Public Act 93-0368

HB2354 Enrolled                      LRB093 06468 NHT 06591 b

    AN ACT regarding schools.

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

    Section  5.   The  School  Code  is  amended  by changing
Section 2-3.117a as follows:

    (105 ILCS 5/2-3.117a)
    Sec. 2-3.117a. School Technology Revolving Loan Program.
    (a)  The  State  Board  of  Education  is  authorized  to
administer a School Technology Revolving  Loan  Program  from
funds appropriated  from the School Technology Revolving Loan
Fund  for  the  purpose  of  making  the  financing of school
technology hardware improvements affordable  and  making  the
integration  of  technology in the classroom possible. School
technology loans shall be made  available  to  public  school
districts,  charter  schools,  area  vocational  centers, and
laboratory  schools  to  purchase  technology  hardware   for
eligible  grade  levels  on a 2-year rotating basis: grades 9
through  12  in  fiscal  year  2004  and  each  second   year
thereafter  and  grades  K  through 8 in fiscal year 2005 and
each second year  thereafter  school  districts  to  purchase
technology  hardware  for  eligible  grade levels on a 3-year
rotating basis: grades K-4 in year one and  each  third  year
thereafter,  grades  5-8  in  year  2  and  each  third  year
thereafter,  grades  9-12  in  year  3  and  each  third year
thereafter.
    The State Board of Education shall determine the interest
rate the loans shall bear which shall not be greater than 50%
of the rate for the most recent date shown  in  the  20  G.O.
Bonds  Index of average municipal bond yields as published in
the most recent edition of The Bond  Buyer, published in  New
York,  New  York.  The repayment period for School Technology
Revolving  Loans  shall  not  exceed  3  years.  Participants
Participating school districts shall use at least 90% of  the
loan   proceeds   for  technology  hardware  investments  for
students and staff (,including computer hardware,  technology
networks, related wiring, and other items as defined in rules
adopted by the State Board of Education) and up to 10% of the
loan  proceeds  for computer furniture. No participant school
district whose equalized  assessed  valuation  per  pupil  in
average  daily attendance is at the 99th percentile and above
for all districts of the  same  type  shall  be  eligible  to
receive   a   School  Technology  Revolving  Loan  under  the
provisions of this Section for that year.
    The State Board of Education shall have the authority  to
adopt   all   rules  necessary  for  the  implementation  and
administration  of  the  School  Technology  Revolving   Loan
Program,  including,  but  not  limited  to,  rules  defining
application  procedures,  prescribing  a  maximum  amount per
pupil that may be requested annually by districts,  requiring
appropriate  local  commitments  for  technology investments,
prescribing a mechanism for  disbursing  loan  funds  in  the
event requests exceed available funds, specifying collateral,
and  prescribing  actions  necessary  to  protect the State's
interest  in  the   event   of   default,   foreclosure,   or
noncompliance with the terms and conditions of the loans.
    (b)  There  is  created  in the State treasury the School
Technology Revolving Loan Fund.  The State Board  shall  have
the  authority to make expenditures from the Fund pursuant to
appropriations made for the purposes of this  Section.  There
shall  be deposited into the Fund such amounts, including but
not limited to:
         (1)  Transfers from the School Infrastructure Fund;
         (2)  All receipts, including principal and  interest
    payments, from any loan made from the Fund;
         (3)  All  proceeds  of  assets  of  whatever  nature
    received  by  the  State  Board as a result of default or
    delinquency with respect to loans made from the Fund;
         (4)  Any appropriations, grants, or  gifts  made  to
    the Fund; and
         (5)  Any    income   received   from   interest   on
    investments of money in the Fund.
(Source: P.A. 90-548, eff. 1-1-98.)

    Section 99.  Effective date.  This Act  takes  effect  on
July 1, 2003.

Effective Date: 07/24/03