxing      
   district  for the abatement of the station's taxes for a period not to      
   exceed 20 years.  Makes provision for repayment with interest  if  the      
   owner  of  the station closes the station before the expiration of the      
   contract  period.   Provides  that  this  authorization   for   taxing      
   districts to enter into such a contract shall not apply to an electric      
   generating station with an  equalized  assessed valuation of less than      
   $150,000,000 and that the authorization expires on  January  1,  2002.      
   Effective immediately.                                                      
 
Last action on Bill: SESSION SINE DIE

   Last action date: JAN-07-2003

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   2     SENATE -   1


   END OF INQUIRY 



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