HB0459 EngrossedLRB100 05361 NHT 15372 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the School
5District Debt Control and Taxpayer Protection Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Capital appreciation bond" means debt issued without
8annual or semiannual payments of principal, interest, or both.
9    "Entire debt service" means principal, interest, and
10issuance costs of all debt and bonds.
11    "Equalized assessed value" means the assessed value as
12equalized by the Illinois Department of Revenue.
13    "Tax anticipation warrants" means tax anticipation
14warrants drawn and issued under the School Code.
 
15    Section 10. Refinancing debt. Notwithstanding any other
16law to the contrary, a school district may not refinance debt
17past the repayment period of the debt when issued.
 
18    Section 15. Debt serviced more than 20 years.
19Notwithstanding any law to the contrary, a school district may
20not issue debt to be serviced over a period greater than 20
21years.
 

 

 

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1    Section 20. Equalized assessed value. Notwithstanding any
2other law to the contrary, for the purpose of calculating the
3debt limit of a school district in relation to its equalized
4assessed value, debt shall include all debt issued and its
5associated interest and issuance costs.
 
6    Section 25. Debt limitation. Notwithstanding any other law
7to the contrary, no school district may become indebted in any
8manner or for any purpose in an amount, including the entire
9debt service, in the aggregate exceeding 13.8% for a unit
10district or 6.9% for an elementary or high school district of
11the value of the taxable property therein to be ascertained by
12the last assessment for State and county taxes or, if greater,
13the sum that is produced by multiplying the school district's
142016 equalized assessed value by the debt limitation percentage
15in effect on the effective date of this Act, previous to the
16incurring of such indebtedness.
 
17    Section 30. New debt prohibited.
18    (a) Notwithstanding any other law to the contrary and on
19and after the effective date of this Act, a school district
20that exceeds the debt limitation of Section 25 of this Act may
21not incur any new debt, including, but not limited to, tax
22anticipation warrants, until the school district's aggregate
23debt limitation is below the debt limitation of Section 25.

 

 

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1    (b) Notwithstanding subsection (a), a school district may
2issue new debt on or after the effective date of this Act if a
3referendum allowing new debt to be issued was passed before the
4effective date of this Act.
 
5    Section 35. Capital appreciation bonds. Notwithstanding
6any other law to the contrary and on and after the effective
7date of this Act, no school district may issue capital
8appreciation bonds.
 
9    Section 40. Additional debt. Nothing in this Act shall
10authorize any school district to issue additional debt above
11and beyond what is otherwise authorized by law.
 
12    Section 45. Bond referendum information. Notwithstanding
13any other law to the contrary, the referendum question allowing
14a school district to issue bonds must include the following:
15        (1) a description of the project for which the bonds
16    will be issued;
17        (2) an estimate of the number of years during which the
18    bonds will be outstanding; and
19        (3) an estimate of the total debt service to be paid on
20    the bonds, including principal, interest, and costs of
21    issuing the bonds.
 
22    Section 50. Bond issuance information. If a school district

 

 

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1presents information to the public about a bond issuance, then
2that information must include an estimate of the average annual
3property tax needed to pay the principal of and interest on the
4bonds extendable against property containing a median-priced
5home in the school district's boundaries at a fair market
6value.
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.