Sen. Jason A. Barickman

Filed: 4/19/2017

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1124

2    AMENDMENT NO. ______. Amend Senate Bill 1124 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. This Act may be referred to as the
5Evidence-Based Funding for Student Success Act.
 
6    Section 5. The Economic Development Area Tax Increment
7Allocation Act is amended by changing Section 7 as follows:
 
8    (20 ILCS 620/7)  (from Ch. 67 1/2, par. 1007)
9    Sec. 7. Creation of special tax allocation fund. If a
10municipality has adopted tax increment allocation financing
11for an economic development project area by ordinance, the
12county clerk has thereafter certified the "total initial
13equalized assessed value" of the taxable real property within
14such economic development project area in the manner provided
15in Section 6 of this Act, and the Department has approved and

 

 

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1certified the economic development project area, each year
2after the date of the certification by the county clerk of the
3"total initial equalized assessed value" until economic
4development project costs and all municipal obligations
5financing economic development project costs have been paid,
6the ad valorem taxes, if any, arising from the levies upon the
7taxable real property in the economic development project area
8by taxing districts and tax rates determined in the manner
9provided in subsection (b) of Section 6 of this Act shall be
10divided as follows:
11    (1) That portion of the taxes levied upon each taxable lot,
12block, tract or parcel of real property which is attributable
13to the lower of the current equalized assessed value or the
14initial equalized assessed value of each such taxable lot,
15block, tract, or parcel of real property existing at the time
16tax increment allocation financing was adopted, shall be
17allocated to and when collected shall be paid by the county
18collector to the respective affected taxing districts in the
19manner required by law in the absence of the adoption of tax
20increment allocation financing.
21    (2) That portion, if any, of those taxes which is
22attributable to the increase in the current equalized assessed
23valuation of each taxable lot, block, tract, or parcel of real
24property in the economic development project area, over and
25above the initial equalized assessed value of each property
26existing at the time tax increment allocation financing was

 

 

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1adopted, shall be allocated to and when collected shall be paid
2to the municipal treasurer, who shall deposit those taxes into
3a special fund called the special tax allocation fund of the
4municipality for the purpose of paying economic development
5project costs and obligations incurred in the payment thereof.
6    The municipality, by an ordinance adopting tax increment
7allocation financing, may pledge the funds in and to be
8deposited in the special tax allocation fund for the payment of
9obligations issued under this Act and for the payment of
10economic development project costs. No part of the current
11equalized assessed valuation of each property in the economic
12development project area attributable to any increase above the
13total initial equalized assessed value, of such properties
14shall be used in calculating the general State school aid
15formula, provided for in Section 18-8 of the School Code, or
16the evidence-based funding formula, provided for in Section
1718-8.15 of the School Code, until such time as all economic
18development projects costs have been paid as provided for in
19this Section.
20    When the economic development project costs, including
21without limitation all municipal obligations financing
22economic development project costs incurred under this Act,
23have been paid, all surplus funds then remaining in the special
24tax allocation fund shall be distributed by being paid by the
25municipal treasurer to the county collector, who shall
26immediately thereafter pay those funds to the taxing districts

 

 

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1having taxable property in the economic development project
2area in the same manner and proportion as the most recent
3distribution by the county collector to those taxing districts
4of real property taxes from real property in the economic
5development project area.
6    Upon the payment of all economic development project costs,
7retirement of obligations and the distribution of any excess
8monies pursuant to this Section the municipality shall adopt an
9ordinance dissolving the special tax allocation fund for the
10economic development project area, terminating the economic
11development project area, and terminating the use of tax
12increment allocation financing for the economic development
13project area. Thereafter the rates of the taxing districts
14shall be extended and taxes levied, collected and distributed
15in the manner applicable in the absence of the adoption of tax
16increment allocation financing.
17    Nothing in this Section shall be construed as relieving
18property in economic development project areas from being
19assessed as provided in the Property Tax Code, or as relieving
20owners of that property from paying a uniform rate of taxes, as
21required by Section 4 of Article IX of the Illinois
22Constitution.
23(Source: P.A. 98-463, eff. 8-16-13.)
 
24    Section 10. The State Finance Act is amended by changing
25Section 13.2 as follows:
 

 

 

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1    (30 ILCS 105/13.2)  (from Ch. 127, par. 149.2)
2    Sec. 13.2. Transfers among line item appropriations.
3    (a) Transfers among line item appropriations from the same
4treasury fund for the objects specified in this Section may be
5made in the manner provided in this Section when the balance
6remaining in one or more such line item appropriations is
7insufficient for the purpose for which the appropriation was
8made.
9    (a-1) No transfers may be made from one agency to another
10agency, nor may transfers be made from one institution of
11higher education to another institution of higher education
12except as provided by subsection (a-4).
13    (a-2) Except as otherwise provided in this Section,
14transfers may be made only among the objects of expenditure
15enumerated in this Section, except that no funds may be
16transferred from any appropriation for personal services, from
17any appropriation for State contributions to the State
18Employees' Retirement System, from any separate appropriation
19for employee retirement contributions paid by the employer, nor
20from any appropriation for State contribution for employee
21group insurance. During State fiscal year 2005, an agency may
22transfer amounts among its appropriations within the same
23treasury fund for personal services, employee retirement
24contributions paid by employer, and State Contributions to
25retirement systems; notwithstanding and in addition to the

 

 

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1transfers authorized in subsection (c) of this Section, the
2fiscal year 2005 transfers authorized in this sentence may be
3made in an amount not to exceed 2% of the aggregate amount
4appropriated to an agency within the same treasury fund. During
5State fiscal year 2007, the Departments of Children and Family
6Services, Corrections, Human Services, and Juvenile Justice
7may transfer amounts among their respective appropriations
8within the same treasury fund for personal services, employee
9retirement contributions paid by employer, and State
10contributions to retirement systems. During State fiscal year
112010, the Department of Transportation may transfer amounts
12among their respective appropriations within the same treasury
13fund for personal services, employee retirement contributions
14paid by employer, and State contributions to retirement
15systems. During State fiscal years 2010 and 2014 only, an
16agency may transfer amounts among its respective
17appropriations within the same treasury fund for personal
18services, employee retirement contributions paid by employer,
19and State contributions to retirement systems.
20Notwithstanding, and in addition to, the transfers authorized
21in subsection (c) of this Section, these transfers may be made
22in an amount not to exceed 2% of the aggregate amount
23appropriated to an agency within the same treasury fund.
24    (a-2.5) During State fiscal year 2015 only, the State's
25Attorneys Appellate Prosecutor may transfer amounts among its
26respective appropriations contained in operational line items

 

 

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1within the same treasury fund. Notwithstanding, and in addition
2to, the transfers authorized in subsection (c) of this Section,
3these transfers may be made in an amount not to exceed 4% of
4the aggregate amount appropriated to the State's Attorneys
5Appellate Prosecutor within the same treasury fund.
6    (a-3) Further, if an agency receives a separate
7appropriation for employee retirement contributions paid by
8the employer, any transfer by that agency into an appropriation
9for personal services must be accompanied by a corresponding
10transfer into the appropriation for employee retirement
11contributions paid by the employer, in an amount sufficient to
12meet the employer share of the employee contributions required
13to be remitted to the retirement system.
14    (a-4) Long-Term Care Rebalancing. The Governor may
15designate amounts set aside for institutional services
16appropriated from the General Revenue Fund or any other State
17fund that receives monies for long-term care services to be
18transferred to all State agencies responsible for the
19administration of community-based long-term care programs,
20including, but not limited to, community-based long-term care
21programs administered by the Department of Healthcare and
22Family Services, the Department of Human Services, and the
23Department on Aging, provided that the Director of Healthcare
24and Family Services first certifies that the amounts being
25transferred are necessary for the purpose of assisting persons
26in or at risk of being in institutional care to transition to

 

 

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1community-based settings, including the financial data needed
2to prove the need for the transfer of funds. The total amounts
3transferred shall not exceed 4% in total of the amounts
4appropriated from the General Revenue Fund or any other State
5fund that receives monies for long-term care services for each
6fiscal year. A notice of the fund transfer must be made to the
7General Assembly and posted at a minimum on the Department of
8Healthcare and Family Services website, the Governor's Office
9of Management and Budget website, and any other website the
10Governor sees fit. These postings shall serve as notice to the
11General Assembly of the amounts to be transferred. Notice shall
12be given at least 30 days prior to transfer.
13    (b) In addition to the general transfer authority provided
14under subsection (c), the following agencies have the specific
15transfer authority granted in this subsection:
16    The Department of Healthcare and Family Services is
17authorized to make transfers representing savings attributable
18to not increasing grants due to the births of additional
19children from line items for payments of cash grants to line
20items for payments for employment and social services for the
21purposes outlined in subsection (f) of Section 4-2 of the
22Illinois Public Aid Code.
23    The Department of Children and Family Services is
24authorized to make transfers not exceeding 2% of the aggregate
25amount appropriated to it within the same treasury fund for the
26following line items among these same line items: Foster Home

 

 

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1and Specialized Foster Care and Prevention, Institutions and
2Group Homes and Prevention, and Purchase of Adoption and
3Guardianship Services.
4    The Department on Aging is authorized to make transfers not
5exceeding 2% of the aggregate amount appropriated to it within
6the same treasury fund for the following Community Care Program
7line items among these same line items: purchase of services
8covered by the Community Care Program and Comprehensive Case
9Coordination.
10    The State Treasurer is authorized to make transfers among
11line item appropriations from the Capital Litigation Trust
12Fund, with respect to costs incurred in fiscal years 2002 and
132003 only, when the balance remaining in one or more such line
14item appropriations is insufficient for the purpose for which
15the appropriation was made, provided that no such transfer may
16be made unless the amount transferred is no longer required for
17the purpose for which that appropriation was made.
18    The State Board of Education is authorized to make
19transfers from line item appropriations within the same
20treasury fund for General State Aid, and General State Aid -
21Hold Harmless, Evidence-Based Funding, provided that no such
22transfer may be made unless the amount transferred is no longer
23required for the purpose for which that appropriation was made,
24to the line item appropriation for Transitional Assistance when
25the balance remaining in such line item appropriation is
26insufficient for the purpose for which the appropriation was

 

 

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1made.
2    The State Board of Education is authorized to make
3transfers between the following line item appropriations
4within the same treasury fund: Disabled Student
5Services/Materials (Section 14-13.01 of the School Code),
6Disabled Student Transportation Reimbursement (Section
714-13.01 of the School Code), Disabled Student Tuition -
8Private Tuition (Section 14-7.02 of the School Code),
9Extraordinary Special Education (Section 14-7.02b of the
10School Code), Reimbursement for Free Lunch/Breakfast Program,
11Summer School Payments (Section 18-4.3 of the School Code), and
12Transportation - Regular/Vocational Reimbursement (Section
1329-5 of the School Code). Such transfers shall be made only
14when the balance remaining in one or more such line item
15appropriations is insufficient for the purpose for which the
16appropriation was made and provided that no such transfer may
17be made unless the amount transferred is no longer required for
18the purpose for which that appropriation was made.
19    The Department of Healthcare and Family Services is
20authorized to make transfers not exceeding 4% of the aggregate
21amount appropriated to it, within the same treasury fund, among
22the various line items appropriated for Medical Assistance.
23    (c) The sum of such transfers for an agency in a fiscal
24year shall not exceed 2% of the aggregate amount appropriated
25to it within the same treasury fund for the following objects:
26Personal Services; Extra Help; Student and Inmate

 

 

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1Compensation; State Contributions to Retirement Systems; State
2Contributions to Social Security; State Contribution for
3Employee Group Insurance; Contractual Services; Travel;
4Commodities; Printing; Equipment; Electronic Data Processing;
5Operation of Automotive Equipment; Telecommunications
6Services; Travel and Allowance for Committed, Paroled and
7Discharged Prisoners; Library Books; Federal Matching Grants
8for Student Loans; Refunds; Workers' Compensation,
9Occupational Disease, and Tort Claims; and, in appropriations
10to institutions of higher education, Awards and Grants.
11Notwithstanding the above, any amounts appropriated for
12payment of workers' compensation claims to an agency to which
13the authority to evaluate, administer and pay such claims has
14been delegated by the Department of Central Management Services
15may be transferred to any other expenditure object where such
16amounts exceed the amount necessary for the payment of such
17claims.
18    (c-1) Special provisions for State fiscal year 2003.
19Notwithstanding any other provision of this Section to the
20contrary, for State fiscal year 2003 only, transfers among line
21item appropriations to an agency from the same treasury fund
22may be made provided that the sum of such transfers for an
23agency in State fiscal year 2003 shall not exceed 3% of the
24aggregate amount appropriated to that State agency for State
25fiscal year 2003 for the following objects: personal services,
26except that no transfer may be approved which reduces the

 

 

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1aggregate appropriations for personal services within an
2agency; extra help; student and inmate compensation; State
3contributions to retirement systems; State contributions to
4social security; State contributions for employee group
5insurance; contractual services; travel; commodities;
6printing; equipment; electronic data processing; operation of
7automotive equipment; telecommunications services; travel and
8allowance for committed, paroled, and discharged prisoners;
9library books; federal matching grants for student loans;
10refunds; workers' compensation, occupational disease, and tort
11claims; and, in appropriations to institutions of higher
12education, awards and grants.
13    (c-2) Special provisions for State fiscal year 2005.
14Notwithstanding subsections (a), (a-2), and (c), for State
15fiscal year 2005 only, transfers may be made among any line
16item appropriations from the same or any other treasury fund
17for any objects or purposes, without limitation, when the
18balance remaining in one or more such line item appropriations
19is insufficient for the purpose for which the appropriation was
20made, provided that the sum of those transfers by a State
21agency shall not exceed 4% of the aggregate amount appropriated
22to that State agency for fiscal year 2005.
23    (c-3) Special provisions for State fiscal year 2015.
24Notwithstanding any other provision of this Section, for State
25fiscal year 2015, transfers among line item appropriations to a
26State agency from the same State treasury fund may be made for

 

 

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1operational or lump sum expenses only, provided that the sum of
2such transfers for a State agency in State fiscal year 2015
3shall not exceed 4% of the aggregate amount appropriated to
4that State agency for operational or lump sum expenses for
5State fiscal year 2015. For the purpose of this subsection,
6"operational or lump sum expenses" includes the following
7objects: personal services; extra help; student and inmate
8compensation; State contributions to retirement systems; State
9contributions to social security; State contributions for
10employee group insurance; contractual services; travel;
11commodities; printing; equipment; electronic data processing;
12operation of automotive equipment; telecommunications
13services; travel and allowance for committed, paroled, and
14discharged prisoners; library books; federal matching grants
15for student loans; refunds; workers' compensation,
16occupational disease, and tort claims; lump sum and other
17purposes; and lump sum operations. For the purpose of this
18subsection (c-3), "State agency" does not include the Attorney
19General, the Secretary of State, the Comptroller, the
20Treasurer, or the legislative or judicial branches.
21    (d) Transfers among appropriations made to agencies of the
22Legislative and Judicial departments and to the
23constitutionally elected officers in the Executive branch
24require the approval of the officer authorized in Section 10 of
25this Act to approve and certify vouchers. Transfers among
26appropriations made to the University of Illinois, Southern

 

 

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1Illinois University, Chicago State University, Eastern
2Illinois University, Governors State University, Illinois
3State University, Northeastern Illinois University, Northern
4Illinois University, Western Illinois University, the Illinois
5Mathematics and Science Academy and the Board of Higher
6Education require the approval of the Board of Higher Education
7and the Governor. Transfers among appropriations to all other
8agencies require the approval of the Governor.
9    The officer responsible for approval shall certify that the
10transfer is necessary to carry out the programs and purposes
11for which the appropriations were made by the General Assembly
12and shall transmit to the State Comptroller a certified copy of
13the approval which shall set forth the specific amounts
14transferred so that the Comptroller may change his records
15accordingly. The Comptroller shall furnish the Governor with
16information copies of all transfers approved for agencies of
17the Legislative and Judicial departments and transfers
18approved by the constitutionally elected officials of the
19Executive branch other than the Governor, showing the amounts
20transferred and indicating the dates such changes were entered
21on the Comptroller's records.
22    (e) The State Board of Education, in consultation with the
23State Comptroller, may transfer line item appropriations for
24General State Aid or Evidence-Based Funding between the Common
25School Fund and the Education Assistance Fund. With the advice
26and consent of the Governor's Office of Management and Budget,

 

 

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1the State Board of Education, in consultation with the State
2Comptroller, may transfer line item appropriations between the
3General Revenue Fund and the Education Assistance Fund for the
4following programs:
5        (1) Disabled Student Personnel Reimbursement (Section
6    14-13.01 of the School Code);
7        (2) Disabled Student Transportation Reimbursement
8    (subsection (b) of Section 14-13.01 of the School Code);
9        (3) Disabled Student Tuition - Private Tuition
10    (Section 14-7.02 of the School Code);
11        (4) Extraordinary Special Education (Section 14-7.02b
12    of the School Code);
13        (5) Reimbursement for Free Lunch/Breakfast Programs;
14        (6) Summer School Payments (Section 18-4.3 of the
15    School Code);
16        (7) Transportation - Regular/Vocational Reimbursement
17    (Section 29-5 of the School Code);
18        (8) Regular Education Reimbursement (Section 18-3 of
19    the School Code); and
20        (9) Special Education Reimbursement (Section 14-7.03
21    of the School Code).
22(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14; 99-2,
23eff. 3-26-15.)
 
24    Section 15. The Property Tax Code is amended by changing
25Sections 18-200 and 18-249 as follows:
 

 

 

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1    (35 ILCS 200/18-200)
2    Sec. 18-200. School Code. A school district's State aid
3shall not be reduced under the computation under subsections
45(a) through 5(h) of Part A of Section 18-8 of the School Code
5or under Section 18-8.15 of the School Code due to the
6operating tax rate falling from above the minimum requirement
7of that Section of the School Code to below the minimum
8requirement of that Section of the School Code due to the
9operation of this Law.
10(Source: P.A. 87-17; 88-455.)
 
11    (35 ILCS 200/18-249)
12    Sec. 18-249. Miscellaneous provisions.
13    (a) Certification of new property. For the 1994 levy year,
14the chief county assessment officer shall certify to the county
15clerk, after all changes by the board of review or board of
16appeals, as the case may be, the assessed value of new property
17by taxing district for the 1994 levy year under rules
18promulgated by the Department.
19    (b) School Code. A school district's State aid shall not be
20reduced under the computation under subsections 5(a) through
215(h) of Part A of Section 18-8 of the School Code or under
22Section 18-8.15 of the School Code due to the operating tax
23rate falling from above the minimum requirement of that Section
24of the School Code to below the minimum requirement of that

 

 

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1Section of the School Code due to the operation of this Law.
2    (c) Rules. The Department shall make and promulgate
3reasonable rules relating to the administration of the purposes
4and provisions of Sections 18-246 through 18-249 as may be
5necessary or appropriate.
6(Source: P.A. 89-1, eff. 2-12-95.)
 
7    Section 20. The Innovation Development and Economy Act is
8amended by changing Section 33 as follows:
 
9    (50 ILCS 470/33)
10    Sec. 33. STAR Bonds School Improvement and Operations Trust
11Fund.
12    (a) The STAR Bonds School Improvement and Operations Trust
13Fund is created as a trust fund in the State treasury. Deposits
14into the Trust Fund shall be made as provided under this
15Section. Moneys in the Trust Fund shall be used by the
16Department of Revenue only for the purpose of making payments
17to school districts in educational service regions that include
18or are adjacent to the STAR bond district. Moneys in the Trust
19Fund are not subject to appropriation and shall be used solely
20as provided in this Section. All deposits into the Trust Fund
21shall be held in the Trust Fund by the State Treasurer as ex
22officio custodian separate and apart from all public moneys or
23funds of this State and shall be administered by the Department
24exclusively for the purposes set forth in this Section. All

 

 

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1moneys in the Trust Fund shall be invested and reinvested by
2the State Treasurer. All interest accruing from these
3investments shall be deposited in the Trust Fund.
4    (b) Upon approval of a STAR bond district, the political
5subdivision shall immediately transmit to the county clerk of
6the county in which the district is located a certified copy of
7the ordinance creating the district, a legal description of the
8district, a map of the district, identification of the year
9that the county clerk shall use for determining the total
10initial equalized assessed value of the district consistent
11with subsection (c), and a list of the parcel or tax
12identification number of each parcel of property included in
13the district.
14    (c) Upon approval of a STAR bond district, the county clerk
15immediately thereafter shall determine (i) the most recently
16ascertained equalized assessed value of each lot, block, tract,
17or parcel of real property within the STAR bond district, from
18which shall be deducted the homestead exemptions under Article
1915 of the Property Tax Code, which value shall be the initial
20equalized assessed value of each such piece of property, and
21(ii) the total equalized assessed value of all taxable real
22property within the district by adding together the most
23recently ascertained equalized assessed value of each taxable
24lot, block, tract, or parcel of real property within the
25district, from which shall be deducted the homestead exemptions
26under Article 15 of the Property Tax Code, and shall certify

 

 

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1that amount as the total initial equalized assessed value of
2the taxable real property within the STAR bond district.
3    (d) In reference to any STAR bond district created within
4any political subdivision, and in respect to which the county
5clerk has certified the total initial equalized assessed value
6of the property in the area, the political subdivision may
7thereafter request the clerk in writing to adjust the initial
8equalized value of all taxable real property within the STAR
9bond district by deducting therefrom the exemptions under
10Article 15 of the Property Tax Code applicable to each lot,
11block, tract, or parcel of real property within the STAR bond
12district. The county clerk shall immediately, after the written
13request to adjust the total initial equalized value is
14received, determine the total homestead exemptions in the STAR
15bond district as provided under Article 15 of the Property Tax
16Code by adding together the homestead exemptions provided by
17said Article on each lot, block, tract, or parcel of real
18property within the STAR bond district and then shall deduct
19the total of said exemptions from the total initial equalized
20assessed value. The county clerk shall then promptly certify
21that amount as the total initial equalized assessed value as
22adjusted of the taxable real property within the STAR bond
23district.
24    (e) The county clerk or other person authorized by law
25shall compute the tax rates for each taxing district with all
26or a portion of its equalized assessed value located in the

 

 

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1STAR bond district. The rate per cent of tax determined shall
2be extended to the current equalized assessed value of all
3property in the district in the same manner as the rate per
4cent of tax is extended to all other taxable property in the
5taxing district.
6    (f) Beginning with the assessment year in which the first
7destination user in the first STAR bond project in a STAR bond
8district makes its first retail sales and for each assessment
9year thereafter until final maturity of the last STAR bonds
10issued in the district, the county clerk or other person
11authorized by law shall determine the increase in equalized
12assessed value of all real property within the STAR bond
13district by subtracting the initial equalized assessed value of
14all property in the district certified under subsection (c)
15from the current equalized assessed value of all property in
16the district. Each year, the property taxes arising from the
17increase in equalized assessed value in the STAR bond district
18shall be determined for each taxing district and shall be
19certified to the county collector.
20    (g) Beginning with the year in which taxes are collected
21based on the assessment year in which the first destination
22user in the first STAR bond project in a STAR bond district
23makes its first retail sales and for each year thereafter until
24final maturity of the last STAR bonds issued in the district,
25the county collector shall, within 30 days after receipt of
26property taxes, transmit to the Department to be deposited into

 

 

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1the STAR Bonds School Improvement and Operations Trust Fund 15%
2of property taxes attributable to the increase in equalized
3assessed value within the STAR bond district from each taxing
4district as certified in subsection (f).
5    (h) The Department shall pay to the regional superintendent
6of schools whose educational service region includes Franklin
7and Williamson Counties, for each year for which money is
8remitted to the Department and paid into the STAR Bonds School
9Improvement and Operations Trust Fund, the money in the Fund as
10provided in this Section. The amount paid to each school
11district shall be allocated proportionately, based on each
12qualifying school district's fall enrollment for the
13then-current school year, such that the school district with
14the largest fall enrollment receives the largest proportionate
15share of money paid out of the Fund or by any other method or
16formula that the regional superintendent of schools deems fit,
17equitable, and in the public interest. The regional
18superintendent may allocate moneys to school districts that are
19outside of his or her educational service region or to other
20regional superintendents.
21    The Department shall determine the distributions under
22this Section using its best judgment and information. The
23Department shall be held harmless for the distributions made
24under this Section and all distributions shall be final.
25    (i) In any year that an assessment appeal is filed, the
26extension of taxes on any assessment so appealed shall not be

 

 

10000SB1124sam001- 22 -LRB100 07569 MLM 25171 a

1delayed. In the case of an assessment that is altered, any
2taxes extended upon the unauthorized assessment or part thereof
3shall be abated, or, if already paid, shall be refunded with
4interest as provided in Section 23-20 of the Property Tax Code.
5In the case of an assessment appeal, the county collector shall
6notify the Department that an assessment appeal has been filed
7and the amount of the tax that would have been deposited in the
8STAR Bonds School Improvement and Operations Trust Fund. The
9county collector shall hold that amount in a separate fund
10until the appeal process is final. After the appeal process is
11finalized, the county collector shall transmit to the
12Department the amount of tax that remains, if any, after all
13required refunds are made. The Department shall pay any amount
14deposited into the Trust Fund under this Section in the same
15proportion as determined for payments for that taxable year
16under subsection (h).
17    (j) In any year that ad valorem taxes are allocated to the
18STAR Bonds School Improvement and Operations Trust Fund, that
19allocation shall not reduce or otherwise impact the school aid
20provided to any school district under the general State school
21aid formula provided for in Section 18-8.05 of the School Code
22or the evidence-based funding formula provided for in Section
2318-8.15 of the School Code.
24(Source: P.A. 96-939, eff. 6-24-10.)
 
25    Section 25. The County Economic Development Project Area

 

 

10000SB1124sam001- 23 -LRB100 07569 MLM 25171 a

1Property Tax Allocation Act is amended by changing Section 7 as
2follows:
 
3    (55 ILCS 85/7)  (from Ch. 34, par. 7007)
4    Sec. 7. Creation of special tax allocation fund. If a
5county has adopted property tax allocation financing by
6ordinance for an economic development project area, the
7Department has approved and certified the economic development
8project area, and the county clerk has thereafter certified the
9"total initial equalized value" of the taxable real property
10within such economic development project area in the manner
11provided in subsection (b) of Section 6 of this Act, each year
12after the date of the certification by the county clerk of the
13"initial equalized assessed value" until economic development
14project costs and all county obligations financing economic
15development project costs have been paid, the ad valorem taxes,
16if any, arising from the levies upon the taxable real property
17in the economic development project area by taxing districts
18and tax rates determined in the manner provided in subsection
19(b) of Section 6 of this Act shall be divided as follows:
20        (1) That portion of the taxes levied upon each taxable
21    lot, block, tract or parcel of real property which is
22    attributable to the lower of the current equalized assessed
23    value or the initial equalized assessed value of each such
24    taxable lot, block, tract, or parcel of real property
25    existing at the time property tax allocation financing was

 

 

10000SB1124sam001- 24 -LRB100 07569 MLM 25171 a

1    adopted shall be allocated and when collected shall be paid
2    by the county collector to the respective affected taxing
3    districts in the manner required by the law in the absence
4    of the adoption of property tax allocation financing.
5        (2) That portion, if any, of those taxes which is
6    attributable to the increase in the current equalized
7    assessed valuation of each taxable lot, block, tract, or
8    parcel of real property in the economic development project
9    are, over and above the initial equalized assessed value of
10    each property existing at the time property tax allocation
11    financing was adopted shall be allocated to and when
12    collected shall be paid to the county treasurer, who shall
13    deposit those taxes into a special fund called the special
14    tax allocation fund of the county for the purpose of paying
15    economic development project costs and obligations
16    incurred in the payment thereof.
17    The county, by an ordinance adopting property tax
18allocation financing, may pledge the funds in and to be
19deposited in the special tax allocation fund for the payment of
20obligations issued under this Act and for the payment of
21economic development project costs. No part of the current
22equalized assessed valuation of each property in the economic
23development project area attributable to any increase above the
24total initial equalized assessed value of such properties shall
25be used in calculating the general State school aid formula,
26provided for in Section 18-8 of the School Code, or the

 

 

10000SB1124sam001- 25 -LRB100 07569 MLM 25171 a

1evidence-based funding formula, provided for in Section
218-8.15 of the School Code, until such time as all economic
3development projects costs have been paid as provided for in
4this Section.
5    Whenever a county issues bonds for the purpose of financing
6economic development project costs, the county may provide by
7ordinance for the appointment of a trustee, which may be any
8trust company within the State, and for the establishment of
9the funds or accounts to be maintained by such trustee as the
10county shall deem necessary to provide for the security and
11payment of the bonds. If the county provides for the
12appointment of a trustee, the trustee shall be considered the
13assignee of any payments assigned by the county pursuant to the
14ordinance and this Section. Any amounts paid to the trustee as
15assignee shall be deposited in the funds or accounts
16established pursuant to the trust agreement, and shall be held
17by the trustee in trust for the benefit of the holders of the
18bonds, and the holders shall have a lien on and a security
19interest in those bonds or accounts so long as the bonds remain
20outstanding and unpaid. Upon retirement of the bonds, the
21trustee shall pay over any excess amounts held to the county
22for deposit in the special tax allocation fund.
23    When the economic development project costs, including
24without limitation all county obligations financing economic
25development project costs incurred under this Act, have been
26paid, all surplus funds then remaining in the special tax

 

 

10000SB1124sam001- 26 -LRB100 07569 MLM 25171 a

1allocation funds shall be distributed by being paid by the
2county treasurer to the county collector, who shall immediately
3thereafter pay those funds to the taxing districts having
4taxable property in the economic development project area in
5the same manner and proportion as the most recent distribution
6by the county collector to those taxing districts of real
7property taxes from real property in the economic development
8project area.
9    Upon the payment of all economic development project costs,
10retirement of obligations and the distribution of any excess
11monies pursuant to this Section and not later than 23 years
12from the date of adoption of the ordinance adopting property
13tax allocation financing, the county shall adopt an ordinance
14dissolving the special tax allocation fund for the economic
15development project area and terminating the designation of the
16economic development project area as an economic development
17project area; however, in relation to one or more contiguous
18parcels not exceeding a total area of 120 acres within which an
19electric generating facility is intended to be constructed, and
20with respect to which the owner of that proposed electric
21generating facility has entered into a redevelopment agreement
22with Grundy County on or before July 25, 2017, the ordinance of
23the county required in this paragraph shall not dissolve the
24special tax allocation fund for the existing economic
25development project area and shall only terminate the
26designation of the economic development project area as to

 

 

10000SB1124sam001- 27 -LRB100 07569 MLM 25171 a

1those portions of the economic development project area
2excluding the area covered by the redevelopment agreement
3between the owner of the proposed electric generating facility
4and Grundy County; the county shall adopt an ordinance
5dissolving the special tax allocation fund for the economic
6development project area and terminating the designation of the
7economic development project area as an economic development
8project area with regard to the electric generating facility
9property not later than 35 years from the date of adoption of
10the ordinance adopting property tax allocation financing.
11Thereafter the rates of the taxing districts shall be extended
12and taxes levied, collected and distributed in the manner
13applicable in the absence of the adoption of property tax
14allocation financing.
15    Nothing in this Section shall be construed as relieving
16property in economic development project areas from being
17assessed as provided in the Property Tax Code or as relieving
18owners of that property from paying a uniform rate of taxes, as
19required by Section 4 of Article IX of the Illinois
20Constitution of 1970.
21(Source: P.A. 98-463, eff. 8-16-13; 99-513, eff. 6-30-16.)
 
22    Section 30. The County Economic Development Project Area
23Tax Increment Allocation Act of 1991 is amended by changing
24Section 50 as follows:
 

 

 

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1    (55 ILCS 90/50)  (from Ch. 34, par. 8050)
2    Sec. 50. Special tax allocation fund.
3    (a) If a county clerk has certified the "total initial
4equalized assessed value" of the taxable real property within
5an economic development project area in the manner provided in
6Section 45, each year after the date of the certification by
7the county clerk of the "total initial equalized assessed
8value", until economic development project costs and all county
9obligations financing economic development project costs have
10been paid, the ad valorem taxes, if any, arising from the
11levies upon the taxable real property in the economic
12development project area by taxing districts and tax rates
13determined in the manner provided in subsection (b) of Section
1445 shall be divided as follows:
15        (1) That portion of the taxes levied upon each taxable
16    lot, block, tract, or parcel of real property that is
17    attributable to the lower of the current equalized assessed
18    value or the initial equalized assessed value of each
19    taxable lot, block, tract, or parcel of real property
20    existing at the time tax increment financing was adopted
21    shall be allocated to (and when collected shall be paid by
22    the county collector to) the respective affected taxing
23    districts in the manner required by law in the absence of
24    the adoption of tax increment allocation financing.
25        (2) That portion, if any, of the taxes that is
26    attributable to the increase in the current equalized

 

 

10000SB1124sam001- 29 -LRB100 07569 MLM 25171 a

1    assessed valuation of each taxable lot, block, tract, or
2    parcel of real property in the economic development project
3    area, over and above the initial equalized assessed value
4    of each property existing at the time tax increment
5    financing was adopted, shall be allocated to (and when
6    collected shall be paid to) the county treasurer, who shall
7    deposit the taxes into a special fund (called the special
8    tax allocation fund of the county) for the purpose of
9    paying economic development project costs and obligations
10    incurred in the payment of those costs.
11    (b) The county, by an ordinance adopting tax increment
12allocation financing, may pledge the monies in and to be
13deposited into the special tax allocation fund for the payment
14of obligations issued under this Act and for the payment of
15economic development project costs. No part of the current
16equalized assessed valuation of each property in the economic
17development project area attributable to any increase above the
18total initial equalized assessed value of those properties
19shall be used in calculating the general State school aid
20formula under Section 18-8 of the School Code or the
21evidence-based funding formula under Section 18-8.15 of the
22School Code until all economic development projects costs have
23been paid as provided for in this Section.
24    (c) When the economic development projects costs,
25including without limitation all county obligations financing
26economic development project costs incurred under this Act,

 

 

10000SB1124sam001- 30 -LRB100 07569 MLM 25171 a

1have been paid, all surplus monies then remaining in the
2special tax allocation fund shall be distributed by being paid
3by the county treasurer to the county collector, who shall
4immediately pay the monies to the taxing districts having
5taxable property in the economic development project area in
6the same manner and proportion as the most recent distribution
7by the county collector to those taxing districts of real
8property taxes from real property in the economic development
9project area.
10    (d) Upon the payment of all economic development project
11costs, retirement of obligations, and distribution of any
12excess monies under this Section, the county shall adopt an
13ordinance dissolving the special tax allocation fund for the
14economic development project area and terminating the
15designation of the economic development project area as an
16economic development project area. Thereafter, the rates of the
17taxing districts shall be extended and taxes shall be levied,
18collected, and distributed in the manner applicable in the
19absence of the adoption of tax increment allocation financing.
20    (e) Nothing in this Section shall be construed as relieving
21property in the economic development project areas from being
22assessed as provided in the Property Tax Code or as relieving
23owners of that property from paying a uniform rate of taxes as
24required by Section 4 of Article IX of the Illinois
25Constitution.
26(Source: P.A. 98-463, eff. 8-16-13.)
 

 

 

10000SB1124sam001- 31 -LRB100 07569 MLM 25171 a

1    Section 35. The Illinois Municipal Code is amended by
2changing Sections 11-74.4-3, 11-74.4-8, and 11-74.6-35 as
3follows:
 
4    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
5    Sec. 11-74.4-3. Definitions. The following terms, wherever
6used or referred to in this Division 74.4 shall have the
7following respective meanings, unless in any case a different
8meaning clearly appears from the context.
9    (a) For any redevelopment project area that has been
10designated pursuant to this Section by an ordinance adopted
11prior to November 1, 1999 (the effective date of Public Act
1291-478), "blighted area" shall have the meaning set forth in
13this Section prior to that date.
14    On and after November 1, 1999, "blighted area" means any
15improved or vacant area within the boundaries of a
16redevelopment project area located within the territorial
17limits of the municipality where:
18        (1) If improved, industrial, commercial, and
19    residential buildings or improvements are detrimental to
20    the public safety, health, or welfare because of a
21    combination of 5 or more of the following factors, each of
22    which is (i) present, with that presence documented, to a
23    meaningful extent so that a municipality may reasonably
24    find that the factor is clearly present within the intent

 

 

10000SB1124sam001- 32 -LRB100 07569 MLM 25171 a

1    of the Act and (ii) reasonably distributed throughout the
2    improved part of the redevelopment project area:
3            (A) Dilapidation. An advanced state of disrepair
4        or neglect of necessary repairs to the primary
5        structural components of buildings or improvements in
6        such a combination that a documented building
7        condition analysis determines that major repair is
8        required or the defects are so serious and so extensive
9        that the buildings must be removed.
10            (B) Obsolescence. The condition or process of
11        falling into disuse. Structures have become ill-suited
12        for the original use.
13            (C) Deterioration. With respect to buildings,
14        defects including, but not limited to, major defects in
15        the secondary building components such as doors,
16        windows, porches, gutters and downspouts, and fascia.
17        With respect to surface improvements, that the
18        condition of roadways, alleys, curbs, gutters,
19        sidewalks, off-street parking, and surface storage
20        areas evidence deterioration, including, but not
21        limited to, surface cracking, crumbling, potholes,
22        depressions, loose paving material, and weeds
23        protruding through paved surfaces.
24            (D) Presence of structures below minimum code
25        standards. All structures that do not meet the
26        standards of zoning, subdivision, building, fire, and

 

 

10000SB1124sam001- 33 -LRB100 07569 MLM 25171 a

1        other governmental codes applicable to property, but
2        not including housing and property maintenance codes.
3            (E) Illegal use of individual structures. The use
4        of structures in violation of applicable federal,
5        State, or local laws, exclusive of those applicable to
6        the presence of structures below minimum code
7        standards.
8            (F) Excessive vacancies. The presence of buildings
9        that are unoccupied or under-utilized and that
10        represent an adverse influence on the area because of
11        the frequency, extent, or duration of the vacancies.
12            (G) Lack of ventilation, light, or sanitary
13        facilities. The absence of adequate ventilation for
14        light or air circulation in spaces or rooms without
15        windows, or that require the removal of dust, odor,
16        gas, smoke, or other noxious airborne materials.
17        Inadequate natural light and ventilation means the
18        absence of skylights or windows for interior spaces or
19        rooms and improper window sizes and amounts by room
20        area to window area ratios. Inadequate sanitary
21        facilities refers to the absence or inadequacy of
22        garbage storage and enclosure, bathroom facilities,
23        hot water and kitchens, and structural inadequacies
24        preventing ingress and egress to and from all rooms and
25        units within a building.
26            (H) Inadequate utilities. Underground and overhead

 

 

10000SB1124sam001- 34 -LRB100 07569 MLM 25171 a

1        utilities such as storm sewers and storm drainage,
2        sanitary sewers, water lines, and gas, telephone, and
3        electrical services that are shown to be inadequate.
4        Inadequate utilities are those that are: (i) of
5        insufficient capacity to serve the uses in the
6        redevelopment project area, (ii) deteriorated,
7        antiquated, obsolete, or in disrepair, or (iii)
8        lacking within the redevelopment project area.
9            (I) Excessive land coverage and overcrowding of
10        structures and community facilities. The
11        over-intensive use of property and the crowding of
12        buildings and accessory facilities onto a site.
13        Examples of problem conditions warranting the
14        designation of an area as one exhibiting excessive land
15        coverage are: (i) the presence of buildings either
16        improperly situated on parcels or located on parcels of
17        inadequate size and shape in relation to present-day
18        standards of development for health and safety and (ii)
19        the presence of multiple buildings on a single parcel.
20        For there to be a finding of excessive land coverage,
21        these parcels must exhibit one or more of the following
22        conditions: insufficient provision for light and air
23        within or around buildings, increased threat of spread
24        of fire due to the close proximity of buildings, lack
25        of adequate or proper access to a public right-of-way,
26        lack of reasonably required off-street parking, or

 

 

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1        inadequate provision for loading and service.
2            (J) Deleterious land use or layout. The existence
3        of incompatible land-use relationships, buildings
4        occupied by inappropriate mixed-uses, or uses
5        considered to be noxious, offensive, or unsuitable for
6        the surrounding area.
7            (K) Environmental clean-up. The proposed
8        redevelopment project area has incurred Illinois
9        Environmental Protection Agency or United States
10        Environmental Protection Agency remediation costs for,
11        or a study conducted by an independent consultant
12        recognized as having expertise in environmental
13        remediation has determined a need for, the clean-up of
14        hazardous waste, hazardous substances, or underground
15        storage tanks required by State or federal law,
16        provided that the remediation costs constitute a
17        material impediment to the development or
18        redevelopment of the redevelopment project area.
19            (L) Lack of community planning. The proposed
20        redevelopment project area was developed prior to or
21        without the benefit or guidance of a community plan.
22        This means that the development occurred prior to the
23        adoption by the municipality of a comprehensive or
24        other community plan or that the plan was not followed
25        at the time of the area's development. This factor must
26        be documented by evidence of adverse or incompatible

 

 

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1        land-use relationships, inadequate street layout,
2        improper subdivision, parcels of inadequate shape and
3        size to meet contemporary development standards, or
4        other evidence demonstrating an absence of effective
5        community planning.
6            (M) The total equalized assessed value of the
7        proposed redevelopment project area has declined for 3
8        of the last 5 calendar years prior to the year in which
9        the redevelopment project area is designated or is
10        increasing at an annual rate that is less than the
11        balance of the municipality for 3 of the last 5
12        calendar years for which information is available or is
13        increasing at an annual rate that is less than the
14        Consumer Price Index for All Urban Consumers published
15        by the United States Department of Labor or successor
16        agency for 3 of the last 5 calendar years prior to the
17        year in which the redevelopment project area is
18        designated.
19        (2) If vacant, the sound growth of the redevelopment
20    project area is impaired by a combination of 2 or more of
21    the following factors, each of which is (i) present, with
22    that presence documented, to a meaningful extent so that a
23    municipality may reasonably find that the factor is clearly
24    present within the intent of the Act and (ii) reasonably
25    distributed throughout the vacant part of the
26    redevelopment project area to which it pertains:

 

 

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1            (A) Obsolete platting of vacant land that results
2        in parcels of limited or narrow size or configurations
3        of parcels of irregular size or shape that would be
4        difficult to develop on a planned basis and in a manner
5        compatible with contemporary standards and
6        requirements, or platting that failed to create
7        rights-of-ways for streets or alleys or that created
8        inadequate right-of-way widths for streets, alleys, or
9        other public rights-of-way or that omitted easements
10        for public utilities.
11            (B) Diversity of ownership of parcels of vacant
12        land sufficient in number to retard or impede the
13        ability to assemble the land for development.
14            (C) Tax and special assessment delinquencies exist
15        or the property has been the subject of tax sales under
16        the Property Tax Code within the last 5 years.
17            (D) Deterioration of structures or site
18        improvements in neighboring areas adjacent to the
19        vacant land.
20            (E) The area has incurred Illinois Environmental
21        Protection Agency or United States Environmental
22        Protection Agency remediation costs for, or a study
23        conducted by an independent consultant recognized as
24        having expertise in environmental remediation has
25        determined a need for, the clean-up of hazardous waste,
26        hazardous substances, or underground storage tanks

 

 

10000SB1124sam001- 38 -LRB100 07569 MLM 25171 a

1        required by State or federal law, provided that the
2        remediation costs constitute a material impediment to
3        the development or redevelopment of the redevelopment
4        project area.
5            (F) The total equalized assessed value of the
6        proposed redevelopment project area has declined for 3
7        of the last 5 calendar years prior to the year in which
8        the redevelopment project area is designated or is
9        increasing at an annual rate that is less than the
10        balance of the municipality for 3 of the last 5
11        calendar years for which information is available or is
12        increasing at an annual rate that is less than the
13        Consumer Price Index for All Urban Consumers published
14        by the United States Department of Labor or successor
15        agency for 3 of the last 5 calendar years prior to the
16        year in which the redevelopment project area is
17        designated.
18        (3) If vacant, the sound growth of the redevelopment
19    project area is impaired by one of the following factors
20    that (i) is present, with that presence documented, to a
21    meaningful extent so that a municipality may reasonably
22    find that the factor is clearly present within the intent
23    of the Act and (ii) is reasonably distributed throughout
24    the vacant part of the redevelopment project area to which
25    it pertains:
26            (A) The area consists of one or more unused

 

 

10000SB1124sam001- 39 -LRB100 07569 MLM 25171 a

1        quarries, mines, or strip mine ponds.
2            (B) The area consists of unused rail yards, rail
3        tracks, or railroad rights-of-way.
4            (C) The area, prior to its designation, is subject
5        to (i) chronic flooding that adversely impacts on real
6        property in the area as certified by a registered
7        professional engineer or appropriate regulatory agency
8        or (ii) surface water that discharges from all or a
9        part of the area and contributes to flooding within the
10        same watershed, but only if the redevelopment project
11        provides for facilities or improvements to contribute
12        to the alleviation of all or part of the flooding.
13            (D) The area consists of an unused or illegal
14        disposal site containing earth, stone, building
15        debris, or similar materials that were removed from
16        construction, demolition, excavation, or dredge sites.
17            (E) Prior to November 1, 1999, the area is not less
18        than 50 nor more than 100 acres and 75% of which is
19        vacant (notwithstanding that the area has been used for
20        commercial agricultural purposes within 5 years prior
21        to the designation of the redevelopment project area),
22        and the area meets at least one of the factors itemized
23        in paragraph (1) of this subsection, the area has been
24        designated as a town or village center by ordinance or
25        comprehensive plan adopted prior to January 1, 1982,
26        and the area has not been developed for that designated

 

 

10000SB1124sam001- 40 -LRB100 07569 MLM 25171 a

1        purpose.
2            (F) The area qualified as a blighted improved area
3        immediately prior to becoming vacant, unless there has
4        been substantial private investment in the immediately
5        surrounding area.
6    (b) For any redevelopment project area that has been
7designated pursuant to this Section by an ordinance adopted
8prior to November 1, 1999 (the effective date of Public Act
991-478), "conservation area" shall have the meaning set forth
10in this Section prior to that date.
11    On and after November 1, 1999, "conservation area" means
12any improved area within the boundaries of a redevelopment
13project area located within the territorial limits of the
14municipality in which 50% or more of the structures in the area
15have an age of 35 years or more. Such an area is not yet a
16blighted area but because of a combination of 3 or more of the
17following factors is detrimental to the public safety, health,
18morals or welfare and such an area may become a blighted area:
19        (1) Dilapidation. An advanced state of disrepair or
20    neglect of necessary repairs to the primary structural
21    components of buildings or improvements in such a
22    combination that a documented building condition analysis
23    determines that major repair is required or the defects are
24    so serious and so extensive that the buildings must be
25    removed.
26        (2) Obsolescence. The condition or process of falling

 

 

10000SB1124sam001- 41 -LRB100 07569 MLM 25171 a

1    into disuse. Structures have become ill-suited for the
2    original use.
3        (3) Deterioration. With respect to buildings, defects
4    including, but not limited to, major defects in the
5    secondary building components such as doors, windows,
6    porches, gutters and downspouts, and fascia. With respect
7    to surface improvements, that the condition of roadways,
8    alleys, curbs, gutters, sidewalks, off-street parking, and
9    surface storage areas evidence deterioration, including,
10    but not limited to, surface cracking, crumbling, potholes,
11    depressions, loose paving material, and weeds protruding
12    through paved surfaces.
13        (4) Presence of structures below minimum code
14    standards. All structures that do not meet the standards of
15    zoning, subdivision, building, fire, and other
16    governmental codes applicable to property, but not
17    including housing and property maintenance codes.
18        (5) Illegal use of individual structures. The use of
19    structures in violation of applicable federal, State, or
20    local laws, exclusive of those applicable to the presence
21    of structures below minimum code standards.
22        (6) Excessive vacancies. The presence of buildings
23    that are unoccupied or under-utilized and that represent an
24    adverse influence on the area because of the frequency,
25    extent, or duration of the vacancies.
26        (7) Lack of ventilation, light, or sanitary

 

 

10000SB1124sam001- 42 -LRB100 07569 MLM 25171 a

1    facilities. The absence of adequate ventilation for light
2    or air circulation in spaces or rooms without windows, or
3    that require the removal of dust, odor, gas, smoke, or
4    other noxious airborne materials. Inadequate natural light
5    and ventilation means the absence or inadequacy of
6    skylights or windows for interior spaces or rooms and
7    improper window sizes and amounts by room area to window
8    area ratios. Inadequate sanitary facilities refers to the
9    absence or inadequacy of garbage storage and enclosure,
10    bathroom facilities, hot water and kitchens, and
11    structural inadequacies preventing ingress and egress to
12    and from all rooms and units within a building.
13        (8) Inadequate utilities. Underground and overhead
14    utilities such as storm sewers and storm drainage, sanitary
15    sewers, water lines, and gas, telephone, and electrical
16    services that are shown to be inadequate. Inadequate
17    utilities are those that are: (i) of insufficient capacity
18    to serve the uses in the redevelopment project area, (ii)
19    deteriorated, antiquated, obsolete, or in disrepair, or
20    (iii) lacking within the redevelopment project area.
21        (9) Excessive land coverage and overcrowding of
22    structures and community facilities. The over-intensive
23    use of property and the crowding of buildings and accessory
24    facilities onto a site. Examples of problem conditions
25    warranting the designation of an area as one exhibiting
26    excessive land coverage are: the presence of buildings

 

 

10000SB1124sam001- 43 -LRB100 07569 MLM 25171 a

1    either improperly situated on parcels or located on parcels
2    of inadequate size and shape in relation to present-day
3    standards of development for health and safety and the
4    presence of multiple buildings on a single parcel. For
5    there to be a finding of excessive land coverage, these
6    parcels must exhibit one or more of the following
7    conditions: insufficient provision for light and air
8    within or around buildings, increased threat of spread of
9    fire due to the close proximity of buildings, lack of
10    adequate or proper access to a public right-of-way, lack of
11    reasonably required off-street parking, or inadequate
12    provision for loading and service.
13        (10) Deleterious land use or layout. The existence of
14    incompatible land-use relationships, buildings occupied by
15    inappropriate mixed-uses, or uses considered to be
16    noxious, offensive, or unsuitable for the surrounding
17    area.
18        (11) Lack of community planning. The proposed
19    redevelopment project area was developed prior to or
20    without the benefit or guidance of a community plan. This
21    means that the development occurred prior to the adoption
22    by the municipality of a comprehensive or other community
23    plan or that the plan was not followed at the time of the
24    area's development. This factor must be documented by
25    evidence of adverse or incompatible land-use
26    relationships, inadequate street layout, improper

 

 

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1    subdivision, parcels of inadequate shape and size to meet
2    contemporary development standards, or other evidence
3    demonstrating an absence of effective community planning.
4        (12) The area has incurred Illinois Environmental
5    Protection Agency or United States Environmental
6    Protection Agency remediation costs for, or a study
7    conducted by an independent consultant recognized as
8    having expertise in environmental remediation has
9    determined a need for, the clean-up of hazardous waste,
10    hazardous substances, or underground storage tanks
11    required by State or federal law, provided that the
12    remediation costs constitute a material impediment to the
13    development or redevelopment of the redevelopment project
14    area.
15        (13) The total equalized assessed value of the proposed
16    redevelopment project area has declined for 3 of the last 5
17    calendar years for which information is available or is
18    increasing at an annual rate that is less than the balance
19    of the municipality for 3 of the last 5 calendar years for
20    which information is available or is increasing at an
21    annual rate that is less than the Consumer Price Index for
22    All Urban Consumers published by the United States
23    Department of Labor or successor agency for 3 of the last 5
24    calendar years for which information is available.
25    (c) "Industrial park" means an area in a blighted or
26conservation area suitable for use by any manufacturing,

 

 

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1industrial, research or transportation enterprise, of
2facilities to include but not be limited to factories, mills,
3processing plants, assembly plants, packing plants,
4fabricating plants, industrial distribution centers,
5warehouses, repair overhaul or service facilities, freight
6terminals, research facilities, test facilities or railroad
7facilities.
8    (d) "Industrial park conservation area" means an area
9within the boundaries of a redevelopment project area located
10within the territorial limits of a municipality that is a labor
11surplus municipality or within 1 1/2 miles of the territorial
12limits of a municipality that is a labor surplus municipality
13if the area is annexed to the municipality; which area is zoned
14as industrial no later than at the time the municipality by
15ordinance designates the redevelopment project area, and which
16area includes both vacant land suitable for use as an
17industrial park and a blighted area or conservation area
18contiguous to such vacant land.
19    (e) "Labor surplus municipality" means a municipality in
20which, at any time during the 6 months before the municipality
21by ordinance designates an industrial park conservation area,
22the unemployment rate was over 6% and was also 100% or more of
23the national average unemployment rate for that same time as
24published in the United States Department of Labor Bureau of
25Labor Statistics publication entitled "The Employment
26Situation" or its successor publication. For the purpose of

 

 

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1this subsection, if unemployment rate statistics for the
2municipality are not available, the unemployment rate in the
3municipality shall be deemed to be the same as the unemployment
4rate in the principal county in which the municipality is
5located.
6    (f) "Municipality" shall mean a city, village,
7incorporated town, or a township that is located in the
8unincorporated portion of a county with 3 million or more
9inhabitants, if the county adopted an ordinance that approved
10the township's redevelopment plan.
11    (g) "Initial Sales Tax Amounts" means the amount of taxes
12paid under the Retailers' Occupation Tax Act, Use Tax Act,
13Service Use Tax Act, the Service Occupation Tax Act, the
14Municipal Retailers' Occupation Tax Act, and the Municipal
15Service Occupation Tax Act by retailers and servicemen on
16transactions at places located in a State Sales Tax Boundary
17during the calendar year 1985.
18    (g-1) "Revised Initial Sales Tax Amounts" means the amount
19of taxes paid under the Retailers' Occupation Tax Act, Use Tax
20Act, Service Use Tax Act, the Service Occupation Tax Act, the
21Municipal Retailers' Occupation Tax Act, and the Municipal
22Service Occupation Tax Act by retailers and servicemen on
23transactions at places located within the State Sales Tax
24Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
25    (h) "Municipal Sales Tax Increment" means an amount equal
26to the increase in the aggregate amount of taxes paid to a

 

 

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1municipality from the Local Government Tax Fund arising from
2sales by retailers and servicemen within the redevelopment
3project area or State Sales Tax Boundary, as the case may be,
4for as long as the redevelopment project area or State Sales
5Tax Boundary, as the case may be, exist over and above the
6aggregate amount of taxes as certified by the Illinois
7Department of Revenue and paid under the Municipal Retailers'
8Occupation Tax Act and the Municipal Service Occupation Tax Act
9by retailers and servicemen, on transactions at places of
10business located in the redevelopment project area or State
11Sales Tax Boundary, as the case may be, during the base year
12which shall be the calendar year immediately prior to the year
13in which the municipality adopted tax increment allocation
14financing. For purposes of computing the aggregate amount of
15such taxes for base years occurring prior to 1985, the
16Department of Revenue shall determine the Initial Sales Tax
17Amounts for such taxes and deduct therefrom an amount equal to
184% of the aggregate amount of taxes per year for each year the
19base year is prior to 1985, but not to exceed a total deduction
20of 12%. The amount so determined shall be known as the
21"Adjusted Initial Sales Tax Amounts". For purposes of
22determining the Municipal Sales Tax Increment, the Department
23of Revenue shall for each period subtract from the amount paid
24to the municipality from the Local Government Tax Fund arising
25from sales by retailers and servicemen on transactions located
26in the redevelopment project area or the State Sales Tax

 

 

10000SB1124sam001- 48 -LRB100 07569 MLM 25171 a

1Boundary, as the case may be, the certified Initial Sales Tax
2Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
3Initial Sales Tax Amounts for the Municipal Retailers'
4Occupation Tax Act and the Municipal Service Occupation Tax
5Act. For the State Fiscal Year 1989, this calculation shall be
6made by utilizing the calendar year 1987 to determine the tax
7amounts received. For the State Fiscal Year 1990, this
8calculation shall be made by utilizing the period from January
91, 1988, until September 30, 1988, to determine the tax amounts
10received from retailers and servicemen pursuant to the
11Municipal Retailers' Occupation Tax and the Municipal Service
12Occupation Tax Act, which shall have deducted therefrom
13nine-twelfths of the certified Initial Sales Tax Amounts, the
14Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
15Tax Amounts as appropriate. For the State Fiscal Year 1991,
16this calculation shall be made by utilizing the period from
17October 1, 1988, to June 30, 1989, to determine the tax amounts
18received from retailers and servicemen pursuant to the
19Municipal Retailers' Occupation Tax and the Municipal Service
20Occupation Tax Act which shall have deducted therefrom
21nine-twelfths of the certified Initial Sales Tax Amounts,
22Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
23Tax Amounts as appropriate. For every State Fiscal Year
24thereafter, the applicable period shall be the 12 months
25beginning July 1 and ending June 30 to determine the tax
26amounts received which shall have deducted therefrom the

 

 

10000SB1124sam001- 49 -LRB100 07569 MLM 25171 a

1certified Initial Sales Tax Amounts, the Adjusted Initial Sales
2Tax Amounts or the Revised Initial Sales Tax Amounts, as the
3case may be.
4    (i) "Net State Sales Tax Increment" means the sum of the
5following: (a) 80% of the first $100,000 of State Sales Tax
6Increment annually generated within a State Sales Tax Boundary;
7(b) 60% of the amount in excess of $100,000 but not exceeding
8$500,000 of State Sales Tax Increment annually generated within
9a State Sales Tax Boundary; and (c) 40% of all amounts in
10excess of $500,000 of State Sales Tax Increment annually
11generated within a State Sales Tax Boundary. If, however, a
12municipality established a tax increment financing district in
13a county with a population in excess of 3,000,000 before
14January 1, 1986, and the municipality entered into a contract
15or issued bonds after January 1, 1986, but before December 31,
161986, to finance redevelopment project costs within a State
17Sales Tax Boundary, then the Net State Sales Tax Increment
18means, for the fiscal years beginning July 1, 1990, and July 1,
191991, 100% of the State Sales Tax Increment annually generated
20within a State Sales Tax Boundary; and notwithstanding any
21other provision of this Act, for those fiscal years the
22Department of Revenue shall distribute to those municipalities
23100% of their Net State Sales Tax Increment before any
24distribution to any other municipality and regardless of
25whether or not those other municipalities will receive 100% of
26their Net State Sales Tax Increment. For Fiscal Year 1999, and

 

 

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1every year thereafter until the year 2007, for any municipality
2that has not entered into a contract or has not issued bonds
3prior to June 1, 1988 to finance redevelopment project costs
4within a State Sales Tax Boundary, the Net State Sales Tax
5Increment shall be calculated as follows: By multiplying the
6Net State Sales Tax Increment by 90% in the State Fiscal Year
71999; 80% in the State Fiscal Year 2000; 70% in the State
8Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
9State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
10in the State Fiscal Year 2005; 20% in the State Fiscal Year
112006; and 10% in the State Fiscal Year 2007. No payment shall
12be made for State Fiscal Year 2008 and thereafter.
13    Municipalities that issued bonds in connection with a
14redevelopment project in a redevelopment project area within
15the State Sales Tax Boundary prior to July 29, 1991, or that
16entered into contracts in connection with a redevelopment
17project in a redevelopment project area before June 1, 1988,
18shall continue to receive their proportional share of the
19Illinois Tax Increment Fund distribution until the date on
20which the redevelopment project is completed or terminated. If,
21however, a municipality that issued bonds in connection with a
22redevelopment project in a redevelopment project area within
23the State Sales Tax Boundary prior to July 29, 1991 retires the
24bonds prior to June 30, 2007 or a municipality that entered
25into contracts in connection with a redevelopment project in a
26redevelopment project area before June 1, 1988 completes the

 

 

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1contracts prior to June 30, 2007, then so long as the
2redevelopment project is not completed or is not terminated,
3the Net State Sales Tax Increment shall be calculated,
4beginning on the date on which the bonds are retired or the
5contracts are completed, as follows: By multiplying the Net
6State Sales Tax Increment by 60% in the State Fiscal Year 2002;
750% in the State Fiscal Year 2003; 40% in the State Fiscal Year
82004; 30% in the State Fiscal Year 2005; 20% in the State
9Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
10payment shall be made for State Fiscal Year 2008 and
11thereafter. Refunding of any bonds issued prior to July 29,
121991, shall not alter the Net State Sales Tax Increment.
13    (j) "State Utility Tax Increment Amount" means an amount
14equal to the aggregate increase in State electric and gas tax
15charges imposed on owners and tenants, other than residential
16customers, of properties located within the redevelopment
17project area under Section 9-222 of the Public Utilities Act,
18over and above the aggregate of such charges as certified by
19the Department of Revenue and paid by owners and tenants, other
20than residential customers, of properties within the
21redevelopment project area during the base year, which shall be
22the calendar year immediately prior to the year of the adoption
23of the ordinance authorizing tax increment allocation
24financing.
25    (k) "Net State Utility Tax Increment" means the sum of the
26following: (a) 80% of the first $100,000 of State Utility Tax

 

 

10000SB1124sam001- 52 -LRB100 07569 MLM 25171 a

1Increment annually generated by a redevelopment project area;
2(b) 60% of the amount in excess of $100,000 but not exceeding
3$500,000 of the State Utility Tax Increment annually generated
4by a redevelopment project area; and (c) 40% of all amounts in
5excess of $500,000 of State Utility Tax Increment annually
6generated by a redevelopment project area. For the State Fiscal
7Year 1999, and every year thereafter until the year 2007, for
8any municipality that has not entered into a contract or has
9not issued bonds prior to June 1, 1988 to finance redevelopment
10project costs within a redevelopment project area, the Net
11State Utility Tax Increment shall be calculated as follows: By
12multiplying the Net State Utility Tax Increment by 90% in the
13State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
14in the State Fiscal Year 2001; 60% in the State Fiscal Year
152002; 50% in the State Fiscal Year 2003; 40% in the State
16Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
17State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
18No payment shall be made for the State Fiscal Year 2008 and
19thereafter.
20    Municipalities that issue bonds in connection with the
21redevelopment project during the period from June 1, 1988 until
223 years after the effective date of this Amendatory Act of 1988
23shall receive the Net State Utility Tax Increment, subject to
24appropriation, for 15 State Fiscal Years after the issuance of
25such bonds. For the 16th through the 20th State Fiscal Years
26after issuance of the bonds, the Net State Utility Tax

 

 

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1Increment shall be calculated as follows: By multiplying the
2Net State Utility Tax Increment by 90% in year 16; 80% in year
317; 70% in year 18; 60% in year 19; and 50% in year 20.
4Refunding of any bonds issued prior to June 1, 1988, shall not
5alter the revised Net State Utility Tax Increment payments set
6forth above.
7    (l) "Obligations" mean bonds, loans, debentures, notes,
8special certificates or other evidence of indebtedness issued
9by the municipality to carry out a redevelopment project or to
10refund outstanding obligations.
11    (m) "Payment in lieu of taxes" means those estimated tax
12revenues from real property in a redevelopment project area
13derived from real property that has been acquired by a
14municipality which according to the redevelopment project or
15plan is to be used for a private use which taxing districts
16would have received had a municipality not acquired the real
17property and adopted tax increment allocation financing and
18which would result from levies made after the time of the
19adoption of tax increment allocation financing to the time the
20current equalized value of real property in the redevelopment
21project area exceeds the total initial equalized value of real
22property in said area.
23    (n) "Redevelopment plan" means the comprehensive program
24of the municipality for development or redevelopment intended
25by the payment of redevelopment project costs to reduce or
26eliminate those conditions the existence of which qualified the

 

 

10000SB1124sam001- 54 -LRB100 07569 MLM 25171 a

1redevelopment project area as a "blighted area" or
2"conservation area" or combination thereof or "industrial park
3conservation area," and thereby to enhance the tax bases of the
4taxing districts which extend into the redevelopment project
5area, provided that, with respect to redevelopment project
6areas described in subsections (p-1) and (p-2), "redevelopment
7plan" means the comprehensive program of the affected
8municipality for the development of qualifying transit
9facilities. On and after November 1, 1999 (the effective date
10of Public Act 91-478), no redevelopment plan may be approved or
11amended that includes the development of vacant land (i) with a
12golf course and related clubhouse and other facilities or (ii)
13designated by federal, State, county, or municipal government
14as public land for outdoor recreational activities or for
15nature preserves and used for that purpose within 5 years prior
16to the adoption of the redevelopment plan. For the purpose of
17this subsection, "recreational activities" is limited to mean
18camping and hunting. Each redevelopment plan shall set forth in
19writing the program to be undertaken to accomplish the
20objectives and shall include but not be limited to:
21        (A) an itemized list of estimated redevelopment
22    project costs;
23        (B) evidence indicating that the redevelopment project
24    area on the whole has not been subject to growth and
25    development through investment by private enterprise,
26    provided that such evidence shall not be required for any

 

 

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1    redevelopment project area located within a transit
2    facility improvement area established pursuant to Section
3    11-74.4-3.3;
4        (C) an assessment of any financial impact of the
5    redevelopment project area on or any increased demand for
6    services from any taxing district affected by the plan and
7    any program to address such financial impact or increased
8    demand;
9        (D) the sources of funds to pay costs;
10        (E) the nature and term of the obligations to be
11    issued;
12        (F) the most recent equalized assessed valuation of the
13    redevelopment project area;
14        (G) an estimate as to the equalized assessed valuation
15    after redevelopment and the general land uses to apply in
16    the redevelopment project area;
17        (H) a commitment to fair employment practices and an
18    affirmative action plan;
19        (I) if it concerns an industrial park conservation
20    area, the plan shall also include a general description of
21    any proposed developer, user and tenant of any property, a
22    description of the type, structure and general character of
23    the facilities to be developed, a description of the type,
24    class and number of new employees to be employed in the
25    operation of the facilities to be developed; and
26        (J) if property is to be annexed to the municipality,

 

 

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1    the plan shall include the terms of the annexation
2    agreement.
3    The provisions of items (B) and (C) of this subsection (n)
4shall not apply to a municipality that before March 14, 1994
5(the effective date of Public Act 88-537) had fixed, either by
6its corporate authorities or by a commission designated under
7subsection (k) of Section 11-74.4-4, a time and place for a
8public hearing as required by subsection (a) of Section
911-74.4-5. No redevelopment plan shall be adopted unless a
10municipality complies with all of the following requirements:
11        (1) The municipality finds that the redevelopment
12    project area on the whole has not been subject to growth
13    and development through investment by private enterprise
14    and would not reasonably be anticipated to be developed
15    without the adoption of the redevelopment plan, provided,
16    however, that such a finding shall not be required with
17    respect to any redevelopment project area located within a
18    transit facility improvement area established pursuant to
19    Section 11-74.4-3.3.
20        (2) The municipality finds that the redevelopment plan
21    and project conform to the comprehensive plan for the
22    development of the municipality as a whole, or, for
23    municipalities with a population of 100,000 or more,
24    regardless of when the redevelopment plan and project was
25    adopted, the redevelopment plan and project either: (i)
26    conforms to the strategic economic development or

 

 

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1    redevelopment plan issued by the designated planning
2    authority of the municipality, or (ii) includes land uses
3    that have been approved by the planning commission of the
4    municipality.
5        (3) The redevelopment plan establishes the estimated
6    dates of completion of the redevelopment project and
7    retirement of obligations issued to finance redevelopment
8    project costs. Those dates may not be later than the dates
9    set forth under Section 11-74.4-3.5.
10        A municipality may by municipal ordinance amend an
11    existing redevelopment plan to conform to this paragraph
12    (3) as amended by Public Act 91-478, which municipal
13    ordinance may be adopted without further hearing or notice
14    and without complying with the procedures provided in this
15    Act pertaining to an amendment to or the initial approval
16    of a redevelopment plan and project and designation of a
17    redevelopment project area.
18        (3.5) The municipality finds, in the case of an
19    industrial park conservation area, also that the
20    municipality is a labor surplus municipality and that the
21    implementation of the redevelopment plan will reduce
22    unemployment, create new jobs and by the provision of new
23    facilities enhance the tax base of the taxing districts
24    that extend into the redevelopment project area.
25        (4) If any incremental revenues are being utilized
26    under Section 8(a)(1) or 8(a)(2) of this Act in

 

 

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1    redevelopment project areas approved by ordinance after
2    January 1, 1986, the municipality finds: (a) that the
3    redevelopment project area would not reasonably be
4    developed without the use of such incremental revenues, and
5    (b) that such incremental revenues will be exclusively
6    utilized for the development of the redevelopment project
7    area.
8        (5) If: (a) the redevelopment plan will not result in
9    displacement of residents from 10 or more inhabited
10    residential units, and the municipality certifies in the
11    plan that such displacement will not result from the plan;
12    or (b) the redevelopment plan is for a redevelopment
13    project area located within a transit facility improvement
14    area established pursuant to Section 11-74.4-3.3, and the
15    applicable project is subject to the process for evaluation
16    of environmental effects under the National Environmental
17    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a
18    housing impact study need not be performed. If, however,
19    the redevelopment plan would result in the displacement of
20    residents from 10 or more inhabited residential units, or
21    if the redevelopment project area contains 75 or more
22    inhabited residential units and no certification is made,
23    then the municipality shall prepare, as part of the
24    separate feasibility report required by subsection (a) of
25    Section 11-74.4-5, a housing impact study.
26        Part I of the housing impact study shall include (i)

 

 

10000SB1124sam001- 59 -LRB100 07569 MLM 25171 a

1    data as to whether the residential units are single family
2    or multi-family units, (ii) the number and type of rooms
3    within the units, if that information is available, (iii)
4    whether the units are inhabited or uninhabited, as
5    determined not less than 45 days before the date that the
6    ordinance or resolution required by subsection (a) of
7    Section 11-74.4-5 is passed, and (iv) data as to the racial
8    and ethnic composition of the residents in the inhabited
9    residential units. The data requirement as to the racial
10    and ethnic composition of the residents in the inhabited
11    residential units shall be deemed to be fully satisfied by
12    data from the most recent federal census.
13        Part II of the housing impact study shall identify the
14    inhabited residential units in the proposed redevelopment
15    project area that are to be or may be removed. If inhabited
16    residential units are to be removed, then the housing
17    impact study shall identify (i) the number and location of
18    those units that will or may be removed, (ii) the
19    municipality's plans for relocation assistance for those
20    residents in the proposed redevelopment project area whose
21    residences are to be removed, (iii) the availability of
22    replacement housing for those residents whose residences
23    are to be removed, and shall identify the type, location,
24    and cost of the housing, and (iv) the type and extent of
25    relocation assistance to be provided.
26        (6) On and after November 1, 1999, the housing impact

 

 

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1    study required by paragraph (5) shall be incorporated in
2    the redevelopment plan for the redevelopment project area.
3        (7) On and after November 1, 1999, no redevelopment
4    plan shall be adopted, nor an existing plan amended, nor
5    shall residential housing that is occupied by households of
6    low-income and very low-income persons in currently
7    existing redevelopment project areas be removed after
8    November 1, 1999 unless the redevelopment plan provides,
9    with respect to inhabited housing units that are to be
10    removed for households of low-income and very low-income
11    persons, affordable housing and relocation assistance not
12    less than that which would be provided under the federal
13    Uniform Relocation Assistance and Real Property
14    Acquisition Policies Act of 1970 and the regulations under
15    that Act, including the eligibility criteria. Affordable
16    housing may be either existing or newly constructed
17    housing. For purposes of this paragraph (7), "low-income
18    households", "very low-income households", and "affordable
19    housing" have the meanings set forth in the Illinois
20    Affordable Housing Act. The municipality shall make a good
21    faith effort to ensure that this affordable housing is
22    located in or near the redevelopment project area within
23    the municipality.
24        (8) On and after November 1, 1999, if, after the
25    adoption of the redevelopment plan for the redevelopment
26    project area, any municipality desires to amend its

 

 

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1    redevelopment plan to remove more inhabited residential
2    units than specified in its original redevelopment plan,
3    that change shall be made in accordance with the procedures
4    in subsection (c) of Section 11-74.4-5.
5        (9) For redevelopment project areas designated prior
6    to November 1, 1999, the redevelopment plan may be amended
7    without further joint review board meeting or hearing,
8    provided that the municipality shall give notice of any
9    such changes by mail to each affected taxing district and
10    registrant on the interested party registry, to authorize
11    the municipality to expend tax increment revenues for
12    redevelopment project costs defined by paragraphs (5) and
13    (7.5), subparagraphs (E) and (F) of paragraph (11), and
14    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
15    long as the changes do not increase the total estimated
16    redevelopment project costs set out in the redevelopment
17    plan by more than 5% after adjustment for inflation from
18    the date the plan was adopted.
19    (o) "Redevelopment project" means any public and private
20development project in furtherance of the objectives of a
21redevelopment plan. On and after November 1, 1999 (the
22effective date of Public Act 91-478), no redevelopment plan may
23be approved or amended that includes the development of vacant
24land (i) with a golf course and related clubhouse and other
25facilities or (ii) designated by federal, State, county, or
26municipal government as public land for outdoor recreational

 

 

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1activities or for nature preserves and used for that purpose
2within 5 years prior to the adoption of the redevelopment plan.
3For the purpose of this subsection, "recreational activities"
4is limited to mean camping and hunting.
5    (p) "Redevelopment project area" means an area designated
6by the municipality, which is not less in the aggregate than 1
71/2 acres and in respect to which the municipality has made a
8finding that there exist conditions which cause the area to be
9classified as an industrial park conservation area or a
10blighted area or a conservation area, or a combination of both
11blighted areas and conservation areas.
12    (p-1) Notwithstanding any provision of this Act to the
13contrary, on and after August 25, 2009 (the effective date of
14Public Act 96-680), a redevelopment project area may include
15areas within a one-half mile radius of an existing or proposed
16Regional Transportation Authority Suburban Transit Access
17Route (STAR Line) station without a finding that the area is
18classified as an industrial park conservation area, a blighted
19area, a conservation area, or a combination thereof, but only
20if the municipality receives unanimous consent from the joint
21review board created to review the proposed redevelopment
22project area.
23    (p-2) Notwithstanding any provision of this Act to the
24contrary, on and after the effective date of this amendatory
25Act of the 99th General Assembly, a redevelopment project area
26may include areas within a transit facility improvement area

 

 

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1that has been established pursuant to Section 11-74.4-3.3
2without a finding that the area is classified as an industrial
3park conservation area, a blighted area, a conservation area,
4or any combination thereof.
5    (q) "Redevelopment project costs", except for
6redevelopment project areas created pursuant to subsection
7subsections (p-1) or (p-2), means and includes the sum total of
8all reasonable or necessary costs incurred or estimated to be
9incurred, and any such costs incidental to a redevelopment plan
10and a redevelopment project. Such costs include, without
11limitation, the following:
12        (1) Costs of studies, surveys, development of plans,
13    and specifications, implementation and administration of
14    the redevelopment plan including but not limited to staff
15    and professional service costs for architectural,
16    engineering, legal, financial, planning or other services,
17    provided however that no charges for professional services
18    may be based on a percentage of the tax increment
19    collected; except that on and after November 1, 1999 (the
20    effective date of Public Act 91-478), no contracts for
21    professional services, excluding architectural and
22    engineering services, may be entered into if the terms of
23    the contract extend beyond a period of 3 years. In
24    addition, "redevelopment project costs" shall not include
25    lobbying expenses. After consultation with the
26    municipality, each tax increment consultant or advisor to a

 

 

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1    municipality that plans to designate or has designated a
2    redevelopment project area shall inform the municipality
3    in writing of any contracts that the consultant or advisor
4    has entered into with entities or individuals that have
5    received, or are receiving, payments financed by tax
6    increment revenues produced by the redevelopment project
7    area with respect to which the consultant or advisor has
8    performed, or will be performing, service for the
9    municipality. This requirement shall be satisfied by the
10    consultant or advisor before the commencement of services
11    for the municipality and thereafter whenever any other
12    contracts with those individuals or entities are executed
13    by the consultant or advisor;
14        (1.5) After July 1, 1999, annual administrative costs
15    shall not include general overhead or administrative costs
16    of the municipality that would still have been incurred by
17    the municipality if the municipality had not designated a
18    redevelopment project area or approved a redevelopment
19    plan;
20        (1.6) The cost of marketing sites within the
21    redevelopment project area to prospective businesses,
22    developers, and investors;
23        (2) Property assembly costs, including but not limited
24    to acquisition of land and other property, real or
25    personal, or rights or interests therein, demolition of
26    buildings, site preparation, site improvements that serve

 

 

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1    as an engineered barrier addressing ground level or below
2    ground environmental contamination, including, but not
3    limited to parking lots and other concrete or asphalt
4    barriers, and the clearing and grading of land;
5        (3) Costs of rehabilitation, reconstruction or repair
6    or remodeling of existing public or private buildings,
7    fixtures, and leasehold improvements; and the cost of
8    replacing an existing public building if pursuant to the
9    implementation of a redevelopment project the existing
10    public building is to be demolished to use the site for
11    private investment or devoted to a different use requiring
12    private investment; including any direct or indirect costs
13    relating to Green Globes or LEED certified construction
14    elements or construction elements with an equivalent
15    certification;
16        (4) Costs of the construction of public works or
17    improvements, including any direct or indirect costs
18    relating to Green Globes or LEED certified construction
19    elements or construction elements with an equivalent
20    certification, except that on and after November 1, 1999,
21    redevelopment project costs shall not include the cost of
22    constructing a new municipal public building principally
23    used to provide offices, storage space, or conference
24    facilities or vehicle storage, maintenance, or repair for
25    administrative, public safety, or public works personnel
26    and that is not intended to replace an existing public

 

 

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1    building as provided under paragraph (3) of subsection (q)
2    of Section 11-74.4-3 unless either (i) the construction of
3    the new municipal building implements a redevelopment
4    project that was included in a redevelopment plan that was
5    adopted by the municipality prior to November 1, 1999, (ii)
6    the municipality makes a reasonable determination in the
7    redevelopment plan, supported by information that provides
8    the basis for that determination, that the new municipal
9    building is required to meet an increase in the need for
10    public safety purposes anticipated to result from the
11    implementation of the redevelopment plan, or (iii) the new
12    municipal public building is for the storage, maintenance,
13    or repair of transit vehicles and is located in a transit
14    facility improvement area that has been established
15    pursuant to Section 11-74.4-3.3;
16        (5) Costs of job training and retraining projects,
17    including the cost of "welfare to work" programs
18    implemented by businesses located within the redevelopment
19    project area;
20        (6) Financing costs, including but not limited to all
21    necessary and incidental expenses related to the issuance
22    of obligations and which may include payment of interest on
23    any obligations issued hereunder including interest
24    accruing during the estimated period of construction of any
25    redevelopment project for which such obligations are
26    issued and for not exceeding 36 months thereafter and

 

 

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1    including reasonable reserves related thereto;
2        (7) To the extent the municipality by written agreement
3    accepts and approves the same, all or a portion of a taxing
4    district's capital costs resulting from the redevelopment
5    project necessarily incurred or to be incurred within a
6    taxing district in furtherance of the objectives of the
7    redevelopment plan and project; .
8        (7.5) For redevelopment project areas designated (or
9    redevelopment project areas amended to add or increase the
10    number of tax-increment-financing assisted housing units)
11    on or after November 1, 1999, an elementary, secondary, or
12    unit school district's increased costs attributable to
13    assisted housing units located within the redevelopment
14    project area for which the developer or redeveloper
15    receives financial assistance through an agreement with
16    the municipality or because the municipality incurs the
17    cost of necessary infrastructure improvements within the
18    boundaries of the assisted housing sites necessary for the
19    completion of that housing as authorized by this Act, and
20    which costs shall be paid by the municipality from the
21    Special Tax Allocation Fund when the tax increment revenue
22    is received as a result of the assisted housing units and
23    shall be calculated annually as follows:
24            (A) for foundation districts, excluding any school
25        district in a municipality with a population in excess
26        of 1,000,000, by multiplying the district's increase

 

 

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1        in attendance resulting from the net increase in new
2        students enrolled in that school district who reside in
3        housing units within the redevelopment project area
4        that have received financial assistance through an
5        agreement with the municipality or because the
6        municipality incurs the cost of necessary
7        infrastructure improvements within the boundaries of
8        the housing sites necessary for the completion of that
9        housing as authorized by this Act since the designation
10        of the redevelopment project area by the most recently
11        available per capita tuition cost as defined in Section
12        10-20.12a of the School Code less any increase in
13        general State aid as defined in Section 18-8.05 of the
14        School Code or evidence-based funding as defined in
15        Section 18-8.15 of the School Code attributable to
16        these added new students subject to the following
17        annual limitations:
18                (i) for unit school districts with a district
19            average 1995-96 Per Capita Tuition Charge of less
20            than $5,900, no more than 25% of the total amount
21            of property tax increment revenue produced by
22            those housing units that have received tax
23            increment finance assistance under this Act;
24                (ii) for elementary school districts with a
25            district average 1995-96 Per Capita Tuition Charge
26            of less than $5,900, no more than 17% of the total

 

 

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1            amount of property tax increment revenue produced
2            by those housing units that have received tax
3            increment finance assistance under this Act; and
4                (iii) for secondary school districts with a
5            district average 1995-96 Per Capita Tuition Charge
6            of less than $5,900, no more than 8% of the total
7            amount of property tax increment revenue produced
8            by those housing units that have received tax
9            increment finance assistance under this Act.
10            (B) For alternate method districts, flat grant
11        districts, and foundation districts with a district
12        average 1995-96 Per Capita Tuition Charge equal to or
13        more than $5,900, excluding any school district with a
14        population in excess of 1,000,000, by multiplying the
15        district's increase in attendance resulting from the
16        net increase in new students enrolled in that school
17        district who reside in housing units within the
18        redevelopment project area that have received
19        financial assistance through an agreement with the
20        municipality or because the municipality incurs the
21        cost of necessary infrastructure improvements within
22        the boundaries of the housing sites necessary for the
23        completion of that housing as authorized by this Act
24        since the designation of the redevelopment project
25        area by the most recently available per capita tuition
26        cost as defined in Section 10-20.12a of the School Code

 

 

10000SB1124sam001- 70 -LRB100 07569 MLM 25171 a

1        less any increase in general state aid as defined in
2        Section 18-8.05 of the School Code or evidence-based
3        funding as defined in Section 18-8.15 of the School
4        Code attributable to these added new students subject
5        to the following annual limitations:
6                (i) for unit school districts, no more than 40%
7            of the total amount of property tax increment
8            revenue produced by those housing units that have
9            received tax increment finance assistance under
10            this Act;
11                (ii) for elementary school districts, no more
12            than 27% of the total amount of property tax
13            increment revenue produced by those housing units
14            that have received tax increment finance
15            assistance under this Act; and
16                (iii) for secondary school districts, no more
17            than 13% of the total amount of property tax
18            increment revenue produced by those housing units
19            that have received tax increment finance
20            assistance under this Act.
21            (C) For any school district in a municipality with
22        a population in excess of 1,000,000, the following
23        restrictions shall apply to the reimbursement of
24        increased costs under this paragraph (7.5):
25                (i) no increased costs shall be reimbursed
26            unless the school district certifies that each of

 

 

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1            the schools affected by the assisted housing
2            project is at or over its student capacity;
3                (ii) the amount reimbursable shall be reduced
4            by the value of any land donated to the school
5            district by the municipality or developer, and by
6            the value of any physical improvements made to the
7            schools by the municipality or developer; and
8                (iii) the amount reimbursed may not affect
9            amounts otherwise obligated by the terms of any
10            bonds, notes, or other funding instruments, or the
11            terms of any redevelopment agreement.
12        Any school district seeking payment under this
13        paragraph (7.5) shall, after July 1 and before
14        September 30 of each year, provide the municipality
15        with reasonable evidence to support its claim for
16        reimbursement before the municipality shall be
17        required to approve or make the payment to the school
18        district. If the school district fails to provide the
19        information during this period in any year, it shall
20        forfeit any claim to reimbursement for that year.
21        School districts may adopt a resolution waiving the
22        right to all or a portion of the reimbursement
23        otherwise required by this paragraph (7.5). By
24        acceptance of this reimbursement the school district
25        waives the right to directly or indirectly set aside,
26        modify, or contest in any manner the establishment of

 

 

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1        the redevelopment project area or projects;
2        (7.7) For redevelopment project areas designated (or
3    redevelopment project areas amended to add or increase the
4    number of tax-increment-financing assisted housing units)
5    on or after January 1, 2005 (the effective date of Public
6    Act 93-961), a public library district's increased costs
7    attributable to assisted housing units located within the
8    redevelopment project area for which the developer or
9    redeveloper receives financial assistance through an
10    agreement with the municipality or because the
11    municipality incurs the cost of necessary infrastructure
12    improvements within the boundaries of the assisted housing
13    sites necessary for the completion of that housing as
14    authorized by this Act shall be paid to the library
15    district by the municipality from the Special Tax
16    Allocation Fund when the tax increment revenue is received
17    as a result of the assisted housing units. This paragraph
18    (7.7) applies only if (i) the library district is located
19    in a county that is subject to the Property Tax Extension
20    Limitation Law or (ii) the library district is not located
21    in a county that is subject to the Property Tax Extension
22    Limitation Law but the district is prohibited by any other
23    law from increasing its tax levy rate without a prior voter
24    referendum.
25        The amount paid to a library district under this
26    paragraph (7.7) shall be calculated by multiplying (i) the

 

 

10000SB1124sam001- 73 -LRB100 07569 MLM 25171 a

1    net increase in the number of persons eligible to obtain a
2    library card in that district who reside in housing units
3    within the redevelopment project area that have received
4    financial assistance through an agreement with the
5    municipality or because the municipality incurs the cost of
6    necessary infrastructure improvements within the
7    boundaries of the housing sites necessary for the
8    completion of that housing as authorized by this Act since
9    the designation of the redevelopment project area by (ii)
10    the per-patron cost of providing library services so long
11    as it does not exceed $120. The per-patron cost shall be
12    the Total Operating Expenditures Per Capita for the library
13    in the previous fiscal year. The municipality may deduct
14    from the amount that it must pay to a library district
15    under this paragraph any amount that it has voluntarily
16    paid to the library district from the tax increment
17    revenue. The amount paid to a library district under this
18    paragraph (7.7) shall be no more than 2% of the amount
19    produced by the assisted housing units and deposited into
20    the Special Tax Allocation Fund.
21        A library district is not eligible for any payment
22    under this paragraph (7.7) unless the library district has
23    experienced an increase in the number of patrons from the
24    municipality that created the tax-increment-financing
25    district since the designation of the redevelopment
26    project area.

 

 

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1        Any library district seeking payment under this
2    paragraph (7.7) shall, after July 1 and before September 30
3    of each year, provide the municipality with convincing
4    evidence to support its claim for reimbursement before the
5    municipality shall be required to approve or make the
6    payment to the library district. If the library district
7    fails to provide the information during this period in any
8    year, it shall forfeit any claim to reimbursement for that
9    year. Library districts may adopt a resolution waiving the
10    right to all or a portion of the reimbursement otherwise
11    required by this paragraph (7.7). By acceptance of such
12    reimbursement, the library district shall forfeit any
13    right to directly or indirectly set aside, modify, or
14    contest in any manner whatsoever the establishment of the
15    redevelopment project area or projects;
16        (8) Relocation costs to the extent that a municipality
17    determines that relocation costs shall be paid or is
18    required to make payment of relocation costs by federal or
19    State law or in order to satisfy subparagraph (7) of
20    subsection (n);
21        (9) Payment in lieu of taxes;
22        (10) Costs of job training, retraining, advanced
23    vocational education or career education, including but
24    not limited to courses in occupational, semi-technical or
25    technical fields leading directly to employment, incurred
26    by one or more taxing districts, provided that such costs

 

 

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1    (i) are related to the establishment and maintenance of
2    additional job training, advanced vocational education or
3    career education programs for persons employed or to be
4    employed by employers located in a redevelopment project
5    area; and (ii) when incurred by a taxing district or taxing
6    districts other than the municipality, are set forth in a
7    written agreement by or among the municipality and the
8    taxing district or taxing districts, which agreement
9    describes the program to be undertaken, including but not
10    limited to the number of employees to be trained, a
11    description of the training and services to be provided,
12    the number and type of positions available or to be
13    available, itemized costs of the program and sources of
14    funds to pay for the same, and the term of the agreement.
15    Such costs include, specifically, the payment by community
16    college districts of costs pursuant to Sections 3-37, 3-38,
17    3-40 and 3-40.1 of the Public Community College Act and by
18    school districts of costs pursuant to Sections 10-22.20a
19    and 10-23.3a of the The School Code;
20        (11) Interest cost incurred by a redeveloper related to
21    the construction, renovation or rehabilitation of a
22    redevelopment project provided that:
23            (A) such costs are to be paid directly from the
24        special tax allocation fund established pursuant to
25        this Act;
26            (B) such payments in any one year may not exceed

 

 

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1        30% of the annual interest costs incurred by the
2        redeveloper with regard to the redevelopment project
3        during that year;
4            (C) if there are not sufficient funds available in
5        the special tax allocation fund to make the payment
6        pursuant to this paragraph (11) then the amounts so due
7        shall accrue and be payable when sufficient funds are
8        available in the special tax allocation fund;
9            (D) the total of such interest payments paid
10        pursuant to this Act may not exceed 30% of the total
11        (i) cost paid or incurred by the redeveloper for the
12        redevelopment project plus (ii) redevelopment project
13        costs excluding any property assembly costs and any
14        relocation costs incurred by a municipality pursuant
15        to this Act; and
16            (E) the cost limits set forth in subparagraphs (B)
17        and (D) of paragraph (11) shall be modified for the
18        financing of rehabilitated or new housing units for
19        low-income households and very low-income households,
20        as defined in Section 3 of the Illinois Affordable
21        Housing Act. The percentage of 75% shall be substituted
22        for 30% in subparagraphs (B) and (D) of paragraph (11);
23        and .
24            (F) instead Instead of the eligible costs provided
25        by subparagraphs (B) and (D) of paragraph (11), as
26        modified by this subparagraph, and notwithstanding any

 

 

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1        other provisions of this Act to the contrary, the
2        municipality may pay from tax increment revenues up to
3        50% of the cost of construction of new housing units to
4        be occupied by low-income households and very
5        low-income households as defined in Section 3 of the
6        Illinois Affordable Housing Act. The cost of
7        construction of those units may be derived from the
8        proceeds of bonds issued by the municipality under this
9        Act or other constitutional or statutory authority or
10        from other sources of municipal revenue that may be
11        reimbursed from tax increment revenues or the proceeds
12        of bonds issued to finance the construction of that
13        housing.
14            The eligible costs provided under this
15        subparagraph (F) of paragraph (11) shall be an eligible
16        cost for the construction, renovation, and
17        rehabilitation of all low and very low-income housing
18        units, as defined in Section 3 of the Illinois
19        Affordable Housing Act, within the redevelopment
20        project area. If the low and very low-income units are
21        part of a residential redevelopment project that
22        includes units not affordable to low and very
23        low-income households, only the low and very
24        low-income units shall be eligible for benefits under
25        this subparagraph (F) of paragraph (11). The standards
26        for maintaining the occupancy by low-income households

 

 

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1        and very low-income households, as defined in Section 3
2        of the Illinois Affordable Housing Act, of those units
3        constructed with eligible costs made available under
4        the provisions of this subparagraph (F) of paragraph
5        (11) shall be established by guidelines adopted by the
6        municipality. The responsibility for annually
7        documenting the initial occupancy of the units by
8        low-income households and very low-income households,
9        as defined in Section 3 of the Illinois Affordable
10        Housing Act, shall be that of the then current owner of
11        the property. For ownership units, the guidelines will
12        provide, at a minimum, for a reasonable recapture of
13        funds, or other appropriate methods designed to
14        preserve the original affordability of the ownership
15        units. For rental units, the guidelines will provide,
16        at a minimum, for the affordability of rent to low and
17        very low-income households. As units become available,
18        they shall be rented to income-eligible tenants. The
19        municipality may modify these guidelines from time to
20        time; the guidelines, however, shall be in effect for
21        as long as tax increment revenue is being used to pay
22        for costs associated with the units or for the
23        retirement of bonds issued to finance the units or for
24        the life of the redevelopment project area, whichever
25        is later; .
26        (11.5) If the redevelopment project area is located

 

 

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1    within a municipality with a population of more than
2    100,000, the cost of day care services for children of
3    employees from low-income families working for businesses
4    located within the redevelopment project area and all or a
5    portion of the cost of operation of day care centers
6    established by redevelopment project area businesses to
7    serve employees from low-income families working in
8    businesses located in the redevelopment project area. For
9    the purposes of this paragraph, "low-income families"
10    means families whose annual income does not exceed 80% of
11    the municipal, county, or regional median income, adjusted
12    for family size, as the annual income and municipal,
13    county, or regional median income are determined from time
14    to time by the United States Department of Housing and
15    Urban Development.
16    (12) Unless explicitly stated herein the cost of
17construction of new privately-owned buildings shall not be an
18eligible redevelopment project cost.
19    (13) After November 1, 1999 (the effective date of Public
20Act 91-478), none of the redevelopment project costs enumerated
21in this subsection shall be eligible redevelopment project
22costs if those costs would provide direct financial support to
23a retail entity initiating operations in the redevelopment
24project area while terminating operations at another Illinois
25location within 10 miles of the redevelopment project area but
26outside the boundaries of the redevelopment project area

 

 

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1municipality. For purposes of this paragraph, termination
2means a closing of a retail operation that is directly related
3to the opening of the same operation or like retail entity
4owned or operated by more than 50% of the original ownership in
5a redevelopment project area, but it does not mean closing an
6operation for reasons beyond the control of the retail entity,
7as documented by the retail entity, subject to a reasonable
8finding by the municipality that the current location contained
9inadequate space, had become economically obsolete, or was no
10longer a viable location for the retailer or serviceman.
11    (14) No cost shall be a redevelopment project cost in a
12redevelopment project area if used to demolish, remove, or
13substantially modify a historic resource, after August 26, 2008
14(the effective date of Public Act 95-934), unless no prudent
15and feasible alternative exists. "Historic resource" for the
16purpose of this paragraph item (14) means (i) a place or
17structure that is included or eligible for inclusion on the
18National Register of Historic Places or (ii) a contributing
19structure in a district on the National Register of Historic
20Places. This paragraph item (14) does not apply to a place or
21structure for which demolition, removal, or modification is
22subject to review by the preservation agency of a Certified
23Local Government designated as such by the National Park
24Service of the United States Department of the Interior.
25    If a special service area has been established pursuant to
26the Special Service Area Tax Act or Special Service Area Tax

 

 

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1Law, then any tax increment revenues derived from the tax
2imposed pursuant to the Special Service Area Tax Act or Special
3Service Area Tax Law may be used within the redevelopment
4project area for the purposes permitted by that Act or Law as
5well as the purposes permitted by this Act.
6    (q-1) For redevelopment project areas created pursuant to
7subsection (p-1), redevelopment project costs are limited to
8those costs in paragraph (q) that are related to the existing
9or proposed Regional Transportation Authority Suburban Transit
10Access Route (STAR Line) station.
11    (q-2) For a redevelopment project area located within a
12transit facility improvement area established pursuant to
13Section 11-74.4-3.3, redevelopment project costs means those
14costs described in subsection (q) that are related to the
15construction, reconstruction, rehabilitation, remodeling, or
16repair of any existing or proposed transit facility.
17    (r) "State Sales Tax Boundary" means the redevelopment
18project area or the amended redevelopment project area
19boundaries which are determined pursuant to subsection (9) of
20Section 11-74.4-8a of this Act. The Department of Revenue shall
21certify pursuant to subsection (9) of Section 11-74.4-8a the
22appropriate boundaries eligible for the determination of State
23Sales Tax Increment.
24    (s) "State Sales Tax Increment" means an amount equal to
25the increase in the aggregate amount of taxes paid by retailers
26and servicemen, other than retailers and servicemen subject to

 

 

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1the Public Utilities Act, on transactions at places of business
2located within a State Sales Tax Boundary pursuant to the
3Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
4Tax Act, and the Service Occupation Tax Act, except such
5portion of such increase that is paid into the State and Local
6Sales Tax Reform Fund, the Local Government Distributive Fund,
7the Local Government Tax Fund and the County and Mass Transit
8District Fund, for as long as State participation exists, over
9and above the Initial Sales Tax Amounts, Adjusted Initial Sales
10Tax Amounts or the Revised Initial Sales Tax Amounts for such
11taxes as certified by the Department of Revenue and paid under
12those Acts by retailers and servicemen on transactions at
13places of business located within the State Sales Tax Boundary
14during the base year which shall be the calendar year
15immediately prior to the year in which the municipality adopted
16tax increment allocation financing, less 3.0% of such amounts
17generated under the Retailers' Occupation Tax Act, Use Tax Act
18and Service Use Tax Act and the Service Occupation Tax Act,
19which sum shall be appropriated to the Department of Revenue to
20cover its costs of administering and enforcing this Section.
21For purposes of computing the aggregate amount of such taxes
22for base years occurring prior to 1985, the Department of
23Revenue shall compute the Initial Sales Tax Amount for such
24taxes and deduct therefrom an amount equal to 4% of the
25aggregate amount of taxes per year for each year the base year
26is prior to 1985, but not to exceed a total deduction of 12%.

 

 

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1The amount so determined shall be known as the "Adjusted
2Initial Sales Tax Amount". For purposes of determining the
3State Sales Tax Increment the Department of Revenue shall for
4each period subtract from the tax amounts received from
5retailers and servicemen on transactions located in the State
6Sales Tax Boundary, the certified Initial Sales Tax Amounts,
7Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
8Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
9the Service Use Tax Act and the Service Occupation Tax Act. For
10the State Fiscal Year 1989 this calculation shall be made by
11utilizing the calendar year 1987 to determine the tax amounts
12received. For the State Fiscal Year 1990, this calculation
13shall be made by utilizing the period from January 1, 1988,
14until September 30, 1988, to determine the tax amounts received
15from retailers and servicemen, which shall have deducted
16therefrom nine-twelfths of the certified Initial Sales Tax
17Amounts, Adjusted Initial Sales Tax Amounts or the Revised
18Initial Sales Tax Amounts as appropriate. For the State Fiscal
19Year 1991, this calculation shall be made by utilizing the
20period from October 1, 1988, until June 30, 1989, to determine
21the tax amounts received from retailers and servicemen, which
22shall have deducted therefrom nine-twelfths of the certified
23Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
24Amounts or the Revised Initial Sales Tax Amounts as
25appropriate. For every State Fiscal Year thereafter, the
26applicable period shall be the 12 months beginning July 1 and

 

 

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1ending on June 30, to determine the tax amounts received which
2shall have deducted therefrom the certified Initial Sales Tax
3Amounts, Adjusted Initial Sales Tax Amounts or the Revised
4Initial Sales Tax Amounts. Municipalities intending to receive
5a distribution of State Sales Tax Increment must report a list
6of retailers to the Department of Revenue by October 31, 1988
7and by July 31, of each year thereafter.
8    (t) "Taxing districts" means counties, townships, cities
9and incorporated towns and villages, school, road, park,
10sanitary, mosquito abatement, forest preserve, public health,
11fire protection, river conservancy, tuberculosis sanitarium
12and any other municipal corporations or districts with the
13power to levy taxes.
14    (u) "Taxing districts' capital costs" means those costs of
15taxing districts for capital improvements that are found by the
16municipal corporate authorities to be necessary and directly
17result from the redevelopment project.
18    (v) As used in subsection (a) of Section 11-74.4-3 of this
19Act, "vacant land" means any parcel or combination of parcels
20of real property without industrial, commercial, and
21residential buildings which has not been used for commercial
22agricultural purposes within 5 years prior to the designation
23of the redevelopment project area, unless the parcel is
24included in an industrial park conservation area or the parcel
25has been subdivided; provided that if the parcel was part of a
26larger tract that has been divided into 3 or more smaller

 

 

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1tracts that were accepted for recording during the period from
21950 to 1990, then the parcel shall be deemed to have been
3subdivided, and all proceedings and actions of the municipality
4taken in that connection with respect to any previously
5approved or designated redevelopment project area or amended
6redevelopment project area are hereby validated and hereby
7declared to be legally sufficient for all purposes of this Act.
8For purposes of this Section and only for land subject to the
9subdivision requirements of the Plat Act, land is subdivided
10when the original plat of the proposed Redevelopment Project
11Area or relevant portion thereof has been properly certified,
12acknowledged, approved, and recorded or filed in accordance
13with the Plat Act and a preliminary plat, if any, for any
14subsequent phases of the proposed Redevelopment Project Area or
15relevant portion thereof has been properly approved and filed
16in accordance with the applicable ordinance of the
17municipality.
18    (w) "Annual Total Increment" means the sum of each
19municipality's annual Net Sales Tax Increment and each
20municipality's annual Net Utility Tax Increment. The ratio of
21the Annual Total Increment of each municipality to the Annual
22Total Increment for all municipalities, as most recently
23calculated by the Department, shall determine the proportional
24shares of the Illinois Tax Increment Fund to be distributed to
25each municipality.
26    (x) "LEED certified" means any certification level of

 

 

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1construction elements by a qualified Leadership in Energy and
2Environmental Design Accredited Professional as determined by
3the U.S. Green Building Council.
4    (y) "Green Globes certified" means any certification level
5of construction elements by a qualified Green Globes
6Professional as determined by the Green Building Initiative.
7(Source: P.A. 99-792, eff. 8-12-16; revised 10-31-16.)
 
8    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
9    Sec. 11-74.4-8. Tax increment allocation financing. A
10municipality may not adopt tax increment financing in a
11redevelopment project area after the effective date of this
12amendatory Act of 1997 that will encompass an area that is
13currently included in an enterprise zone created under the
14Illinois Enterprise Zone Act unless that municipality,
15pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
16amends the enterprise zone designating ordinance to limit the
17eligibility for tax abatements as provided in Section 5.4.1 of
18the Illinois Enterprise Zone Act. A municipality, at the time a
19redevelopment project area is designated, may adopt tax
20increment allocation financing by passing an ordinance
21providing that the ad valorem taxes, if any, arising from the
22levies upon taxable real property in such redevelopment project
23area by taxing districts and tax rates determined in the manner
24provided in paragraph (c) of Section 11-74.4-9 each year after
25the effective date of the ordinance until redevelopment project

 

 

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1costs and all municipal obligations financing redevelopment
2project costs incurred under this Division have been paid shall
3be divided as follows, provided, however, that with respect to
4any redevelopment project area located within a transit
5facility improvement area established pursuant to Section
611-74.4-3.3 in a municipality with a population of 1,000,000 or
7more, ad valorem taxes, if any, arising from the levies upon
8taxable real property in such redevelopment project area shall
9be allocated as specifically provided in this Section:
10        (a) That portion of taxes levied upon each taxable lot,
11    block, tract or parcel of real property which is
12    attributable to the lower of the current equalized assessed
13    value or the initial equalized assessed value of each such
14    taxable lot, block, tract or parcel of real property in the
15    redevelopment project area shall be allocated to and when
16    collected shall be paid by the county collector to the
17    respective affected taxing districts in the manner
18    required by law in the absence of the adoption of tax
19    increment allocation financing.
20        (b) Except from a tax levied by a township to retire
21    bonds issued to satisfy court-ordered damages, that
22    portion, if any, of such taxes which is attributable to the
23    increase in the current equalized assessed valuation of
24    each taxable lot, block, tract or parcel of real property
25    in the redevelopment project area over and above the
26    initial equalized assessed value of each property in the

 

 

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1    project area shall be allocated to and when collected shall
2    be paid to the municipal treasurer who shall deposit said
3    taxes into a special fund called the special tax allocation
4    fund of the municipality for the purpose of paying
5    redevelopment project costs and obligations incurred in
6    the payment thereof. In any county with a population of
7    3,000,000 or more that has adopted a procedure for
8    collecting taxes that provides for one or more of the
9    installments of the taxes to be billed and collected on an
10    estimated basis, the municipal treasurer shall be paid for
11    deposit in the special tax allocation fund of the
12    municipality, from the taxes collected from estimated
13    bills issued for property in the redevelopment project
14    area, the difference between the amount actually collected
15    from each taxable lot, block, tract, or parcel of real
16    property within the redevelopment project area and an
17    amount determined by multiplying the rate at which taxes
18    were last extended against the taxable lot, block, track,
19    or parcel of real property in the manner provided in
20    subsection (c) of Section 11-74.4-9 by the initial
21    equalized assessed value of the property divided by the
22    number of installments in which real estate taxes are
23    billed and collected within the county; provided that the
24    payments on or before December 31, 1999 to a municipal
25    treasurer shall be made only if each of the following
26    conditions are met:

 

 

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1        (1) The total equalized assessed value of the
2        redevelopment project area as last determined was not
3        less than 175% of the total initial equalized assessed
4        value.
5        (2) Not more than 50% of the total equalized assessed
6        value of the redevelopment project area as last
7        determined is attributable to a piece of property
8        assigned a single real estate index number.
9        (3) The municipal clerk has certified to the county
10        clerk that the municipality has issued its obligations
11        to which there has been pledged the incremental
12        property taxes of the redevelopment project area or
13        taxes levied and collected on any or all property in
14        the municipality or the full faith and credit of the
15        municipality to pay or secure payment for all or a
16        portion of the redevelopment project costs. The
17        certification shall be filed annually no later than
18        September 1 for the estimated taxes to be distributed
19        in the following year; however, for the year 1992 the
20        certification shall be made at any time on or before
21        March 31, 1992.
22        (4) The municipality has not requested that the total
23        initial equalized assessed value of real property be
24        adjusted as provided in subsection (b) of Section
25        11-74.4-9.
26        The conditions of paragraphs (1) through (4) do not

 

 

10000SB1124sam001- 90 -LRB100 07569 MLM 25171 a

1    apply after December 31, 1999 to payments to a municipal
2    treasurer made by a county with 3,000,000 or more
3    inhabitants that has adopted an estimated billing
4    procedure for collecting taxes. If a county that has
5    adopted the estimated billing procedure makes an erroneous
6    overpayment of tax revenue to the municipal treasurer, then
7    the county may seek a refund of that overpayment. The
8    county shall send the municipal treasurer a notice of
9    liability for the overpayment on or before the mailing date
10    of the next real estate tax bill within the county. The
11    refund shall be limited to the amount of the overpayment.
12        It is the intent of this Division that after the
13    effective date of this amendatory Act of 1988 a
14    municipality's own ad valorem tax arising from levies on
15    taxable real property be included in the determination of
16    incremental revenue in the manner provided in paragraph (c)
17    of Section 11-74.4-9. If the municipality does not extend
18    such a tax, it shall annually deposit in the municipality's
19    Special Tax Increment Fund an amount equal to 10% of the
20    total contributions to the fund from all other taxing
21    districts in that year. The annual 10% deposit required by
22    this paragraph shall be limited to the actual amount of
23    municipally produced incremental tax revenues available to
24    the municipality from taxpayers located in the
25    redevelopment project area in that year if: (a) the plan
26    for the area restricts the use of the property primarily to

 

 

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1    industrial purposes, (b) the municipality establishing the
2    redevelopment project area is a home-rule community with a
3    1990 population of between 25,000 and 50,000, (c) the
4    municipality is wholly located within a county with a 1990
5    population of over 750,000 and (d) the redevelopment
6    project area was established by the municipality prior to
7    June 1, 1990. This payment shall be in lieu of a
8    contribution of ad valorem taxes on real property. If no
9    such payment is made, any redevelopment project area of the
10    municipality shall be dissolved.
11        If a municipality has adopted tax increment allocation
12    financing by ordinance and the County Clerk thereafter
13    certifies the "total initial equalized assessed value as
14    adjusted" of the taxable real property within such
15    redevelopment project area in the manner provided in
16    paragraph (b) of Section 11-74.4-9, each year after the
17    date of the certification of the total initial equalized
18    assessed value as adjusted until redevelopment project
19    costs and all municipal obligations financing
20    redevelopment project costs have been paid the ad valorem
21    taxes, if any, arising from the levies upon the taxable
22    real property in such redevelopment project area by taxing
23    districts and tax rates determined in the manner provided
24    in paragraph (c) of Section 11-74.4-9 shall be divided as
25    follows, provided, however, that with respect to any
26    redevelopment project area located within a transit

 

 

10000SB1124sam001- 92 -LRB100 07569 MLM 25171 a

1    facility improvement area established pursuant to Section
2    11-74.4-3.3 in a municipality with a population of
3    1,000,000 or more, ad valorem taxes, if any, arising from
4    the levies upon the taxable real property in such
5    redevelopment project area shall be allocated as
6    specifically provided in this Section:
7        (1) That portion of the taxes levied upon each taxable
8        lot, block, tract or parcel of real property which is
9        attributable to the lower of the current equalized
10        assessed value or "current equalized assessed value as
11        adjusted" or the initial equalized assessed value of
12        each such taxable lot, block, tract, or parcel of real
13        property existing at the time tax increment financing
14        was adopted, minus the total current homestead
15        exemptions under Article 15 of the Property Tax Code in
16        the redevelopment project area shall be allocated to
17        and when collected shall be paid by the county
18        collector to the respective affected taxing districts
19        in the manner required by law in the absence of the
20        adoption of tax increment allocation financing.
21        (2) That portion, if any, of such taxes which is
22        attributable to the increase in the current equalized
23        assessed valuation of each taxable lot, block, tract,
24        or parcel of real property in the redevelopment project
25        area, over and above the initial equalized assessed
26        value of each property existing at the time tax

 

 

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1        increment financing was adopted, minus the total
2        current homestead exemptions pertaining to each piece
3        of property provided by Article 15 of the Property Tax
4        Code in the redevelopment project area, shall be
5        allocated to and when collected shall be paid to the
6        municipal Treasurer, who shall deposit said taxes into
7        a special fund called the special tax allocation fund
8        of the municipality for the purpose of paying
9        redevelopment project costs and obligations incurred
10        in the payment thereof.
11        The municipality may pledge in the ordinance the funds
12    in and to be deposited in the special tax allocation fund
13    for the payment of such costs and obligations. No part of
14    the current equalized assessed valuation of each property
15    in the redevelopment project area attributable to any
16    increase above the total initial equalized assessed value,
17    or the total initial equalized assessed value as adjusted,
18    of such properties shall be used in calculating the general
19    State school aid formula, provided for in Section 18-8 of
20    the School Code, or the evidence-based funding formula,
21    provided for in Section 18-8.15 of the School Code, until
22    such time as all redevelopment project costs have been paid
23    as provided for in this Section.
24        Whenever a municipality issues bonds for the purpose of
25    financing redevelopment project costs, such municipality
26    may provide by ordinance for the appointment of a trustee,

 

 

10000SB1124sam001- 94 -LRB100 07569 MLM 25171 a

1    which may be any trust company within the State, and for
2    the establishment of such funds or accounts to be
3    maintained by such trustee as the municipality shall deem
4    necessary to provide for the security and payment of the
5    bonds. If such municipality provides for the appointment of
6    a trustee, such trustee shall be considered the assignee of
7    any payments assigned by the municipality pursuant to such
8    ordinance and this Section. Any amounts paid to such
9    trustee as assignee shall be deposited in the funds or
10    accounts established pursuant to such trust agreement, and
11    shall be held by such trustee in trust for the benefit of
12    the holders of the bonds, and such holders shall have a
13    lien on and a security interest in such funds or accounts
14    so long as the bonds remain outstanding and unpaid. Upon
15    retirement of the bonds, the trustee shall pay over any
16    excess amounts held to the municipality for deposit in the
17    special tax allocation fund.
18        When such redevelopment projects costs, including
19    without limitation all municipal obligations financing
20    redevelopment project costs incurred under this Division,
21    have been paid, all surplus funds then remaining in the
22    special tax allocation fund shall be distributed by being
23    paid by the municipal treasurer to the Department of
24    Revenue, the municipality and the county collector; first
25    to the Department of Revenue and the municipality in direct
26    proportion to the tax incremental revenue received from the

 

 

10000SB1124sam001- 95 -LRB100 07569 MLM 25171 a

1    State and the municipality, but not to exceed the total
2    incremental revenue received from the State or the
3    municipality less any annual surplus distribution of
4    incremental revenue previously made; with any remaining
5    funds to be paid to the County Collector who shall
6    immediately thereafter pay said funds to the taxing
7    districts in the redevelopment project area in the same
8    manner and proportion as the most recent distribution by
9    the county collector to the affected districts of real
10    property taxes from real property in the redevelopment
11    project area.
12        Upon the payment of all redevelopment project costs,
13    the retirement of obligations, the distribution of any
14    excess monies pursuant to this Section, and final closing
15    of the books and records of the redevelopment project area,
16    the municipality shall adopt an ordinance dissolving the
17    special tax allocation fund for the redevelopment project
18    area and terminating the designation of the redevelopment
19    project area as a redevelopment project area. Title to real
20    or personal property and public improvements acquired by or
21    for the municipality as a result of the redevelopment
22    project and plan shall vest in the municipality when
23    acquired and shall continue to be held by the municipality
24    after the redevelopment project area has been terminated.
25    Municipalities shall notify affected taxing districts
26    prior to November 1 if the redevelopment project area is to

 

 

10000SB1124sam001- 96 -LRB100 07569 MLM 25171 a

1    be terminated by December 31 of that same year. If a
2    municipality extends estimated dates of completion of a
3    redevelopment project and retirement of obligations to
4    finance a redevelopment project, as allowed by this
5    amendatory Act of 1993, that extension shall not extend the
6    property tax increment allocation financing authorized by
7    this Section. Thereafter the rates of the taxing districts
8    shall be extended and taxes levied, collected and
9    distributed in the manner applicable in the absence of the
10    adoption of tax increment allocation financing.
11        If a municipality with a population of 1,000,000 or
12    more has adopted by ordinance tax increment allocation
13    financing for a redevelopment project area located in a
14    transit facility improvement area established pursuant to
15    Section 11-74.4-3.3, for each year after the effective date
16    of the ordinance until redevelopment project costs and all
17    municipal obligations financing redevelopment project
18    costs have been paid, the ad valorem taxes, if any, arising
19    from the levies upon the taxable real property in that
20    redevelopment project area by taxing districts and tax
21    rates determined in the manner provided in paragraph (c) of
22    Section 11-74.4-9 shall be divided as follows:
23            (1) That portion of the taxes levied upon each
24        taxable lot, block, tract or parcel of real property
25        which is attributable to the lower of (i) the current
26        equalized assessed value or "current equalized

 

 

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1        assessed value as adjusted" or (ii) the initial
2        equalized assessed value of each such taxable lot,
3        block, tract, or parcel of real property existing at
4        the time tax increment financing was adopted, minus the
5        total current homestead exemptions under Article 15 of
6        the Property Tax Code in the redevelopment project area
7        shall be allocated to and when collected shall be paid
8        by the county collector to the respective affected
9        taxing districts in the manner required by law in the
10        absence of the adoption of tax increment allocation
11        financing.
12            (2) That portion, if any, of such taxes which is
13        attributable to the increase in the current equalized
14        assessed valuation of each taxable lot, block, tract,
15        or parcel of real property in the redevelopment project
16        area, over and above the initial equalized assessed
17        value of each property existing at the time tax
18        increment financing was adopted, minus the total
19        current homestead exemptions pertaining to each piece
20        of property provided by Article 15 of the Property Tax
21        Code in the redevelopment project area, shall be
22        allocated to and when collected shall be paid by the
23        county collector as follows:
24                (A) First, that portion which would be payable
25            to a school district whose boundaries are
26            coterminous with such municipality in the absence

 

 

10000SB1124sam001- 98 -LRB100 07569 MLM 25171 a

1            of the adoption of tax increment allocation
2            financing, shall be paid to such school district in
3            the manner required by law in the absence of the
4            adoption of tax increment allocation financing;
5            then
6                (B) 80% of the remaining portion shall be paid
7            to the municipal Treasurer, who shall deposit said
8            taxes into a special fund called the special tax
9            allocation fund of the municipality for the
10            purpose of paying redevelopment project costs and
11            obligations incurred in the payment thereof; and
12            then
13                (C) 20% of the remaining portion shall be paid
14            to the respective affected taxing districts, other
15            than the school district described in clause (a)
16            above, in the manner required by law in the absence
17            of the adoption of tax increment allocation
18            financing.
19    Nothing in this Section shall be construed as relieving
20property in such redevelopment project areas from being
21assessed as provided in the Property Tax Code or as relieving
22owners of such property from paying a uniform rate of taxes, as
23required by Section 4 of Article IX of the Illinois
24Constitution.
25(Source: P.A. 98-463, eff. 8-16-13; 99-792, eff. 8-12-16.)
 

 

 

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1    (65 ILCS 5/11-74.6-35)
2    Sec. 11-74.6-35. Ordinance for tax increment allocation
3financing.
4    (a) A municipality, at the time a redevelopment project
5area is designated, may adopt tax increment allocation
6financing by passing an ordinance providing that the ad valorem
7taxes, if any, arising from the levies upon taxable real
8property within the redevelopment project area by taxing
9districts and tax rates determined in the manner provided in
10subsection (b) of Section 11-74.6-40 each year after the
11effective date of the ordinance until redevelopment project
12costs and all municipal obligations financing redevelopment
13project costs incurred under this Act have been paid shall be
14divided as follows:
15        (1) That portion of the taxes levied upon each taxable
16    lot, block, tract or parcel of real property that is
17    attributable to the lower of the current equalized assessed
18    value or the initial equalized assessed value or the
19    updated initial equalized assessed value of each taxable
20    lot, block, tract or parcel of real property in the
21    redevelopment project area shall be allocated to and when
22    collected shall be paid by the county collector to the
23    respective affected taxing districts in the manner
24    required by law without regard to the adoption of tax
25    increment allocation financing.
26        (2) That portion, if any, of those taxes that is

 

 

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1    attributable to the increase in the current equalized
2    assessed value of each taxable lot, block, tract or parcel
3    of real property in the redevelopment project area, over
4    and above the initial equalized assessed value or the
5    updated initial equalized assessed value of each property
6    in the project area, shall be allocated to and when
7    collected shall be paid by the county collector to the
8    municipal treasurer who shall deposit that portion of those
9    taxes into a special fund called the special tax allocation
10    fund of the municipality for the purpose of paying
11    redevelopment project costs and obligations incurred in
12    the payment of those costs and obligations. In any county
13    with a population of 3,000,000 or more that has adopted a
14    procedure for collecting taxes that provides for one or
15    more of the installments of the taxes to be billed and
16    collected on an estimated basis, the municipal treasurer
17    shall be paid for deposit in the special tax allocation
18    fund of the municipality, from the taxes collected from
19    estimated bills issued for property in the redevelopment
20    project area, the difference between the amount actually
21    collected from each taxable lot, block, tract, or parcel of
22    real property within the redevelopment project area and an
23    amount determined by multiplying the rate at which taxes
24    were last extended against the taxable lot, block, track,
25    or parcel of real property in the manner provided in
26    subsection (b) of Section 11-74.6-40 by the initial

 

 

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1    equalized assessed value or the updated initial equalized
2    assessed value of the property divided by the number of
3    installments in which real estate taxes are billed and
4    collected within the county, provided that the payments on
5    or before December 31, 1999 to a municipal treasurer shall
6    be made only if each of the following conditions are met:
7            (A) The total equalized assessed value of the
8        redevelopment project area as last determined was not
9        less than 175% of the total initial equalized assessed
10        value.
11            (B) Not more than 50% of the total equalized
12        assessed value of the redevelopment project area as
13        last determined is attributable to a piece of property
14        assigned a single real estate index number.
15            (C) The municipal clerk has certified to the county
16        clerk that the municipality has issued its obligations
17        to which there has been pledged the incremental
18        property taxes of the redevelopment project area or
19        taxes levied and collected on any or all property in
20        the municipality or the full faith and credit of the
21        municipality to pay or secure payment for all or a
22        portion of the redevelopment project costs. The
23        certification shall be filed annually no later than
24        September 1 for the estimated taxes to be distributed
25        in the following year.
26    The conditions of paragraphs (A) through (C) do not apply

 

 

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1after December 31, 1999 to payments to a municipal treasurer
2made by a county with 3,000,000 or more inhabitants that has
3adopted an estimated billing procedure for collecting taxes. If
4a county that has adopted the estimated billing procedure makes
5an erroneous overpayment of tax revenue to the municipal
6treasurer, then the county may seek a refund of that
7overpayment. The county shall send the municipal treasurer a
8notice of liability for the overpayment on or before the
9mailing date of the next real estate tax bill within the
10county. The refund shall be limited to the amount of the
11overpayment.
12    (b) It is the intent of this Act that a municipality's own
13ad valorem tax arising from levies on taxable real property be
14included in the determination of incremental revenue in the
15manner provided in paragraph (b) of Section 11-74.6-40.
16    (c) If a municipality has adopted tax increment allocation
17financing for a redevelopment project area by ordinance and the
18county clerk thereafter certifies the total initial equalized
19assessed value or the total updated initial equalized assessed
20value of the taxable real property within such redevelopment
21project area in the manner provided in paragraph (a) or (b) of
22Section 11-74.6-40, each year after the date of the
23certification of the total initial equalized assessed value or
24the total updated initial equalized assessed value until
25redevelopment project costs and all municipal obligations
26financing redevelopment project costs have been paid, the ad

 

 

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1valorem taxes, if any, arising from the levies upon the taxable
2real property in the redevelopment project area by taxing
3districts and tax rates determined in the manner provided in
4paragraph (b) of Section 11-74.6-40 shall be divided as
5follows:
6        (1) That portion of the taxes levied upon each taxable
7    lot, block, tract or parcel of real property that is
8    attributable to the lower of the current equalized assessed
9    value or the initial equalized assessed value, or the
10    updated initial equalized assessed value of each parcel if
11    the updated initial equalized assessed value of that parcel
12    has been certified in accordance with Section 11-74.6-40,
13    whichever has been most recently certified, of each taxable
14    lot, block, tract, or parcel of real property existing at
15    the time tax increment allocation financing was adopted in
16    the redevelopment project area, shall be allocated to and
17    when collected shall be paid by the county collector to the
18    respective affected taxing districts in the manner
19    required by law without regard to the adoption of tax
20    increment allocation financing.
21        (2) That portion, if any, of those taxes that is
22    attributable to the increase in the current equalized
23    assessed value of each taxable lot, block, tract, or parcel
24    of real property in the redevelopment project area, over
25    and above the initial equalized assessed value of each
26    property existing at the time tax increment allocation

 

 

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1    financing was adopted in the redevelopment project area, or
2    the updated initial equalized assessed value of each parcel
3    if the updated initial equalized assessed value of that
4    parcel has been certified in accordance with Section
5    11-74.6-40, shall be allocated to and when collected shall
6    be paid to the municipal treasurer, who shall deposit those
7    taxes into a special fund called the special tax allocation
8    fund of the municipality for the purpose of paying
9    redevelopment project costs and obligations incurred in
10    the payment thereof.
11    (d) The municipality may pledge in the ordinance the funds
12in and to be deposited in the special tax allocation fund for
13the payment of redevelopment project costs and obligations. No
14part of the current equalized assessed value of each property
15in the redevelopment project area attributable to any increase
16above the total initial equalized assessed value or the total
17initial updated equalized assessed value of the property, shall
18be used in calculating the general General State aid formula
19School Aid Formula, provided for in Section 18-8 of the School
20Code, or the evidence-based funding formula, provided for in
21Section 18-8.15 of the School Code, until all redevelopment
22project costs have been paid as provided for in this Section.
23    Whenever a municipality issues bonds for the purpose of
24financing redevelopment project costs, that municipality may
25provide by ordinance for the appointment of a trustee, which
26may be any trust company within the State, and for the

 

 

10000SB1124sam001- 105 -LRB100 07569 MLM 25171 a

1establishment of any funds or accounts to be maintained by that
2trustee, as the municipality deems necessary to provide for the
3security and payment of the bonds. If the municipality provides
4for the appointment of a trustee, the trustee shall be
5considered the assignee of any payments assigned by the
6municipality under that ordinance and this Section. Any amounts
7paid to the trustee as assignee shall be deposited into the
8funds or accounts established under the trust agreement, and
9shall be held by the trustee in trust for the benefit of the
10holders of the bonds. The holders of those bonds shall have a
11lien on and a security interest in those funds or accounts
12while the bonds remain outstanding and unpaid. Upon retirement
13of the bonds, the trustee shall pay over any excess amounts
14held to the municipality for deposit in the special tax
15allocation fund.
16    When the redevelopment projects costs, including without
17limitation all municipal obligations financing redevelopment
18project costs incurred under this Law, have been paid, all
19surplus funds then remaining in the special tax allocation fund
20shall be distributed by being paid by the municipal treasurer
21to the municipality and the county collector; first to the
22municipality in direct proportion to the tax incremental
23revenue received from the municipality, but not to exceed the
24total incremental revenue received from the municipality,
25minus any annual surplus distribution of incremental revenue
26previously made. Any remaining funds shall be paid to the

 

 

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1county collector who shall immediately distribute that payment
2to the taxing districts in the redevelopment project area in
3the same manner and proportion as the most recent distribution
4by the county collector to the affected districts of real
5property taxes from real property situated in the redevelopment
6project area.
7    Upon the payment of all redevelopment project costs,
8retirement of obligations and the distribution of any excess
9moneys under this Section, the municipality shall adopt an
10ordinance dissolving the special tax allocation fund for the
11redevelopment project area and terminating the designation of
12the redevelopment project area as a redevelopment project area.
13Thereafter the tax levies of taxing districts shall be
14extended, collected and distributed in the same manner
15applicable before the adoption of tax increment allocation
16financing. Municipality shall notify affected taxing districts
17prior to November if the redevelopment project area is to be
18terminated by December 31 of that same year.
19    Nothing in this Section shall be construed as relieving
20property in a redevelopment project area from being assessed as
21provided in the Property Tax Code or as relieving owners of
22that property from paying a uniform rate of taxes, as required
23by Section 4 of Article IX of the Illinois Constitution.
24(Source: P.A. 91-474, eff. 11-1-99.)
 
25    Section 40. The Economic Development Project Area Tax

 

 

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1Increment Allocation Act of 1995 is amended by changing Section
250 as follows:
 
3    (65 ILCS 110/50)
4    Sec. 50. Special tax allocation fund.
5    (a) If a county clerk has certified the "total initial
6equalized assessed value" of the taxable real property within
7an economic development project area in the manner provided in
8Section 45, each year after the date of the certification by
9the county clerk of the "total initial equalized assessed
10value", until economic development project costs and all
11municipal obligations financing economic development project
12costs have been paid, the ad valorem taxes, if any, arising
13from the levies upon the taxable real property in the economic
14development project area by taxing districts and tax rates
15determined in the manner provided in subsection (b) of Section
1645 shall be divided as follows:
17        (1) That portion of the taxes levied upon each taxable
18    lot, block, tract, or parcel of real property that is
19    attributable to the lower of the current equalized assessed
20    value or the initial equalized assessed value of each
21    taxable lot, block, tract, or parcel of real property
22    existing at the time tax increment financing was adopted
23    shall be allocated to (and when collected shall be paid by
24    the county collector to) the respective affected taxing
25    districts in the manner required by law in the absence of

 

 

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1    the adoption of tax increment allocation financing.
2        (2) That portion, if any, of the taxes that is
3    attributable to the increase in the current equalized
4    assessed valuation of each taxable lot, block, tract, or
5    parcel of real property in the economic development project
6    area, over and above the initial equalized assessed value
7    of each property existing at the time tax increment
8    financing was adopted, shall be allocated to (and when
9    collected shall be paid to) the municipal treasurer, who
10    shall deposit the taxes into a special fund (called the
11    special tax allocation fund of the municipality) for the
12    purpose of paying economic development project costs and
13    obligations incurred in the payment of those costs.
14    (b) The municipality, by an ordinance adopting tax
15increment allocation financing, may pledge the monies in and to
16be deposited into the special tax allocation fund for the
17payment of obligations issued under this Act and for the
18payment of economic development project costs. No part of the
19current equalized assessed valuation of each property in the
20economic development project area attributable to any increase
21above the total initial equalized assessed value of those
22properties shall be used in calculating the general State
23school aid formula under Section 18-8 of the School Code or the
24evidence-based funding formula under Section 18-8.15 of the
25School Code, until all economic development projects costs have
26been paid as provided for in this Section.

 

 

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1    (c) When the economic development projects costs,
2including without limitation all municipal obligations
3financing economic development project costs incurred under
4this Act, have been paid, all surplus monies then remaining in
5the special tax allocation fund shall be distributed by being
6paid by the municipal treasurer to the county collector, who
7shall immediately pay the monies to the taxing districts having
8taxable property in the economic development project area in
9the same manner and proportion as the most recent distribution
10by the county collector to those taxing districts of real
11property taxes from real property in the economic development
12project area.
13    (d) Upon the payment of all economic development project
14costs, retirement of obligations, and distribution of any
15excess monies under this Section and not later than 23 years
16from the date of the adoption of the ordinance establishing the
17economic development project area, the municipality shall
18adopt an ordinance dissolving the special tax allocation fund
19for the economic development project area and terminating the
20designation of the economic development project area as an
21economic development project area. Thereafter, the rates of the
22taxing districts shall be extended and taxes shall be levied,
23collected, and distributed in the manner applicable in the
24absence of the adoption of tax increment allocation financing.
25    (e) Nothing in this Section shall be construed as relieving
26property in the economic development project areas from being

 

 

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1assessed as provided in the Property Tax Code or as relieving
2owners or lessees of that property from paying a uniform rate
3of taxes as required by Section 4 of Article IX of the Illinois
4Constitution.
5(Source: P.A. 98-463, eff. 8-16-13.)
 
6    Section 45. The School Code is amended by changing Sections
71A-8, 1B-5, 1B-6, 1B-7, 1B-8, 1C-1, 1D-1, 1E-20, 1F-20, 1F-62,
81H-20, 1H-70, 2-3.33, 2-3.51.5, 2-3.66, 2-3.66b, 2-3.84,
92-3.109a, 3-14.21, 7-14A, 10-17a, 10-19, 10-22.5a, 10-22.20,
1010-29, 11E-135, 13A-8, 13B-20.20, 13B-45, 13B-50, 13B-50.10,
1113B-50.15, 14-7.02b, 14-13.01, 14C-1, 14C-12, 17-1, 17-1.2,
1217-1.5, 17-2.11, 17-2A, 18-4.3, 18-8.05, 18-8.10, 18-9, 18-12,
1324-12, 26-16, 27-8.1, 27A-9, 27A-11, 27A-11.5, 34-2.3, 34-18,
1434-18.30, and 34-43.1 and by adding Section 18-8.15 as follows:
 
15    (105 ILCS 5/1A-8)  (from Ch. 122, par. 1A-8)
16    Sec. 1A-8. Powers of the Board in Assisting Districts
17Deemed in Financial Difficulties. To promote the financial
18integrity of school districts, the State Board of Education
19shall be provided the necessary powers to promote sound
20financial management and continue operation of the public
21schools.
22    (a) The State Superintendent of Education may require a
23school district, including any district subject to Article 34A
24of this Code, to share financial information relevant to a

 

 

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1proper investigation of the district's financial condition and
2the delivery of appropriate State financial, technical, and
3consulting services to the district if the district (i) has
4been designated, through the State Board of Education's School
5District Financial Profile System, as on financial warning or
6financial watch status, (ii) has failed to file an annual
7financial report, annual budget, deficit reduction plan, or
8other financial information as required by law, (iii) has been
9identified, through the district's annual audit or other
10financial and management information, as in serious financial
11difficulty in the current or next school year, or (iv) is
12determined to be likely to fail to fully meet any regularly
13scheduled, payroll-period obligations when due or any debt
14service payments when due or both. In addition to financial,
15technical, and consulting services provided by the State Board
16of Education, at the request of a school district, the State
17Superintendent may provide for an independent financial
18consultant to assist the district review its financial
19condition and options.
20    (b) The State Board of Education, after proper
21investigation of a district's financial condition, may certify
22that a district, including any district subject to Article 34A,
23is in financial difficulty when any of the following conditions
24occur:
25        (1) The district has issued school or teacher orders
26    for wages as permitted in Sections 8-16, 32-7.2 and 34-76

 

 

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1    of this Code.
2        (2) The district has issued tax anticipation warrants
3    or tax anticipation notes in anticipation of a second
4    year's taxes when warrants or notes in anticipation of
5    current year taxes are still outstanding, as authorized by
6    Sections 17-16, 34-23, 34-59 and 34-63 of this Code, or has
7    issued short-term debt against 2 future revenue sources,
8    such as, but not limited to, tax anticipation warrants and
9    general State aid or evidence-based funding Aid
10    certificates or tax anticipation warrants and revenue
11    anticipation notes.
12        (3) The district has for 2 consecutive years shown an
13    excess of expenditures and other financing uses over
14    revenues and other financing sources and beginning fund
15    balances on its annual financial report for the aggregate
16    totals of the Educational, Operations and Maintenance,
17    Transportation, and Working Cash Funds.
18        (4) The district refuses to provide financial
19    information or cooperate with the State Superintendent in
20    an investigation of the district's financial condition.
21        (5) The district is likely to fail to fully meet any
22    regularly scheduled, payroll-period obligations when due
23    or any debt service payments when due or both.
24    No school district shall be certified by the State Board of
25Education to be in financial difficulty solely by reason of any
26of the above circumstances arising as a result of (i) the

 

 

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1failure of the county to make any distribution of property tax
2money due the district at the time such distribution is due or
3(ii) the failure of this State to make timely payments of
4general State aid, evidence-based funding, or any of the
5mandated categoricals; or if the district clearly demonstrates
6to the satisfaction of the State Board of Education at the time
7of its determination that such condition no longer exists. If
8the State Board of Education certifies that a district in a
9city with 500,000 inhabitants or more is in financial
10difficulty, the State Board shall so notify the Governor and
11the Mayor of the city in which the district is located. The
12State Board of Education may require school districts certified
13in financial difficulty, except those districts subject to
14Article 34A, to develop, adopt and submit a financial plan
15within 45 days after certification of financial difficulty. The
16financial plan shall be developed according to guidelines
17presented to the district by the State Board of Education
18within 14 days of certification. Such guidelines shall address
19the specific nature of each district's financial difficulties.
20Any proposed budget of the district shall be consistent with
21the financial plan submitted to and approved by the State Board
22of Education.
23    A district certified to be in financial difficulty, other
24than a district subject to Article 34A, shall report to the
25State Board of Education at such times and in such manner as
26the State Board may direct, concerning the district's

 

 

10000SB1124sam001- 114 -LRB100 07569 MLM 25171 a

1compliance with each financial plan. The State Board may review
2the district's operations, obtain budgetary data and financial
3statements, require the district to produce reports, and have
4access to any other information in the possession of the
5district that it deems relevant. The State Board may issue
6recommendations or directives within its powers to the district
7to assist in compliance with the financial plan. The district
8shall produce such budgetary data, financial statements,
9reports and other information and comply with such directives.
10If the State Board of Education determines that a district has
11failed to comply with its financial plan, the State Board of
12Education may rescind approval of the plan and appoint a
13Financial Oversight Panel for the district as provided in
14Section 1B-4. This action shall be taken only after the
15district has been given notice and an opportunity to appear
16before the State Board of Education to discuss its failure to
17comply with its financial plan.
18    No bonds, notes, teachers orders, tax anticipation
19warrants or other evidences of indebtedness shall be issued or
20sold by a school district or be legally binding upon or
21enforceable against a local board of education of a district
22certified to be in financial difficulty unless and until the
23financial plan required under this Section has been approved by
24the State Board of Education.
25    Any financial profile compiled and distributed by the State
26Board of Education in Fiscal Year 2009 or any fiscal year

 

 

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1thereafter shall incorporate such adjustments as may be needed
2in the profile scores to reflect the financial effects of the
3inability or refusal of the State of Illinois to make timely
4disbursements of any general State aid, evidence-based
5funding, or mandated categorical aid payments due school
6districts or to fully reimburse school districts for mandated
7categorical programs pursuant to reimbursement formulas
8provided in this School Code.
9(Source: P.A. 96-668, eff. 8-25-09; 96-1423, eff. 8-3-10;
1097-429, eff. 8-16-11.)
 
11    (105 ILCS 5/1B-5)  (from Ch. 122, par. 1B-5)
12    Sec. 1B-5. When a petition for emergency financial
13assistance for a school district is allowed by the State Board
14under Section 1B-4, the State Superintendent shall within 10
15days thereafter appoint 3 members to serve at the State
16Superintendent's pleasure on a Financial Oversight Panel for
17the district. The State Superintendent shall designate one of
18the members of the Panel to serve as its Chairman. In the event
19of vacancy or resignation the State Superintendent shall
20appoint a successor within 10 days of receiving notice thereof.
21    Members of the Panel shall be selected primarily on the
22basis of their experience and education in financial
23management, with consideration given to persons knowledgeable
24in education finance. A member of the Panel may not be a board
25member or employee of the district for which the Panel is

 

 

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1constituted, nor may a member have a direct financial interest
2in that district.
3    Panel members shall serve without compensation, but may be
4reimbursed for travel and other necessary expenses incurred in
5the performance of their official duties by the State Board.
6The amount reimbursed Panel members for their expenses shall be
7charged to the school district as part of any emergency
8financial assistance and incorporated as a part of the terms
9and conditions for repayment of such assistance or shall be
10deducted from the district's general State aid or
11evidence-based funding as provided in Section 1B-8.
12    The first meeting of the Panel shall be held at the call of
13the Chairman. The Panel may elect such other officers as it
14deems appropriate. The Panel shall prescribe the times and
15places for its meetings and the manner in which regular and
16special meetings may be called, and shall comply with the Open
17Meetings Act.
18    Two members of the Panel shall constitute a quorum, and the
19affirmative vote of 2 members shall be necessary for any
20decision or action to be taken by the Panel.
21    The Panel and the State Superintendent shall cooperate with
22each other in the exercise of their respective powers. The
23Panel shall report not later than September 1 annually to the
24State Board and the State Superintendent with respect to its
25activities and the condition of the school district for the
26previous fiscal year.

 

 

10000SB1124sam001- 117 -LRB100 07569 MLM 25171 a

1    Any Financial Oversight Panel established under this
2Article shall remain in existence for not less than 3 years nor
3more than 10 years from the date the State Board grants the
4petition under Section 1B-4. If after 3 years the school
5district has repaid all of its obligations resulting from
6emergency State financial assistance provided under this
7Article and has improved its financial situation, the board of
8education may, not more frequently than once in any 12 month
9period, petition the State Board to dissolve the Financial
10Oversight Panel, terminate the oversight responsibility, and
11remove the district's certification under Section 1A-8 as a
12district in financial difficulty. In acting on such a petition
13the State Board shall give additional weight to the
14recommendations of the State Superintendent and the Financial
15Oversight Panel.
16(Source: P.A. 88-618, eff. 9-9-94.)
 
17    (105 ILCS 5/1B-6)  (from Ch. 122, par. 1B-6)
18    Sec. 1B-6. General powers. The purpose of the Financial
19Oversight Panel shall be to exercise financial control over the
20board of education, and, when approved by the State Board and
21the State Superintendent of Education, to furnish financial
22assistance so that the board can provide public education
23within the board's jurisdiction while permitting the board to
24meet its obligations to its creditors and the holders of its
25notes and bonds. Except as expressly limited by this Article,

 

 

10000SB1124sam001- 118 -LRB100 07569 MLM 25171 a

1the Panel shall have all powers necessary to meet its
2responsibilities and to carry out its purposes and the purposes
3of this Article, including, but not limited to, the following
4powers:
5    (a) to sue and be sued;
6    (b) to provide for its organization and internal
7management;
8    (c) to appoint a Financial Administrator to serve as the
9chief executive officer of the Panel. The Financial
10Administrator may be an individual, partnership, corporation,
11including an accounting firm, or other entity determined by the
12Panel to be qualified to serve; and to appoint other officers,
13agents, and employees of the Panel, define their duties and
14qualifications and fix their compensation and employee
15benefits;
16    (d) to approve the local board of education appointments to
17the positions of treasurer in a Class I county school unit and
18in each school district which forms a part of a Class II county
19school unit but which no longer is subject to the jurisdiction
20and authority of a township treasurer or trustees of schools of
21a township because the district has withdrawn from the
22jurisdiction and authority of the township treasurer and the
23trustees of schools of the township or because those offices
24have been abolished as provided in subsection (b) or (c) of
25Section 5-1, and chief school business official, if such
26official is not the superintendent of the district. Either the

 

 

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1board or the Panel may remove such treasurer or chief school
2business official;
3    (e) to approve any and all bonds, notes, teachers orders,
4tax anticipation warrants, and other evidences of indebtedness
5prior to issuance or sale by the school district; and
6notwithstanding any other provision of The School Code, as now
7or hereafter amended, no bonds, notes, teachers orders, tax
8anticipation warrants or other evidences of indebtedness shall
9be issued or sold by the school district or be legally binding
10upon or enforceable against the local board of education unless
11and until the approval of the Panel has been received;
12    (f) to approve all property tax levies of the school
13district and require adjustments thereto as the Panel deems
14necessary or advisable;
15    (g) to require and approve a school district financial
16plan;
17    (h) to approve and require revisions of the school district
18budget;
19    (i) to approve all contracts and other obligations as the
20Panel deems necessary and appropriate;
21    (j) to authorize emergency State financial assistance,
22including requirements regarding the terms and conditions of
23repayment of such assistance, and to require the board of
24education to levy a separate local property tax, subject to the
25limitations of Section 1B-8, sufficient to repay such
26assistance consistent with the terms and conditions of

 

 

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1repayment and the district's approved financial plan and
2budget;
3    (k) to request the regional superintendent to make
4appointments to fill all vacancies on the local school board as
5provided in Section 10-10;
6    (l) to recommend dissolution or reorganization of the
7school district to the General Assembly if in the Panel's
8judgment the circumstances so require;
9    (m) to direct a phased reduction in the oversight
10responsibilities of the Financial Administrator and of the
11Panel as the circumstances permit;
12    (n) to determine the amount of emergency State financial
13assistance to be made available to the school district, and to
14establish an operating budget for the Panel to be supported by
15funds available from such assistance, with the assistance and
16the budget required to be approved by the State Superintendent;
17    (o) to procure insurance against any loss in such amounts
18and from such insurers as it deems necessary;
19    (p) to engage the services of consultants for rendering
20professional and technical assistance and advice on matters
21within the Panel's power;
22    (q) to contract for and to accept any gifts, grants or
23loans of funds or property or financial or other aid in any
24form from the federal government, State government, unit of
25local government, school district or any agency or
26instrumentality thereof, or from any other private or public

 

 

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1source, and to comply with the terms and conditions thereof;
2    (r) to pay the expenses of its operations based on the
3Panel's budget as approved by the State Superintendent from
4emergency financial assistance funds available to the district
5or from deductions from the district's general State aid or
6evidence-based funding;
7    (s) to do any and all things necessary or convenient to
8carry out its purposes and exercise the powers given to the
9Panel by this Article; and
10    (t) to recommend the creation of a school finance authority
11pursuant to Article 1F of this Code.
12(Source: P.A. 91-357, eff. 7-29-99; 92-855, eff. 12-6-02.)
 
13    (105 ILCS 5/1B-7)  (from Ch. 122, par. 1B-7)
14    Sec. 1B-7. Financial Administrator; Powers and Duties. The
15Financial Administrator appointed by the Financial Oversight
16Panel shall serve as the Panel's chief executive officer. The
17Financial Administrator shall exercise the powers and duties
18required by the Panel, including but not limited to the
19following:
20    (a) to provide guidance and recommendations to the local
21board and officials of the school district in developing the
22district's financial plan and budget prior to board action;
23    (b) to direct the local board to reorganize its financial
24accounts, budgetary systems, and internal accounting and
25financial controls, in whatever manner the Panel deems

 

 

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1appropriate to achieve greater financial responsibility and to
2reduce financial inefficiency, and to provide technical
3assistance to aid the district in accomplishing the
4reorganization;
5    (c) to make recommendations to the Financial Oversight
6Panel concerning the school district's financial plan and
7budget, and all other matters within the scope of the Panel's
8authority;
9    (d) to prepare and recommend to the Panel a proposal for
10emergency State financial assistance for the district,
11including recommended terms and conditions of repayment, and an
12operations budget for the Panel to be funded from the emergency
13assistance or from deductions from the district's general State
14aid or evidence-based funding;
15    (e) to require the local board to prepare and submit
16preliminary staffing and budgetary analyses annually prior to
17February 1 in such manner and form as the Financial
18Administrator shall prescribe; and
19    (f) subject to the direction of the Panel, to do all other
20things necessary or convenient to carry out its purposes and
21exercise the powers given to the Panel under this Article.
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. There is created in the State Treasury a special
25fund to be known as the School District Emergency Financial

 

 

10000SB1124sam001- 123 -LRB100 07569 MLM 25171 a

1Assistance Fund (the "Fund"). The School District Emergency
2Financial Assistance Fund shall consist of appropriations,
3loan repayments, grants from the federal government, and
4donations from any public or private source. Moneys in the Fund
5may be appropriated only to the Illinois Finance Authority and
6the State Board for those purposes authorized under this
7Article and Articles 1F and 1H of this Code. The appropriation
8may be allocated and expended by the State Board for
9contractual services to provide technical assistance or
10consultation to school districts to assess their financial
11condition and to Financial Oversight Panels that petition for
12emergency financial assistance grants. The Illinois Finance
13Authority may provide loans to school districts which are the
14subject of an approved petition for emergency financial
15assistance under Section 1B-4, 1F-62, or 1H-65 of this Code.
16Neither the State Board of Education nor the Illinois Finance
17Authority may collect any fees for providing these services.
18    From the amount allocated to each such school district
19under this Article the State Board shall identify a sum
20sufficient to cover all approved costs of the Financial
21Oversight Panel established for the respective school
22district. If the State Board and State Superintendent of
23Education have not approved emergency financial assistance in
24conjunction with the appointment of a Financial Oversight
25Panel, the Panel's approved costs shall be paid from deductions
26from the district's general State aid or evidence-based

 

 

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1funding.
2    The Financial Oversight Panel may prepare and file with the
3State Superintendent a proposal for emergency financial
4assistance for the school district and for its operations
5budget. No expenditures from the Fund shall be authorized by
6the State Superintendent until he or she has approved the
7request of the Panel, either as submitted or in such lesser
8amount determined by the State Superintendent.
9    The maximum amount of an emergency financial assistance
10loan which may be allocated to any school district under this
11Article, including moneys necessary for the operations of the
12Panel, shall not exceed $4,000 times the number of pupils
13enrolled in the school district during the school year ending
14June 30 prior to the date of approval by the State Board of the
15petition for emergency financial assistance, as certified to
16the local board and the Panel by the State Superintendent. An
17emergency financial assistance grant shall not exceed $1,000
18times the number of such pupils. A district may receive both a
19loan and a grant.
20    The payment of an emergency State financial assistance
21grant or loan shall be subject to appropriation by the General
22Assembly. Payment of the emergency State financial assistance
23loan is subject to the applicable provisions of the Illinois
24Finance Authority Act. Emergency State financial assistance
25allocated and paid to a school district under this Article may
26be applied to any fund or funds from which the local board of

 

 

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1education of that district is authorized to make expenditures
2by law.
3    Any emergency financial assistance grant proposed by the
4Financial Oversight Panel and approved by the State
5Superintendent may be paid in its entirety during the initial
6year of the Panel's existence or spread in equal or declining
7amounts over a period of years not to exceed the period of the
8Panel's existence. An emergency financial assistance loan
9proposed by the Financial Oversight Panel and approved by the
10Illinois Finance Authority may be paid in its entirety during
11the initial year of the Panel's existence or spread in equal or
12declining amounts over a period of years not to exceed the
13period of the Panel's existence. All loans made by the Illinois
14Finance Authority for a school district shall be required to be
15repaid, with simple interest over the term of the loan at a
16rate equal to 50% of the one-year Constant Maturity Treasury
17(CMT) yield as last published by the Board of Governors of the
18Federal Reserve System before the date on which the district's
19loan is approved by the Illinois Finance Authority, not later
20than the date the Financial Oversight Panel ceases to exist.
21The Panel shall establish and the Illinois Finance Authority
22shall approve the terms and conditions, including the schedule,
23of repayments. The schedule shall provide for repayments
24commencing July 1 of each year or upon each fiscal year's
25receipt of moneys from a tax levy for emergency financial
26assistance. Repayment shall be incorporated into the annual

 

 

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1budget of the school district and may be made from any fund or
2funds of the district in which there are moneys available. An
3emergency financial assistance loan to the Panel or district
4shall not be considered part of the calculation of a district's
5debt for purposes of the limitation specified in Section 19-1
6of this Code. Default on repayment is subject to the Illinois
7Grant Funds Recovery Act. When moneys are repaid as provided
8herein they shall not be made available to the local board for
9further use as emergency financial assistance under this
10Article at any time thereafter. All repayments required to be
11made by a school district shall be received by the State Board
12and deposited in the School District Emergency Financial
13Assistance Fund.
14    In establishing the terms and conditions for the repayment
15obligation of the school district the Panel shall annually
16determine whether a separate local property tax levy is
17required. The board of any school district with a tax rate for
18educational purposes for the prior year of less than 120% of
19the maximum rate for educational purposes authorized by Section
2017-2 shall provide for a separate tax levy for emergency
21financial assistance repayment purposes. Such tax levy shall
22not be subject to referendum approval. The amount of the levy
23shall be equal to the amount necessary to meet the annual
24repayment obligations of the district as established by the
25Panel, or 20% of the amount levied for educational purposes for
26the prior year, whichever is less. However, no district shall

 

 

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1be required to levy the tax if the district's operating tax
2rate as determined under Section 18-8, or 18-8.05, or 18-8.15
3exceeds 200% of the district's tax rate for educational
4purposes for the prior year.
5(Source: P.A. 97-429, eff. 8-16-11.)
 
6    (105 ILCS 5/1C-1)
7    Sec. 1C-1. Purpose. The purpose of this Article is to
8permit greater flexibility and efficiency in the distribution
9and use of certain State funds available to local education
10agencies for the improvement of the quality of educational
11services pursuant to locally established priorities.
12    Through fiscal year 2017, this This Article does not apply
13to school districts having a population in excess of 500,000
14inhabitants.
15(Source: P.A. 88-555, eff. 7-27-94; 89-15, eff. 5-30-95;
1689-397, eff. 8-20-95; 89-626, eff. 8-9-96.)
 
17    (105 ILCS 5/1D-1)
18    Sec. 1D-1. Block grant funding.
19    (a) For fiscal year 1996 through fiscal year 2017 and each
20fiscal year thereafter, the State Board of Education shall
21award to a school district having a population exceeding
22500,000 inhabitants a general education block grant and an
23educational services block grant, determined as provided in
24this Section, in lieu of distributing to the district separate

 

 

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1State funding for the programs described in subsections (b) and
2(c). The provisions of this Section, however, do not apply to
3any federal funds that the district is entitled to receive. In
4accordance with Section 2-3.32, all block grants are subject to
5an audit. Therefore, block grant receipts and block grant
6expenditures shall be recorded to the appropriate fund code for
7the designated block grant.
8    (b) The general education block grant shall include the
9following programs: REI Initiative, Summer Bridges, Preschool
10At Risk, K-6 Comprehensive Arts, School Improvement Support,
11Urban Education, Scientific Literacy, Substance Abuse
12Prevention, Second Language Planning, Staff Development,
13Outcomes and Assessment, K-6 Reading Improvement, 7-12
14Continued Reading Improvement, Truants' Optional Education,
15Hispanic Programs, Agriculture Education, Parental Education,
16Prevention Initiative, Report Cards, and Criminal Background
17Investigations. Notwithstanding any other provision of law,
18all amounts paid under the general education block grant from
19State appropriations to a school district in a city having a
20population exceeding 500,000 inhabitants shall be appropriated
21and expended by the board of that district for any of the
22programs included in the block grant or any of the board's
23lawful purposes.
24    (c) The educational services block grant shall include the
25following programs: Regular and Vocational Transportation,
26State Lunch and Free Breakfast Program, Special Education

 

 

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1(Personnel, Transportation, Orphanage, Private Tuition),
2funding for children requiring special education services,
3Summer School, Educational Service Centers, and
4Administrator's Academy. This subsection (c) does not relieve
5the district of its obligation to provide the services required
6under a program that is included within the educational
7services block grant. It is the intention of the General
8Assembly in enacting the provisions of this subsection (c) to
9relieve the district of the administrative burdens that impede
10efficiency and accompany single-program funding. The General
11Assembly encourages the board to pursue mandate waivers
12pursuant to Section 2-3.25g.
13    The funding program included in the educational services
14block grant for funding for children requiring special
15education services in each fiscal year shall be treated in that
16fiscal year as a payment to the school district in respect of
17services provided or costs incurred in the prior fiscal year,
18calculated in each case as provided in this Section. Nothing in
19this Section shall change the nature of payments for any
20program that, apart from this Section, would be or, prior to
21adoption or amendment of this Section, was on the basis of a
22payment in a fiscal year in respect of services provided or
23costs incurred in the prior fiscal year, calculated in each
24case as provided in this Section.
25    (d) For fiscal year 1996 through fiscal year 2017 and each
26fiscal year thereafter, the amount of the district's block

 

 

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1grants shall be determined as follows: (i) with respect to each
2program that is included within each block grant, the district
3shall receive an amount equal to the same percentage of the
4current fiscal year appropriation made for that program as the
5percentage of the appropriation received by the district from
6the 1995 fiscal year appropriation made for that program, and
7(ii) the total amount that is due the district under the block
8grant shall be the aggregate of the amounts that the district
9is entitled to receive for the fiscal year with respect to each
10program that is included within the block grant that the State
11Board of Education shall award the district under this Section
12for that fiscal year. In the case of the Summer Bridges
13program, the amount of the district's block grant shall be
14equal to 44% of the amount of the current fiscal year
15appropriation made for that program.
16    (e) The district is not required to file any application or
17other claim in order to receive the block grants to which it is
18entitled under this Section. The State Board of Education shall
19make payments to the district of amounts due under the
20district's block grants on a schedule determined by the State
21Board of Education.
22    (f) A school district to which this Section applies shall
23report to the State Board of Education on its use of the block
24grants in such form and detail as the State Board of Education
25may specify. In addition, the report must include the following
26description for the district, which must also be reported to

 

 

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1the General Assembly: block grant allocation and expenditures
2by program; population and service levels by program; and
3administrative expenditures by program. The State Board of
4Education shall ensure that the reporting requirements for the
5district are the same as for all other school districts in this
6State.
7    (g) Through fiscal year 2017, this This paragraph provides
8for the treatment of block grants under Article 1C for purposes
9of calculating the amount of block grants for a district under
10this Section. Those block grants under Article 1C are, for this
11purpose, treated as included in the amount of appropriation for
12the various programs set forth in paragraph (b) above. The
13appropriation in each current fiscal year for each block grant
14under Article 1C shall be treated for these purposes as
15appropriations for the individual program included in that
16block grant. The proportion of each block grant so allocated to
17each such program included in it shall be the proportion which
18the appropriation for that program was of all appropriations
19for such purposes now in that block grant, in fiscal 1995.
20    Payments to the school district under this Section with
21respect to each program for which payments to school districts
22generally, as of the date of this amendatory Act of the 92nd
23General Assembly, are on a reimbursement basis shall continue
24to be made to the district on a reimbursement basis, pursuant
25to the provisions of this Code governing those programs.
26    (h) Notwithstanding any other provision of law, any school

 

 

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1district receiving a block grant under this Section may
2classify all or a portion of the funds that it receives in a
3particular fiscal year from any block grant authorized under
4this Code or from general State aid pursuant to Section 18-8.05
5of this Code (other than supplemental general State aid) as
6funds received in connection with any funding program for which
7it is entitled to receive funds from the State in that fiscal
8year (including, without limitation, any funding program
9referred to in subsection (c) of this Section), regardless of
10the source or timing of the receipt. The district may not
11classify more funds as funds received in connection with the
12funding program than the district is entitled to receive in
13that fiscal year for that program. Any classification by a
14district must be made by a resolution of its board of
15education. The resolution must identify the amount of any block
16grant or general State aid to be classified under this
17subsection (h) and must specify the funding program to which
18the funds are to be treated as received in connection
19therewith. This resolution is controlling as to the
20classification of funds referenced therein. A certified copy of
21the resolution must be sent to the State Superintendent of
22Education. The resolution shall still take effect even though a
23copy of the resolution has not been sent to the State
24Superintendent of Education in a timely manner. No
25classification under this subsection (h) by a district shall
26affect the total amount or timing of money the district is

 

 

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1entitled to receive under this Code. No classification under
2this subsection (h) by a district shall in any way relieve the
3district from or affect any requirements that otherwise would
4apply with respect to the block grant as provided in this
5Section, including any accounting of funds by source, reporting
6expenditures by original source and purpose, reporting
7requirements, or requirements of provision of services.
8(Source: P.A. 97-238, eff. 8-2-11; 97-324, eff. 8-12-11;
997-813, eff. 7-13-12.)
 
10    (105 ILCS 5/1E-20)
11    (This Section scheduled to be repealed in accordance with
12105 ILCS 5/1E-165)
13    Sec. 1E-20. Members of Authority; meetings.
14    (a) When a petition for a School Finance Authority is
15allowed by the State Board under Section 1E-15 of this Code,
16the State Superintendent shall within 10 days thereafter
17appoint 5 members to serve on a School Finance Authority for
18the district. Of the initial members, 2 shall be appointed to
19serve a term of 2 years and 3 shall be appointed to serve a term
20of 3 years. Thereafter, each member shall serve for a term of 3
21years and until his or her successor has been appointed. The
22State Superintendent shall designate one of the members of the
23Authority to serve as its Chairperson. In the event of vacancy
24or resignation, the State Superintendent shall, within 10 days
25after receiving notice, appoint a successor to serve out that

 

 

10000SB1124sam001- 134 -LRB100 07569 MLM 25171 a

1member's term. The State Superintendent may remove a member for
2incompetence, malfeasance, neglect of duty, or other just
3cause.
4    Members of the Authority shall be selected primarily on the
5basis of their experience and education in financial
6management, with consideration given to persons knowledgeable
7in education finance. Two members of the Authority shall be
8residents of the school district that the Authority serves. A
9member of the Authority may not be a member of the district's
10school board or an employee of the district nor may a member
11have a direct financial interest in the district.
12    Authority members shall serve without compensation, but
13may be reimbursed by the State Board for travel and other
14necessary expenses incurred in the performance of their
15official duties. Unless paid from bonds issued under Section
161E-65 of this Code, the amount reimbursed members for their
17expenses shall be charged to the school district as part of any
18emergency financial assistance and incorporated as a part of
19the terms and conditions for repayment of the assistance or
20shall be deducted from the district's general State aid or
21evidence-based funding as provided in Section 1B-8 of this
22Code.
23    The Authority may elect such officers as it deems
24appropriate.
25    (b) The first meeting of the Authority shall be held at the
26call of the Chairperson. The Authority shall prescribe the

 

 

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1times and places for its meetings and the manner in which
2regular and special meetings may be called and shall comply
3with the Open Meetings Act.
4    Three members of the Authority shall constitute a quorum.
5When a vote is taken upon any measure before the Authority, a
6quorum being present, a majority of the votes of the members
7voting on the measure shall determine the outcome.
8(Source: P.A. 92-547, eff. 6-13-02.)
 
9    (105 ILCS 5/1F-20)
10(This Section scheduled to be repealed in accordance with 105
11ILCS 5/1F-165)
12    Sec. 1F-20. Members of Authority; meetings.
13    (a) Upon establishment of a School Finance Authority under
14Section 1F-15 of this Code, the State Superintendent shall
15within 15 days thereafter appoint 5 members to serve on a
16School Finance Authority for the district. Of the initial
17members, 2 shall be appointed to serve a term of 2 years and 3
18shall be appointed to serve a term of 3 years. Thereafter, each
19member shall serve for a term of 3 years and until his or her
20successor has been appointed. The State Superintendent shall
21designate one of the members of the Authority to serve as its
22Chairperson. In the event of vacancy or resignation, the State
23Superintendent shall, within 10 days after receiving notice,
24appoint a successor to serve out that member's term. The State
25Superintendent may remove a member for incompetence,

 

 

10000SB1124sam001- 136 -LRB100 07569 MLM 25171 a

1malfeasance, neglect of duty, or other just cause.
2    Members of the Authority shall be selected primarily on the
3basis of their experience and education in financial
4management, with consideration given to persons knowledgeable
5in education finance. Two members of the Authority shall be
6residents of the school district that the Authority serves. A
7member of the Authority may not be a member of the district's
8school board or an employee of the district nor may a member
9have a direct financial interest in the district.
10    Authority members shall be paid a stipend approved by the
11State Superintendent of not more than $100 per meeting and may
12be reimbursed by the State Board for travel and other necessary
13expenses incurred in the performance of their official duties.
14Unless paid from bonds issued under Section 1F-65 of this Code,
15the amount reimbursed members for their expenses shall be
16charged to the school district as part of any emergency
17financial assistance and incorporated as a part of the terms
18and conditions for repayment of the assistance or shall be
19deducted from the district's general State aid or
20evidence-based funding as provided in Section 1B-8 of this
21Code.
22    The Authority may elect such officers as it deems
23appropriate.
24    (b) The first meeting of the Authority shall be held at the
25call of the Chairperson. The Authority shall prescribe the
26times and places for its meetings and the manner in which

 

 

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1regular and special meetings may be called and shall comply
2with the Open Meetings Act.
3    Three members of the Authority shall constitute a quorum.
4When a vote is taken upon any measure before the Authority, a
5quorum being present, a majority of the votes of the members
6voting on the measure shall determine the outcome.
7(Source: P.A. 94-234, eff. 7-1-06.)
 
8    (105 ILCS 5/1F-62)
9(This Section scheduled to be repealed in accordance with 105
10ILCS 5/1F-165)
11    Sec. 1F-62. School District Emergency Financial Assistance
12Fund; grants and loans.
13    (a) Moneys in the School District Emergency Financial
14Assistance Fund established under Section 1B-8 of this Code may
15be allocated and expended by the State Board as grants to
16provide technical and consulting services to school districts
17to assess their financial condition and by the Illinois Finance
18Authority for emergency financial assistance loans to a School
19Finance Authority that petitions for emergency financial
20assistance. An emergency financial assistance loan to a School
21Finance Authority or borrowing from sources other than the
22State shall not be considered as part of the calculation of a
23district's debt for purposes of the limitation specified in
24Section 19-1 of this Code. From the amount allocated to each
25School Finance Authority, the State Board shall identify a sum

 

 

10000SB1124sam001- 138 -LRB100 07569 MLM 25171 a

1sufficient to cover all approved costs of the School Finance
2Authority. If the State Board and State Superintendent have not
3approved emergency financial assistance in conjunction with
4the appointment of a School Finance Authority, the Authority's
5approved costs shall be paid from deductions from the
6district's general State aid or evidence-based funding.
7    The School Finance Authority may prepare and file with the
8State Superintendent a proposal for emergency financial
9assistance for the school district and for its operations
10budget. No expenditures shall be authorized by the State
11Superintendent until he or she has approved the proposal of the
12School Finance Authority, either as submitted or in such lesser
13amount determined by the State Superintendent.
14    (b) The amount of an emergency financial assistance loan
15that may be allocated to a School Finance Authority under this
16Article, including moneys necessary for the operations of the
17School Finance Authority, and borrowing from sources other than
18the State shall not exceed, in the aggregate, $4,000 times the
19number of pupils enrolled in the district during the school
20year ending June 30 prior to the date of approval by the State
21Board of the petition for emergency financial assistance, as
22certified to the school board and the School Finance Authority
23by the State Superintendent. However, this limitation does not
24apply to borrowing by the district secured by amounts levied by
25the district prior to establishment of the School Finance
26Authority. An emergency financial assistance grant shall not

 

 

10000SB1124sam001- 139 -LRB100 07569 MLM 25171 a

1exceed $1,000 times the number of such pupils. A district may
2receive both a loan and a grant.
3    (c) The payment of a State emergency financial assistance
4grant or loan shall be subject to appropriation by the General
5Assembly. State emergency financial assistance allocated and
6paid to a School Finance Authority under this Article may be
7applied to any fund or funds from which the School Finance
8Authority is authorized to make expenditures by law.
9    (d) Any State emergency financial assistance proposed by
10the School Finance Authority and approved by the State
11Superintendent may be paid in its entirety during the initial
12year of the School Finance Authority's existence or spread in
13equal or declining amounts over a period of years not to exceed
14the period of the School Finance Authority's existence. The
15State Superintendent shall not approve any loan to the School
16Finance Authority unless the School Finance Authority has been
17unable to borrow sufficient funds to operate the district.
18    All loan payments made from the School District Emergency
19Financial Assistance Fund to a School Finance Authority shall
20be required to be repaid not later than the date the School
21Finance Authority ceases to exist, with simple interest over
22the term of the loan at a rate equal to 50% of the one-year
23Constant Maturity Treasury (CMT) yield as last published by the
24Board of Governors of the Federal Reserve System before the
25date on which the School Finance Authority's loan is approved
26by the State Board.

 

 

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1    The School Finance Authority shall establish and the
2Illinois Finance Authority shall approve the terms and
3conditions of the loan, including the schedule of repayments.
4The schedule shall provide for repayments commencing July 1 of
5each year or upon each fiscal year's receipt of moneys from a
6tax levy for emergency financial assistance. Repayment shall be
7incorporated into the annual budget of the district and may be
8made from any fund or funds of the district in which there are
9moneys available. Default on repayment is subject to the
10Illinois Grant Funds Recovery Act. When moneys are repaid as
11provided in this Section, they shall not be made available to
12the School Finance Authority for further use as emergency
13financial assistance under this Article at any time thereafter.
14All repayments required to be made by a School Finance
15Authority shall be received by the State Board and deposited in
16the School District Emergency Financial Assistance Fund.
17    In establishing the terms and conditions for the repayment
18obligation of the School Finance Authority, the School Finance
19Authority shall annually determine whether a separate local
20property tax levy is required to meet that obligation. The
21School Finance Authority shall provide for a separate tax levy
22for emergency financial assistance repayment purposes. This
23tax levy shall not be subject to referendum approval. The
24amount of the levy shall not exceed the amount necessary to
25meet the annual emergency financial repayment obligations of
26the district, including principal and interest, as established

 

 

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1by the School Finance Authority.
2(Source: P.A. 94-234, eff. 7-1-06.)
 
3    (105 ILCS 5/1H-20)
4    Sec. 1H-20. Members of Panel; meetings.
5    (a) Upon establishment of a Financial Oversight Panel under
6Section 1H-15 of this Code, the State Superintendent shall
7within 15 working days thereafter appoint 5 members to serve on
8a Financial Oversight Panel for the district. Members appointed
9to the Panel shall serve at the pleasure of the State
10Superintendent. The State Superintendent shall designate one
11of the members of the Panel to serve as its Chairperson. In the
12event of vacancy or resignation, the State Superintendent
13shall, within 10 days after receiving notice, appoint a
14successor to serve out that member's term.
15    (b) Members of the Panel shall be selected primarily on the
16basis of their experience and education in financial
17management, with consideration given to persons knowledgeable
18in education finance. Two members of the Panel shall be
19residents of the school district that the Panel serves. A
20member of the Panel may not be a member of the district's
21school board or an employee of the district nor may a member
22have a direct financial interest in the district.
23    (c) Panel members may be reimbursed by the State Board for
24travel and other necessary expenses incurred in the performance
25of their official duties. The amount reimbursed members for

 

 

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1their expenses shall be charged to the school district as part
2of any emergency financial assistance and incorporated as a
3part of the terms and conditions for repayment of the
4assistance or shall be deducted from the district's general
5State aid or evidence-based funding as provided in Section
61H-65 of this Code.
7    (d) With the exception of the chairperson, who shall be
8designated as provided in subsection (a) of this Section, the
9Panel may elect such officers as it deems appropriate.
10    (e) The first meeting of the Panel shall be held at the
11call of the Chairperson. The Panel shall prescribe the times
12and places for its meetings and the manner in which regular and
13special meetings may be called and shall comply with the Open
14Meetings Act. The Panel shall also comply with the Freedom of
15Information Act.
16    (f) Three members of the Panel shall constitute a quorum. A
17majority of members present is required to pass a measure.
18(Source: P.A. 97-429, eff. 8-16-11.)
 
19    (105 ILCS 5/1H-70)
20    Sec. 1H-70. Tax anticipation warrants, tax anticipation
21notes, revenue anticipation certificates or notes, general
22State aid or evidence-based funding anticipation certificates,
23and lines of credit. With the approval of the State
24Superintendent and provided that the district is unable to
25secure short-term financing after 3 attempts, a Panel shall

 

 

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1have the same power as a district to do the following:
2        (1) issue tax anticipation warrants under the
3    provisions of Section 17-16 of this Code against taxes
4    levied by either the school board or the Panel pursuant to
5    Section 1H-25 of this Code;
6        (2) issue tax anticipation notes under the provisions
7    of the Tax Anticipation Note Act against taxes levied by
8    either the school board or the Panel pursuant to Section
9    1H-25 of this Code;
10        (3) issue revenue anticipation certificates or notes
11    under the provisions of the Revenue Anticipation Act;
12        (4) issue general State aid or evidence-based funding
13    anticipation certificates under the provisions of Section
14    18-18 of this Code; and
15        (5) establish and utilize lines of credit under the
16    provisions of Section 17-17 of this Code.
17    Tax anticipation warrants, tax anticipation notes, revenue
18anticipation certificates or notes, general State aid or
19evidence-based funding anticipation certificates, and lines of
20credit are considered borrowing from sources other than the
21State and are subject to Section 1H-65 of this Code.
22(Source: P.A. 97-429, eff. 8-16-11.)
 
23    (105 ILCS 5/2-3.33)  (from Ch. 122, par. 2-3.33)
24    Sec. 2-3.33. Recomputation of claims. To recompute within
253 years from the final date for filing of a claim any claim for

 

 

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1general State aid reimbursement to any school district and one
2year from the final date for filing of a claim for
3evidence-based funding if the claim has been found to be
4incorrect and to adjust subsequent claims accordingly, and to
5recompute and adjust any such claims within 6 years from the
6final date for filing when there has been an adverse court or
7administrative agency decision on the merits affecting the tax
8revenues of the school district. However, no such adjustment
9shall be made regarding equalized assessed valuation unless the
10district's equalized assessed valuation is changed by greater
11than $250,000 or 2%. Any adjustments for claims recomputed for
12the 2016-2017 school year and prior school years shall be
13applied to the apportionment of evidence-based funding in
14Section 18-8.15 of this Code beginning in the 2017-2018 school
15year and thereafter. However, the recomputation of a claim for
16evidence-based funding for a school district shall not require
17the recomputation of claims for all districts, and the State
18Board of Education shall only make recomputations of
19evidence-based funding for those districts where an adjustment
20is required.
21    Except in the case of an adverse court or administrative
22agency decision, no recomputation of a State aid claim shall be
23made pursuant to this Section as a result of a reduction in the
24assessed valuation of a school district from the assessed
25valuation of the district reported to the State Board of
26Education by the Department of Revenue under Section 18-8.05 or

 

 

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118-8.15 of this Code unless the requirements of Section 16-15
2of the Property Tax Code and Section 2-3.84 of this Code are
3complied with in all respects.
4    This paragraph applies to all requests for recomputation of
5a general State aid or evidence-based funding claim received
6after June 30, 2003. In recomputing a general State aid or
7evidence-based funding claim that was originally calculated
8using an extension limitation equalized assessed valuation
9under paragraph (3) of subsection (G) of Section 18-8.05 of
10this Code or Section 18-8.15 of this Code, a qualifying
11reduction in equalized assessed valuation shall be deducted
12from the extension limitation equalized assessed valuation
13that was used in calculating the original claim.
14    From the total amount of general State aid or
15evidence-based funding to be provided to districts,
16adjustments as a result of recomputation under this Section
17together with adjustments under Section 2-3.84 must not exceed
18$25 million, in the aggregate for all districts under both
19Sections combined, of the general State aid or evidence-based
20funding appropriation in any fiscal year; if necessary, amounts
21shall be prorated among districts. If it is necessary to
22prorate claims under this paragraph, then that portion of each
23prorated claim that is approved but not paid in the current
24fiscal year may be resubmitted as a valid claim in the
25following fiscal year.
26(Source: P.A. 93-845, eff. 7-30-04.)
 

 

 

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1    (105 ILCS 5/2-3.51.5)
2    Sec. 2-3.51.5. School Safety and Educational Improvement
3Block Grant Program. To improve the level of education and
4safety of students from kindergarten through grade 12 in school
5districts and State-recognized, non-public schools. The State
6Board of Education is authorized to fund a School Safety and
7Educational Improvement Block Grant Program.
8    (1) For school districts, the program shall provide funding
9for school safety, textbooks and software, electronic
10textbooks and the technological equipment necessary to gain
11access to and use electronic textbooks, teacher training and
12curriculum development, school improvements, school report
13cards under Section 10-17a, and criminal history records checks
14under Sections 10-21.9 and 34-18.5. For State-recognized,
15non-public schools, the program shall provide funding for
16secular textbooks and software, criminal history records
17checks, and health and safety mandates to the extent that the
18funds are expended for purely secular purposes. A school
19district or laboratory school as defined in Section 18-8, or
2018-8.05, or 18-8.15 is not required to file an application in
21order to receive the categorical funding to which it is
22entitled under this Section. Funds for the School Safety and
23Educational Improvement Block Grant Program shall be
24distributed to school districts and laboratory schools based on
25the prior year's best 3 months average daily attendance. Funds

 

 

10000SB1124sam001- 147 -LRB100 07569 MLM 25171 a

1for the School Safety and Educational Improvement Block Grant
2Program shall be distributed to State-recognized, non-public
3schools based on the average daily attendance figure for the
4previous school year provided to the State Board of Education.
5The State Board of Education shall develop an application that
6requires State-recognized, non-public schools to submit
7average daily attendance figures. A State-recognized,
8non-public school must submit the application and average daily
9attendance figure prior to receiving funds under this Section.
10The State Board of Education shall promulgate rules and
11regulations necessary for the implementation of this program.
12    (2) Distribution of moneys to school districts and
13State-recognized, non-public schools shall be made in 2
14semi-annual installments, one payment on or before October 30,
15and one payment prior to April 30, of each fiscal year.
16    (3) Grants under the School Safety and Educational
17Improvement Block Grant Program shall be awarded provided there
18is an appropriation for the program, and funding levels for
19each district shall be prorated according to the amount of the
20appropriation.
21    (4) The provisions of this Section are in the public
22interest, are for the public benefit, and serve secular public
23purposes.
24(Source: P.A. 98-972, eff. 8-15-14.)
 
25    (105 ILCS 5/2-3.66)  (from Ch. 122, par. 2-3.66)

 

 

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1    Sec. 2-3.66. Truants' alternative and optional education
2programs. To establish projects to offer modified
3instructional programs or other services designed to prevent
4students from dropping out of school, including programs
5pursuant to Section 2-3.41, and to serve as a part time or full
6time option in lieu of regular school attendance and to award
7grants to local school districts, educational service regions
8or community college districts from appropriated funds to
9assist districts in establishing such projects. The education
10agency may operate its own program or enter into a contract
11with another not-for-profit entity to implement the program.
12The projects shall allow dropouts, up to and including age 21,
13potential dropouts, including truants, uninvolved, unmotivated
14and disaffected students, as defined by State Board of
15Education rules and regulations, to enroll, as an alternative
16to regular school attendance, in an optional education program
17which may be established by school board policy and is in
18conformance with rules adopted by the State Board of Education.
19Truants' Alternative and Optional Education programs funded
20pursuant to this Section shall be planned by a student, the
21student's parents or legal guardians, unless the student is 18
22years or older, and school officials and shall culminate in an
23individualized optional education plan. Such plan shall focus
24on academic or vocational skills, or both, and may include, but
25not be limited to, evening school, summer school, community
26college courses, adult education, preparation courses for high

 

 

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1school equivalency testing, vocational training, work
2experience, programs to enhance self concept and parenting
3courses. School districts which are awarded grants pursuant to
4this Section shall be authorized to provide day care services
5to children of students who are eligible and desire to enroll
6in programs established and funded under this Section, but only
7if and to the extent that such day care is necessary to enable
8those eligible students to attend and participate in the
9programs and courses which are conducted pursuant to this
10Section. School districts and regional offices of education may
11claim general State aid under Section 18-8.05 or evidence-based
12funding under Section 18-8.15 for students enrolled in truants'
13alternative and optional education programs, provided that
14such students are receiving services that are supplemental to a
15program leading to a high school diploma and are otherwise
16eligible to be claimed for general State aid under Section
1718-8.05 or evidence-based funding under Section 18-8.15, as
18applicable.
19(Source: P.A. 98-718, eff. 1-1-15.)
 
20    (105 ILCS 5/2-3.66b)
21    Sec. 2-3.66b. IHOPE Program.
22    (a) There is established the Illinois Hope and Opportunity
23Pathways through Education (IHOPE) Program. The State Board of
24Education shall implement and administer the IHOPE Program. The
25goal of the IHOPE Program is to develop a comprehensive system

 

 

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1in this State to re-enroll significant numbers of high school
2dropouts in programs that will enable them to earn their high
3school diploma.
4    (b) The IHOPE Program shall award grants, subject to
5appropriation for this purpose, to educational service regions
6and a school district organized under Article 34 of this Code
7from appropriated funds to assist in establishing
8instructional programs and other services designed to
9re-enroll high school dropouts. From any funds appropriated for
10the IHOPE Program, the State Board of Education may use up to
115% for administrative costs, including the performance of a
12program evaluation and the hiring of staff to implement and
13administer the program.
14    The IHOPE Program shall provide incentive grant funds for
15regional offices of education and a school district organized
16under Article 34 of this Code to develop partnerships with
17school districts, public community colleges, and community
18groups to build comprehensive plans to re-enroll high school
19dropouts in their regions or districts.
20    Programs funded through the IHOPE Program shall allow high
21school dropouts, up to and including age 21 notwithstanding
22Section 26-2 of this Code, to re-enroll in an educational
23program in conformance with rules adopted by the State Board of
24Education. Programs may include without limitation
25comprehensive year-round programming, evening school, summer
26school, community college courses, adult education, vocational

 

 

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1training, work experience, programs to enhance self-concept,
2and parenting courses. Any student in the IHOPE Program who
3wishes to earn a high school diploma must meet the
4prerequisites to receiving a high school diploma specified in
5Section 27-22 of this Code and any other graduation
6requirements of the student's district of residence. Any
7student who successfully completes the requirements for his or
8her graduation shall receive a diploma identifying the student
9as graduating from his or her district of residence.
10    (c) In order to be eligible for funding under the IHOPE
11Program, an interested regional office of education or a school
12district organized under Article 34 of this Code shall develop
13an IHOPE Plan to be approved by the State Board of Education.
14The State Board of Education shall develop rules for the IHOPE
15Program that shall set forth the requirements for the
16development of the IHOPE Plan. Each Plan shall involve school
17districts, public community colleges, and key community
18programs that work with high school dropouts located in an
19educational service region or the City of Chicago before the
20Plan is sent to the State Board for approval. No funds may be
21distributed to a regional office of education or a school
22district organized under Article 34 of this Code until the
23State Board has approved the Plan.
24    (d) A regional office of education or a school district
25organized under Article 34 of this Code may operate its own
26program funded by the IHOPE Program or enter into a contract

 

 

10000SB1124sam001- 152 -LRB100 07569 MLM 25171 a

1with other not-for-profit entities, including school
2districts, public community colleges, and not-for-profit
3community-based organizations, to operate a program.
4    A regional office of education or a school district
5organized under Article 34 of this Code that receives an IHOPE
6grant from the State Board of Education may provide funds under
7a sub-grant, as specified in the IHOPE Plan, to other
8not-for-profit entities to provide services according to the
9IHOPE Plan that was developed. These other entities may include
10school districts, public community colleges, or not-for-profit
11community-based organizations or a cooperative partnership
12among these entities.
13    (e) In order to distribute funding based upon the need to
14ensure delivery of programs that will have the greatest impact,
15IHOPE Program funding must be distributed based upon the
16proportion of dropouts in the educational service region or
17school district, in the case of a school district organized
18under Article 34 of this Code, to the total number of dropouts
19in this State. This formula shall employ the dropout data
20provided by school districts to the State Board of Education.
21    A regional office of education or a school district
22organized under Article 34 of this Code may claim State aid
23under Section 18-8.05 or 18-8.15 of this Code for students
24enrolled in a program funded by the IHOPE Program, provided
25that the State Board of Education has approved the IHOPE Plan
26and that these students are receiving services that are meeting

 

 

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1the requirements of Section 27-22 of this Code for receipt of a
2high school diploma and are otherwise eligible to be claimed
3for general State aid under Section 18-8.05 of this Code or
4evidence-based funding under Section 18-8.15 of this Code,
5including provisions related to the minimum number of days of
6pupil attendance pursuant to Section 10-19 of this Code and the
7minimum number of daily hours of school work and any exceptions
8thereto as defined by the State Board of Education in rules.
9    (f) IHOPE categories of programming may include the
10following:
11        (1) Full-time programs that are comprehensive,
12    year-round programs.
13        (2) Part-time programs combining work and study
14    scheduled at various times that are flexible to the needs
15    of students.
16        (3) Online programs and courses in which students take
17    courses and complete on-site, supervised tests that
18    measure the student's mastery of a specific course needed
19    for graduation. Students may take courses online and earn
20    credit or students may prepare to take supervised tests for
21    specific courses for credit leading to receipt of a high
22    school diploma.
23        (4) Dual enrollment in which students attend high
24    school classes in combination with community college
25    classes or students attend community college classes while
26    simultaneously earning high school credit and eventually a

 

 

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1    high school diploma.
2    (g) In order to have successful comprehensive programs
3re-enrolling and graduating low-skilled high school dropouts,
4programs funded through the IHOPE Program shall include all of
5the following components:
6        (1) Small programs (70 to 100 students) at a separate
7    school site with a distinct identity. Programs may be
8    larger with specific need and justification, keeping in
9    mind that it is crucial to keep programs small to be
10    effective.
11        (2) Specific performance-based goals and outcomes and
12    measures of enrollment, attendance, skills, credits,
13    graduation, and the transition to college, training, and
14    employment.
15        (3) Strong, experienced leadership and teaching staff
16    who are provided with ongoing professional development.
17        (4) Voluntary enrollment.
18        (5) High standards for student learning, integrating
19    work experience, and education, including during the
20    school year and after school, and summer school programs
21    that link internships, work, and learning.
22        (6) Comprehensive programs providing extensive support
23    services.
24        (7) Small teams of students supported by full-time paid
25    mentors who work to retain and help those students
26    graduate.

 

 

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1        (8) A comprehensive technology learning center with
2    Internet access and broad-based curriculum focusing on
3    academic and career subject areas.
4        (9) Learning opportunities that incorporate action
5    into study.
6    (h) Programs funded through the IHOPE Program must report
7data to the State Board of Education as requested. This
8information shall include, but is not limited to, student
9enrollment figures, attendance information, course completion
10data, graduation information, and post-graduation information,
11as available.
12    (i) Rules must be developed by the State Board of Education
13to set forth the fund distribution process to regional offices
14of education and a school district organized under Article 34
15of this Code, the planning and the conditions upon which an
16IHOPE Plan would be approved by State Board, and other rules to
17develop the IHOPE Program.
18(Source: P.A. 96-106, eff. 7-30-09.)
 
19    (105 ILCS 5/2-3.84)  (from Ch. 122, par. 2-3.84)
20    Sec. 2-3.84. In calculating the amount of State aid to be
21apportioned to the various school districts in this State, the
22State Board of Education shall incorporate and deduct the total
23aggregate adjustments to assessments made by the State Property
24Tax Appeal Board or Cook County Board of Appeals, as reported
25pursuant to Section 16-15 of the Property Tax Code or Section

 

 

10000SB1124sam001- 156 -LRB100 07569 MLM 25171 a

1129.1 of the Revenue Act of 1939 by the Department of Revenue,
2from the equalized assessed valuation that is otherwise to be
3utilized in the initial calculation.
4    From the total amount of general State aid or
5evidence-based funding to be provided to districts,
6adjustments under this Section together with adjustments as a
7result of recomputation under Section 2-3.33 must not exceed
8$25 million, in the aggregate for all districts under both
9Sections combined, of the general State aid or evidence-based
10funding appropriation in any fiscal year; if necessary, amounts
11shall be prorated among districts. If it is necessary to
12prorate claims under this paragraph, then that portion of each
13prorated claim that is approved but not paid in the current
14fiscal year may be resubmitted as a valid claim in the
15following fiscal year.
16(Source: P.A. 93-845, eff. 7-30-04.)
 
17    (105 ILCS 5/2-3.109a)
18    Sec. 2-3.109a. Laboratory schools grant eligibility. A
19laboratory school as defined in Section 18-8 or 18-8.15 may
20apply for and be eligible to receive, subject to the same
21restrictions applicable to school districts, any grant
22administered by the State Board of Education that is available
23for school districts.
24(Source: P.A. 90-566, eff. 1-2-98.)
 

 

 

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1    (105 ILCS 5/3-14.21)  (from Ch. 122, par. 3-14.21)
2    Sec. 3-14.21. Inspection of schools.
3    (a) The regional superintendent shall inspect and survey
4all public schools under his or her supervision and notify the
5board of education, or the trustees of schools in a district
6with trustees, in writing before July 30, whether or not the
7several schools in their district have been kept as required by
8law, using forms provided by the State Board of Education which
9are based on the Health/Life Safety Code for Public Schools
10adopted under Section 2-3.12. The regional superintendent
11shall report his or her findings to the State Board of
12Education on forms provided by the State Board of Education.
13    (b) If the regional superintendent determines that a school
14board has failed in a timely manner to correct urgent items
15identified in a previous life-safety report completed under
16Section 2-3.12 or as otherwise previously ordered by the
17regional superintendent, the regional superintendent shall
18order the school board to adopt and submit to the regional
19superintendent a plan for the immediate correction of the
20building violations. This plan shall be adopted following a
21public hearing that is conducted by the school board on the
22violations and the plan and that is preceded by at least 7
23days' prior notice of the hearing published in a newspaper of
24general circulation within the school district. If the regional
25superintendent determines in the next annual inspection that
26the plan has not been completed and that the violations have

 

 

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1not been corrected, the regional superintendent shall submit a
2report to the State Board of Education with a recommendation
3that the State Board withhold from payments of general State
4aid or evidence-based funding due to the district an amount
5necessary to correct the outstanding violations. The State
6Board, upon notice to the school board and to the regional
7superintendent, shall consider the report at a meeting of the
8State Board, and may order that a sufficient amount of general
9State aid or evidence-based funding be withheld from payments
10due to the district to correct the violations. This amount
11shall be paid to the regional superintendent who shall contract
12on behalf of the school board for the correction of the
13outstanding violations.
14    (c) The Office of the State Fire Marshal or a qualified
15fire official, as defined in Section 2-3.12 of this Code, to
16whom the State Fire Marshal has delegated his or her authority
17shall conduct an annual fire safety inspection of each school
18building in this State. The State Fire Marshal or the fire
19official shall coordinate its inspections with the regional
20superintendent. The inspection shall be based on the fire
21safety code authorized in Section 2-3.12 of this Code. Any
22violations shall be reported in writing to the regional
23superintendent and shall reference the specific code sections
24where a discrepancy has been identified within 15 days after
25the inspection has been conducted. The regional superintendent
26shall address those violations that are not corrected in a

 

 

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1timely manner pursuant to subsection (b) of this Section. The
2inspection must be at no cost to the school district.
3    (d) If a municipality or, in the case of an unincorporated
4area, a county or, if applicable, a fire protection district
5wishes to perform new construction inspections under the
6jurisdiction of a regional superintendent, then the entity must
7register this wish with the regional superintendent. These
8inspections must be based on the building code authorized in
9Section 2-3.12 of this Code. The inspections must be at no cost
10to the school district.
11(Source: P.A. 96-734, eff. 8-25-09.)
 
12    (105 ILCS 5/7-14A)  (from Ch. 122, par. 7-14A)
13    Sec. 7-14A. Annexation compensation. There shall be no
14accounting made after a mere change in boundaries when no new
15district is created, except that those districts whose
16enrollment increases by 90% or more as a result of annexing
17territory detached from another district pursuant to this
18Article are eligible for supplementary State aid payments in
19accordance with Section 11E-135 of this Code. Eligible annexing
20districts shall apply to the State Board of Education for
21supplementary State aid payments by submitting enrollment
22figures for the year immediately preceding and the year
23immediately following the effective date of the boundary change
24for both the district gaining territory and the district losing
25territory. Copies of any intergovernmental agreements between

 

 

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1the district gaining territory and the district losing
2territory detailing any transfer of fund balances and staff
3must also be submitted. In all instances of changes in
4boundaries, the district losing territory shall not count the
5average daily attendance of pupils living in the territory
6during the year preceding the effective date of the boundary
7change in its claim for reimbursement under Section 18-8.05 or
818-8.15 of this Code for the school year following the
9effective date of the change in boundaries and the district
10receiving the territory shall count the average daily
11attendance of pupils living in the territory during the year
12preceding the effective date of the boundary change in its
13claim for reimbursement under Section 18-8.05 or 18-8.15 of
14this Code for the school year following the effective date of
15the change in boundaries. The changes to this Section made by
16this amendatory Act of the 95th General Assembly are intended
17to be retroactive and applicable to any annexation taking
18effect on or after July 1, 2004.
19(Source: P.A. 99-657, eff. 7-28-16.)
 
20    (105 ILCS 5/10-17a)  (from Ch. 122, par. 10-17a)
21    Sec. 10-17a. State, school district, and school report
22cards.
23    (1) By October 31, 2013 and October 31 of each subsequent
24school year, the State Board of Education, through the State
25Superintendent of Education, shall prepare a State report card,

 

 

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1school district report cards, and school report cards, and
2shall by the most economic means provide to each school
3district in this State, including special charter districts and
4districts subject to the provisions of Article 34, the report
5cards for the school district and each of its schools.
6    (2) In addition to any information required by federal law,
7the State Superintendent shall determine the indicators and
8presentation of the school report card, which must include, at
9a minimum, the most current data possessed by the State Board
10of Education related to the following:
11        (A) school characteristics and student demographics,
12    including average class size, average teaching experience,
13    student racial/ethnic breakdown, and the percentage of
14    students classified as low-income; the percentage of
15    students classified as English learners; the percentage of
16    students who have individualized education plans or 504
17    plans that provide for special education services; the
18    percentage of students who annually transferred in or out
19    of the school district; the per-pupil operating
20    expenditure of the school district; and the per-pupil State
21    average operating expenditure for the district type
22    (elementary, high school, or unit);
23        (B) curriculum information, including, where
24    applicable, Advanced Placement, International
25    Baccalaureate or equivalent courses, dual enrollment
26    courses, foreign language classes, school personnel

 

 

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1    resources (including Career Technical Education teachers),
2    before and after school programs, extracurricular
3    activities, subjects in which elective classes are
4    offered, health and wellness initiatives (including the
5    average number of days of Physical Education per week per
6    student), approved programs of study, awards received,
7    community partnerships, and special programs such as
8    programming for the gifted and talented, students with
9    disabilities, and work-study students;
10        (C) student outcomes, including, where applicable, the
11    percentage of students deemed proficient on assessments of
12    State standards, the percentage of students in the eighth
13    grade who pass Algebra, the percentage of students enrolled
14    in post-secondary institutions (including colleges,
15    universities, community colleges, trade/vocational
16    schools, and training programs leading to career
17    certification within 2 semesters of high school
18    graduation), the percentage of students graduating from
19    high school who are college and career ready, and the
20    percentage of graduates enrolled in community colleges,
21    colleges, and universities who are in one or more courses
22    that the community college, college, or university
23    identifies as a developmental course;
24        (D) student progress, including, where applicable, the
25    percentage of students in the ninth grade who have earned 5
26    credits or more without failing more than one core class, a

 

 

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1    measure of students entering kindergarten ready to learn, a
2    measure of growth, and the percentage of students who enter
3    high school on track for college and career readiness;
4        (E) the school environment, including, where
5    applicable, the percentage of students with less than 10
6    absences in a school year, the percentage of teachers with
7    less than 10 absences in a school year for reasons other
8    than professional development, leaves taken pursuant to
9    the federal Family Medical Leave Act of 1993, long-term
10    disability, or parental leaves, the 3-year average of the
11    percentage of teachers returning to the school from the
12    previous year, the number of different principals at the
13    school in the last 6 years, 2 or more indicators from any
14    school climate survey selected or approved by the State and
15    administered pursuant to Section 2-3.153 of this Code, with
16    the same or similar indicators included on school report
17    cards for all surveys selected or approved by the State
18    pursuant to Section 2-3.153 of this Code, and the combined
19    percentage of teachers rated as proficient or excellent in
20    their most recent evaluation; and
21        (F) a school district's and its individual schools'
22    balanced accountability measure, in accordance with
23    Section 2-3.25a of this Code; and .
24        (G) the per-pupil expenditures of federal, State, and
25    local funds, including actual personnel expenditures and
26    actual non-personnel expenditures of federal, State, and

 

 

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1    local funds, disaggregated by source of funds, for the
2    school district and each of its schools for the preceding
3    fiscal year.
4    The school report card shall also provide information that
5allows for comparing the current outcome, progress, and
6environment data to the State average, to the school data from
7the past 5 years, and to the outcomes, progress, and
8environment of similar schools based on the type of school and
9enrollment of low-income students, special education students,
10and English learners.
11    (3) At the discretion of the State Superintendent, the
12school district report card shall include a subset of the
13information identified in paragraphs (A) through (E) of
14subsection (2) of this Section, as well as information relating
15to the operating expense per pupil and other finances of the
16school district, and the State report card shall include a
17subset of the information identified in paragraphs (A) through
18(E) of subsection (2) of this Section.
19    (4) Notwithstanding anything to the contrary in this
20Section, in consultation with key education stakeholders, the
21State Superintendent shall at any time have the discretion to
22amend or update any and all metrics on the school, district, or
23State report card.
24    (5) Annually, no more than 30 calendar days after receipt
25of the school district and school report cards from the State
26Superintendent of Education, each school district, including

 

 

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1special charter districts and districts subject to the
2provisions of Article 34, shall present such report cards at a
3regular school board meeting subject to applicable notice
4requirements, post the report cards on the school district's
5Internet web site, if the district maintains an Internet web
6site, make the report cards available to a newspaper of general
7circulation serving the district, and, upon request, send the
8report cards home to a parent (unless the district does not
9maintain an Internet web site, in which case the report card
10shall be sent home to parents without request). If the district
11posts the report card on its Internet web site, the district
12shall send a written notice home to parents stating (i) that
13the report card is available on the web site, (ii) the address
14of the web site, (iii) that a printed copy of the report card
15will be sent to parents upon request, and (iv) the telephone
16number that parents may call to request a printed copy of the
17report card.
18    (6) Nothing contained in this amendatory Act of the 98th
19General Assembly repeals, supersedes, invalidates, or
20nullifies final decisions in lawsuits pending on the effective
21date of this amendatory Act of the 98th General Assembly in
22Illinois courts involving the interpretation of Public Act
2397-8.
24(Source: P.A. 98-463, eff. 8-16-13; 98-648, eff. 7-1-14; 99-30,
25eff. 7-10-15; 99-193, eff. 7-30-15; 99-642, eff. 7-28-16.)
 

 

 

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1    (105 ILCS 5/10-19)  (from Ch. 122, par. 10-19)
2    Sec. 10-19. Length of school term - experimental programs.
3Each school board shall annually prepare a calendar for the
4school term, specifying the opening and closing dates and
5providing a minimum term of at least 185 days to insure 176
6days of actual pupil attendance, computable under Section
718-8.05 or 18-8.15, except that for the 1980-1981 school year
8only 175 days of actual pupil attendance shall be required
9because of the closing of schools pursuant to Section 24-2 on
10January 29, 1981 upon the appointment by the President of that
11day as a day of thanksgiving for the freedom of the Americans
12who had been held hostage in Iran. Any days allowed by law for
13teachers' institutes but not used as such or used as parental
14institutes as provided in Section 10-22.18d shall increase the
15minimum term by the school days not so used. Except as provided
16in Section 10-19.1, the board may not extend the school term
17beyond such closing date unless that extension of term is
18necessary to provide the minimum number of computable days. In
19case of such necessary extension school employees shall be paid
20for such additional time on the basis of their regular
21contracts. A school board may specify a closing date earlier
22than that set on the annual calendar when the schools of the
23district have provided the minimum number of computable days
24under this Section. Nothing in this Section prevents the board
25from employing superintendents of schools, principals and
26other nonteaching personnel for a period of 12 months, or in

 

 

10000SB1124sam001- 167 -LRB100 07569 MLM 25171 a

1the case of superintendents for a period in accordance with
2Section 10-23.8, or prevents the board from employing other
3personnel before or after the regular school term with payment
4of salary proportionate to that received for comparable work
5during the school term.
6    A school board may make such changes in its calendar for
7the school term as may be required by any changes in the legal
8school holidays prescribed in Section 24-2. A school board may
9make changes in its calendar for the school term as may be
10necessary to reflect the utilization of teachers' institute
11days as parental institute days as provided in Section
1210-22.18d.
13    The calendar for the school term and any changes must be
14submitted to and approved by the regional superintendent of
15schools before the calendar or changes may take effect.
16    With the prior approval of the State Board of Education and
17subject to review by the State Board of Education every 3
18years, any school board may, by resolution of its board and in
19agreement with affected exclusive collective bargaining
20agents, establish experimental educational programs, including
21but not limited to programs for e-learning days as authorized
22under Section 10-20.56 of this Code, self-directed learning, or
23outside of formal class periods, which programs when so
24approved shall be considered to comply with the requirements of
25this Section as respects numbers of days of actual pupil
26attendance and with the other requirements of this Act as

 

 

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1respects courses of instruction.
2(Source: P.A. 98-756, eff. 7-16-14; 99-194, eff. 7-30-15.)
 
3    (105 ILCS 5/10-22.5a)  (from Ch. 122, par. 10-22.5a)
4    Sec. 10-22.5a. Attendance by dependents of United States
5military personnel, foreign exchange students, and certain
6nonresident pupils.
7    (a) To enter into written agreements with cultural exchange
8organizations, or with nationally recognized eleemosynary
9institutions that promote excellence in the arts, mathematics,
10or science. The written agreements may provide for tuition free
11attendance at the local district school by foreign exchange
12students, or by nonresident pupils of eleemosynary
13institutions. The local board of education, as part of the
14agreement, may require that the cultural exchange program or
15the eleemosynary institutions provide services to the district
16in exchange for the waiver of nonresident tuition.
17    To enter into written agreements with adjacent school
18districts to provide for tuition free attendance by a student
19of the adjacent district when requested for the student's
20health and safety by the student or parent and both districts
21determine that the student's health or safety will be served by
22such attendance. Districts shall not be required to enter into
23such agreements nor be required to alter existing
24transportation services due to the attendance of such
25non-resident pupils.

 

 

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1    (a-5) If, at the time of enrollment, a dependent of United
2States military personnel is housed in temporary housing
3located outside of a school district, but will be living within
4the district within 60 days after the time of initial
5enrollment, the dependent must be allowed to enroll, subject to
6the requirements of this subsection (a-5), and must not be
7charged tuition. Any United States military personnel
8attempting to enroll a dependent under this subsection (a-5)
9shall provide proof that the dependent will be living within
10the district within 60 days after the time of initial
11enrollment. Proof of residency may include, but is not limited
12to, postmarked mail addressed to the military personnel and
13sent to an address located within the district, a lease
14agreement for occupancy of a residence located within the
15district, or proof of ownership of a residence located within
16the district.
17    (b) Nonresident pupils and foreign exchange students
18attending school on a tuition free basis under such agreements
19and nonresident dependents of United States military personnel
20attending school on a tuition free basis may be counted for the
21purposes of determining the apportionment of State aid provided
22under Section 18-8.05 or 18-8.15 of this Code. No organization
23or institution participating in agreements authorized under
24this Section may exclude any individual for participation in
25its program on account of the person's race, color, sex,
26religion or nationality.

 

 

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1(Source: P.A. 98-739, eff. 7-16-14.)
 
2    (105 ILCS 5/10-22.20)  (from Ch. 122, par. 10-22.20)
3    Sec. 10-22.20. Classes for adults and youths whose
4schooling has been interrupted; conditions for State
5reimbursement; use of child care facilities.
6    (a) To establish special classes for the instruction (1) of
7persons of age 21 years or over and (2) of persons less than
8age 21 and not otherwise in attendance in public school, for
9the purpose of providing adults in the community and youths
10whose schooling has been interrupted with such additional basic
11education, vocational skill training, and other instruction as
12may be necessary to increase their qualifications for
13employment or other means of self-support and their ability to
14meet their responsibilities as citizens, including courses of
15instruction regularly accepted for graduation from elementary
16or high schools and for Americanization and high school
17equivalency testing review classes.
18    The board shall pay the necessary expenses of such classes
19out of school funds of the district, including costs of student
20transportation and such facilities or provision for child-care
21as may be necessary in the judgment of the board to permit
22maximum utilization of the courses by students with children,
23and other special needs of the students directly related to
24such instruction. The expenses thus incurred shall be subject
25to State reimbursement, as provided in this Section. The board

 

 

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1may make a tuition charge for persons taking instruction who
2are not subject to State reimbursement, such tuition charge not
3to exceed the per capita cost of such classes.
4    The cost of such instruction, including the additional
5expenses herein authorized, incurred for recipients of
6financial aid under the Illinois Public Aid Code, or for
7persons for whom education and training aid has been authorized
8under Section 9-8 of that Code, shall be assumed in its
9entirety from funds appropriated by the State to the Illinois
10Community College Board.
11    (b) The Illinois Community College Board shall establish
12the standards for the courses of instruction reimbursed under
13this Section. The Illinois Community College Board shall
14supervise the administration of the programs. The Illinois
15Community College Board shall determine the cost of instruction
16in accordance with standards established by the Illinois
17Community College Board, including therein other incidental
18costs as herein authorized, which shall serve as the basis of
19State reimbursement in accordance with the provisions of this
20Section. In the approval of programs and the determination of
21the cost of instruction, the Illinois Community College Board
22shall provide for the maximum utilization of federal funds for
23such programs. The Illinois Community College Board shall also
24provide for:
25        (1) the development of an index of need for program
26    planning and for area funding allocations, as defined by

 

 

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1    the Illinois Community College Board;
2        (2) the method for calculating hours of instruction, as
3    defined by the Illinois Community College Board, claimable
4    for reimbursement and a method to phase in the calculation
5    and for adjusting the calculations in cases where the
6    services of a program are interrupted due to circumstances
7    beyond the control of the program provider;
8        (3) a plan for the reallocation of funds to increase
9    the amount allocated for grants based upon program
10    performance as set forth in subsection (d) below; and
11        (4) the development of standards for determining
12    grants based upon performance as set forth in subsection
13    (d) below and a plan for the phased-in implementation of
14    those standards.
15    For instruction provided by school districts and community
16college districts beginning July 1, 1996 and thereafter,
17reimbursement provided by the Illinois Community College Board
18for classes authorized by this Section shall be provided from
19funds appropriated for the reimbursement criteria set forth in
20subsection (c) below.
21    (c) Upon the annual approval of the Illinois Community
22College Board, reimbursement shall be first provided for
23transportation, child care services, and other special needs of
24the students directly related to instruction and then from the
25funds remaining an amount equal to the product of the total
26credit hours or units of instruction approved by the Illinois

 

 

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1Community College Board, multiplied by the following:
2        (1) For adult basic education, the minimum maximum
3    reimbursement per credit hour or per unit of instruction
4    shall be equal to (i) through fiscal year 2017, the general
5    state aid per pupil foundation level established in
6    subsection (B) of Section 18-8.05, divided by 60, or (ii)
7    in fiscal year 2018 and thereafter, the prior fiscal year
8    reimbursement level;
9        (2) The maximum reimbursement per credit hour or per
10    unit of instruction in subparagraph (1) above shall be
11    weighted for students enrolled in classes defined as
12    vocational skills and approved by the Illinois Community
13    College Board by 1.25;
14        (3) The maximum reimbursement per credit hour or per
15    unit of instruction in subparagraph (1) above shall be
16    multiplied by .90 for students enrolled in classes defined
17    as adult secondary education programs and approved by the
18    Illinois Community College Board;
19        (4) (Blank); and
20        (5) Funding for program years after 1999-2000 shall be
21    determined by the Illinois Community College Board.
22    (d) Upon its annual approval, the Illinois Community
23College Board shall provide grants to eligible programs for
24supplemental activities to improve or expand services under the
25Adult Education Act. Eligible programs shall be determined
26based upon performance outcomes of students in the programs as

 

 

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1set by the Illinois Community College Board.
2    (e) Reimbursement under this Section shall not exceed the
3actual costs of the approved program.
4    If the amount appropriated to the Illinois Community
5College Board for reimbursement under this Section is less than
6the amount required under this Act, the apportionment shall be
7proportionately reduced.
8    School districts and community college districts may
9assess students up to $3.00 per credit hour, for classes other
10than Adult Basic Education level programs, if needed to meet
11program costs.
12    (f) An education plan shall be established for each adult
13or youth whose schooling has been interrupted and who is
14participating in the instructional programs provided under
15this Section.
16    Each school board and community college shall keep an
17accurate and detailed account of the students assigned to and
18receiving instruction under this Section who are subject to
19State reimbursement and shall submit reports of services
20provided commencing with fiscal year 1997 as required by the
21Illinois Community College Board.
22    For classes authorized under this Section, a credit hour or
23unit of instruction is equal to 15 hours of direct instruction
24for students enrolled in approved adult education programs at
25midterm and making satisfactory progress, in accordance with
26standards established by the Illinois Community College Board.

 

 

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1    (g) Upon proof submitted to the Illinois Department of
2Human Services of the payment of all claims submitted under
3this Section, that Department shall apply for federal funds
4made available therefor and any federal funds so received shall
5be paid into the General Revenue Fund in the State Treasury.
6    School districts or community colleges providing classes
7under this Section shall submit applications to the Illinois
8Community College Board for preapproval in accordance with the
9standards established by the Illinois Community College Board.
10Payments shall be made by the Illinois Community College Board
11based upon approved programs. Interim expenditure reports may
12be required by the Illinois Community College Board. Final
13claims for the school year shall be submitted to the regional
14superintendents for transmittal to the Illinois Community
15College Board. Final adjusted payments shall be made by
16September 30.
17    If a school district or community college district fails to
18provide, or is providing unsatisfactory or insufficient
19classes under this Section, the Illinois Community College
20Board may enter into agreements with public or private
21educational or other agencies other than the public schools for
22the establishment of such classes.
23    (h) If a school district or community college district
24establishes child-care facilities for the children of
25participants in classes established under this Section, it may
26extend the use of these facilities to students who have

 

 

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1obtained employment and to other persons in the community whose
2children require care and supervision while the parent or other
3person in charge of the children is employed or otherwise
4absent from the home during all or part of the day. It may make
5the facilities available before and after as well as during
6regular school hours to school age and preschool age children
7who may benefit thereby, including children who require care
8and supervision pending the return of their parent or other
9person in charge of their care from employment or other
10activity requiring absence from the home.
11    The Illinois Community College Board shall pay to the board
12the cost of care in the facilities for any child who is a
13recipient of financial aid under the Illinois Public Aid Code.
14    The board may charge for care of children for whom it
15cannot make claim under the provisions of this Section. The
16charge shall not exceed per capita cost, and to the extent
17feasible, shall be fixed at a level which will permit
18utilization by employed parents of low or moderate income. It
19may also permit any other State or local governmental agency or
20private agency providing care for children to purchase care.
21    After July 1, 1970 when the provisions of Section 10-20.20
22become operative in the district, children in a child-care
23facility shall be transferred to the kindergarten established
24under that Section for such portion of the day as may be
25required for the kindergarten program, and only the prorated
26costs of care and training provided in the Center for the

 

 

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1remaining period shall be charged to the Illinois Department of
2Human Services or other persons or agencies paying for such
3care.
4    (i) The provisions of this Section shall also apply to
5school districts having a population exceeding 500,000.
6    (j) In addition to claiming reimbursement under this
7Section, a school district may claim general State aid under
8Section 18-8.05 or evidence-based funding under Section
918-8.15 for any student under age 21 who is enrolled in courses
10accepted for graduation from elementary or high school and who
11otherwise meets the requirements of Section 18-8.05 or 18-8.15,
12as applicable.
13(Source: P.A. 98-718, eff. 1-1-15.)
 
14    (105 ILCS 5/10-29)
15    Sec. 10-29. Remote educational programs.
16    (a) For purposes of this Section, "remote educational
17program" means an educational program delivered to students in
18the home or other location outside of a school building that
19meets all of the following criteria:
20        (1) A student may participate in the program only after
21    the school district, pursuant to adopted school board
22    policy, and a person authorized to enroll the student under
23    Section 10-20.12b of this Code determine that a remote
24    educational program will best serve the student's
25    individual learning needs. The adopted school board policy

 

 

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1    shall include, but not be limited to, all of the following:
2            (A) Criteria for determining that a remote
3        educational program will best serve a student's
4        individual learning needs. The criteria must include
5        consideration of, at a minimum, a student's prior
6        attendance, disciplinary record, and academic history.
7            (B) Any limitations on the number of students or
8        grade levels that may participate in a remote
9        educational program.
10            (C) A description of the process that the school
11        district will use to approve participation in the
12        remote educational program. The process must include
13        without limitation a requirement that, for any student
14        who qualifies to receive services pursuant to the
15        federal Individuals with Disabilities Education
16        Improvement Act of 2004, the student's participation
17        in a remote educational program receive prior approval
18        from the student's individualized education program
19        team.
20            (D) A description of the process the school
21        district will use to develop and approve a written
22        remote educational plan that meets the requirements of
23        subdivision (5) of this subsection (a).
24            (E) A description of the system the school district
25        will establish to calculate the number of clock hours a
26        student is participating in instruction in accordance

 

 

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1        with the remote educational program.
2            (F) A description of the process for renewing a
3        remote educational program at the expiration of its
4        term.
5            (G) Such other terms and provisions as the school
6        district deems necessary to provide for the
7        establishment and delivery of a remote educational
8        program.
9        (2) The school district has determined that the remote
10    educational program's curriculum is aligned to State
11    learning standards and that the program offers instruction
12    and educational experiences consistent with those given to
13    students at the same grade level in the district.
14        (3) The remote educational program is delivered by
15    instructors that meet the following qualifications:
16            (A) they are certificated under Article 21 of this
17        Code;
18            (B) they meet applicable highly qualified criteria
19        under the federal No Child Left Behind Act of 2001; and
20            (C) they have responsibility for all of the
21        following elements of the program: planning
22        instruction, diagnosing learning needs, prescribing
23        content delivery through class activities, assessing
24        learning, reporting outcomes to administrators and
25        parents and guardians, and evaluating the effects of
26        instruction.

 

 

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1        (4) During the period of time from and including the
2    opening date to the closing date of the regular school term
3    of the school district established pursuant to Section
4    10-19 of this Code, participation in a remote educational
5    program may be claimed for general State aid purposes under
6    Section 18-8.05 of this Code or evidence-based funding
7    purposes under Section 18-8.15 of this Code on any calendar
8    day, notwithstanding whether the day is a day of pupil
9    attendance or institute day on the school district's
10    calendar or any other provision of law restricting
11    instruction on that day. If the district holds year-round
12    classes in some buildings, the district shall classify each
13    student's participation in a remote educational program as
14    either on a year-round or a non-year-round schedule for
15    purposes of claiming general State aid or evidence-based
16    funding. Outside of the regular school term of the
17    district, the remote educational program may be offered as
18    part of any summer school program authorized by this Code.
19        (5) Each student participating in a remote educational
20    program must have a written remote educational plan that
21    has been approved by the school district and a person
22    authorized to enroll the student under Section 10-20.12b of
23    this Code. The school district and a person authorized to
24    enroll the student under Section 10-20.12b of this Code
25    must approve any amendment to a remote educational plan.
26    The remote educational plan must include, but is not

 

 

10000SB1124sam001- 181 -LRB100 07569 MLM 25171 a

1    limited to, all of the following:
2            (A) Specific achievement goals for the student
3        aligned to State learning standards.
4            (B) A description of all assessments that will be
5        used to measure student progress, which description
6        shall indicate the assessments that will be
7        administered at an attendance center within the school
8        district.
9            (C) A description of the progress reports that will
10        be provided to the school district and the person or
11        persons authorized to enroll the student under Section
12        10-20.12b of this Code.
13            (D) Expectations, processes, and schedules for
14        interaction between a teacher and student.
15            (E) A description of the specific responsibilities
16        of the student's family and the school district with
17        respect to equipment, materials, phone and Internet
18        service, and any other requirements applicable to the
19        home or other location outside of a school building
20        necessary for the delivery of the remote educational
21        program.
22            (F) If applicable, a description of how the remote
23        educational program will be delivered in a manner
24        consistent with the student's individualized education
25        program required by Section 614(d) of the federal
26        Individuals with Disabilities Education Improvement

 

 

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1        Act of 2004 or plan to ensure compliance with Section
2        504 of the federal Rehabilitation Act of 1973.
3            (G) A description of the procedures and
4        opportunities for participation in academic and
5        extra-curricular activities and programs within the
6        school district.
7            (H) The identification of a parent, guardian, or
8        other responsible adult who will provide direct
9        supervision of the program. The plan must include an
10        acknowledgment by the parent, guardian, or other
11        responsible adult that he or she may engage only in
12        non-teaching duties not requiring instructional
13        judgment or the evaluation of a student. The plan shall
14        designate the parent, guardian, or other responsible
15        adult as non-teaching personnel or volunteer personnel
16        under subsection (a) of Section 10-22.34 of this Code.
17            (I) The identification of a school district
18        administrator who will oversee the remote educational
19        program on behalf of the school district and who may be
20        contacted by the student's parents with respect to any
21        issues or concerns with the program.
22            (J) The term of the student's participation in the
23        remote educational program, which may not extend for
24        longer than 12 months, unless the term is renewed by
25        the district in accordance with subdivision (7) of this
26        subsection (a).

 

 

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1            (K) A description of the specific location or
2        locations in which the program will be delivered. If
3        the remote educational program is to be delivered to a
4        student in any location other than the student's home,
5        the plan must include a written determination by the
6        school district that the location will provide a
7        learning environment appropriate for the delivery of
8        the program. The location or locations in which the
9        program will be delivered shall be deemed a long
10        distance teaching reception area under subsection (a)
11        of Section 10-22.34 of this Code.
12            (L) Certification by the school district that the
13        plan meets all other requirements of this Section.
14        (6) Students participating in a remote educational
15    program must be enrolled in a school district attendance
16    center pursuant to the school district's enrollment policy
17    or policies. A student participating in a remote
18    educational program must be tested as part of all
19    assessments administered by the school district pursuant
20    to Section 2-3.64a-5 of this Code at the attendance center
21    in which the student is enrolled and in accordance with the
22    attendance center's assessment policies and schedule. The
23    student must be included within all accountability
24    determinations for the school district and attendance
25    center under State and federal law.
26        (7) The term of a student's participation in a remote

 

 

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1    educational program may not extend for longer than 12
2    months, unless the term is renewed by the school district.
3    The district may only renew a student's participation in a
4    remote educational program following an evaluation of the
5    student's progress in the program, a determination that the
6    student's continuation in the program will best serve the
7    student's individual learning needs, and an amendment to
8    the student's written remote educational plan addressing
9    any changes for the upcoming term of the program.
10    For purposes of this Section, a remote educational program
11does not include instruction delivered to students through an
12e-learning program approved under Section 10-20.56 of this
13Code.
14    (b) A school district may, by resolution of its school
15board, establish a remote educational program.
16    (c) Clock hours of instruction by students in a remote
17educational program meeting the requirements of this Section
18may be claimed by the school district and shall be counted as
19school work for general State aid purposes in accordance with
20and subject to the limitations of Section 18-8.05 of this Code
21or evidence-based funding purposes in accordance with and
22subject to the limitations of Section 18-8.15 of this Code.
23    (d) The impact of remote educational programs on wages,
24hours, and terms and conditions of employment of educational
25employees within the school district shall be subject to local
26collective bargaining agreements.

 

 

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1    (e) The use of a home or other location outside of a school
2building for a remote educational program shall not cause the
3home or other location to be deemed a public school facility.
4    (f) A remote educational program may be used, but is not
5required, for instruction delivered to a student in the home or
6other location outside of a school building that is not claimed
7for general State aid purposes under Section 18-8.05 of this
8Code or evidence-based funding purposes under Section 18-8.15
9of this Code.
10    (g) School districts that, pursuant to this Section, adopt
11a policy for a remote educational program must submit to the
12State Board of Education a copy of the policy and any
13amendments thereto, as well as data on student participation in
14a format specified by the State Board of Education. The State
15Board of Education may perform or contract with an outside
16entity to perform an evaluation of remote educational programs
17in this State.
18    (h) The State Board of Education may adopt any rules
19necessary to ensure compliance by remote educational programs
20with the requirements of this Section and other applicable
21legal requirements.
22(Source: P.A. 98-972, eff. 8-15-14; 99-193, eff. 7-30-15;
2399-194, eff. 7-30-15; 99-642, eff. 7-28-16.)
 
24    (105 ILCS 5/11E-135)
25    Sec. 11E-135. Incentives. For districts reorganizing under

 

 

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1this Article and for a district or districts that annex all of
2the territory of one or more entire other school districts in
3accordance with Article 7 of this Code, the following payments
4shall be made from appropriations made for these purposes:
5    (a)(1) For a combined school district, as defined in
6Section 11E-20 of this Code, or for a unit district, as defined
7in Section 11E-25 of this Code, for its first year of
8existence, the general State aid and supplemental general State
9aid calculated under Section 18-8.05 of this Code or the
10evidence-based funding calculated under Section 18-8.15 of
11this Code, as applicable, shall be computed for the new
12district and for the previously existing districts for which
13property is totally included within the new district. If the
14computation on the basis of the previously existing districts
15is greater, a supplementary payment equal to the difference
16shall be made for the first 4 years of existence of the new
17district.
18    (2) For a school district that annexes all of the territory
19of one or more entire other school districts as defined in
20Article 7 of this Code, for the first year during which the
21change of boundaries attributable to the annexation becomes
22effective for all purposes, as determined under Section 7-9 of
23this Code, the general State aid and supplemental general State
24aid calculated under Section 18-8.05 of this Code or the
25evidence-based funding calculated under Section 18-8.15 of
26this Code, as applicable, shall be computed for the annexing

 

 

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1district as constituted after the annexation and for the
2annexing and each annexed district as constituted prior to the
3annexation; and if the computation on the basis of the annexing
4and annexed districts as constituted prior to the annexation is
5greater, then a supplementary payment equal to the difference
6shall be made for the first 4 years of existence of the
7annexing school district as constituted upon the annexation.
8    (3) For 2 or more school districts that annex all of the
9territory of one or more entire other school districts, as
10defined in Article 7 of this Code, for the first year during
11which the change of boundaries attributable to the annexation
12becomes effective for all purposes, as determined under Section
137-9 of this Code, the general State aid and supplemental
14general State aid calculated under Section 18-8.05 of this Code
15or the evidence-based funding calculated under Section 18-8.15
16of this Code, as applicable, shall be computed for each
17annexing district as constituted after the annexation and for
18each annexing and annexed district as constituted prior to the
19annexation; and if the aggregate of the general State aid and
20supplemental general State aid or evidence-based funding, as
21applicable, as so computed for the annexing districts as
22constituted after the annexation is less than the aggregate of
23the general State aid and supplemental general State aid or
24evidence-based funding, as applicable, as so computed for the
25annexing and annexed districts, as constituted prior to the
26annexation, then a supplementary payment equal to the

 

 

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1difference shall be made and allocated between or among the
2annexing districts, as constituted upon the annexation, for the
3first 4 years of their existence. The total difference payment
4shall be allocated between or among the annexing districts in
5the same ratio as the pupil enrollment from that portion of the
6annexed district or districts that is annexed to each annexing
7district bears to the total pupil enrollment from the entire
8annexed district or districts, as such pupil enrollment is
9determined for the school year last ending prior to the date
10when the change of boundaries attributable to the annexation
11becomes effective for all purposes. The amount of the total
12difference payment and the amount thereof to be allocated to
13the annexing districts shall be computed by the State Board of
14Education on the basis of pupil enrollment and other data that
15shall be certified to the State Board of Education, on forms
16that it shall provide for that purpose, by the regional
17superintendent of schools for each educational service region
18in which the annexing and annexed districts are located.
19    (4) For a school district conversion, as defined in Section
2011E-15 of this Code, or a multi-unit conversion, as defined in
21subsection (b) of Section 11E-30 of this Code, if in their
22first year of existence the newly created elementary districts
23and the newly created high school district, from a school
24district conversion, or the newly created elementary district
25or districts and newly created combined high school - unit
26district, from a multi-unit conversion, qualify for less

 

 

10000SB1124sam001- 189 -LRB100 07569 MLM 25171 a

1general State aid under Section 18-8.05 of this Code or
2evidence-based funding under Section 18-8.15 of this Code than
3would have been payable under Section 18-8.05 or 18-8.15, as
4applicable, for that same year to the previously existing
5districts, then a supplementary payment equal to that
6difference shall be made for the first 4 years of existence of
7the newly created districts. The aggregate amount of each
8supplementary payment shall be allocated among the newly
9created districts in the proportion that the deemed pupil
10enrollment in each district during its first year of existence
11bears to the actual aggregate pupil enrollment in all of the
12districts during their first year of existence. For purposes of
13each allocation:
14        (A) the deemed pupil enrollment of the newly created
15    high school district from a school district conversion
16    shall be an amount equal to its actual pupil enrollment for
17    its first year of existence multiplied by 1.25;
18        (B) the deemed pupil enrollment of each newly created
19    elementary district from a school district conversion
20    shall be an amount equal to its actual pupil enrollment for
21    its first year of existence reduced by an amount equal to
22    the product obtained when the amount by which the newly
23    created high school district's deemed pupil enrollment
24    exceeds its actual pupil enrollment for its first year of
25    existence is multiplied by a fraction, the numerator of
26    which is the actual pupil enrollment of the newly created

 

 

10000SB1124sam001- 190 -LRB100 07569 MLM 25171 a

1    elementary district for its first year of existence and the
2    denominator of which is the actual aggregate pupil
3    enrollment of all of the newly created elementary districts
4    for their first year of existence;
5        (C) the deemed high school pupil enrollment of the
6    newly created combined high school - unit district from a
7    multi-unit conversion shall be an amount equal to its
8    actual grades 9 through 12 pupil enrollment for its first
9    year of existence multiplied by 1.25; and
10        (D) the deemed elementary pupil enrollment of each
11    newly created district from a multi-unit conversion shall
12    be an amount equal to each district's actual grade K
13    through 8 pupil enrollment for its first year of existence,
14    reduced by an amount equal to the product obtained when the
15    amount by which the newly created combined high school -
16    unit district's deemed high school pupil enrollment
17    exceeds its actual grade 9 through 12 pupil enrollment for
18    its first year of existence is multiplied by a fraction,
19    the numerator of which is the actual grade K through 8
20    pupil enrollment of each newly created district for its
21    first year of existence and the denominator of which is the
22    actual aggregate grade K through 8 pupil enrollment of all
23    such newly created districts for their first year of
24    existence.
25     The aggregate amount of each supplementary payment under
26this subdivision (4) and the amount thereof to be allocated to

 

 

10000SB1124sam001- 191 -LRB100 07569 MLM 25171 a

1the newly created districts shall be computed by the State
2Board of Education on the basis of pupil enrollment and other
3data, which shall be certified to the State Board of Education,
4on forms that it shall provide for that purpose, by the
5regional superintendent of schools for each educational
6service region in which the newly created districts are
7located.
8    (5) For a partial elementary unit district, as defined in
9subsection (a) or (c) of Section 11E-30 of this Code, if, in
10the first year of existence, the newly created partial
11elementary unit district qualifies for less general State aid
12and supplemental general State aid under Section 18-8.05 of
13this Code or less evidence-based funding under Section 18-8.15
14of this Code, as applicable, than would have been payable under
15those Sections that Section for that same year to the
16previously existing districts that formed the partial
17elementary unit district, then a supplementary payment equal to
18that difference shall be made to the partial elementary unit
19district for the first 4 years of existence of that newly
20created district.
21    (6) For an elementary opt-in, as described in subsection
22(d) of Section 11E-30 of this Code, the general State aid or
23evidence-based funding difference shall be computed in
24accordance with paragraph (5) of this subsection (a) as if the
25elementary opt-in was included in an optional elementary unit
26district at the optional elementary unit district's original

 

 

10000SB1124sam001- 192 -LRB100 07569 MLM 25171 a

1effective date. If the calculation in this paragraph (6) is
2less than that calculated in paragraph (5) of this subsection
3(a) at the optional elementary unit district's original
4effective date, then no adjustments may be made. If the
5calculation in this paragraph (6) is more than that calculated
6in paragraph (5) of this subsection (a) at the optional
7elementary unit district's original effective date, then the
8excess must be paid as follows:
9        (A) If the effective date for the elementary opt-in is
10    one year after the effective date for the optional
11    elementary unit district, 100% of the calculated excess
12    shall be paid to the optional elementary unit district in
13    each of the first 4 years after the effective date of the
14    elementary opt-in.
15        (B) If the effective date for the elementary opt-in is
16    2 years after the effective date for the optional
17    elementary unit district, 75% of the calculated excess
18    shall be paid to the optional elementary unit district in
19    each of the first 4 years after the effective date of the
20    elementary opt-in.
21        (C) If the effective date for the elementary opt-in is
22    3 years after the effective date for the optional
23    elementary unit district, 50% of the calculated excess
24    shall be paid to the optional elementary unit district in
25    each of the first 4 years after the effective date of the
26    elementary opt-in.

 

 

10000SB1124sam001- 193 -LRB100 07569 MLM 25171 a

1        (D) If the effective date for the elementary opt-in is
2    4 years after the effective date for the optional
3    elementary unit district, 25% of the calculated excess
4    shall be paid to the optional elementary unit district in
5    each of the first 4 years after the effective date of the
6    elementary opt-in.
7        (E) If the effective date for the elementary opt-in is
8    5 years after the effective date for the optional
9    elementary unit district, the optional elementary unit
10    district is not eligible for any additional incentives due
11    to the elementary opt-in.
12    (6.5) For a school district that annexes territory detached
13from another school district whereby the enrollment of the
14annexing district increases by 90% or more as a result of the
15annexation, for the first year during which the change of
16boundaries attributable to the annexation becomes effective
17for all purposes as determined under Section 7-9 of this Code,
18the general State aid and supplemental general State aid or
19evidence-based funding, as applicable, calculated under this
20Section shall be computed for the district gaining territory
21and the district losing territory as constituted after the
22annexation and for the same districts as constituted prior to
23the annexation; and if the aggregate of the general State aid
24and supplemental general State aid or evidence-based funding,
25as applicable, as so computed for the district gaining
26territory and the district losing territory as constituted

 

 

10000SB1124sam001- 194 -LRB100 07569 MLM 25171 a

1after the annexation is less than the aggregate of the general
2State aid and supplemental general State aid or evidence-based
3funding, as applicable, as so computed for the district gaining
4territory and the district losing territory as constituted
5prior to the annexation, then a supplementary payment shall be
6made to the annexing district for the first 4 years of
7existence after the annexation, equal to the difference
8multiplied by the ratio of student enrollment in the territory
9detached to the total student enrollment in the district losing
10territory for the year prior to the effective date of the
11annexation. The amount of the total difference and the
12proportion paid to the annexing district shall be computed by
13the State Board of Education on the basis of pupil enrollment
14and other data that must be submitted to the State Board of
15Education in accordance with Section 7-14A of this Code. The
16changes to this Section made by Public Act 95-707 are intended
17to be retroactive and applicable to any annexation taking
18effect on or after July 1, 2004. For annexations that are
19eligible for payments under this paragraph (6.5) and that are
20effective on or after July 1, 2004, but before January 11, 2008
21(the effective date of Public Act 95-707), the first required
22yearly payment under this paragraph (6.5) shall be paid in the
23fiscal year of January 11, 2008 (the effective date of Public
24Act 95-707). Subsequent required yearly payments shall be paid
25in subsequent fiscal years until the payment obligation under
26this paragraph (6.5) is complete.

 

 

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1    (7) Claims for financial assistance under this subsection
2(a) may not be recomputed except as expressly provided under
3Section 18-8.05 or 18-8.15 of this Code.
4    (8) Any supplementary payment made under this subsection
5(a) must be treated as separate from all other payments made
6pursuant to Section 18-8.05 or 18-8.15 of this Code.
7    (b)(1) After the formation of a combined school district,
8as defined in Section 11E-20 of this Code, or a unit district,
9as defined in Section 11E-25 of this Code, a computation shall
10be made to determine the difference between the salaries
11effective in each of the previously existing districts on June
1230, prior to the creation of the new district. For the first 4
13years after the formation of the new district, a supplementary
14State aid reimbursement shall be paid to the new district equal
15to the difference between the sum of the salaries earned by
16each of the certificated members of the new district, while
17employed in one of the previously existing districts during the
18year immediately preceding the formation of the new district,
19and the sum of the salaries those certificated members would
20have been paid during the year immediately prior to the
21formation of the new district if placed on the salary schedule
22of the previously existing district with the highest salary
23schedule.
24    (2) After the territory of one or more school districts is
25annexed by one or more other school districts as defined in
26Article 7 of this Code, a computation shall be made to

 

 

10000SB1124sam001- 196 -LRB100 07569 MLM 25171 a

1determine the difference between the salaries effective in each
2annexed district and in the annexing district or districts as
3they were each constituted on June 30 preceding the date when
4the change of boundaries attributable to the annexation became
5effective for all purposes, as determined under Section 7-9 of
6this Code. For the first 4 years after the annexation, a
7supplementary State aid reimbursement shall be paid to each
8annexing district as constituted after the annexation equal to
9the difference between the sum of the salaries earned by each
10of the certificated members of the annexing district as
11constituted after the annexation, while employed in an annexed
12or annexing district during the year immediately preceding the
13annexation, and the sum of the salaries those certificated
14members would have been paid during the immediately preceding
15year if placed on the salary schedule of whichever of the
16annexing or annexed districts had the highest salary schedule
17during the immediately preceding year.
18    (3) For each new high school district formed under a school
19district conversion, as defined in Section 11E-15 of this Code,
20the State shall make a supplementary payment for 4 years equal
21to the difference between the sum of the salaries earned by
22each certified member of the new high school district, while
23employed in one of the previously existing districts, and the
24sum of the salaries those certified members would have been
25paid if placed on the salary schedule of the previously
26existing district with the highest salary schedule.

 

 

10000SB1124sam001- 197 -LRB100 07569 MLM 25171 a

1    (4) For each newly created partial elementary unit
2district, the State shall make a supplementary payment for 4
3years equal to the difference between the sum of the salaries
4earned by each certified member of the newly created partial
5elementary unit district, while employed in one of the
6previously existing districts that formed the partial
7elementary unit district, and the sum of the salaries those
8certified members would have been paid if placed on the salary
9schedule of the previously existing district with the highest
10salary schedule. The salary schedules used in the calculation
11shall be those in effect in the previously existing districts
12for the school year prior to the creation of the new partial
13elementary unit district.
14    (5) For an elementary district opt-in, as described in
15subsection (d) of Section 11E-30 of this Code, the salary
16difference incentive shall be computed in accordance with
17paragraph (4) of this subsection (b) as if the opted-in
18elementary district was included in the optional elementary
19unit district at the optional elementary unit district's
20original effective date. If the calculation in this paragraph
21(5) is less than that calculated in paragraph (4) of this
22subsection (b) at the optional elementary unit district's
23original effective date, then no adjustments may be made. If
24the calculation in this paragraph (5) is more than that
25calculated in paragraph (4) of this subsection (b) at the
26optional elementary unit district's original effective date,

 

 

10000SB1124sam001- 198 -LRB100 07569 MLM 25171 a

1then the excess must be paid as follows:
2        (A) If the effective date for the elementary opt-in is
3    one year after the effective date for the optional
4    elementary unit district, 100% of the calculated excess
5    shall be paid to the optional elementary unit district in
6    each of the first 4 years after the effective date of the
7    elementary opt-in.
8        (B) If the effective date for the elementary opt-in is
9    2 years after the effective date for the optional
10    elementary unit district, 75% of the calculated excess
11    shall be paid to the optional elementary unit district in
12    each of the first 4 years after the effective date of the
13    elementary opt-in.
14        (C) If the effective date for the elementary opt-in is
15    3 years after the effective date for the optional
16    elementary unit district, 50% of the calculated excess
17    shall be paid to the optional elementary unit district in
18    each of the first 4 years after the effective date of the
19    elementary opt-in.
20        (D) If the effective date for the elementary opt-in is
21    4 years after the effective date for the partial elementary
22    unit district, 25% of the calculated excess shall be paid
23    to the optional elementary unit district in each of the
24    first 4 years after the effective date of the elementary
25    opt-in.
26        (E) If the effective date for the elementary opt-in is

 

 

10000SB1124sam001- 199 -LRB100 07569 MLM 25171 a

1    5 years after the effective date for the optional
2    elementary unit district, the optional elementary unit
3    district is not eligible for any additional incentives due
4    to the elementary opt-in.
5    (5.5) After the formation of a cooperative high school by 2
6or more school districts under Section 10-22.22c of this Code,
7a computation shall be made to determine the difference between
8the salaries effective in each of the previously existing high
9schools on June 30 prior to the formation of the cooperative
10high school. For the first 4 years after the formation of the
11cooperative high school, a supplementary State aid
12reimbursement shall be paid to the cooperative high school
13equal to the difference between the sum of the salaries earned
14by each of the certificated members of the cooperative high
15school while employed in one of the previously existing high
16schools during the year immediately preceding the formation of
17the cooperative high school and the sum of the salaries those
18certificated members would have been paid during the year
19immediately prior to the formation of the cooperative high
20school if placed on the salary schedule of the previously
21existing high school with the highest salary schedule.
22    (5.10) After the annexation of territory detached from
23another school district whereby the enrollment of the annexing
24district increases by 90% or more as a result of the
25annexation, a computation shall be made to determine the
26difference between the salaries effective in the district

 

 

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1gaining territory and the district losing territory as they
2each were constituted on June 30 preceding the date when the
3change of boundaries attributable to the annexation became
4effective for all purposes as determined under Section 7-9 of
5this Code. For the first 4 years after the annexation, a
6supplementary State aid reimbursement shall be paid to the
7annexing district equal to the difference between the sum of
8the salaries earned by each of the certificated members of the
9annexing district as constituted after the annexation while
10employed in the district gaining territory or the district
11losing territory during the year immediately preceding the
12annexation and the sum of the salaries those certificated
13members would have been paid during such immediately preceding
14year if placed on the salary schedule of whichever of the
15district gaining territory or district losing territory had the
16highest salary schedule during the immediately preceding year.
17To be eligible for supplementary State aid reimbursement under
18this Section, the intergovernmental agreement to be submitted
19pursuant to Section 7-14A of this Code must show that staff
20members were transferred from the control of the district
21losing territory to the control of the district gaining
22territory in the annexation. The changes to this Section made
23by Public Act 95-707 are intended to be retroactive and
24applicable to any annexation taking effect on or after July 1,
252004. For annexations that are eligible for payments under this
26paragraph (5.10) and that are effective on or after July 1,

 

 

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12004, but before January 11, 2008 (the effective date of Public
2Act 95-707), the first required yearly payment under this
3paragraph (5.10) shall be paid in the fiscal year of January
411, 2008 (the effective date of Public Act 95-707). Subsequent
5required yearly payments shall be paid in subsequent fiscal
6years until the payment obligation under this paragraph (5.10)
7is complete.
8    (5.15) After the deactivation of a school facility in
9accordance with Section 10-22.22b of this Code, a computation
10shall be made to determine the difference between the salaries
11effective in the sending school district and each receiving
12school district on June 30 prior to the deactivation of the
13school facility. For the lesser of the first 4 years after the
14deactivation of the school facility or the length of the
15deactivation agreement, including any renewals of the original
16deactivation agreement, a supplementary State aid
17reimbursement shall be paid to each receiving district equal to
18the difference between the sum of the salaries earned by each
19of the certificated members transferred to that receiving
20district as a result of the deactivation while employed in the
21sending district during the year immediately preceding the
22deactivation and the sum of the salaries those certificated
23members would have been paid during the year immediately
24preceding the deactivation if placed on the salary schedule of
25the sending or receiving district with the highest salary
26schedule.

 

 

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1    (6) The supplementary State aid reimbursement under this
2subsection (b) shall be treated as separate from all other
3payments made pursuant to Section 18-8.05 of this Code. In the
4case of the formation of a new district or cooperative high
5school or a deactivation, reimbursement shall begin during the
6first year of operation of the new district or cooperative high
7school or the first year of the deactivation, and in the case
8of an annexation of the territory of one or more school
9districts by one or more other school districts or the
10annexation of territory detached from a school district whereby
11the enrollment of the annexing district increases by 90% or
12more as a result of the annexation, reimbursement shall begin
13during the first year when the change in boundaries
14attributable to the annexation becomes effective for all
15purposes as determined pursuant to Section 7-9 of this Code,
16except that for an annexation of territory detached from a
17school district that is effective on or after July 1, 2004, but
18before January 11, 2008 (the effective date of Public Act
1995-707), whereby the enrollment of the annexing district
20increases by 90% or more as a result of the annexation,
21reimbursement shall begin during the fiscal year of January 11,
222008 (the effective date of Public Act 95-707). Each year that
23the new, annexing, or receiving district or cooperative high
24school, as the case may be, is entitled to receive
25reimbursement, the number of eligible certified members who are
26employed on October 1 in the district or cooperative high

 

 

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1school shall be certified to the State Board of Education on
2prescribed forms by October 15 and payment shall be made on or
3before November 15 of that year.
4    (c)(1) For the first year after the formation of a combined
5school district, as defined in Section 11E-20 of this Code or a
6unit district, as defined in Section 11E-25 of this Code, a
7computation shall be made totaling each previously existing
8district's audited fund balances in the educational fund,
9working cash fund, operations and maintenance fund, and
10transportation fund for the year ending June 30 prior to the
11referendum for the creation of the new district. The new
12district shall be paid supplementary State aid equal to the sum
13of the differences between the deficit of the previously
14existing district with the smallest deficit and the deficits of
15each of the other previously existing districts.
16    (2) For the first year after the annexation of all of the
17territory of one or more entire school districts by another
18school district, as defined in Article 7 of this Code,
19computations shall be made, for the year ending June 30 prior
20to the date that the change of boundaries attributable to the
21annexation is allowed by the affirmative decision issued by the
22regional board of school trustees under Section 7-6 of this
23Code, notwithstanding any effort to seek administrative review
24of the decision, totaling the annexing district's and totaling
25each annexed district's audited fund balances in their
26respective educational, working cash, operations and

 

 

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1maintenance, and transportation funds. The annexing district
2as constituted after the annexation shall be paid supplementary
3State aid equal to the sum of the differences between the
4deficit of whichever of the annexing or annexed districts as
5constituted prior to the annexation had the smallest deficit
6and the deficits of each of the other districts as constituted
7prior to the annexation.
8    (3) For the first year after the annexation of all of the
9territory of one or more entire school districts by 2 or more
10other school districts, as defined by Article 7 of this Code,
11computations shall be made, for the year ending June 30 prior
12to the date that the change of boundaries attributable to the
13annexation is allowed by the affirmative decision of the
14regional board of school trustees under Section 7-6 of this
15Code, notwithstanding any action for administrative review of
16the decision, totaling each annexing and annexed district's
17audited fund balances in their respective educational, working
18cash, operations and maintenance, and transportation funds.
19The annexing districts as constituted after the annexation
20shall be paid supplementary State aid, allocated as provided in
21this paragraph (3), in an aggregate amount equal to the sum of
22the differences between the deficit of whichever of the
23annexing or annexed districts as constituted prior to the
24annexation had the smallest deficit and the deficits of each of
25the other districts as constituted prior to the annexation. The
26aggregate amount of the supplementary State aid payable under

 

 

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1this paragraph (3) shall be allocated between or among the
2annexing districts as follows:
3        (A) the regional superintendent of schools for each
4    educational service region in which an annexed district is
5    located prior to the annexation shall certify to the State
6    Board of Education, on forms that it shall provide for that
7    purpose, the value of all taxable property in each annexed
8    district, as last equalized or assessed by the Department
9    of Revenue prior to the annexation, and the equalized
10    assessed value of each part of the annexed district that
11    was annexed to or included as a part of an annexing
12    district;
13        (B) using equalized assessed values as certified by the
14    regional superintendent of schools under clause (A) of this
15    paragraph (3), the combined audited fund balance deficit of
16    each annexed district as determined under this Section
17    shall be apportioned between or among the annexing
18    districts in the same ratio as the equalized assessed value
19    of that part of the annexed district that was annexed to or
20    included as a part of an annexing district bears to the
21    total equalized assessed value of the annexed district; and
22        (C) the aggregate supplementary State aid payment
23    under this paragraph (3) shall be allocated between or
24    among, and shall be paid to, the annexing districts in the
25    same ratio as the sum of the combined audited fund balance
26    deficit of each annexing district as constituted prior to

 

 

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1    the annexation, plus all combined audited fund balance
2    deficit amounts apportioned to that annexing district
3    under clause (B) of this subsection, bears to the aggregate
4    of the combined audited fund balance deficits of all of the
5    annexing and annexed districts as constituted prior to the
6    annexation.
7    (4) For the new elementary districts and new high school
8district formed through a school district conversion, as
9defined in Section 11E-15 of this Code or the new elementary
10district or districts and new combined high school - unit
11district formed through a multi-unit conversion, as defined in
12subsection (b) of Section 11E-30 of this Code, a computation
13shall be made totaling each previously existing district's
14audited fund balances in the educational fund, working cash
15fund, operations and maintenance fund, and transportation fund
16for the year ending June 30 prior to the referendum
17establishing the new districts. In the first year of the new
18districts, the State shall make a one-time supplementary
19payment equal to the sum of the differences between the deficit
20of the previously existing district with the smallest deficit
21and the deficits of each of the other previously existing
22districts. A district with a combined balance among the 4 funds
23that is positive shall be considered to have a deficit of zero.
24The supplementary payment shall be allocated among the newly
25formed high school and elementary districts in the manner
26provided by the petition for the formation of the districts, in

 

 

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1the form in which the petition is approved by the regional
2superintendent of schools or State Superintendent of Education
3under Section 11E-50 of this Code.
4    (5) For each newly created partial elementary unit
5district, as defined in subsection (a) or (c) of Section 11E-30
6of this Code, a computation shall be made totaling the audited
7fund balances of each previously existing district that formed
8the new partial elementary unit district in the educational
9fund, working cash fund, operations and maintenance fund, and
10transportation fund for the year ending June 30 prior to the
11referendum for the formation of the partial elementary unit
12district. In the first year of the new partial elementary unit
13district, the State shall make a one-time supplementary payment
14to the new district equal to the sum of the differences between
15the deficit of the previously existing district with the
16smallest deficit and the deficits of each of the other
17previously existing districts. A district with a combined
18balance among the 4 funds that is positive shall be considered
19to have a deficit of zero.
20    (6) For an elementary opt-in as defined in subsection (d)
21of Section 11E-30 of this Code, the deficit fund balance
22incentive shall be computed in accordance with paragraph (5) of
23this subsection (c) as if the opted-in elementary was included
24in the optional elementary unit district at the optional
25elementary unit district's original effective date. If the
26calculation in this paragraph (6) is less than that calculated

 

 

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1in paragraph (5) of this subsection (c) at the optional
2elementary unit district's original effective date, then no
3adjustments may be made. If the calculation in this paragraph
4(6) is more than that calculated in paragraph (5) of this
5subsection (c) at the optional elementary unit district's
6original effective date, then the excess must be paid as
7follows:
8        (A) If the effective date for the elementary opt-in is
9    one year after the effective date for the optional
10    elementary unit district, 100% of the calculated excess
11    shall be paid to the optional elementary unit district in
12    the first year after the effective date of the elementary
13    opt-in.
14        (B) If the effective date for the elementary opt-in is
15    2 years after the effective date for the optional
16    elementary unit district, 75% of the calculated excess
17    shall be paid to the optional elementary unit district in
18    the first year after the effective date of the elementary
19    opt-in.
20        (C) If the effective date for the elementary opt-in is
21    3 years after the effective date for the optional
22    elementary unit district, 50% of the calculated excess
23    shall be paid to the optional elementary unit district in
24    the first year after the effective date of the elementary
25    opt-in.
26        (D) If the effective date for the elementary opt-in is

 

 

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1    4 years after the effective date for the optional
2    elementary unit district, 25% of the calculated excess
3    shall be paid to the optional elementary unit district in
4    the first year after the effective date of the elementary
5    opt-in.
6        (E) If the effective date for the elementary opt-in is
7    5 years after the effective date for the optional
8    elementary unit district, the optional elementary unit
9    district is not eligible for any additional incentives due
10    to the elementary opt-in.
11    (6.5) For the first year after the annexation of territory
12detached from another school district whereby the enrollment of
13the annexing district increases by 90% or more as a result of
14the annexation, a computation shall be made totaling the
15audited fund balances of the district gaining territory and the
16audited fund balances of the district losing territory in the
17educational fund, working cash fund, operations and
18maintenance fund, and transportation fund for the year ending
19June 30 prior to the date that the change of boundaries
20attributable to the annexation is allowed by the affirmative
21decision of the regional board of school trustees under Section
227-6 of this Code, notwithstanding any action for administrative
23review of the decision. The annexing district as constituted
24after the annexation shall be paid supplementary State aid
25equal to the difference between the deficit of whichever
26district included in this calculation as constituted prior to

 

 

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1the annexation had the smallest deficit and the deficit of each
2other district included in this calculation as constituted
3prior to the annexation, multiplied by the ratio of equalized
4assessed value of the territory detached to the total equalized
5assessed value of the district losing territory. The regional
6superintendent of schools for the educational service region in
7which a district losing territory is located prior to the
8annexation shall certify to the State Board of Education the
9value of all taxable property in the district losing territory
10and the value of all taxable property in the territory being
11detached, as last equalized or assessed by the Department of
12Revenue prior to the annexation. To be eligible for
13supplementary State aid reimbursement under this Section, the
14intergovernmental agreement to be submitted pursuant to
15Section 7-14A of this Code must show that fund balances were
16transferred from the district losing territory to the district
17gaining territory in the annexation. The changes to this
18Section made by Public Act 95-707 are intended to be
19retroactive and applicable to any annexation taking effect on
20or after July 1, 2004. For annexations that are eligible for
21payments under this paragraph (6.5) and that are effective on
22or after July 1, 2004, but before January 11, 2008 (the
23effective date of Public Act 95-707), the required payment
24under this paragraph (6.5) shall be paid in the fiscal year of
25January 11, 2008 (the effective date of Public Act 95-707).
26    (7) For purposes of any calculation required under

 

 

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1paragraph (1), (2), (3), (4), (5), (6), or (6.5) of this
2subsection (c), a district with a combined fund balance that is
3positive shall be considered to have a deficit of zero. For
4purposes of determining each district's audited fund balances
5in its educational fund, working cash fund, operations and
6maintenance fund, and transportation fund for the specified
7year ending June 30, as provided in paragraphs (1), (2), (3),
8(4), (5), (6), and (6.5) of this subsection (c), the balance of
9each fund shall be deemed decreased by an amount equal to the
10amount of the annual property tax theretofore levied in the
11fund by the district for collection and payment to the district
12during the calendar year in which the June 30 fell, but only to
13the extent that the tax so levied in the fund actually was
14received by the district on or before or comprised a part of
15the fund on such June 30. For purposes of determining each
16district's audited fund balances, a calculation shall be made
17for each fund to determine the average for the 3 years prior to
18the specified year ending June 30, as provided in paragraphs
19(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c),
20of the district's expenditures in the categories "purchased
21services", "supplies and materials", and "capital outlay", as
22those categories are defined in rules of the State Board of
23Education. If this 3-year average is less than the district's
24expenditures in these categories for the specified year ending
25June 30, as provided in paragraphs (1), (2), (3), (4), (5),
26(6), and (6.5) of this subsection (c), then the 3-year average

 

 

10000SB1124sam001- 212 -LRB100 07569 MLM 25171 a

1shall be used in calculating the amounts payable under this
2Section in place of the amounts shown in these categories for
3the specified year ending June 30, as provided in paragraphs
4(1), (2), (3), (4), (5), (6), and (6.5) of this subsection (c).
5Any deficit because of State aid not yet received may not be
6considered in determining the June 30 deficits. The same basis
7of accounting shall be used by all previously existing
8districts and by all annexing or annexed districts, as
9constituted prior to the annexation, in making any computation
10required under paragraphs (1), (2), (3), (4), (5), (6), and
11(6.5) of this subsection (c).
12    (8) The supplementary State aid payments under this
13subsection (c) shall be treated as separate from all other
14payments made pursuant to Section 18-8.05 of this Code.
15    (d)(1) Following the formation of a combined school
16district, as defined in Section 11E-20 of this Code, a new unit
17district, as defined in Section 11E-25 of this Code, a new
18elementary district or districts and a new high school district
19formed through a school district conversion, as defined in
20Section 11E-15 of this Code, a new partial elementary unit
21district, as defined in Section 11E-30 of this Code, or a new
22elementary district or districts formed through a multi-unit
23conversion, as defined in subsection (b) of Section 11E-30 of
24this Code, or the annexation of all of the territory of one or
25more entire school districts by one or more other school
26districts, as defined in Article 7 of this Code, a

 

 

 

10000SB1124sam001- 213 -LRB100 07569 MLM 25171 a

1supplementary State aid reimbursement shall be paid for the
2number of school years determined under the following table to
3each new or annexing district equal to the sum of $4,000 for
4each certified employee who is employed by the district on a
5full-time basis for the regular term of the school year:
 
6Reorganized District's RankReorganized District's Rank
7by type of district (unit,in Average Daily Attendance
8high school, elementary)By Quintile
9in Equalized Assessed Value
10Per Pupil by Quintile
113rd, 4th,
121st2ndor 5th
13QuintileQuintileQuintile
14    1st Quintile1 year1 year1 year
15    2nd Quintile1 year2 years2 years
16    3rd Quintile2 years3 years3 years
17    4th Quintile2 years3 years3 years
18    5th Quintile2 years3 years3 years
19The State Board of Education shall make a one-time calculation
20of a reorganized district's quintile ranks. The average daily
21attendance used in this calculation shall be the best 3 months'
22average daily attendance for the district's first year. The
23equalized assessed value per pupil shall be the district's real
24property equalized assessed value used in calculating the

 

 

10000SB1124sam001- 214 -LRB100 07569 MLM 25171 a

1district's first-year general State aid claim, under Section
218-8.05 of this Code, or first-year evidence-based funding
3claim, under Section 18-8.15 of this Code, as applicable,
4divided by the best 3 months' average daily attendance.
5    No annexing or resulting school district shall be entitled
6to supplementary State aid under this subsection (d) unless the
7district acquires at least 30% of the average daily attendance
8of the district from which the territory is being detached or
9divided.
10    If a district results from multiple reorganizations that
11would otherwise qualify the district for multiple payments
12under this subsection (d) in any year, then the district shall
13receive a single payment only for that year based solely on the
14most recent reorganization.
15    (2) For an elementary opt-in, as defined in subsection (d)
16of Section 11E-30 of this Code, the full-time certified staff
17incentive shall be computed in accordance with paragraph (1) of
18this subsection (d), equal to the sum of $4,000 for each
19certified employee of the elementary district that opts-in who
20is employed by the optional elementary unit district on a
21full-time basis for the regular term of the school year. The
22calculation from this paragraph (2) must be paid as follows: